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A RANKING OF ONSHORE FUND DOMICILES<br />
When asked to rank the leading onshore African fund<br />
domiciles, survey respondents view South Africa as the most<br />
attractive market with 102 <strong>of</strong> the 118 survey respondents<br />
ranking it as one <strong>of</strong> the top three onshore African fund<br />
domiciles (see Spotlight: Making Sense <strong>of</strong> South Africa).<br />
South Africa was followed by Kenya, Botswana and Nigeria,<br />
which garnered 65, 47, and 35 votes, respectively. Notably,<br />
these countries have some <strong>of</strong> the largest pools <strong>of</strong> local<br />
pension capital that could be available for private equity<br />
investment, which may, in part, explain industry interest in<br />
these markets as onshore fund domiciles. Other notable<br />
jurisdictions receiving interest include Morocco, Ghana,<br />
Rwanda, Tunisia and Egypt.<br />
“<br />
STAKEHOLDER VIEWS ON POTENTIALLY ATTRACTIVE ONSHORE AFRICAN FUND DOMICILES:<br />
“Kenya and Nigeria are hubs for East and West Africa, respectively, and there is a lot <strong>of</strong> deal flow in those regions. They are<br />
also both common law-based jurisdictions. South Africa has the best DTA network after Mauritius, and is itself a large investment<br />
destination; however, it has exchange controls and a relatively high corporate tax rate. Botswana has a good DTA<br />
network, a good regulatory environment and is politically stable, but there is limited infrastructure and skilled human capital.<br />
Mauritius would generally be preferred.”<br />
– Service Provider<br />
“Rwanda’s progress has been impressive and it is one <strong>of</strong> the countries where one feels regulations will be well enforced.<br />
Moreover, I have heard that Rwanda will be trying to put in place advantageous tax treaties in the near future.”<br />
– LP<br />
”<br />
“One jurisdiction we believe could make it as an onshore financial centre is Rwanda. Its main industry is tourism, which drives<br />
a service-oriented economy. In addition, it is both a French- and English-speaking nation, has a good legal framework, and<br />
there is an ease <strong>of</strong> doing business. If it remains stable for the next five to ten years, Rwanda is a place where we would consider<br />
establishing a presence.”<br />
– Fund Administrator<br />
<strong>Conduits</strong> <strong>of</strong> <strong>Capital</strong> – Onshore Financial Centres and Their Relevance to African Private Equity<br />
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