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

The document examines the requirements for building onshore financial centres in Africa capable of competing with established conduits like Mauritius. It identifies Mauritius and Johannesburg as the most compelling current jurisdictions, while noting the ambitions of Rwanda and Kenya. It also highlights the potential role of donors in providing technical assistance to ensure international best practice in regulatory structures.

• Mauritius and South Africa (Johannesburg) are currently the most attractive jurisdictions for international funds. Mauritius is valued for its tax efficiency, regulation, corporate governance, and infrastructure, whereas South Africa's appeal based on size and sophistication is offset by high taxes, crime, immigration restrictions, and onerous exchange controls.
• Rwanda and Kenya are emerging as potential financial centres. Rwanda is considering competitive tax and regulatory regimes, while Kenya is advancing plans for the Nairobi International Financial Centre, leveraging its sophisticated financial sector.
• Regional integration within the East African Community (EAC) may present risks; specifically, the introduction of a regional currency without accompanying political and fiscal 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 regulatory structures.

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} }