CASABLANCA FINANCE CITY
Your Gateway to Africa’s Potential
CFC Presentation
1 2 Presentation
3 AFRICA IS ARISING AS THE WORLD’S FASTEST GROWING CONTINENT WITH TREMENDOUS OPPORTUNITIES
24 African countries will grow at a CAGR of at least 5% by 2030
Casablanca Tunisia 3 out of 4 newborns in 2100 Morocco 70% of African households will have a purchasing power will be African Algeria Libya Egypt higher than $50001 in 2025
Mauritania Mali Niger Senegal Chad Eritrea Gambia Djibouti Sudan Guinea Bissau Burkina Guinea Sierra Central Somalia Ghana Nigeria Ethiopia Leone Ivory African Liberia Coast Republic Cameroon Benin Uganda Equatorial DRC Kenya TogoGuinea Gabon Rwanda Congo Booming working age Burundi Tanzania population Increasing urbanisation: Malawi Mozambique 100 African cities with over 1 Angola Zambia million inhabitants in 2025
Comoros Zimbabwe Namibia Botswana Madagascar Swaziland Lesotho South Africa
Massive infrastructure needs: ~$90 billion dollars/year until 4 2020 1: In purchasing power parity MOROCCO HOLDS A STRONG POSITION AS A HUB, THANKS TO ITS:
STRATEGIC ADVANTAGES • Political stability • World class infrastructure • Air connectivity • Privileged geographical position
STRONG PRESENCE IN AFRICA DISTINGUISHED ECONOMIC FUNDAMENTALS • Several Moroccan companies rooted • Macroeconomic stability in Africa • Investment grade • Strong financial sector • Free trade agreements giving • Multisectoral experience access to a market of more than one billion consumers
5 WHAT IS THE AIM OF CASABLANCA FINANCE CITY (CFC)?
... for 4 types of Casablanca is acting as a Hub... categories
International firms Financial Institutions (FI)
Regional Headquarters of multinationals Centralised access Casablanca Privileged access (HQ) to African to international countries Finance City decision makers
Holdings
African Professional countries Services (PS)
6 To qualify for the CFC status, companies need to have a regional footprint, belong to one of the 4 categories, and comply with Moroccan regulations CFC’S VALUE PROPOSITION
DOING BUSINESS ATTRACTIVE COST STRUCTURE
DYNAMIC BUSINESS ECOSYSTEM
5 DOING BUSINESS INCENTIVES
An accelerated administrative procedure for company setup Fast-track administrative formalities within 48 hours; process Simplified procedures for « business » visas, foreign employment contracts, and residency permits.
No restriction on the hiring of foreign employees; Facilitating people flow and Free management of assets in foreign currencies from foreign sources; exchange control Unrestricted transfer of management and technical assistance fees within the group.
Set up of the Casablanca International Mediation & Arbitration Center (CIMAC) for the CFC ecosystem as well as for African companies in the Justice region; Dedicated chambers at Casablanca’s Tribunal of Commerce de Casablanca for CFC companies.
8 TAX INCENTIVES
Corporate tax Personal Income tax
Financial • Net taxable profits* from • All CFC employees have the Institutions, foreign sources: choice between: Holdings, & First 5 years: No tax Option 1: Professional After 5 years: 8.75% 20% Flat rate on personal Services income tax for employees during the first 5 years after arrival After 5 years: Standard • Maximum between: taxation Regional 0.5% of operating Headquarters Option 2: Standard taxation & Rep. Offices expenses from the 1st year 10% of adjusted profit before tax Exemption from registration fees on: + Company set-up Capital increase
9 *: excluding interest income taxed at 30% A COMPREHENSIVE ECOSYSTEM: UNIQUE LIFESTYLE AND WORKING ENVIRONMENT IN AFRICA
• The CFC area, 100ha central axis within Casablanca - Anfa (~ 350 ha)
• 50ha dedicated to a park area
• A high quality real estate offer
• An attractive living environment & lifestyle Mixed use of space: offices, retails, residential Extensive green spaces Cultural, social and sports infrastructures Availability of health and education centers High standard security system
