'BEDIA, IFSC merger to boost trade and investment

MBONGENI MGUNI
Staff Writer | Thursday January 27, 2011 00:00

 

Having missed opportunities for statutory consideration last year, the inter-ministerial task force managing the merger hopes to secure Cabinet and Parliamentary endorsement this year. IFSC Board Chairperson, James Kamyuka, says the merger will position Botswana as competitive in the international environment for the promotion of investment and trade.

'It is envisaged that subject to Cabinet and Parliament approvals, the merged entity, together with the advanced sets of laws and other related key reforms, will be in place in 2011 to advance Botswana's position as a highly attractive investment destination and business domicile for the rest of sub-Saharan Africa,' Kamyuka says in the IFSC Annual Report for 2010. 'Going by the current timelines of the merger, the 2009/10 annual report may mark the last reporting year of the IFSC as a stand-alone company.'

The merged entity will encompass the original mandates given to IFSC and BEDIA, with a structure favouring 'a sectoral focus with emphasis on key sectors identified as of high potential to economic diversification,' he explains. The 35 IFSC-certified companies will continue to enjoy all their incentives and benefit from the one-stop shop set up favouring export development and trade. 

The merger taskforce, which is chaired by the Ministry of Trade and Industry's Deputy Permanent Secretary (Industry) and includes representatives from BEDIA, the IFSC, the Ministry of Finance and PEEPA, has already benchmarked in Mauritius and Ireland. The taskforce was initially expected to commence the legwork involved in the merger last year, paving the way for the formation of a new statutory body this year. However, the merging process failed to reach the November Parliament for the new umbrella legislation and other amendments.