bifm capital channelling international investment funds in africa

Bifm Capital

Channelling International Investment Funds in Africa

Table of Contents

• Context of the Botswana Africa Mining Fund

• Why domicile funds in Botswana?

• Why manage and administer funds in Botswana?

• Conclusion

Botswana Africa Mining Fund

• First mining fund for Botswana

• Marketed to Professional Investors Only

• CIU and Regulated by BoB

• Registered in the IFSC

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

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

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

Fund Management

• Pros– Cost advantage compared to Europe

– Pan African Fund – close to markets

– Information is accessible

– Access to capital

Fund Management

• Cons– Lack of experienced investment

professionals

– Long distances to developed markets

Fund Administration

• Fund Administration

– Back office activities

– Valuations / Pricing

– Fund Accounting

– Reconciliations

• Pros– High levels of education

– Reasonably well developed IT Infrastructure/Telecoms

– Same time zone as Europe

– English speaking

– High auditing standards

Fund Administration

Fund Administration

• Cons– Lack of technical skills

– Lack of experience

– Limited back office activity in Botswana

– Band width challenges

– High labour costs

Conclusion

• Speed

• Government policies

Thank you

Bifm CapitalTel: +267 395 1564

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