Thank you. Good morning and thank for taking the time to come today.
Whilst Jersey has taken a stand at Indaba for a number of years and I've visited this great country many times in a private capacity (and before, 20 years ago as a graduate, for 5 years I spent three months a year as an auditor in many Southern and Eastern African countries), I should confess that it is my first Indaba and the first time a Jersey Minister has addressed the conference.
I am pleased to be following Lord Livingston – we are of course British in Jersey and enjoy an excellent relationship with the United Kingdom – and I am particularly delighted to do so at this crucial time for mining and resources.
The fact we are here and that I am joined by a delegation of over 20 Jersey professionals underlines the growing relationship Jersey has with Africa and companies engaged in the whole spectrum of mining and resources.
It also underlines the role that a world-class and global international financial centre such as Jersey can play in funding, structuring and investment in the hugely important mining and resources sector.
Whilst there are of course challenges, which are the topic of many of the other ministers remarks, I want to send a strong message to you today that the Government of Jersey believes strongly in Africa and building long-term relationships with this continent.
For Africa to reach its potential and its people to be able to share in the returns from mining and resources, there are prerequisites:
- sound governance
- an appropriate level of transparency, as well as certainty, in the application of the laws affecting mining
And of course, whilst all these are important, trade and business doesn't happen without capital and investors.
The London-based think tank, Capital Economics, estimated that Africa would require €85 trillion to quadruple GDP by 2040. The challenge is that there is an estimated gap of $11.4 trillion in investment over that period.
Whilst domestic profits and governments are expected to plug 48% of this gap – and that was before the recent further falls in commodity prices – the remainder of $6.1 trillion will have to come from foreign direct investment.
If anything, the FDI is now even more crucial than before.
Overview of Jersey
So where does Jersey fit into this?
Some of you may not yet be familiar with the island and your are very welcome to visit our stand in the main exhibition hall and visit our website Jersey.com
Located just off the North Coast of Northern France, in the Bay of St Malo, 45 square miles in size with a growing population of just over 100,000, Jersey is a beautiful Island with miles of unspoilt coastland, golden beaches and green countryside. We are a proud and independent-minded jurisdiction who, whilst knowing our place in the world, has consistently punched above our weight.
An island of innovators and traders, Jersey has had to earn its place in the world and has always learnt that it needs to adapt and change over time.
In the 1800s we were the original knitter and exporter of the Jersey garment, which is worn by athletes in some exciting sports, including, of course, rugby.
New Jersey owes its name to the island, as it was gifted to a Jerseyman 350 years ago for loyalty to to the Crown.
The graceful and beautiful Jersey cow was bred to become one of the most efficient converters of grass to milk and was exported around the world – millions of Jersey cows today provide milk in the developed and developing world, many of them on the African continent.
We’ve been fishermen, shipbuilders, cod traders, and around 100 years ago we were one of the first places to recognise the opportunity of travel, which laid the foundation of a tourist industry that is still an important part of our economy.
If you visit us, we have fantastic hotels, some of the best restaurants in British Isles and a huge range of historic sites from Neolithic tombs to spectacular castles.
Jersey is autonomous and self-governing, with 800 years of history of political, fiscal and legal stability.
We have our own legislature and one of the world's highest quality judicial systems.
For the last 50 years we have been building one of the world's top quality finance centres, which today comprises of more than 13,000 professionals across banking, accounting, legal services and, particularly, trusts, in which we are regarded as a global leader.
Jersey and the mining sector
Today Jersey is also the home of a growing mining and resources cluster.
Almost twenty “mini-multinational” mining, oil and gas companies, such as Randgold, Centamin and Heritage Oil, are all headquartered in Jersey. And that cluster is growing.
With assets across the globe, stock market listings in London, New York, Toronto and other major markets, Jersey provides an ideal location for the headquarters, management and control.
Jersey welcomes quality mining, resource and service companies.
As the top international finance centre in the Global Financial Centre Index, 'Best Offshore Centre', 'Outstanding International Wealth Financial Centre', 'IFC of the Year' and 'Best Fund Service Centre', our professional services sector has a lot to offer.
