August 19, 2019
A glance at Uganda. Uganda, is located in the East-Central Africa. It is bordered to the east by Kenya, to the north by South Sudan, to the west by the Democratic Republic of the Congo to the south-west by Rwanda, and to the south by Tanzania. The southern part of the country includes a substantial portion of Lake Victoria, shared with Kenya and Tanzania. Uganda is in the African Great Lakes region. Uganda also lies within the Nile basin, and has a varied but generally a modified equatorial climate. Population 44.27 million people Total area of 93,065 mi² GDP 28.50 billion USD Currency Ugandan shillings Official language English ´ ´Minimum Investment capital $100,000 ´Local Investors the minimum requirement is US $ 50,000. Setting up investments. Steps taken One has to register there company with the Uganda Registration Services Bureau. After registration the investor will be issued a memorandum of association and a Certificate of incorporation. All foreign nationals planning to start up a business in Uganda must acquire an investment license from the Uganda Investment Authority. Secondary licenses can be secured if the sector you want to invest in requires the license these include Mining, Health Services, Air Transport, Banking etc) Uganda Investment Authority can assist you in securing these licenses within reasonable time. By law, all foreign investors need to obtain an Investment License from Uganda Investment Authority (UIA). However, according to the current investment Code, domestic investors are not obliged. One can apply for an Investment License Online from Uganda Investment Authority. Why invest in Uganda ? Uganda offers ideal opportunities for your business in the heart of Africa. The country is wide spread in African markets. This makes it easy to access market for the goods and services. The country is a destination for leading global corporations and international organizations. These corporations have harmoniously carried out three business in the country. The growing economy with its liberal policies makes Uganda a stop place for investments. Uganda has a variety of business opportunities. These include real estate, Agriculture, the service sector and so on. Uganda Investment Authority provides pro-active assistance in all aspects for investing in Uganda. The friendly nature of citizens. Ugandans have been ranked as one of the most friendly and highly entrepreneurial community. The economy also offers high returns on investment thus making Uganda your preferred investment destination. Requirements needed to carry out investments. For A Certificate of Incorporation and Articles & Memorandum of Association from Uganda Registration Services Bureau (URSB); A brief Business Proposal on the project (Not less than 5 pages); Evidence of availability of funds for the project, which could be a Bank statement for the company/Directors;Read More
August 15, 2019
Madagascar is located in the Indian Ocean 250 miles off the eastern coast of Africa across the Mozambique Channel, just south of the equator. Over 1000 miles (1580 km) long and 350 miles (570 km) wide, Madagascar is the world's fourth largest island. Its most prominent feature would have to be the steep mountain range paralleling the entire eastern coast. Population 26.9 million people Total area of) 592,800 square kilometres (228,900 sq mi) GDP 12.80 billion US dollars as of 2018 Currency Malagasy ariary Language French, Malagasy, English Why invest in Madagascar ? Madagascar is blessed with abundant natural resources The abundant natural resources, These include Gemstones, oil, rear metals, minerals and so on. Abundant fertile land with a favorable climate for any agriculture and farming activities makes the country good for agriculture investments. Rivers, wind and sun for renewable energy production. Madagascar is blessed with a lot of water bodies this gives an advantage for investments in renewable energy. Cheap local raw materials and labor this gives Madagascar a competitive advantage from the low costs of inputs , reduced labor costs more especially on labor intensive industries such manufacturing , textiles etc. Access to markets, With its strategic location Madagascar has signed many trade agreements with developing , developed as well countries. This gives it access to these markets through the different trade deals. The Attractive business environment, with the significant public and private investments in infrastructure such as roads , ports this makes it easy for setting up investments since a lot of costs are cut down Investment incentives The government of Madagascar through the ministry of commerce offers investment incentives to investors willing to invest I the country, these incentives have attracted a lot of foreign investments in the country. Setting up business in Madagascar. It takes 3 procedures and 12 days to establish a foreign-owned limited liability company (LLC) in Madagascar (Antananarivo). An LLC can be entirely foreign-owned; investment authorizations are no longer required. However, at least one of its executives must reside in Madagascar. If a newly established company (domestic or foreign) wants to engage in international trade, it must register with the Ministry of Commerce and Trade. Companies can obtain their statistical card, tax registration confirmation, commercial registration number, and professional card at the one-stop shop. They must also register for social security and health insurance, which can be done through the Economic Development Board of Madagascar (EDBM)’s one-stop shop. Companies in Madagascar are free to open and maintain bank accounts in foreign currency. Minimum capital requirements have been abolished. Company / Business registration. Anyone who plans to invest in Madagascar must register there businesses within 30 days of starting the business. All investors must open up a local bank account and also apply for the tax identification number from the National Bureau of Statistics (INSTAT) and an RCS number from the Trade and Companies Registry . Investment opportunities. Tourism this sector is one of the fastest growing sectors in Madagascar There is a strong potential for growth in tourism and has shown a 30 percent increase in foreign arrivals over the past decade. Transportation, due to the urge to improve the movement of people and their goods the government has committed itself in maintaining the existing network and building up new roads. Road transport is the main mode of transportation in the country. Mining Sectors Madagascar is endowed with a lot of mineral resources, the is considered to hold 50%of the world’s sapphires, as well as other semiprecious gems such as amethyst and beryl. Madagascar also has deposits of iron, nickel, graphite, bauxite and uranium. Food & Beverage Processing Sector : The firms in Madagascar presently have lesser imports as compared to those in other parts of the sub-Saharan country. Many firms are positive about the potential for growth in the agribusiness sector of the country. Being the 4th largest island in the world, Madagascar has a potentially large access to available seafood. Many investment opportunities hence exist in Madagascar’s high quality and globally renowned shrimp industry and seaweed industry. Taxation Principal Taxes Tax rate Corporate income tax 23% Turnover Tax (TOT) 20% Excise tax 5% to 325% Customs tax 0% to 20% Value added tax 20% Dividend tax 10% Labor The country has both skilled and unskilled labor. Wages depend on the position and the skills one has for that specific job. Minimum wage 50USD Monthly average wage 200USD-500USD. Investment incentives. Foreign investors are free to acquire land where they will carry out there operations under certain conditions. Investors are protected Madagascar has signed foreign Investment Promotion and Protection Agreement with some countries, such as Canada, Mauritius, France, and Germany. Such an agreement provides a framework of legally binding rights and obligations. Malagasy law recognizes private property and expropriation cannot be done without due process and appropriate compensation. Madagascar has a number of Fiscal incentives for example Export-oriented companies can apply for Export Free Zone status and get the fiscal advantages described in the law. Investors rights Investors have a right to fair treatment , the country is a member of the International Centre for the Settlement of Investment Disputes (ICSID Convention) and under domestic law, disputes between foreign investors and the State may be handled through arbitrage proceedings administered by this institution. Investors are free to repatriate their funds so long as they follow the right procedures .Repatriation of funds Madagascar abides by the IMF’s Article VIII statutory framework, which prohibits direct government limitation on foreign exchange use and availability. Two government offices share responsibility for the protection of intellectual property rights: the Malagasy Office for Industrial Property (OMAPI) and the Malagasy Copyright Office (OMDA). These offices are financially autonomous bodies, despite their close collaboration with the Ministry of Industry, Ministry of Commerce, and Ministry of Culture and Handicrafts. In nutshell Madagascar is open to foreign investments the country has a lot of untapped investment opportunities therefore the investor have a variety of sectors to choose from.Read More
August 13, 2019
Rwanda is a country in Central and East Africa and one of the smallest countries on the African mainland. Located a few degrees south of the Equator, Rwanda is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo. Rwanda is in the African Great Lakes region and is highly elevated; its geography is dominated by mountains in the west and savanna to the east, with numerous lakes throughout the country. Population 12.63 million people Total area of 26,338 km² GDP 9.80 USD Billion Currency Rwandan franc Language French, English, Kinyarwanda, Swahil Capital requirement at at least 100,000USD However, the capital requirement can be relaxed accordingly if one fulfills certain requirements according to the ministry of commerce . It takes two days for one to process the Investment certificate, work permit and the business visa. Requirements for a business visa The business visa applies to all people undertaking commercial pursuits in Rwanda.Read More
- Valid passport
- One Clear Colored photo,
- Receipt of payment of 55USD for Category A workers and 11USDfor Category B Workers.
