As part of our regular consideration of global offshore site developments, the African continent is generally rare. However, this in no way means that there is no offshore market on the African continent. The Republic of Botswana, for example, can be extremely interesting here.
Botswana, an African landlocked country bordering on South Africa in the South and Namibia in the North, has undergone a remarkable development. Back in the 1960s, the country, which has only a population of 2 million, was one of the poorest in the world, with a per capita GNP of $ 70 a year. Botswana has long since left its mark: per capita purchasing power in 2013 was a staggering $ 16,400 annually.
According to Transparency International, Botswana also has the lowest corruption rate in Africa, roughly equal to the EU member states Spain and Portugal or even South Korea. In the ranking of the states with regard to effective industrial property rights, Botswana only had to prefer South Africa.
English is the official language and the legal system is based on Dutch law.
Development of the offshore investment location Botswana
To further its economic recovery, the Botswana government has taken a number of steps to make the offshore local business attractive to foreign investors and entrepreneurs.
Already with the 1999 Income Tax Amendment Act Amendment, the government has created an international financial center focused on attracting foreign investors to Botswana. In the meaning of the Collective Investment Undertakings Act (the Collective Investment Undertakings Act 1999), which also dates back to 1999, open and closed funds or investment companies can be established for this purpose. Such funds or investment companies are subject to the supervision of the Bank of Botswana.
From a tax point of view, the possibility of low taxation within the international financial center is particularly interesting. Extensive tax deductions are possible and exemption from withholding and dividend tax and withholding tax are also available within the zone of the International Financial Center.
Although the investment-friendly legislation is already based on 1999 incentives, as has been shown, Botswana is still not necessarily a name that must be immediately thought of by the inclined company founder or offshore investor. Just if a fast and swift arrival from Europe should be an important consideration, there should be plenty of other alternatives.
Depending on the specific nature of your project a closer look at the location Botswana but certainly interesting.