January 2023 / Focus Africa

$7.5 billion The total amount Nigeria is likely to spend on petrol subsidy by mid-2023. This represents an increase of 6.4% compared to the $7 billion spent between January and September 2022. (Zawya) 350,000 Farmers in Zimbabwe have been contracted to cotton under a new scheme which distributed 5100 tonnes of seed and 24,000 tonnes of fertliser to boost local production. (The Herald) 148 MW Solar power plant launched by Voltari in South Africa. The 20-year contract in partnership with Richards Bay Minerals will supply approximately 300 GWh of renewable energy each year to South Africa's largest mineral sands producer's facility in KwaZulu-Natal. (Africa Business Communities) $30 billion Investment announced by Sonatrech in exploration and production activities over the next five years. The Algerian oil company plans to invest more than $7 billion of this total in refining, petrochemical and and gas liquefaction projects. (Arabian Gulf Business Insight) 3,400 Farmers to be recruited for a rice project in Zambia that will supply them with inputs and links to available market to sell their produce. By 2025, the Market Oriented Rice Development Project aims to empower 12,700 farmers. (Lusaka Times) 950 hectares Land obtained by Mozambique's energy company Ncondezi Energy for the implementation of its 300-MWp solar power project. Based in the western province of Tete, the plant set to be the country's largest solar facility. (Afrik21) $3.5 billion Approved for the construction of oil pipeline in Uganda to transport the country's crude to international markets. The construction will be overseen by a company controlled by TotalEnergies. (CGTN) 50,000 Households in Madagascar to get access to power through a $20.6 million project by off-grid solar company WeLight. The project is targeting 90% of rural population without access to power. (Business Live) 165 Cows have been imported by Cameroon from France to boost milk production in the country. This initiative aims to to provide national producers with high-performance breeding stock. (Food Business Africa) $65 billion Annual financing required by African farmers to produce enough food to curb imports and cushion their economies from external shocks. With the right investment and removal of barriers, of which access to finance is key, the AfDB, expects Africa’s food and agriculture market value could rise from $280 billion to $1 trillion a year by 2030. (Business Mirror) 100,000 Small-scale shop owners in Kenya to benefit from partnership between digital insurance platform mTek, Kyosk.app and Fin Africa to provide coverage in the informal sector. This partnership aims to expand insurance penetration, which currently stands at just over 2% given the large informal market. (Africa Business Communities) 15.3% Increase in production by Renault Group's Tangier and Casablanca plants in 2022, bringing the total number of vehicles to 35,000. Renault cars produced in Morocco are largely slated for export, with 70% shipped abroad. (Morocco World News)    

The government has enacted the effective date for the reduced corporate income tax rates, from 28% to 27%, through the Rates and Monetary Amounts and Amendment Revenue Laws Act 19 of 2022 published in the Government Gazette on 5 January 2023. For the years of assessment ending on 31 March 2023 and later the rate of corporate income tax payable is 27%. Further, the government has enacted various changes to rates and monetary thresholds for personal income tax tables, and an increase in excise duties on alcohol. The details of these changes are summarized below.

Personal income tax tables have been increased as follows:

• a primary rebate, from ZAR 15,714 to ZAR 16,425;
• a secondary rebate, from ZAR 8,613 to ZAR 9,000; and
• a tertiary rebate from ZAR 2,871 to ZAR 2,997.

With effect from 23 February 2022, excise duty rates for tobacco and alcohol have been increased as follows:

• per 1 litre bottle of beer or cider from ZAR 115.08 to ZAR 121.41;
• per 1 litre bottle of fortified wine from ZAR 7.92 to ZAR 8.36;
• per 1 litre bottle of sparkling wine from ZAR 15.51 to ZAR 16.52;
• per 1 litre bottle of spirits, including whisky, gin or vodka from ZAR 230.18 to ZAR 245.15;
• per packet of 20 cigarettes from ZAR 18.79 to ZAR19.82; and
• per 25 grams of piped tobacco from ZAR 6.26 to ZAR 6.63.

The rate of carbon tax on greenhouse gas emissions has been increased from ZAR 134 to ZAR 144 per ton of carbon dioxide equivalent of the greenhouse gas emissions of a taxpayer. This amendment is deemed to have come into operation on 1 January 2022.

Medical scheme fees tax credits have been increased as follows:

• from ZAR 332 to ZAR 347 if the person is not a member of a medical scheme or fund in respect of benefits to a dependant who is a member of a medical scheme or fund, or a dependant of a member of a medical scheme or fund;
• from ZAR 664 to ZAR 694 in respect of benefits to the person and one dependant;
• from ZAR 664 to ZAR 694 in respect of benefits to two dependants; and
• from ZAR 224 to ZAR 234 in respect of benefits to each additional dependant.

These amendments were promulgated as the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 19 of 2022 on 5 January 2023, in line with the announcement in the 2022/2023 Budget Review. The amendments, unless stated otherwise, are deemed to have come into effect on 1 March 2022.