Conduits of Capital

More documents

Recommendations

Info

The graph to the right shows the historical rating of the financial centres in the group. Historically, the Middle Eastern centres of Dubai and Doha have led the group. Tel Aviv joined the GFCI in GFCI 14. Busan and Casablanca only joined the GFCI in GFCI 15. 2.2 Future Financial Centre Stability The GFCI 16 model provides analysis of the financial centres with the most volatile positions. The chart below contrasts the ‘spread’ or variance of the individual assessments given to each centre with the sensitivity to changes in the instrumental factors: There are three bands of financial centres. The ‘unpredictable’ centres in the top right of the chart have a high sensitivity to changes in the instrumental factors and a high variance of assessments. These centres have the highest potential volatility of the GFCI centres. This group includes four centres in the group (Tel Aviv, Busan, Doha and Port Louis). These centres are easily affected by changes in assessments and in instrumental factor scores and Tel Aviv and Port Louis in particular are ‘outliers.’ 122 |
The ‘stable’ centres in the bottom left of the chart (including the top four centres) have a relatively low sensitivity to changes in the instrumental factors and a low variance of assessments. These centres are likely to exhibit the lowest volatility in future GFCI ratings. Looking back at recent GFCI ratings, the stable centres are fairly consistently towards the top of the GFCI ratings. The ‘dynamic’ centres in the central band including four from the peer group (Dubai, Casablanca, Istanbul and Johannesburg) are the most interesting. They have a potential to move and generally once in the ‘dynamic’ area tend to stay there and move towards greater stability. From this viewpoint, Casablanca and Dubai are the best positioned centres in the peer group. 2.3 Reputational Advantage One of the great advantages of the instrumental factor approach to index construction is the ability to distinguish a centre’s reputational advantage or disadvantage. The distinction emerges when examining the difference between the weighted average assessment given to a centre and its overall rating. The first measure reflects the average score a centre receives from financial professionals across the world. The second measure is the GFCI score itself, which represents the average assessment adjusted to reflect the instrumental factors. If a centre has a higher average assessment than its GFCI 16 rating, this indicates that respondents’ perceptions of a centre are more favourable than the quantitative measures alone would suggest. If a centre has a higher average assessment than its GFCI 16 rating, this indicates that respondents’ perceptions of a centre are more favourable than the quantitative measures alone would suggest. This may be due to strong marketing or general awareness. Casablanca (as Dubai has done in the past) has spent a considerable amount on advice, marketing, conferences and promotion. It has had active French and UK advisors. Casablanca has a very high reputational advantage suggesting that the marketing of the centre has worked, perhaps too strongly as its reputation well outstrips its GFCI rating. If respondents did not know it was Casablanca, they would have rated it significantly differently. Centre Average Assessment GFCI 16 Rating Reputational Advantage Casablanca 803 635 168 Johannesburg 666 659 7 Port Louis 572 608 -36 Nairobi 600 602 -2 Busan 825 676 149 Doha 656 684 -28 Dubai 710 694 16 Istanbul 637 655 -18 Tel Aviv 667 664 3 This reputational advantage might be seen to indicate that Casablanca and Busan are ‘overtrading,’ i.e., their marketing is working too well. It could be argued, and will be important later in sub-indices later, that a significant discount, perhaps up to 50 points, should be applied to the Casablanca and Busan ratings that follow. 2.4 Financial Centres of The Future “I never predict anything, and I never will.” Paul Gascoigne Given the potential of Africa and the paucity of contemporary financial centres, it seems only right to hazard some thoughts on the centres that might become significant. A few observations on the sifting process are in order. Readers are referred to Appendix E to form their own thoughts. First, there is a distinction between federal countries and centralised countries. Conduits of Capital – Onshore Financial Centres and Their Relevance to African Private Equity | 123
