Botswana: Offshore Legal and Tax Regimes
International Financial Services Centre
This page was last updated on 26 Apr 2019.
The benefits which Botswana seeks from the development of an active international financial services centre are:
- creating of sustainable employment opportunities for suitably qualified citizens.
- Improved skill base of the Botswana workforce.
- A more diverse national revenue base.
- increased use of modern financial services technology.
- Further enhancement of Botswana's already excellent reputation in the international financial community.
Through the international financial services centre, Botswana is seeking to concentrate on the following core activities:
- banking and financing operations transacted in foreign currency;
- the brokering and trading of securities denominated in foreign currency;
- investment advice;
- management and custodial functions in relation to collective investment schemes;
- insurance and related activities (captive insurance and administration thereof);
- registrar and transfer agency services;
- exploitation of intellectual property;
- development and supply of computer software for use in the services described above;
- cross border leasing;
- capital raising.
The legislation establishes an IFSC certification committee which makes recommendations to the Minister of Finance and Development Planning for the issuance of a tax certificate valid until 2020. When considering an application for a certificate, the committee will examine:
- the number of Botswanan citizens who will be employed in relation to the approved operation and the capacities in which they will be employed;
- facilities proposed for the training and imparting of skills to citizens;
- provisions made for the eventual replacement of non-resident employees by Botswanan citizens;
- provision made for the participation by Botswana citizens in the management of the business.