IFSC to make Botswana regional financial hub

KASANE - Trade and Industry minister Neo Moroka says the government established the International Financial Services Centre (IFSC) in 2001 with the aim of making Botswana a regional financial hub.

Moroka was deliberating on "Trade and Investment opportunities" in Botswana at the Australia Southern Africa Business Council Conference in Kasane last Friday.

The minister said that the centre was dedicated to harnessing international financial services for the country's economic development and diversification.

He said it was further designed to enable the provision of a wide range of cross-border financial services in currencies other than the Pula.

The areas of operation are broad and include banking, investment funds, financial advisory services, information and communication and insurance services, call centres and back office developments.

"Botswana through IFSC provides excellent opportunities to companies which see Africa as a growing financial market," he said.

Moroka went on to explain that cross border financial services were motivated by the growth potential it offers to the relatively small size of Botswana's domestic sector and the need to focus on international markets.

The trade and industry minister said that the stringent vetting and screening process, coupled with adherence to international anti- money laundering treaties, ensured that only organisations of good repute were allowed to set up in the IFSC.

He said the other opportunity was that Botswana "is strategically located" at the centre of the Southern Africa region, which makes it a convenient location for investors who want to establish their regional corporate headquarters in the region.

"We believe in export-led growth and we want to attract export-oriented companies to service the regional and international markets," he said adding that the location of Botswana on the centre of the SADC market and SACU was enough testimony.

He said the SACU agreement allows producers to sell their products duty and quota free within the SACU member states that comprise Botswana, Lesotho, Namibia, South Africa and Swaziland. The SACU area represents a market of over 55 million people.

Moroka said the SADC trade protocol of 2000 liberalised and increased trade flows within SADC member states and the rest of the world. He added that this represents a market of 220 million inhabitants with an annual import bill of about US $200 billion.

"We are currently negotiating an economic partnership agreement with the EU to replace the Contonou Agreement trade arrangements starting from January 2008," he said.

He said Botswana has a quota free market access for goods manufactured in Botswana to the coveted US market under AGOA.

However, in the quest to attract foreign direct investment (FDI) and promote Botswana' s exports, the government established BEDIA in 1997, he said.

Its primary responsibility, he said, is to promote investment in export-oriented manufacturing enterprises and identify potential market outlets.

"BEDIA operates a one-stop-service facility which ensures that critical investor services such as the acquisition of work permits, resident permits, provision of factory premises and access to industrial connection as well as telecommunications are obtained expeditiously under one roof," said Moroka.

He said BEDIA also provides after care services once the investment has been set up. BOPA