CASABLANCA FINANCE CITY Your Gateway to Africa s Potential CFC Presentation 1
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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 3 out of 4 newborns in 2100 will be African Casablanca Morocco Algeria Tunisia Libya Egypt 70% of African households will have a purchasing power higher than $5000 1 in 2025 Booming working age population Mauritania Mali Niger Chad Eritrea Gambia Senegal Djibouti Sudan Guinea Bissau Burkina Guinea Sierra Nigeria Central Somalia Leone Ivory Ghana Ethiopia African Liberia Coast Republic Cameroon Benin Equatorial DRC Uganda Kenya TogoGuinea Gabon Rwanda Congo Burundi Angola Zambia Malawi Comoros Zimbabwe Namibia Botswana Madagascar Swaziland Lesotho South Africa Tanzania Mozambique Increasing urbanisation: 100 African cities with over 1 million inhabitants in 2025 4 Massive infrastructure needs: ~$90 billion dollars/year until 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 Several Moroccan companies rooted in Africa Strong financial sector Multisectoral experience DISTINGUISHED ECONOMIC FUNDAMENTALS Macroeconomic stability Investment grade Free trade agreements giving access to a market of more than one billion consumers 5
WHAT IS THE AIM OF CASABLANCA FINANCE CITY (CFC)? Casablanca is acting as a Hub... International firms... for 4 types of categories Financial Institutions (FI) Centralised access to African countries Casablanca Finance City Privileged access to international decision makers Regional Headquarters of multinationals (HQ) Holdings African countries Professional 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 Fast-track administrative process An accelerated administrative procedure for company setup formalities within 48 hours; Simplified procedures for «business» visas, foreign employment contracts, and residency permits. Facilitating people flow and exchange control No restriction on the hiring of foreign employees; Free management of assets in foreign currencies from foreign sources; Unrestricted transfer of management and technical assistance fees within the group. Justice Set up of the Casablanca International Mediation & Arbitration Center (CIMAC) for the CFC ecosystem as well as for African companies in the region; Dedicated chambers at Casablanca s Tribunal of Commerce de Casablanca for CFC companies. 8
TAX INCENTIVES Corporate tax Personal Income tax Financial Institutions, Holdings, & Professional Services Regional Headquarters & Rep. Offices Net taxable profits* from foreign sources: First 5 years: No tax After 5 years: 8.75% Maximum between: 0.5% of operating expenses 10% of adjusted profit before tax All CFC employees have the choice between: Option 1: 20% Flat rate on personal income tax for employees during the first 5 years after arrival After 5 years: Standard taxation Option 2: Standard taxation from the 1 st year + 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 Montreal London Luxembourg Paris Casablanca Burkina Faso Senegal Nigeria GuineaMali Cameroun Ivory Coast Togo Ghana Congo Rwanda Tanzania Zambia Madagascar Mauritius Singapore Cooperation agreements with other financial centres 9 South-South partnerships
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, 1 ST BUSINESS & FINANCIAL HUB IN AFRICA Toronto (10) Montréal (14) London (1) Stockholm (46) Moscow (85) Vancouver (17) San Francisco (6) Chicago (7) New York (2) Boston (9) Lisbon (78) Casablanca (30) Frankfurt (23) Luxembourg (18) Zurich (11) Istanbul (66) Tel Aviv (32) Doha (39) Beijing (16) Shanghai (13) Seoul (24) Tokyo (5) Mexico City (73) British Virgin Islands (51) Riyadh(76) Dubai (25) Mumbai (63) Hong Kong (4) Singapore (3) Rio de Janeiro (73) Sao Paulo (62) Maurice (71) Sydney (8) Johannesburg (59) Melbourne (21) 13 Source: Global Financial Center Index, March 2017
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APPENDIX 1: KEY MILESTONES CFC law passed Tax incentives for CFC institutions passed by law (Finance Act, Jan 2011) Partnerships signed with Luxembourg For Finance and the CityUK First CFC statuses granted CFC in the GFCI Africa 50 fund in CFC Partnership signed with the Board of Investments of Mauritius CFC ranked 1 st financial centre in Africa since 2016 A robust south-south partnerships network with ~15 APIs in Africa 2010 2011 2012 2013 2014 2015 2016 2018... CFC decree published Institutional partnership signed between CFCA and Singapore Partnership signed with Paris Europlace Partnership signed with Finance Montreal More than 100 companies part of the CFC ecosystem First offices available CFC companies to move to CFC office spaces 15 Continuous support to CFC companies