Page 1 and 2:
Conduits of Capital Onshore Financi
Page 3 and 4:
TABLE OF CONTENTS I. FOREWORD .....
Page 5 and 6:
predictable, legal systems that res
Page 7 and 8:
works and that everyone loves.” D
Page 9 and 10:
Because of the fragmented nature of
Page 11 and 12:
Industry Views: EMPEA 2015 African
Page 13 and 14:
EXECUTIVE SUMMARY In April 2015, FS
Page 15 and 16:
INTRODUCTION Across the emerging ma
Page 17 and 18:
As a general rule, GPs tend to foll
Page 19 and 20:
“Offshore” refers to a jurisdic
Page 21 and 22:
expressed by GPs). Over 61% of GP r
Page 23 and 24:
“The industry has found a very sa
Page 25 and 26:
INDUSTRY ATTITUDES TOWARD ONSHORE A
Page 27 and 28:
A RANKING OF ONSHORE FUND DOMICILES
Page 29 and 30:
Conduits of Capital - Onshore Finan
Page 31 and 32:
WHAT COULD MAKE ONSHORE SUB-SAHARAN
Page 33 and 34:
“Other” actions include: “rem
Page 35 and 36:
“ STAKEHOLDER VIEWS ON THE RELATI
Page 37 and 38:
APPENDIX 1 - DETAILS ON SURVEY PART
Page 39 and 40:
Expert Perspectives: Onshore Financ
Page 41 and 42:
Experts were asked to make recommen
Page 43 and 44:
Table 2 - Prerequisites for a succe
Page 45 and 46:
3. FINDINGS 3.1 Evolution and Compa
Page 47 and 48:
particular jurisdiction (communicat
Page 49 and 50:
that it is obvious: a well-function
Page 51 and 52:
• The development of an onshore f
Page 53 and 54:
amined the impact that venture capi
Page 55 and 56:
4.1. Where do Private Equity Fund M
Page 57 and 58:
in absolute terms, or relative to t
Page 59 and 60:
average. With respect to regulatory
Page 61 and 62:
For future research, it is importan
Page 63 and 64:
ENDNOTES 1 World Bank Enterprise Su
Page 65 and 66:
33 African Development Bank. Maurit
Page 67 and 68:
71 Unfortunately, the DTAAs lists b
Page 69 and 70:
The financial activities carried in
Page 71 and 72: The OECD has reviewed over 100 juri
Page 73 and 74: Importance of Domestic Flows The re
Page 75 and 76: Rwanda is not included in any of th
Page 77 and 78: Other possible contenders may emerg
Page 79 and 80: APPENDIX 1: LISTING OF COUNTRIES IN
Page 81 and 82: Country / Territory Palau Listed by
Page 83 and 84: Country Mauritius Morocco 16 Nigeri
Page 85 and 86: Onshore Options for Africa-focussed
Page 87 and 88: Developing skills in these areas re
Page 89 and 90: 2.2 Policy Issues Related to Onshor
Page 91 and 92: • Good accessibility. Good commun
Page 93 and 94: 4. ROLE OF DONORS AND TECHNICAL ASS
Page 95 and 96: Thus, while some PE general partner
Page 97 and 98: management extends to monitoring co
Page 99 and 100: ANNEX 1: CATALOGUE OF FINANCIAL CEN
Page 101 and 102: Dublin Mauritius Dubai Botswana Cap
Page 103 and 104: To some extent, policymakers also n
Page 105 and 106: In administrative financial centres
Page 107 and 108: services industry. However, recent
Page 109 and 110: gains, even if it involves offshore
Page 111 and 112: ather than an onshore centre that i
Page 113 and 114: generally look to London or in some
Page 115 and 116: Onshore Options for Africa-focussed
Page 117 and 118: whether it is ‘Local,’ ‘Trans
Page 119 and 120: are suited to particular financial
Page 121: In GFCI 16, only three African cent
Page 125 and 126: GFCI 16 Investment Management Centr
Page 127 and 128: Professional service providers tend
Page 129 and 130: Busan and Doha have been advancing
Page 131 and 132: Zambia and Zimbabwe, the report not
Page 133 and 134: Get Connected - Ease Scaling Up In
Page 135 and 136: Financial centres are added to the
Page 137 and 138: The SVM then uses the data to predi
Page 139 and 140: Instrumental Factor Country or City
Page 141 and 142: Instrumental Factor CA* BU DO DU IS
Page 143 and 144: Open Government The World Justice P
Page 145 and 146: Securitisation TheCityUK http://www
Page 147 and 148: Human Capital Instrumental Factor S
Page 149 and 150: Global City Competitiveness EIU htt
Page 151 and 152: 6.4 Appendix D - Group Respondent P
Page 153 and 154: Dubai Istanbul Conduits of Capital
Page 155 and 156: 6.5 Appendix E - Country Summary Ov
Page 157 and 158: Uganda 26.086 33,800,000 772 Kampal
Page 159 and 160: Page intentionally left blank Condu
show all

Conduits of Capital

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?