The Botswana International Financial Services Centre (IFSC) has engaged London-based international law firm, Clifford Chase, to review its legislation, aimed at creating a modern and flexible statutory framework that will position the country as a medium to long-term preferred financial and business services centre in the southern African region.

Clifford Chase, which has done similar reviews in financial services hubs like Dubai, will partner with local firm Armstrong Attorneys to establish new, integrated legislation.IFSC Chief Executive, Alan Boshwaen, said at a media briefing on Tuesday this week that the review is a vital major intervention that will raise the competitiveness of Botswana.

"The last review was 10 years ago, which is a long time for the financial services sector that changes rapidly," Boshwaen said. "So we need to respond with modernised legislation."

The need to revise the centre's governing legislation was strongly recommended by the BOCCIM National Business Council as contained in resolutions 9 and 10 of the 2008 conference. The Ministry of Finance and Development Planning is also said to be playing a major role in the legislation review that Boshwaen said should pass in the first quarter of 2010.

Botswana IFSC cannot afford to rest on its laurels because besides traditional competitor Mauritius, South Africa is becoming a major force to reckon with as it recently introduced incentives geared at responding to the needs of its financial services sector investors.

The new legislation is also meant to be inclusive not only to the financial services sector but to other business sectors initially not covered. Missing from Botswana because of the country's growth are sectors such as private equity funds that are covered in different legislation like the Income Tax Act and the Bank of Botswana Act.

"What we have learned from our competitors is that, for example, the private equity sector is dealt with in one statute," said Boshwaen. "Investors don't have the time to go through all the pieces of legislation, hence the need for change.".

The legislative review project is further aimed at creating clear, robust, effective and transparent legal arrangements for the establishment and supervision of businesses within the IFSC, embedded in an accessible format.

The new legislation will ensure the IFSC significantly improves the approval, review and supervision process. The IFSC also wants its activities to remain mainly focused on business and financial services exported to other countries.

The IFSC has also adopted a five-year strategy that focuses on key issues such as financial stability and targeted international marketing.