September 2022 / Focus Africa

October 4 2022

Africa in Review by the Numbers (September 2022)

$670 million First round funding closed for Afreximbank's Fund for Export Development (FEDA), which will help to finance the equity gap and support foreign direct investment in Africa's trade sector. The financing is split across four funds: direct equity, strategic initiatives, private credit and venture. (Africa Global Funds) 58,000 Workers likely to get jobs in the renewable energy sector in Kenya as more producers connect to the grid following the saturation of the off-grid market. The growing demand has resulted in companies increasing training opportunities for workers to address skills gap in the sector. (Business Daily) 50% Stake in GlobalFeed acquired by Morocco's leading fertiliser company OCP Group. The acquisition of the Spanish company will help OCP diversify its phosphate solutions and become a leading player in animal nutrition sector. (CEO Business Africa) $734 million Sustainability-linked bond launched by diversified miner Anglo American. This is the company's first intrument to include targets to reduce greenhouse gas emission and fresh water abstraction and create jobs in host communities in Africa. (CEO Business Africa) 8% Returns earned by developers of student housing in Kenya, well above the 4% earned in the residential market so far this year. Undersupply of housing for students coupled with high demand for growth in number of students is driving demand. (Business Daily) 4000 Families to benefit from solar-powered water heaters distributed by the Tunisian government. These kits will help optimise energy consumption in the North African country currently affected by an economic crisis and reduce its fossil energy consumption by 30% by 2030. (Africa Energy Portal) $653 million Rice development project has been launched in Niger to increase the level of local paddy rice production to more than 1.4 million tonnes. The 10-year project will involve the modernisation of production, promotion of processing and strengthening technical capacities in the sector. (Food Africa Business) 15% Rise in toll fees for oil tankers crossing the Suez Canal, to be applied in 2023. Cargo ships and cruise liners will face a 10% hike, imposed as a result of increasing global inflation rates. Some 10% of global trade, including 7% of oil passes through the canal, which is a major source of revenue for Egypt. (ABC News) 200 MWp Solar power financing in South Africa has been secured by Sola Group to provide power to mining operator in Tronox. The $179 million fund is Africa's largest corporate renewable power purchase agreement to date.. (Africa Energy Portal) $5 billion Support pledged by the government of Japan and AfDB under the Enhanced Private Sector Assistance for Africa initiative. The funds will be used to support priority sectors, including food and agriculture, electricity, connectivity and health. (Food Business Africa) 10 million User base of Nigerian fintech PalmPay. This represents a doubling in its user base within six months and puts its customers numbers in the same group as major institutions. (Tech Build Africa) 500  Mining exploration projects currently ongoing in various parts of Ghana, mainly targeted at gold, lithium, copper and cobalt. The exploration projects are expected to increase in the coming years following recent geological investigations which revealed viable prospects for iron ore, nickel, zinc, chromium, lead and columbite-tantalite in the country. (Ghanaian Times)   Review by Kili Partners . Powered by Asoko Insight
September 14 2022

Egypt: Ministry of Finance Introduces New VAT Exemptions

The Egyptian Ministry of Finance (MoF) has introduced new VAT exemptions. Law No. 3 of 2022 amending the VAT Law (Law 67 of 2016) includes the following measures:

  • exempting from VAT input supplies of goods and services to businesses established in special economic zones;
  • defining the VAT treatment of digital transactions, the VAT obligations for non-resident persons conducting e-commerce transactions with Egypt-based clients and the simplification of their registration for VAT purposes; and
  • establishing a VAT refund procedure for goods purchased by non-resident individuals staying in Egypt for a maximum period of 3 months. The minimum amount of purchase per invoice is EGP 1,500. All purchased goods must be exported with the non-resident individuals in order to benefit from the refund.

The amendments to the VAT Law also include an exemption from VAT for the following goods and services:

  • manufactured foodstuffs;
  • water purification, sanitation and desalination services;
  • pharmaceutical products (and their inputs) and input supplies used for the production of paper;
  • vaccines, blood and its derivatives, family planning tools, sewage services (charged to water bills); and
  • international maritime transport services (not including tourist transport).

Law No. 3 of 2022 was published in the MoF official website and can be accessed here (in Arabic only).

September 14 2022

Customs Authority Temporarily Extends Storage Period of Certain Goods in Port Warehouses

The Egyptian Customs Authority (ECA) has extended the initial 2-month period for storage in port warehouses, the new authorized storage period is set to 4 months for the following goods:

  • foodstuffs with expiry dates longer than 2 months; and
  • foodstuffs with expiry dates longer than 4 months.

The measure takes effect from 29 August 2022 and is valid for 18 months from that date. In any case, it is not allowed to keep perishable or diminished goods deposited in temporary shops for a period longer than their condition allows.

The ECA has published Commissioner's Circular No. 65 of 2022 on its official website.

September 29 2022

African Tax Administration Forum Agreement on Mutual Assistance in Tax Matters Becomes Operational in South Africa

The African Tax Administration Forum Agreement on Mutual Assistance in Tax Matters (the agreement) has been approved by the South African Parliament and became operational on 23 September 2022. The agreement was published in the South African government gazette No. 46959 of 23 September 2022.

The objective of the agreement is for the member states to assist one another in tax matters relating to:

  • the exchange of information in tax matters;
  • the carrying out of tax examinations abroad;
  • the carrying out of simultaneous tax examinations; and
  • assisting in the collection of taxes.

The agreement deals, amongst others, with the following:

  • Taxes covered;
  • Exchange of information;
  • Tax examination abroad;
  • Simultaneous examinations;
  • Assistance in collection;
  • Confidentiality;
  • Costs;
  • Implementation legislation;
  • Other international agreements or arrangements;
  • Mutual agreement procedures;
  • Notification of competent authorities;
  • Ratification and entry into force; and
  • Accession, signature and withdrawal.

For more information, see here. Further developments will be reported as they occur.

Note: The member countries of the African Tax Administration Forum (ATAF) are Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Chad, Comoros Islands, Côte d'Ivoire, Ivory Coast, Egypt, Eritrea, eSwatini, Gabon, The Gambia, Ghana, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia and Zimbabwe.