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Bifm Capital
Channelling International Investment Funds in Africa
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Table of Contents
• Context of the Botswana Africa Mining Fund
• Why domicile funds in Botswana?
• Why manage and administer funds in Botswana?
• Conclusion
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Botswana Africa Mining Fund
• First mining fund for Botswana
• Marketed to Professional Investors Only
• CIU and Regulated by BoB
• Registered in the IFSC
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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
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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
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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
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Fund Management
• Pros– Cost advantage compared to Europe
– Pan African Fund – close to markets
– Information is accessible
– Access to capital
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Fund Management
• Cons– Lack of experienced investment
professionals
– Long distances to developed markets
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Fund Administration
• Fund Administration
– Back office activities
– Valuations / Pricing
– Fund Accounting
– Reconciliations
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• Pros– High levels of education
– Reasonably well developed IT Infrastructure/Telecoms
– Same time zone as Europe
– English speaking
– High auditing standards
Fund Administration
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Fund Administration
• Cons– Lack of technical skills
– Lack of experience
– Limited back office activity in Botswana
– Band width challenges
– High labour costs
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Conclusion
• Speed
• Government policies
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Thank you
Bifm CapitalTel: +267 395 1564
Contacts