Channelling International Investment Funds in Africa

1. Channelling International Investment Funds in Africa

2. Table of Contents • Context of the Botswana Africa Mining Fund • Why domicile funds in Botswana? • Why manage and administer funds in Botswana? • Conclusion

3. Botswana Africa Mining Fund • First mining fund for Botswana • Marketed to Professional Investors Only • CIU and Regulated by BoB • Registered in the IFSC

4. Why Domicile Funds in Botswana? • Enabling Environment • Legal and Regulatory Framework • Developed legal system • Immigration of foreign nationals • Laws are consistent • Rights can be defended and disputes settled • CIU legislation in place • Regulation by the BoB

5. Why Domicile Funds in Botswana? (Cont..) • Tax Policies • Government has set up the BIFSC • Tax advantages if funds are IFSC designated – e.g. exemption from withholding tax on dividends paid to non-residents • Promotion of the fund - IFSC • Governance and Anti-Corruption • Accountable • Transparent • Efficient and Effective • Responsive • Rule of law

6. Why Domicile Funds in Botswana? (Cont..) • Accessible government • Ready to do business • Dialogue with the private sector • No Exchange Controls • Improve efficiency of the economy • Higher increased living standards • Reduce unnecessary government intervention • We need to take advantage of this competitive edge

7. Fund Management • Pros • Cost advantage compared to Europe • Pan African Fund – close to markets • Information is accessible • Access to capital

8. Fund Management • Cons • Lack of experienced investment professionals • Long distances to developed markets

9. Fund Administration • Fund Administration • Back office activities • Valuations / Pricing • Fund Accounting • Reconciliations

10. Fund Administration • Pros • High levels of education • Reasonably well developed IT Infrastructure/Telecoms • Same time zone as Europe • English speaking • High auditing standards

11. Fund Administration • Cons • Lack of technical skills • Lack of experience • Limited back office activity in Botswana • Band width challenges • High labour costs

12. Conclusion • Speed • Government policies

13. Contacts Thank you Bifm Capital Tel: +267 395 1564