- Application letter to the Director General of Immigration and Emigration.
- Completed application form.
- Police clearance in English or French.
- Signed CV of applicant.
- A copy of business trading license.
- A copy of annual tax certificate.
- A memorandum of understanding for companies or associations.
August 12, 2019
An overview of Ghana. Ghana is bordered by the Ivory Coast in the west, Burkina Faso in the north, Togo in the east and the Gulf of Guinea and Atlantic Ocean in the south. Capital City: Accra Land Area: 238,537 km^2 Population: 30,160,667 milliom people Currency: The Cedi (GHC) GDP 66.00 USD Billion Commercial Language: English Home of HE Mr. Kofi Annan, the immediate past Secretary General of UN. Minimum capital requirement. Joint Ventures (JV) with Ghanaian partners are encouraged, 100% foreign participation is permissible Equity: In trading, the minimum equity capital requirement is US$300,000. US$200,000 for JV with Ghanaian partner (Min.10% ) US$ 500,000 for 100% foreign ownership US$ 1,000,000 for trading activity (Min. 20 Skilled Ghanaians) Exemptions: Portfolio investment Manufacturing and export trade enterprises Foreign spouse of a citizen of Ghana Dual nationals Registration procedures Investors are required to complete Investor Registration Forms (Form GIPC/R1) in duplicate. Within five (5) days from the date of orderly receipt of these forms (and its attachments) the GIPC will formally register the investment. Steps in setting up an investment in Ghana. 1.Investors will need to register their business with the Register General. After successfully doing so the investor will receive the incorporation documentation to verify the business registration. 2. As there is minimum investment amount required a bank account will need to be set up to facilitate the transfer of the foreign investment as well as all future business transactions. 3. Where capital is introduced by the means of imported machinery or equipment all documentation covering such imports must bear the name of the registered company, and be submitted to the GIPC as evidence. 4. Where the capital is introduced as cash (not transferred) this must be declared upon arrival using Bank of Ghana Form T5, and must subsequently be deposited in a local bank account within the shortest possible time. This transaction must be confirmed by the investor’s bank and Bank of Ghana. 5. Registration is then required with the GIPC. 6. Registration with the Internal Revenue Service and Value Added Tax Secretariat is compulsory 7. Depending upon the area of investment, the investor is required to register with some oversight agencies. The Ghana Investment Promotion Center may assist directly or indirectly by referral to accredited public agencies or accounting and legal firms in this process. 8. Enterprises seeking to engage in manufacturing must register with, and obtain an environmental permit from the Environmental Protection Agency (EPA). Why invest in Ghana ? 1.Stable democratic climate Ranked as the most stable political environment within the West African sub region and fifth in Africa, Ghana has established democratic institutions and systems to ensure good governance and rule of law in the country - Africa Benchmark Country Report (ABCR, 2017) 2.Ease of doing business Ranked best place for doing business in West Africa according to the Ease of Doing Business Report 2019 (114thglobally) 3.Accessibility Ghana is easily accessible and geographically closer than any other country to the center of the planet. An average of 8 hours of flying time to Europe and the Americas. World Population Review (WPR) the country is a home to one of west Africa ports. 4.Competitive and educated labor force Availability of skilled and trainable labor. The country is ranked among. One of the most competitive minimum wages in the West African sub region at an annual average rate of $558. 5.Growing population and middle class The country’s population is increasing at ahigh speed coupled with increasing urbanization and growing middle class. Strong resource pool 6.Ghana is endowered with numerous resources and minerals for example it’s the largest cocoa producer in the world and Africa's biggest gold miner after South Africa. Investment opportunities in Ghana. Agriculture and agro-processing Manufacturing Tourism Energy Infrastructure & transportation Financial services ICT Health Education Chinese investments in Ghana. Investment Incentives Custom duty exemption on plant, machinery and equipment. Guarantee against expropriation. Accelerated depreciation for plants and buildings. Full repatriation of dividends and net profit attributed to investment. Transfer of funds in respect of servicing of foreign loans. Losses carry forward apply to the following businesses.Read More
- Those in specified priority areas; Five years.
- Three years in other areas.