• Strong connection to transport 2 tramway stations 1 high-speed train station (TGV) Significant road connections to: airport, city centre, residential areas, other cities such as Rabat, El Jadida, or Marrakech
10 CFC’S PARTNERSHIPS AROUND THE WORLD IMPROVING DOING BUSINESS IN THE REGION
London Luxembourg Montreal Paris
Casablanca Burkina Faso Senegal Nigeria Guinea Mali Cameroun Ivory Coast Togo Ghana Congo Rwanda Singapore Tanzania Mauritius Zambia Madagascar
Cooperation agreements with other financial centres
South-South partnerships 9 DYNAMIC ECOSYSTEM: MORE THAN 120 COMPANIES BENEFITING FROM THE CFC STATUS SOME EXAMPLES …
BANKING & INSURANCE
ASSET MANAGEMENT & PRIVATE EQUITY
CONSULTING & LAW FIRMS
OTHER MULTINATIONAL CORPORATIONS CASABLANCA, 1ST BUSINESS & FINANCIAL HUB IN AFRICA
Montréal (14) Stockholm (46) London (1) Toronto (10) Moscow (85) Frankfurt (23) Vancouver (17) Luxembourg (18) Chicago (7) Lisbon (78) Zurich (11) Boston (9) Istanbul (66) Beijing (16) Seoul (24) Tokyo (5) San Francisco (6) New York (2) Tel Aviv (32) Casablanca (30) Shanghai (13) Doha (39) British Riyadh(76) Hong Kong (4) Mexico City (73) Virgin Islands (51) Dubai Mumbai (63) (25)
Singapore (3)
Rio de Janeiro (73) Maurice (71) Sydney (8) Sao Paulo (62)
Johannesburg (59) Melbourne (21)
13 Source: Global Financial Center Index, March 2017 Appendices
14 APPENDIX 1: KEY MILESTONES
• CFC law passed • Partnerships signed st • CFC in the GFCI • CFC ranked 1 • Tax incentives with Luxembourg For financial centre in for CFC Finance and the • Africa 50 fund in CFC Africa since 2016 CityUK institutions • Partnership signed • A robust south-south passed by law • First CFC statuses with the Board of partnerships network (Finance Act, granted Investments of with ~15 APIs in Africa Jan 2011) Mauritius
2010 2011 2012 2013 2014 2015 2016 2018 ...
• CFC decree • Partnership signed published with Finance Montreal • First offices available • Institutional • More than 100 partnership signed • Partnership signed • CFC companies to move with Paris Europlace companies part of to CFC office spaces between CFCA and the CFC ecosystem Singapore
Continuous support to CFC companies 15 APPENDIX 2: CFC – KEY STAKEHOLDERS
Government bodies involved Steering committee in the project Public Private • Foreign Affairs Ministry • Bank Al Maghrib (BAM) • Attijari Wafabank (AWB) • Ministry of Justice • Ministry of Economy and • BMCE Bank • Ministry of Interior Finance • Casablanca Stock Exchange • Ministry of Equipment and • Casablanca Local Authorities (CSE) Transport • Caisse de Dépôt et Gestion • Maroclear • Ministry of Trade and (CDG) • Insurance federation Industry • Banque Centrale Populaire • Ministry of Employment (BCP) • Ministry of General Affairs • Ministry of Education • General Secretariat of Government
CDG CFC commission Casablanca Finance City Authority Presided by the Minister of Economy and Finance • Treasury and External Mission Finance Director (DTFE) • Define the “development strategy” for CFC • Department of Insurance • Establish an attractive and competitive value • MoU and Social Welfare Director proposition for Morocco and CFC (DAPS) • Drive new reforms to ensure a continuous "AUDA“ • One representative of the competitiveness of the offering (CDG subsidiary) : Central Bank (BAM) • Supervise and manage the real estate aspect of the developer • CEO of the Moroccan project • Operational Capital Markets Authority • Promote and advertise CFC to institutions and investors Coordination (AMMC) • Advise and accompany CFC companies • Two representatives of CFC Authority, including the CEO 16 APPENDIX 3: MOROCCO CONCLUDED MORE THAN 50 DOUBLE TAX TREATIES
• 27 with Europe • 7 with Africa - others being Austria Spain signed or ratified1 Belgium Swiss Arab Maghreb² Bulgaria UK Egypt Czech Republic Ukraine Senegal Croatia Gabon Denmark Ivory Coast Finland • 9 with the Middle East Guinea Conakry France Bahrain Mali Germany Jordan Kuwait Greece • 8 with Asia Hungary Lebanon Oman China Italy India Ireland Qatar Syria Indonesia Latvia Malaysia Luxemburg Turkey UAE Pakistan Macedonia Singapore Malta South Korea Netherlands Vietnam Norway • 2 with North America Poland Canada Portugal USA Romania Russia
