LIVINGSTONE MARUFU
Emeritus Reinsurance says its participation in the Botswana International Financial Services Centre (IFSC) has given the firm credibility and rescued it when it was under sanctions.
Emeritus Reinsurance Company is a member of the Zimre Holdings Limited (ZHL).
Speaking at the sidelines of a business forum organised by the Investment Promotion Unit within Botswana Investment and Trade Centre (BITC), Emeritus Reinsurance’s MD Patience Marwiro told Business Times that IFSC improved the company’s credibility ratings.
“Establishment of the Emeritus International group in the IFSC zone gave us credibility in the international financial services space and greatly aided us through our sanctions era.
“It also contributed to the removal of our group from the sanctions list,” Marwiro said.
Emeritus, which was formed in 2009, was removed from sanctions in 2012.
The group heeded the call of the Botswana’s government through the IFSC for foreign international companies to come and invest in Botswana.
Emeritus Reinsurance group has a footprint in Botswana, Malawi, Zambia, Zimbabwe, Swaziland, Uganda, Kenya and Mozambique.
Marwiro said with BITC support, Emeritus has consolidated all regional operations into one company resident in Botswana in preparation for a listing on the Botswana Stock Exchange.
“Listing will raise additional capital for the regional operations. After the current changes in regulation, Emeritus is in the process of amalgamating the International and domestic reinsurance operations,” she said.
The organisation’s regional expansion began in 1996 with the acquisition of United General Insurance in Malawi and Zimre Malawi, now Emeritus Malawi.
Zimre Zambia established 1999 and Zimre Mozambique established 2003.
But all reinsurance business will be catered for in Botswana.
Marwiro said the attraction of Botswana as an investment destination included the high ranking on the Democracy Index in Africa and the favourable rating on the corruption rankings.
She said there are no restrictions on business ownership and no challenges for the Zimbabwean shareholders.
Botswana does not have foreign exchange controls allowing remittance and repatriation of profits and dividends and has easy premium and claims payments.
The country also has a sustainable low tax environment (15% IFSC companies; 22% corporate and 25% individual) and IFSC companies have value added tax and capital gains tax exempt.
Botswana is said to be very safe for families, low crime, developing infrastructure and hospitable citizens.
Botswana One Stop Service Centre (BOSSC) assisted Emeritus with company registration for the two companies, license application and work and residence permit and exemptions for expatriate staff.
BOSSC helped Emeritus with income tax registration, market information and current facilitation of the amalgamation process.