Jersey is well placed to make an important contribution to the African mining industry and to supporting the local jobs and economic growth that Africa needs.
We can achieve this by providing protection for corporate investors, protection for African wealth and access to capital markets.
On top of that, we offer legal expertise, efficient cross-border investment pooling, robust regulation and tax neutrality.
Jersey is a stable, prosperous island. Our financial services industry has demonstrated an innovative and resilient approach to a changing world.
Our ability to maintain a successful international finance centre has been facilitated by our talent and skilled professionals.
Jersey’s track record of cooperation, transparency and meeting the highest international regulatory standards has undoubtedly contributed to our success.
The value of Jersey to Africa
Our main links are with South Africa and Kenya.
Jersey currently accounts for around 1% of the total stock of foreign investment in the continent.
That shows the opportunity that currently exists for us to grow this relationship.
I'd single out three compelling reasons that mining businesses should think Jersey.
Firstly, Jersey can efficiently facilitate investment flows into Africa to support activities such as infrastructure investment.
It is a location where investors from across the globe can pool their funds and conduct cross-border deals.
Importantly, investors feel safe in the knowledge that they are protected by a legal system based on internationally respected common law and with a trusted centuries-old judiciary.
The self-governing island’s ‘tax neutrality’ ensures that any investment routed through it will not incur additional taxation, while its physical, cultural and business links to the City of London ensure access to deep capital markets.
Furthermore, we have contacted many countries in Africa with a view to negotiating Double Taxation Agreements in order to further encourage inward investment.
Secondly, Jersey can encourage entrepreneurship within Africa by providing wealth management to help investors and business owners keep their assets safe and secure.
Jersey delivers robust business administration and support functions that all businesses can trust.
I'd encourage you to speak with the members of the Jersey delegation team who, I am sure, will impress you with their professionalism in everything they do.
And thirdly, I would cite Jersey’s record at tackling financial crime, which is, in many respects, exemplary.
Financial crime is a major problem globally and investors are often concerned about large sums paid in bribes and lost in corruption.
Standards and regulation
Jersey stands out as an exceptionally well-regulated and transparent jurisdiction, with extensive legislation to tackle economic crime, which is enforced rigorously.
Whilst our regulator has high standards, they also understand the importance of quick and efficient decision making.
The Jersey regulator has recently signed a memorandum of understanding with the Financial Services Board of the Republic of South Africa. This provides a formal framework for the exchange of regulatory information for the purpose of ensuring international compliance.
With the provision of cross-border financial services between Jersey and South Africa expected to increase in the coming years, it is important that Jersey and the FSB are in a position to co-operate closely.
But there is no room for complacency, and our authorities work hard to maintain our position and reputation in this area.
We are therefore in an excellent position to offer advice to African countries that are faced with the challenge of achieving international standards with limited resources.
Jersey is in regular conversation with the OECD, ATAF, UK Department for International Development and the EU Directorship for International Cooperation and Development.
We are willing to offer assistance to countries by participating in seminars, or by sending skilled staff to jurisdictions to advise on relevant procedures, based on Jersey’s own experience.
We could also offer a period of secondment to Jersey, if a jurisdiction thought their staff might benefit from this experience.
Final thoughts
In closing, Jersey has a useful role to play in assisting Africa and African mining companies, in achieving your African Renaissance.
Jersey has the skills to efficiently facilitate investment in Africa by pooling funds and conducting safe cross-border deals.
We have the expertise to provide wealth management to ensure African businesses keep their assets secure.
And we have the support networks in the form of professional services and business administration, which instil trust and certainty in our jurisdiction.
Africa offers Jersey some exciting business prospects and we are confident that we will succeed.
Jersey can offer Africa a safe business environment while ultimately helping African firms to fulfil their growth potential, which is to the benefit of all.
Nelson Mandela said: “We must use time wisely and forever realize that the time is always ripe to do right.”
Together let us do the right thing for Africa.
gov.je