January 2024 / Focus Africa

$4 billion Agreement for green hydrogen project in the Suez Canal Economic Zone has been signed between Egypt and Saudi Arabia's ACWA Power. This project's first phase is projected to have a production capacity of 60,000 tonnes of green ammonia and further aims to expand to the second phase, which is estimated to have a production capacity of 2 million tonnes of ammonia yearly. (Daily News Egypt) 115 MW Additional generational capacity in 15 African countries expected after International Finance Corporation (IFC) signed a financing package for the Facility for Energy Inclusion to boost clean and reliable energy in the continent. The $80 million financing package comprises a loan of $30 million from IFC; a loan of $20 million mobilised from the Managed Co-Lending Portfolio Program (MCPP), which will enable longer-term financing that is not readily available in the market; and up to $30 million in blended finance. (Africa Business Communities)

1st Large-scale mining licence in Uganda was awarded to Australia's Ioninc Rare Earths for its project in the East African country, making it one of the world's largest and most advanced development-ready heavy rare earth element assets. The Stage 1 mining licence covers approximately 44 square kilometers at the Makuutu Rare Earths Project. (Mining.com)

$222.5 million Raised by a diverse group of African institutional investors for Africa50’s Infrastructure Acceleration Fund that will catalyse development and economic growth in the region. The funds will be deployed into a pipeline of transformative projects spanning power and energy, transportation and logistics, water and sanitation and digital and social infrastructure. (Africa Market Trends) 90 million litres Of milk produced in Zimbabwe in 2023 after government-initiated and private sector-led interventions to support and change the dairy sector. The increase in milk production from 2022’s 86 million litres moves the country closer to bridging the gap between local demand and supply in line with import substitution efforts. Zimbabwe aims to grow the sector by 15 per cent and be milk self-sufficient by 2025 with a surplus for export. (The Herald)

257 MW The expected capacity of 3 new storage facilities to be constructed in South Africa by a partnership between Électricité de France (EDF) and Mulilo Energy Holdings. The duo plans to invest US$375 million dollars and for construction to begin in mid-2024. (Afrik21)

$1 billion Innovation fund has been launched by the United Nations Development Programme (UNDP) to support startups in Africa and boost development. This initiative, dubbed Timbuktoo Africa Innovation Fund, aims to transform 100 million lives and create 10 million new jobs even as it aims to fill critical gaps experienced in the startup ecosystem. (The Guardian Nigeria)

1100 MW Electricity capacity to be produced after a wind megaproject agreement was signed between Saudi Arabia's ACWA Power and Egyptian authorities that will run for 25 years. This wind farm will reduce carbon dioxide emissions by 2.4 million tonnes annually and supply electricity to over a million Egyptian homes. (Afrik21)

5 Public sugar factories in Kenya to be leased to private companies for 20 years in a fresh bid to revive the industry. The East African country is aiming to woo private companies to inject fresh capital into the millers by not only growing their capacities but also maximising production. (Business Daily)

US$8.3 billion Value invested in Nigeria's health sector by the United States, with the investment spanning initiatives related to prevention, care and treatment and strengthening the West African country's public health system. The collaboration between the US and Nigeria aims to foster advancements in public health and contribute to the greater Nigerian population. (Nairametrics) 500 million Vaccine doses to be produced annually in Kenya following Moderna's new deal to establish a manufacturing facility in the East African country. Moderna will operate under a Special Economic Zone status even as the Kenyan government aims to attract foreign direct investment (FDI) into the pharmaceutical sector and position itself as the regional drug-making hub. (Daily Nation)

11% Growth in the number of African deals closed in 2023 owing to more activity happening at the early stage. According to a Briter Bridges report, the 2023 deal value, which included debt, equity and acquisitions, was US $4.1 billion, a 21% drop from the previous year. (Techcrunch)

The Finance Law 2024 specifies the selected sectors where the electronic invoice tracking system applies as well as the scope of application of electronic certificates. This system will be used by the tax administration to monitor expenses deductibility, VAT, withholding taxes and automobile stamp duties.

The other tax administration measures include the following:

• introduction of the possibility for the Minister of Finance to authorize certain entities to collect excise duties on minerals and income tax from companies engaged in semi artisanal mining;
• introduction of an automatic transmission to the tax administration of internal audit reports and inventories listed at court registries;
• digitalization of tax clearance certificates and reinforcement of their scope;
• extending transfer pricing documentation to add the list of beneficial owners of intangible assets and strengthening the penalties for failure to declare;
• introduction of automatic exchange of financial information as well as identification of beneficial owners of bank accounts;
• adjustment of the deadline for filing of annual financial statements and payment of income tax balance from 15 March to:
  • 15 April for taxpayers registered with the Medium-Sized Taxpayers Department and other Specialized Tax Departments; and
  • 15 May for taxpayers registered with the Small Taxpayers Department;
• introduction of partial tax collection during audits, where the taxpayer has already acknowledged liability. An additional tax collection notice is issued at the end of the audit procedure;
• reduction of the time limit for the procedure for suspension of payment before forceful tax recovery from 15 days to 8 days after notification of the decision or, where no decision has been issued, after expiry of the time limit by the tax administration;
• introduction of a transaction procedure for settling tax claims issued before 31 December 2022, subject to deposits;
• strengthening penalties relative to failure to declare, failure to exchange information and failure to issue electronic invoices for companies subject to this obligation; and
• exemption from penalties for voluntary disclosure concerning taxpayers' assets located or income derived outside of Cameroon.