Botswana IFSC is a company limited by guarantee. The objective is to fulfill the Government’s mandate to create an active international financial services centre, which will make a significant contribution to achieving economic diversification and increasing the country’s integration into the regional and global economy.
Botswana 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.