February 2023 / Focus Africa

February 28 2023

Africa in Review by the Numbers (February 2023)

$55 million Five-year loan issued by FinDev Canada to ETG, an African agribusiness that contributes to food security by helping smallholder farmers in Africa access international markets. (Africa Market Trends)

98,000 ounces Gold yielded by Nigeria's first industrial gold mine in 2022, giving the West African country a new opportunity to scale up production as it looks to pivot away from oil. The project is being touted as proof of concept for formal production in what has historically been an artisanal sector. (Mining.com)

14,000 Jobs expected to be created by South Africa's hydrogen corridor, which has been considered a strategic integrated project. This initiative follows global trends that have seen hydrogen emerge as a future clean universal energy source. (Africa Energy Portal)

$310 million Loan expected to be secured by British mining company Emmerson from a syndicate of Moroccan and European banks to fund its potash mining operations in northern Morocco. Emmerson holds a 19-year potash exploration license through which it expects to invest some $2.5 billion in the country. (Morocco World News)

3,900 Service stations operated by one of Africa's largest energy distribution firms after Vivo acquires a majority stake in Engen from Malaysia's Petronas. The combined group will also have 2 billion litres of storage capacity across 27 African countries. (The Citizen)

280,000 tonnes Sugar produced in South Africa, meeting 93% of the 300,000 tonnes targeted by the country's Sugarcane Master Plan. The ambitious strategy has sought to ensure that 95% of sugar is locally procured as part of its wider objectives to restore local market off-take, retain jobs, and support small-scale growers. (Food Business Africa)

$1.6 billion Investment by Tingo Foods for an agri-food processing unit in Delta State, Nigeria. Construction will take 18-24 months and once operational the facility will serve as a centre for the development and distribution of new food products. (Food Business Africa)

2000 Fossil-fuel powered vehicles to be converted into electric vehicles by Kenya Power. The company also said it's planning to construct three electric vehicle-charging stations in Nairobi to support the switch. (Tech Trends Kenya)

40% Increase in value of exports reported by Rwanda in 2022. This strong performance in was driven by increase in volume of exports alongside high prices in the international market. (The New Times)

$30 billion Financing issued by development partners in Africa to boost agricultural activity in the region. This commitment was issued during the Second Dakar Summit to help the continent's over-reliance on food imports. (Food Africa Business)

80% Electricity generated in Angola through renewable sources by 2025. The country currently generates 55% of electricity from the renewable sources and hopes to invest in and increase in solar capacity. (Africa Energy Portal)

260K Retail investors in Kenya with holdings in collective investment schemes, triple the number reported a decade ago. This growth has coincided with a 379% increase in assets under management by the schemes. Individual investors continue to be a larger market segment on the exchange, closing in on 2 million. (Business Daily)

February 27 2023

Budget 2023-24: South Africa Announces Various Tax Proposals Aimed at Raising Revenue and Increasing Compliance

South Africa has announced the tax proposals to form part of the budget review process as set out in the Budget 2023-24. These include the strengthening of the anti-tax avoidance rules, revenue raising and other tax proposals aimed at providing tax relief as follows:

  • strengthening anti-tax avoidance rules dealing with third-party backed shares and rules relating to the definition of contributed tax capital and converting contributed tax capital from foreign currency to rands;
  • clarifying anti-tax avoidance rules for low–interest or interest-free loans to trusts;
  • apportioning the tax-free investment contribution limitation and limiting the retirement funds contributions deduction when an individual ceases to be a tax resident;
  • refining the rules applicable to unbundling transactions;
  • clarifying the interest limitation rules;
  • clarifying the treatment of exchange gains and loses;
  • refining the provisions dealing with the impact of International Financial Reporting Standard 17 insurance contracts on taxation of insurers;
  • reviewing the Sharia-compliant financing arrangements;
  • introducing ZAR 4 billion relief for individuals that install solar panels, and ZAR 5 billion to companies through the expansion of the renewable energy tax incentive;
  • clarifying the interaction of the provisions on the acquisition of assets in exchange for shares;
  • increasing excise duties on alcohol and tobacco in line with expected inflation of 4.9%;
  • reviewing the value added tax (VAT) treatment of specific supplies in the short-term insurance industry;
  • clarifying the VAT treatment of the prepaid vouchers in the telecommunications industry;
  • extending the utilization period in the Carbon Offsets Regulations;
  • aligning tax registration requirements for non-resident employers; and
  • aligning with anti-money laundering and combating the financing of terrorism developments.

The Minister of Finance unveiled the 2023-24 National Budget on 22 February 2023.