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Why Botswana for Offshore Financial Services? |
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Written by OffshoreWorld
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Friday, 13 February 2009 |
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Offshore Banking Services in Africa: Why Botswana?
by Botwana IFSC for Offshore World
Botswana IFSC is a government agency which was incorporated in April
2003. Its role is to establish and develop Botswana as a world-class
hub to facilitate the delivery of a wide range of cross-border
financial services to clients in other countries.
- Botswana is a stable democracy with an excellent track record since independence in 1966.
- Botswana tops the list of the world's fastest growing economies since 1965):
- Botswana 9.2%
- South Korea 7.3%
- China 6.7%
- Singapore 6.3%
- Hong Kong 5.6% ( Source; World Bank, 1998 )
- There are no foreign exchange controls in Botswana.
- Botswana
is a member of the Southern African Customs Union (SACU), an economic
grouping free of tariffs that also includes South Africa, Namibia,
Lesotho and Swaziland. It is also a member of the Southern African
Development Community (SADC), and serves as the headquarters of the
regional organization that has a market of 200 million people.
- There is a well-developed legal system based on Common Law, which facilitates business and commercial activities.
- Standard
and Poors and Moody's in 2003 have given Botswana an investment grade
sovereign credit rating higher than any other sub Saharan African
country.
- Botswana has consistently invested a high proportion of its budget on education and skills training.
- The country has a thriving domestic financial sector, which includes banks, insurance companies and a growing stock market.
- Botswana
has acceded to international conventions and is strictly observing
internationally accepted guidelines on combating money laundering and
financial crime.
- Transparency
International, in its Corruption Perceptions Index of 2003, rated
Botswana to be the least corrupt country in Africa, and 24th least
corrupt in the world on this score.
- There
are 8 daily flights in either direction between Gaborone and
Johannesburg - the major aviation hub on the continent. Travelling time
is 1 hour.
- Botswana has invested in a world-class multi-service telecommunications system that facilitates provision of services remotely.
The Botswana International Financial Services Centre (IFSC) is being developed as an active cross-border
financial services centre. The focus is on the IFSC being a location where
active and substantive financial services business is undertaken. The
key characteristics of an IFSC are that financial services are provided
to clients who are domiciled in other countries and that fiscal incentives
are provided to financial and non-financial institutions to encourage
them to establish in the IFSC to provide these services.
Botswana
IFSC is not a traditional "tax haven". Such an approach would not meet
the policy objectives of creating employment opportunities or of
enhancing the country's skill base. In addition traditional tax havens
have come under increasing pressure in recent years over issues such as
money laundering and tax evasion. The Botswana IFSC is therefore
structured as a transparent, open business location with high standards
of regulation and rigorous screening and project approval process.
The benefits, which Botswana seeks from the development of an active International Financial Services Centre, are:
- The creation of sustainable employment opportunities for suitably qualified citizens.
- The enhancement of the skills base of the Botswana workforce.
- The diversification of the revenue base of the country.
- The fostering of the introduction and increased use of modern financial services technology.
- The enhancement of Botswana's already excellent reputation in the international financial community.
More Resources:
Kingdom Bank Africa Botswana - Kingdom Africa Bank Limited acquired a
banking license for cross-border business under the auspices of
the Botswana IFSC in August 2003. Kingdom Bank Africa Limited is
a diversified financial services group listed on the Zimbabwean
Stock Exchange.
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