- Deductions for Repairs and Improvements
- Research and Development Expenses
- Research and development expenses may be deducted irrespective of whether or not they are of a capital nature
August 9, 2019
Nigeria is located in the West of Africa, bordering Niger in the north, Chad in the northeast, Cameroon in the east, and Benin in the west. Its coast in the south is located on the Gulf of Guinea in the Atlantic ocean . Population 201,393,016 million people Total area of 910,770 Km2 (351,650 sq. miles) GDP 397.30 billion US dollars in 2018 GDP per capita 2450.00 USD Currency Naira Language English, Hausa, Yoruba Minimum capital requirement 200,000USD process the visas in Nigeria Expatriate Quota The prior authorization of the Minister of Interior in writing must be endorsed before a foreigner is allowed to establish trade, profession or a business in Nigeria. This authorization can be given in the form of a business permit or an expatriate quote or a combination of both. Work Permit Obtaining a work permit in Nigeria is not that difficult . The visa can be obtained from the immigration office in Nigeria. The lead time to get a work permit at the immigration is 7 working days. Why invest in Nigeria ? Abundant natural resources such as natural gas , zinc , lead , oil. Nigeria is one of the largest producers of oil in Africa. Robust economy Nigeria has one of the strongest economy in Africa, The country is among the top destinations of FDI in Africa . Advanced infrastructure development such as roads, schools , health centers compared to other African countries. Nigeria has a dynamic private sector which is progressing and developing at a high speed . This is evidenced by the increasing middle income earners . Huge domestic market, Nigeria has a large population which provides market for all the goods and services produced in the country. Investment opportunities in Nigeria Investment incentives Nigeria has an investor-friendly legal with its regulatory regime and policies which are aimed at encouraging foreign investment. The fiscal investment incentives include relief against double taxation, waiver of income tax on loan interest for loans with a tenor of at least 7 years and a moratorium of at least 2 years, Withholding tax is the final tax on investment income for non-resident foreigners. Companies with at least 25% of their equity capital paid in from abroad are exempt from the alternative minimum tax requirement. Bonds issued by corporate bodies are exempt from the tax imposed under the Companies Income Tax . Investors in so-called pioneer tax status industries get a tax holiday period of 5 to 7 years. Companies that are involved in local raw material development, local value added, labor-intensive processing, export-oriented activities and in-plant training also qualify for additional income tax concessionary rates ranging from 2-20% up to 5 years. Foreign investors in Nigeria are protected from expropriation (except on payment of adequate compensation) Taxation Principal Taxes Tax rate Corporate income tax 30% Import tariffs 0% to 65% Income tax from Employment 7% to 24% Value added tax 5% Dividend tax 10% Education tax 2% Capital gain 10% Wages and Utilities Minimum wage 83$ Average monthly income 207$ Utilities Ware house rent Minimum 60,671$ Electricity A package at US 0.05c kW/h for commercial use . Water Basic (Electricity, Heating, Cooling, Water, Garbage) for 915 sq ft Apartment 70$ Internet Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) per month 550.25 $ Telecommunication / call fees 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.05 $. Investors rights foreigners can invest in any sector, except for those on the negative list. No restriction on foreign percentage ownership. Government will not nationalize or expropriate any enterprise. Right of access to courts and fair and adequate compensation if acquisition is in national interest/for public purpose. No restriction on repatriation by foreigners of investment returns or sale proceeds through an authorized dealer. Amicable resolution by mutual discussion or arbitration of investor/government disputes. Provisions of any Bilateral Treaty with the investor’s country will apply. Right of recourse to international arbitration under ICSID Rules. Free trade zones in Nigeria Lekki Free Trade Zone, Lagos. It is located 60 km east of Lagos on a sandy peninsula with the Atlantic Ocean to the south and Lekki Lagoon to the north. It’s a joint venture between a Chinese consortium - China-Africa Lekki Investment Co. Ltd (CALIC) and the Lagos State Government. Ogun-Guangdong Zone, Ogun State The zone is located in the Igbessa Region of Ogun State, west of Lagos State, 30 km from Lagos international airport. The zone is being developed as a joint-venture between a Chinese consortium (82 percent) which consists of Guangdong Xinguang International Group, China-Africa Investment Ltd and CCNC Group and the Ogun State