01 November, 2007
Botswana To Host The 7th African Venture Capital Conference (AVCA)

Botswana IFSC and Venture Partners Botswana will host the 7TH African Venture Capital Association Conference at the Gaborone International Conference Centre [GICC] from 16-18th March 2008.

This was announced at the breakfast briefing for the business and investment community and members of the media held in Gaborone on October 11, 2007.

Formed in 2000, AVCA is a non - profit organization whose mandate is to promote, develop and stimulate private equity and venture capital in Africa. Its membership (90 full and associate members) is growing and has over €5 billion currently under management.

“These are exciting times for the Private Equity Industry in Africa and the combination of cheaper money internationally and an improved political and macroeconomic environment has turned investor interest to the continent.  In 2006, African Fund Managers raised USD 2.35 billion and the first half of 2007 alone an additional USD 1.6 billion has been closed,” Mawuli Ababio Managing Director of AVCA explained.  

The AVCA Annual Conference is held in various African capitals and serves as a networking forum for regional and global fund managers and investors interested in Africa. The 2008 Conference is a unique opportunity to showcase Botswana as a viable financial hub.

“We are excited that we won the bid to host this conference in Botswana and expect over 300 international delegates and potential investors to attend the conference in 2008,” said  Ndaba Mpofu, Chief Investment Officer, Venture Partners Botswana. “ The Conference is expected to put the Botswana venture capital industry firmly in the spotlight. This will serve as a catalyst for the growth and development of this important asset class in the country and the regional as a whole.”  

In his remarks, Letsebe Sejoe, IFSC Business Development Executive, indicated “the Botswana IFSC views the AVCA Conference as a unique opportunity to secure the establishment, management and domiciliation of more Pan-African investment funds in Botswana. These will typically raise funds internationally from Development Financial Institutions and make expert investments across Africa. The profile of AVCA conference participants and delegates and in particular the Pan African Investment Funds that they routinely establish, all fit well with the profile of companies that we wish to attract to the Botswana IFSC.”

He pointed out that “Regional companies that Pan-African Investment funds invest in, also have the potential to accredit to the Botswana IFSC and base themselves in Botswana.”

“Deliberations and key outcomes of the conference will guide the Botswana IFSC in the facilitation process aimed at enhancing the global competitiveness of our offering in this sector. For example, we will be guided in terms of legislative amendments to make our offering more competitive vis-à-vis other competing jurisdictions. (ie) We have in the past successfully secured the exemption of IFSC entities from Capital Gains Tax (CGT) and the denomination of share capital in convertible currencies.

“As another outcome, Botswana should start appearing on radar screen of international investors looking for investment opportunities in Africa, in sectors such as Resources and Mining, Infrastructure and future Government Public Private Partnership or (PPP) projects.”

“Pan African Private Equity fund managers can also look to Botswana’s liquidity to raise funds from local financial institutions and pension funds, at the same time offering new and alternative investment opportunities to Botswana’s capital market,” Sejoe explained.

Regarding the venture capital industry, Ndaba Mpofu explained that “the conference will put the Botswana venture capital industry firmly in the spotlight. This will serve as a catalyst for the growth and development of this important asset class in the country and the region as a whole. Venture capital is playing an ever increasing role in fostering the growth and development of enterprises in the African economies. According to the Southern Africa Venture Capital and Private Equity Association / KPMG Private Equity Survey 2006, the South African private equity industry had capital of R56 billion under management, up from R44 billion in the prior year, compared to less than P500 million that is currently committed to venture capital and private equity in Botswana. This means that as a country we need to work harder to attract more capital to the venture capital and private equity industry, and in the process foster the development of local entrepreneurship and business.”

Membership of AVCA is open to Private Equity Fund Managers, Institutional Investors, Regulators, the legal fraternity, and any professionals involved in the industry. To become a member, or to register online for the 2008 AVCA Conference, please visit the AVCA website; www.avcanet.com.