17 1. Other conventions signed in the process of being ratified: Burkina Faso, Cameroun, Guinea Bissau, Mauritius, Sao Tomé & Principe, Ethiopia, and Rwanda 2. Algeria, Libya, Mauritania, Tunisia APPENDIX 4: MOROCCO CONCLUDED FREE TRADE AGREEMENTS COVERING OVER 50 COUNTRIES IN US, EUROPE, MIDDLE EAST AND AFRICA
Algeria Lithuania Another agreement has been Austria Luxembourg signed and is in the process Bahrain Malta of being ratified with the West Belgium Netherlands African Economic and Bulgaria Norway Monetary Union, including the Cyprus Oman following countries: Czech Republic Palestine Denmark Poland 1. Benin Egypt Portugal 2. Burkina Faso Estonia Qatar 3. Ivory Coast Finland Romania 4. Guinea-Bissau France Saudi Arabia 5. Mali Germany Slovakia 6. Niger Greece Slovenia 7. Senegal Hungary Spain 8. Togo Iceland Sudan Iraq Sweden Ireland Syria Italy Tunisia Jordan Turkey Kuwait United Arab Emirates Latvia United Kingdom Lebanon United States Libya Yemen 18 Liechtenstein APPENDIX 5: DIRECT CONNECTIONS FROM CASABLANCA TO 32 DESTINATIONS IN AFRICA
Connections to 29 countries...... & 32 cities
Casablanca Tunisia • Abidjan • Libreville Morocco • Accra • Lome Algeria Libya Egypt • Algiers • Luanda • Bamako • Malabo Senegal Mauritania Mali Niger Eritrea • Bangui • Monrovia Cape Verde Chad Djibouti Banjul Nairobi Gambia Burkina Sudan • • Guinea-Bissau Faso Benin Guinea Cameroon • Bissau • Ndjamena Nigeria Ethiopia Central Sierra Leone African Rep. Somalia • Brazzaville • Niamey Togo Uganda Cairo Nouakchott Liberia • • Congo DRC Kenya Ivory Coast Rwanda • Conakry • Ouagadougou Ghana Equatorial Burundi Seychelles • Cotonou • Pointe Noire Guinea United Republic of Gabon Tanzania • Dakar • Praia Angola Malawi Zambia • Douala • Sal Island Madagascar • Freetown • Tripoli Zimbabwe Namibia Mauritius • Kinshasa • Tunis Botswana Réunion • Lagos • Yaoundé Already operational Mozambique South Africa Swaziland To be operational soon (Johannesburg) Lesotho
17 Note: domestic destinations are not included APPENDIX 6: MOROCCO IS AT THE CROSSROADS OF THE CONTINENTS
Moscow (5h30) Montreal London (8h) Frankfort Paris New York Milan (6h30) Lisbon Madrid CFC
Cairo Dubai Dakar (7 h) Accra Lagos
Abidjan Libreville Luanda (7 h)
São Paulo (9h)
Less than 3 hours flights Between 3 to 5 hours flights 20 APPENDIX 7: FINANCIAL SECTOR LEADERSHIP IN AFRICA WITH A PRESENCE IN 34 COUNTRIES
Tunisia
Morocco Niger Egypt Algeria • Mauritania Libya Egypt • CAR Libya
Mauritania Senegal Mali Sudan Eritrea • Senegal Chad Djibouti Niger Djibouti • Ethiopia Burkina Guinea Faso Nigeria Somalia Ethiopia • Mali Guinea Ivory Ghana • Kenya Coast CAR • DRC • Burkina Faso Cameroon • Ivory Coast Togo • Uganda Equatorial DRC Uganda Kenya • Burundi Guinea GabonCongo • Tanzania Benin
Tanzania Rwanda • Togo • Ghana • Liberia Angola Malawi • Kenya Mozambique • Gabon Zambia • Mauritius • Cameroon Comoros Mauritius Zimbabwe Namibia Botswana Congo Madagascar
Lesotho • Madagascar Angola Swaziland South Africa
21 A deeply rooted financial sector, with 4 major national players strongly committed to Africa APPENDIX 8: CFC APPLICATION PROCESS*
Letter of intent Assessment study by Casablanca Finance Step 1 City Authority
License (if applicable) Step 2
Creation of the entity (if applicable) Step 3
Official application Step 4
Application review within 45 days Step 5
CFC Status granted
22 *: The procedure and documentation required for the CFC application process can be found on our site 23 Casablanca Finance City Authority Angle avenue des Tilleuls et allée des Abricotiers Quartier Hippodrome, Casablanca-Maroc Tél : +212 5 20 30 03 82 – Fax: +212 5 20 30 03 82 [email protected] – www.casablancafinancecity.com 24