Government (18 percent). Abuja Technology Village (ATV), FCTA Abuja Technology Village is a technology park and free zone located in the capital city of Nigeria, with a land allocation of 700 hectare. The zone is owned by a joint venture – ATV Free Zone Company with 40% share by the FCTA (Federal Capital Territory Administration) through the Abuja Investment Corporation Limited and 60% by the Abuja Technology Village Foundation. Lekki Free Trade Zone, Lagos. It is located 60 km east of Lagos on a sandy peninsula with the Atlantic Ocean to the south and Lekki Lagoon to the north. It’s a joint venture between a Chinese consortium - China-Africa Lekki Investment Co. Ltd (CALIC) and the Lagos State Government. Ogun-Guangdong Zone, Ogun State The zone is located in the Igbessa Region of Ogun State, west of Lagos State, 30 km from Lagos international airport. The zone is being developed as a joint-venture between a Chinese consortium (82 percent) which consists of Guangdong Xinguang International Group, China-Africa Investment Ltd and CCNC Group and the Ogun State Government (18 percent). Abuja Technology Village (ATV), FCTA Abuja Technology Village is a technology park and free zone located in the capital city of Nigeria, with a land allocation of 700 hectare. The zone is owned by a joint venture – ATV Free Zone Company with 40% share by the FCTA (Federal Capital Territory Administration) through the Abuja Investment Corporation Limited and 60% by the Abuja Technology Village Foundation. Foreign companies in NigeriaRead More
August 5, 2019
Malawi is located between Zambia, Tanzania and Mozambique. Malawi is well positioned to act as your global export base in an increasingly competitive market, where access to raw materials and time to market is crucial in maintaining a global chain supply. Flag Country data Population 18million people Total area of 118480km2 GDP 6.4 billion US dollars GDP per capita 1182US$ GDP growth rate 4.5% Currency Malawi Kwacha Language English and Chichewa etc Investment requirements Minimum investment capital US $50,000.00 Company incorporation Prospective investors are required to incorporate a company in Malawi with the Registrar of Companies before proceeding further with any investment-related activities. The Registrar issues a Certificate of Incorporation once a company is registered. Issuance of Investment Certificate. All prospective investors investing a minimum capital of US$50, 000.00 are required to obtain an Investment Certificate from MITC. MITC charges a non-refundable processing fee of US$200.00 and an issuance fee of US$800.00 for the certificate. Business Residence Permits, Temporary Employment Permits and Business Land. MITC through the One Stop Service Centre can be processed by MITC. Environmental Impact Assessment Requirements Some investment projects require an Environmental Impact Assessment (EIA) depending on the magnitude and location of the proposed investment in Malawi. Business resident permit Required fees: Processing fee is US$100, Issuance fee is US$ 2,000 Validity Period: 5 years Application requirements: Fully completed application forms in duplicate, 2 passport size photographs, Business Registration Certificate/ Certificate of Incorporation, A police clearance report from country of origin, Business plan/profile. Bank statement with not less than US$50,000, MITC Investment Certificate. Cover letter from the applicant. Note that all documents should be in duplicate and all certificate be certified. Why invest in Malawi? Malawi is politically stable, it has not had civil wars for quite along period of time and it has a vibrant democracy. Malawi has a liberalized economy with market determined interest rates, floating exchange rates, The country is characterized by government support through development reforms and co –investment strategies aimed at developing the private sector. The country has a competitive labor market which is highly educated, hardworking and skilled as well as easy to train. Malawi has got access to regional and international markets, The country is a signatory to a number of multilateral and bilateral trade agreements as part of its trade policy. o world markets. Malawi has a wide range of economic activities which have not been explored, This gives Investors a wide range of opportunities to invest in these sectors which include agriculture, energy, mining, manufacturing, infrastructure development/ICT,finance and tourism. . Malawi is an increasing destination for foreign investments .This is due to the country ‘s competitive investors' tax incentives package. Malawi has modern telecommunication, daily flight connections and access to regional and international markets. The country’s economy is growing therefore this gives a chance to Investors to be part of the driving force leading to this growth. Malawi’s infrastructure is developing therefore increasing the ease of running the business. Investment priority