The Potential of Onshore Financial Centres for Africa-focussed Investment Funds and Vehicles

This briefing by E-Consult, coordinated by FSD Africa, examines the potential for establishing onshore financial centres in Africa to attract international capital and skilled employees. It evaluates existing hubs like Mauritius and Johannesburg and assesses the prospects for cities such as Nairobi, Kigali, Lagos, and Accra to become globally significant financial centres.

• Mauritius and South Africa (specifically Johannesburg) are currently the most compelling jurisdictions for international funds in Africa. Mauritius is valued for its tax efficiency, regulatory reputation, corporate governance, skills, and infrastructure. South Africa is attractive due to its infrastructure, size, and financial sophistication, though it is hindered by high crime, high taxes, immigration restrictions, and onerous exchange controls.
• Several East African nations are pursuing financial centre status. Kenya is advancing plans for the Nairobi International Financial Centre, leveraging its sophisticated financial sector. Rwanda is considering establishing a financial centre and may challenge other jurisdictions through competitive regulatory and tax regimes.
• Regional integration within the East African Community (EAC) presents a potential risk; E-Consult suggests that a regional currency implemented without fiscal and political integration could destabilize financial markets.
• Donors can support the development of emerging financial centres by funding costs and ensuring the adoption of international best practices in laws, standards, and structures. Additionally, the process of managing the regulatory challenges of a financial centre can serve as a mechanism for developing regulatory expertise.

APA

FSD Africa (n.d.). The Potential of Onshore Financial Centres for Africa-focussed Investment Funds and Vehicles. https://fsdafrica.org/wp-content/uploads/2025/05/The-Potential-of-Onshore-Financial-Centres.pdf

Chicago

FSD Africa. The Potential of Onshore Financial Centres for Africa-focussed Investment Funds and Vehicles. n.d. https://fsdafrica.org/wp-content/uploads/2025/05/The-Potential-of-Onshore-Financial-Centres.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=The Potential of Onshore Financial Centres for Africa-focussed Investment Funds and Vehicles |url=https://fsdafrica.org/wp-content/uploads/2025/05/The-Potential-of-Onshore-Financial-Centres.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafricandpotential, author = {{FSD Africa}}, title = {{The Potential of Onshore Financial Centres for Africa-focussed Investment Funds and Vehicles}}, institution = {FSD Africa}, url = {https://fsdafrica.org/wp-content/uploads/2025/05/The-Potential-of-Onshore-Financial-Centres.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }