22 Mar 2018

Permanent Secretary in the Ministry of Investment, Trade and Industry has assured africapractice that it has made a good decision to invest in the Botswana International Financial Services Centre (IFSC).

Officially inaugurating and launching the africapractice operations in Botswana, Ms Peggy Serame said Botswana prides itself with desirable attributes, comprising of sustained political stability, respect for human rights, and adherence to rule of law, prudent economic management, and investment grade sovereign credit ratings as well as strategic location as a country within the region.

She said the launch of africapractice operations in Botswana demonstrates the company’s approval of Botswana as a destination for foreign direct investment.

“The launch is a culmination of tireless efforts by Botswana Investment and Trade Centre (BITC), to lure, accredit and facilitate africapractice as part of its expansion strategy anchored on the opening of its regional headquarters in Botswana,” she said.

Ms Serame said Botswana stands ready to host and facilitate multinational businesses such as africapractice seeking to expand operations and investments across the region.

She said in this regard Botswana has put in place necessary laws and frameworks that position Botswana as a key launchpad for investment into SADC and sub-Saharan Africa.

“The Botswana IFSC for example, provides a bouquet of competitive incentives aimed at stimulating Botswana’s level of influence in enabling effective regional investment flows. 

Amongst the key incentives for companies operating within the IFSC are a discounted corporate tax rate of 15 per cent, conditional exemptions from capital gains tax, conditional exemptions from withholding tax, zero rating for value added tax, no foreign exchange controls, no foreign company ownership restrictions, ability to denominate share capital in any major internationally convertible currency and access to Botswana’s expanding double tax avoidance treaty network,” said Ms Serame.

She further said in an endeavour to improve the investment enabling environment within the financial services sector, Botswana subscribes to international scrutiny, among others, the OECD and EU structures.

Ms Serame said in this regard, Botswana recently went through a review process by the OECD’s global forum on transparency and exchange of information for tax purposes, where the country was rated as largely compliant with the international tax standard.

She said additionally, in June 2017 Botswana joined the inclusive framework for purposes of aligning with the base erosion and profit shifting (BEPS) standards.

“The BEPS standards regulate tax planning strategies by companies that exploit gaps and mismatches in tax laws and rules, to artificially shift profits to low or no tax locations, where there is little or no economic activity,” she said.

Ms Serame noted that her ministry continues to strive to improve the ease of doing business in Botswana.

“In this regard, we are collaborating with both government and private sector stakeholders in implementing an IFSC revitalisation plan, which is aimed at improving the attractiveness and global compliance of the Botswana IFSC framework,” said Ms Serame.

She indicated that based on the current reforms and outcomes of both the OECD and EU assessments, she can attest to the fact that Botswana is not a tax haven.

“The country is a jurisdiction in the process of implementing key reforms to enhance its IFSC offering and elevate its level of compliance with international standards,” she continued.

Speaking on africapractice, Ms Serame said for the past 15 years, africapractice has worked with some of the largest and most successful businesses, institutions and foundations on the continent, helping them identify and mitigate risks, drive growth and move the continent forward.

“With a dedicated staff of 90 consultants spread throughout the continent, the group has worked in more than 40 African nations, counselled more than half a dozen African heads of state, supported more than a dozen African nations with their public diplomacy, and advised many of the continent’s biggest companies and foundations including groups like Vodacom, Standard Bank, Bill and Melinda Gates Foundation, UK Aid and the World Bank,” she said.

Ms Serame said she was equally excited by prospects that arise with a capital investment of USD 1.8 million, including job creation that would be invested by africapractice in Botswana over the next three years.

“The group plans to initially employ between six and nine talented Batswana, and one expatriate employee,” she said.

Ms Serame encouraged africapractice to continuously make use of the services rendered through Botswana One Stop Service Centre (BOSSC) and give us open feedback on areas that we could possibly improve in delivering key services to investors.

“BOSSC is an investment facilitation mechanism which provides prompt, efficient and transparent services to investors. 

This is in respect to acquisition of work and residence permits, licensing, tax registration and land to name a few,” concluded Ms Serame.

For his part, Chief Executive Officer of africapractice, Mr Marcus Courage said africapractice is a pan-African strategy and communications consulting firm.

“Our clients are some of the largest and most successful companies, investors, public sector organisations and foundations operating in Africa today. 

We help them understand shifting political, policy, regulatory and societal trends and we equip them to manage the risks and opportunities these present for their operations,” he said.

Mr Courage said they combine strong industry knowledge with world-class technical skills and deep market insights to support their clients at every stage of their business.  ENDS