BOTSWANA INTERNATIONAL SERVICES CENTRE IFSC

1
BOTSWANA INTERNATIONAL SERVICES CENTRE (IFSC)

• Presentation to the CCA
• Washington DC
• 25th June, 2003.

2
WHAT IS BOTSWANA IFSC

• An initiative to develop Botswana as an African
  hub for cross border financial services
  
• Company with Board of Directors growth
  development of IFSC initiative
  

3
CONDITIONS FOR IFSC APPROVAL

• Financial Services to be provided to / for
  clients outside Botswana (export of services)
  
• In currencies other than the Pula
• A broad range of activities provided for in the
  Income Tax (Amendment) Act 1999

4
BOTSWANA IFSC OBJECTIVES

• Diversify Botswanas economic base
• Generate sustainable employment opportunities for
  suitably qualified citizens
  
• Technology and skills transfer
• Development of a strategic sector (Financial
  Services)
  
• Leverage Botswanas real comparative advantage

5
BOTSWANAS SUITABILITY

• A democratic political system well managed
  economy
  
• A legal / fiscal system that will provide the
  right framework
  
• Effective legal environment, high standards of
  regulation
  
• No exchange controls since 1999
• Botswanas Global Rankings
• Competitive personal income tax rate (maximum
  25)
  
• Proximity to JHB, the major commercial / business
  centre in Africa
  

6
IFSC TAX INCENTIVE PACKAGE

• 15 Corporate Tax Rate until 2020
• Exemption from withholding taxes in Botswana
• Access to Botswanas Double Tax Treaty network
  (UK,France, RSA, Mauritius, Sweden Russia)
  
• Unilateral credit for withholding taxes suffered
  in other jurisdictions (up to 15)
  
• No Capital Gains Tax
• No VAT (Zero rated IFSC services)

7
SOCIALLY RESPONSIBLE APPROVAL PROCESS

• Botswana IFSC not Tax Haven nor an Offshore
  Centre
  
• Signatory to International Conventions combating
  money laundering financing of terrorism (BIS,
  IMF/FATF, UN Conventions)
  
• Business plan demonstrates substantive
  activities
  
• Employment commitment related to scale of
  activities proposed
  
• Representative Certification Committee considers
  applications
  
• Bank of Botswanas regulatory standards
  reputation

8
MAIN TARGET SECTORS

• Facilitation of Inward Investment Flows into
  Africa
  
• Holding Company Structures
• Group Treasury Operations
• Regional Financial Services
• Banking Operations
• Funds Management Admin.
• Captive insurance Reinsurance activities

9
OTHER SECTORS

• Back Office Outsourcing at Lower Cost
• - Accounting financial administration
• - Shared service centres
• - Call Centres

10
APPROVAL PROCESS

• Initial Contact appraisal with Botswana IFSC
  team
  
• Application / Business plan considered within 4-6
  weeks
  
• IFSC Assistance to Applicants
  Registrar of
  Companies, BTC, Work Residence Permits etc.

11
THANK YOU!

• www.ifsc.co.bw
• For more information.