Botswana Aims to Become African Hub for High-Net-Worth Individuals
TLDR
- Botswana aims to become a financial hub in Africa by diversifying beyond mining to attract high-net-worth individuals (HNWIs) and families.
- Investment management firm Ocorian's study highlights Botswana's efforts to enhance regulations and ease of doing business to attract foreign investment, following the success of Mauritius.
- Africa's ultra-high-net-worth population, currently over 135,000 dollar millionaires, is projected to grow by 65% in the next decade, signaling substantial opportunities for countries catering to this market.
Botswana is positioning itself as a potential hub for high-net-worth individuals (HNWIs) and families in Africa, with a push to diversify its economy beyond mining and into financial services, according to a new study by investment management firm Ocorian.
Botswana, known as the world’s largest rough diamond producer by value, is seeking to attract foreign investment through improved regulations and enhanced ease of doing business, aiming to mirror the success of Mauritius as a low-tax jurisdiction for affluent clients.
Africa’s ultra-high-net-worth population, which stands at over 135,000 dollar millionaires, is expected to grow by 65% over the next decade, presenting significant opportunities for countries that can meet the demands of this expanding market.
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Key Takeaways
Botswana’s regulatory improvements and focus on financial services have positioned it as one of the continent’s key players, alongside Rwanda, which is rapidly establishing itself as a technology and innovation hub. However, the report also highlights challenges Botswana faces, particularly its limited expertise in the financial services sector. This lack of experience, coupled with a recent downturn in diamond revenue, has slowed the country’s economic diversification efforts. In the October 2023 elections, Botswana’s ruling party lost its parliamentary majority, signaling public frustration with the pace of economic transformation. Despite these challenges, both Botswana and Rwanda are making strides in the financial and tech sectors, but they still have a long way to go to rival Mauritius, a well-established offshore financial center known for its attractive tax environment, luxury tourism, and international investment appeal.
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