APPENDIX 2: CFC KEY STAKEHOLDERS Government bodies involved in the project Foreign Affairs Ministry Ministry of Justice Ministry of Interior Ministry of Equipment and Transport Ministry of Trade and Industry Ministry of Employment Ministry of General Affairs Ministry of Education General Secretariat of Government Steering committee Public Private Bank Al Maghrib (BAM) Attijari Wafabank (AWB) Ministry of Economy and BMCE Bank Finance Casablanca Stock Exchange Casablanca Local Authorities (CSE) Caisse de Dépôt et Gestion Maroclear (CDG) Insurance federation Banque Centrale Populaire (BCP) CFC commission Presided by the Minister of Economy and Finance Treasury and External Finance Director (DTFE) Department of Insurance and Social Welfare Director (DAPS) One representative of the Central Bank (BAM) CEO of the Moroccan Capital Markets Authority (AMMC) Two representatives of CFC Authority, including the CEO Casablanca Finance City Authority Mission Define the development strategy for CFC Establish an attractive and competitive value proposition for Morocco and CFC Drive new reforms to ensure a continuous competitiveness of the offering Supervise and manage the real estate aspect of the project Promote and advertise CFC to institutions and investors Advise and accompany CFC companies MoU Operational Coordination CDG "AUDA (CDG subsidiary) : developer 16
APPENDIX 3: MOROCCO CONCLUDED MORE THAN 50 DOUBLE TAX TREATIES 17 27 with Europe Austria Belgium Bulgaria Czech Republic Croatia Denmark Finland France Germany Greece Hungary Italy Ireland Latvia Luxemburg Macedonia Malta Netherlands Norway Poland Portugal Romania Russia Spain Swiss UK Ukraine 9 with the Middle East Bahrain Jordan Kuwait Lebanon Oman Qatar Syria Turkey UAE 2 with North America Canada USA 7 with Africa - others being signed or ratified 1 Arab Maghreb ² Egypt Senegal Gabon Ivory Coast Guinea Conakry Mali 8 with Asia China India Indonesia Malaysia Pakistan Singapore South Korea Vietnam 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 18 Algeria Austria Bahrain Belgium Bulgaria Cyprus Czech Republic Denmark Egypt Estonia Finland France Germany Greece Hungary Iceland Iraq Ireland Italy Jordan Kuwait Latvia Lebanon Libya Liechtenstein Lithuania Luxembourg Malta Netherlands Norway Oman Palestine Poland Portugal Qatar Romania Saudi Arabia Slovakia Slovenia Spain Sudan Sweden Syria Tunisia Turkey United Arab Emirates United Kingdom United States Yemen Another agreement has been signed and is in the process of being ratified with the West African Economic and Monetary Union, including the following countries: 1. Benin 2. Burkina Faso 3. Ivory Coast 4. Guinea-Bissau 5. Mali 6. Niger 7. Senegal 8. Togo
APPENDIX 5: DIRECT CONNECTIONS FROM CASABLANCA TO 32 DESTINATIONS IN AFRICA Connections to 29 countries...... & 32 cities Cape Verde Senegal Gambia Guinea-Bissau Morocco Sierra Leone Casablanca Liberia Ivory Coast Mauritania Guinea Already operational Ghana To be operational soon (Johannesburg) Algeria Tunisia Libya Mali Niger Chad Burkina Sudan Faso Benin Cameroon Nigeria Central African Rep. Togo Equatorial Guinea Gabon Congo Namibia Uganda DRC Angola Zambia Botswana South Africa Egypt Zimbabwe Lesotho Ethiopia Eritrea Djibouti Kenya Rwanda Burundi United Republic of Tanzania Malawi Swaziland Mozambique Somalia Madagascar Réunion Seychelles Mauritius Abidjan Accra Algiers Bamako Bangui Banjul Bissau Brazzaville Cairo Conakry Cotonou Dakar Douala Freetown Kinshasa Lagos Libreville Lome Luanda Malabo Monrovia Nairobi Ndjamena Niamey Nouakchott Ouagadougou Pointe Noire Praia Sal Island Tripoli Tunis Yaoundé 17 Note: domestic destinations are not included
APPENDIX 6: MOROCCO IS AT THE CROSSROADS OF THE CONTINENTS Montreal (8h) New York (6h30) London Lisbon CFC Frankfort Paris Milan Madrid Moscow (5h30) Cairo Dakar Accra Lagos Abidjan Libreville Luanda (7 h) Dubai (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 Mauritania CAR Niger Morocco Algeria Libya Egypt Libya Egypt Senegal Mali Burkina Faso Ivory Coast Guinea Benin Senegal Mauritania Guinea Ivory Coast Mali Burkina Faso Ghana Niger Nigeria Togo Equatorial Guinea Cameroon Gabon Congo Chad CAR DRC Sudan Uganda Eritrea Djibouti Somalia Ethiopia Kenya Djibouti Ethiopia Kenya DRC Uganda Burundi Tanzania Togo Liberia Ghana Gabon Cameroon Congo Angola Namibia Tanzania Malawi Mozambique Zambia Comoros Zimbabwe Botswana Madagascar Rwanda Kenya Mauritius Mauritius Angola Lesotho South Africa Swaziland Madagascar 21 A deeply rooted financial sector, with 4 major national players strongly committed to Africa
APPENDIX 8: CFC APPLICATION PROCESS* Step 1 Letter of intent Assessment study by Casablanca Finance City Authority Step 2 License (if applicable) Step 3 Creation of the entity (if applicable) Step 4 Official application Step 5 Application review within 45 days CFC Status granted 22 *: The procedure and documentation required for the CFC application process can be found on our site
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24 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 contact@cfca.ma www.casablancafinancecity.com