Botswana IFSC

1
Botswana IFSC

• An Opportunity to Base Regional HQ Company in the
  Botswana International Financial
• Services Centre

2
Overview

• Botswana IFSC Introduction
• IFSC Value Proposition
• Specific Tax Incentives
• Possible Structure - Resources Holding Co.
  /Corporate HQ
• IFSC Efficacy as Capital Raising Platform
• Case Study - Letshego
• International Insurance

3
Botswana IFSC Introduction

• A regional hub to facilitate delivery of a wide
  range of cross-border financial services.
• Targeting companies with a growing business
  presence in Africa.
• An active financial services centre, and not
  positioned as tax haven.

4
Botswana IFSC Value Proposition

• Flexibility in driving regional expansion in
  Africa
• Proximity and provision of substantive business
  support functions
• Tax reduction on income from foreign subsidiaries
  
• Raise or accumulate capital to fund future
  regional expansion
• Exemptions from work and resident permits for
  expatriate employees
• Lower cost environment vs traditional offshore
  centres ( Guernsey, Jersey etc.)

5
Specific Tax Benefits of Botswana IFSC

• 15 Corporate Tax Rate guaranteed until 2020
• Exemption from withholding taxes on interest,
  dividends, commercial royalties management or
  consultancy fees,
• Access to Botswanas Growing Double Tax Treaty
  network
• Credit for withholding taxes suffered in other
  jurisdictions (up to 15)
• Exemption from Capital Gains Tax (CGT)
• IFSC companies are zero rated for VAT

6
Structure - Resources Holding Co. / Corporate HQ

• Opportunity for companies with growing African
  network to consolidate financial and admin.
  functions.
• Mining Group Holding Co. of African Mining
  Interests
• Consolidate exploration mining businesses
  across Africa provide centralized admin.
  financial services.
• Manage finance facilities to group subsidiaries,
  manage group liquidity and group risk
• Capital raising through BSE - to fund exploration
  programs develop intermediate projects
• Management, administrative and financial advisory
  services.

7
IFSC Efficacy as Capital Raising Platform

• Raise capital through BSE listing
• Dual list on TSX, AIM and AUX
• Botswanas sovereign credit rating by SP and
  Moodys
• BSE listed resources companies
• A-Cap, African Copper, African Diamonds, CIC
  Energy, DiamonEx, Discovery Metals, IAMGOLD,
  LionOre

8
Case Study Micro Provident Botswana

• IFSC accredited Holding company to drive
  expansion of short term finance business
  operation into Africa
• Botswana, Malawi, Swaziland, Tanzania, Uganda and
  Zambia
• BSE listed, market cap. P 2bln, total income
  P 185million, total assets P 445million(2006)
• Main shareholders are PAIP, PCAP, FMO, IFC and
  Botswana Life Insurance Limited
• Accounting admin services, financial credit
  control, group treasury, inter-group lending,
  group ICT support, dividend management

9
International Insurance

• International Insurance Legislation now allow for
  wide range of international insurance activities
• Captive-insurance subsidiary Co. that only
  underwrites parents group risk
• Bypass typical insurer gain direct access to
  reinsurance market (lower group insurance
  premiums/insurance cost)

10
Steps to IFSC Licensing Accreditation

• Registrar of companies Company Formation
• Application / Business plan considered within 4-6
  weeks
• Representative IFSC Certification Committee
  considers applications
• Bank of Botswana regulatory clearance
• Telecommunications
• Work and Residence permits

11
Thank You.
Botswana International Financial Services Centre
2007
email ifsc_at_ifsc.co.bw Website
www.botswanaifsc.com Tel [phone]