The International Business Companies (IBC’s) model is the most successful setup within the Botswana IFSC jurisdiction. The model presents the most immediate potential for growth of the Botswana IFSC platform into Africa. These IBC’s are companies that cut across sectors and have operations/ projects in several Sub-Saharan countries and are typically structured as Investment Holding companies or Regional Head quarter operations.
Letshego, Micro Provident Botswana Limited, has been accredited as a Botswana IFSC accredited company in order to enable it to expand its business enterprise to other African countries. The accredited holding company under the Botswana IFSC will roll out the Micro Provident Botswana business model in other parts of Africa. Micro Provident, whose trading name is Letshego, is a listed company that provides short-term finance to low and middle-income people working in the formal employment sector in Botswana.
The company is establishing retail financial services companies, as subsidiaries, that will offer a range of financial services products to employees of government, parastatals and the private sector in a number of African countries. Total earnings of about US$ 120 million are projected within the first three years of operations. Operations have already started in Swaziland, Uganda, Tanzania and the company will soon be recruiting for the Zambia office. The main shareholders of Micro Provident Botswana Limited are: PAIP-PCAP-FMO-Letshego Limited, which comprises Pan-African Investment Partners (PAIP), Pan-Commonwealth African Partners (PCAP) and Nederlandse Financierings Maatschappij voor Ontwikkelingslanden NV.
Pangea Development Holdings (PDH) is a property development company focusing on the construction of large-scale housing estates targeting emerging middle class home buyers in Africa. In late 2007, PDH commenced infrastructure development in two countries, Zambia and Kenya. Hacienda Developments entails the creation of over 6000 lower-middle and middle-income houses and apartments outside Mombasa. Construction also started on the initial 50 units of a planned 3700 unit Lilayi Housing Estate Development Project in Zambia. FMO, the Dutch development agency has provided infrastructure financing at Lilayi, while mortgages will be guaranteed by Overseas Private Investment Corporation. PDH secured an Over-The-Counter listing of its stock on the Botswana Stock Exchange as a first step towards a planned listing on the Venture Capital Board in the coming financial year.
Aon Risk Management is a wholly owned subsidiary of Aon Corporation (USA), a global insurance broker listed on the New York Stock Exchange. Aon Risk Management provides risk management and loss control services to clients in 13 countries across sub-Saharan Africa, with an emphasis on the mining and industrial sectors. In addition, the company provides management and administrative services to Captive Insurance Companies located in the Botswana IFSC.
Imara Holdings Botswana Limited is a financial services group that focuses on the provision of corporate finance and asset management services to clients in Southern and Eastern Africa. Imara has established a holding company structure in the Botswana IFSC that provides group treasury and other centralized services such as the management of intellectual property rights to the groups wholly owned subsidiaries.
Bergstan Africa has been operating in Botswana, as a firm of Consulting Engineers & Project Management Services since April 1992, when the Company was registered under the name of Liebenberg & Stander Botswana (Pty) Ltd. In 2004 the company changed its name to Bergstan Africa. Bergstan Africa Financial Service provides corporate, financial and management services to the network of Bergstan Business Units, which have been established in the different countries in Africa. The financial services provided by the company will include:
- The provision of startup finance
- The provision of bridging finance
- The placing and management of excess finance
- The provision of management accounting systems and procedures
- The provision of standard for financial management system and procedures.
CB Richards Ellis operates in five African countries, two of which will initially fall under the Botswana IFSC company CBRE Regional. CBRE Regional will consolidate the regional and cross-border business of the CB Richards Ellis offices in Africa. CBRE is the world’s largest premier full service commercial real estate agent company.
FINDEV (Proprietary) Limited
FinDev P/L is a software development company that provides financial software development and operational support services to companies within sub-Saharan Africa. FinDev’s core experience and therefore market focus, centers on the development of packaged financial software systems primarily for companies involved in:
- Stock Broking
- Money Market and Asset Management
- Purchase Order Finance, Invoice Discounting, Factoring
- Unit Trusts
- as well as bespoke financial systems
FinDev’s flagship product is ActiveBroker, a comprehensive brokerage management system that provides a complete trading, settlement, accounting and management information system environment for multi-branch, multi-country stock broking firms. FinDev’s rare combination of end-to-end software development skills and in-depth African financial services sector knowledge, gives the company a significant advantage over its competitors. Botswana was chosen as the company’s operational hub, targeting the blooming financial services industry within the sub-Saharan region and the subsequent demand for financial software systems & related services. Apart from the company’s extensive experience in the region, Botswana was ideally suited as the company’s development hub due to its central position within the region, stable economy, favourable exchange controls and rapidly developing telecommunications infrastructure.