sectors Agriculture & Agro-processing Mining Tourism Manufacturing Infrastructure Energy Information & Communication Technology (ICT) Forestry Utilities Water; 0 up to 4 cubic meters per month (flat rate) US$14.07 Commercial and Industrial US$ 3.95 per unit. Large Power for industrial users, supplied at three phase supply and metered at 11 kV On peak unit charge per kWh US$0.16 Off peak US$0.05. Internet Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) per month 400USD u Telecomunication / call fees 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.04 $ Freight charges. Taxation Principal Taxes Tax rate Corporate income tax 30% Turnover Tax (TOT) 2% Customs duties 30% of the import value interest with holding taxes 20% VAT 16.5% is reclaimable - Specific goods are VAT exempt or zero rated Dividend tax 10% Special economic zones (SEZ) Malawi is establishing SEZs to fast-track industrialization which would lead to sustainable economic growth and development. This is being championed by the Ministry of Industry and Trade (MoIT), through MITC. So far, MITC intends to develop several areas into SEZs and these include; the Agro-processing Special Economic Zone (AP-SEZ). Export Processing Zones The Export Processing Zones (EPZs) regime was established to attract export-orientated industries, by offering them especially favorable investment incentives as compared to the remainder of the manufacturing sector in the country. All companies engaged exclusively in manufacturing for export may apply for EPZ status, as Government accords EPZ status only to firms (foreign or domestic) that produce exclusively for export. Investor’s rights Freedom of repatriation of funds (including investment capital, profits repatriation, repayments for international loans and lease repayments) as long as the capital and loans were obtained from foreign sources and registered with the Reserve Bank of Malawi (RBM). Malawi has the legal framework to protect intellectual property. This includes the acts on copyrights, trademarks, registered designs and patents, property protection of genetic engineering products particularly GM crop varieties, creatives works, amongst others. Malawi has a Competition and Fair Trading Act that protects investors from anti-competitive business practices. The Act prohibits conducts that prevent, restrict and distort competition in the market hence guarantee investors freedom to do business without unnecessary market impediments. Both foreign and domestic investors have equal access to Malawi's legal system, which functions well and is unbiased.Read More
August 5, 2019
Tanzania is a country in East Africa within the African Great Lakes region. It borders Uganda to the north; Kenya to the northeast. Comoros Islands at the Indian Ocean to the east; Mozambique and Malawi to the south; Zambia to the southwest. Rwanda, Burundi and the Democratic Republic of the Congo to the west. Mount Kilimanjaro, Africa's highest mountain, is in north-eastern Tanzania. Flag Population 58.01 million people Total area of 947,300 square kilometers GDP 59 Billion USD GDP per capita 990 GDP growth rate 7.1% Currency TZ Shillings Language Swahili and English Economic activity Agriculture Investment requirements Minimum requirement 200,000USD Certificate of incorporation work and residence permits. Work permits are valid for a period of 24 months from the date of issue and can be renewed provided the permit's total period of validity from the first grant and any subsequent renewals does not exceed five years. Validity of a work permit for an investor whose contribution to the economy is of great value can exceed ten years. Duration of registration for Investors Registration for a company, business licence, work permits and residence permits do not take much time as long as one has all the documentations . Company registration 3 days Industrial license 1 day Business license 1 day Certificate of incentives 1 day Resident permit class A 14 days Resident permit class B 14 days Why invest in Tanzania? Tanzania is among the top 10 destinations of investments in Africa. Tanzania has a wide market access. Investing in Tanzania now gives a company access to a regional market of over 90 million: the East African Community (EAC). Tanzania is strategically located. It shares its borders not only with Kenya and Uganda, its EAC partners, but also with Mozambique, Malawi, Zambia, the Democratic Republic of the Congo, Burundi and Rwanda. All of these save Kenya and Mozambique are landlocked countries and Tanzania provides the natural access to them. Tanzania’s long record of stability. Tanzania is a poor country but a stable one, and it has a steadily growing economy. It has had nearly half a century of political stability as a sovereign country. Market access in different economic organisations. Investment opportunities in Tanzania. Economic parks/ zones. Tanzania is currently implementing and emphasizing construction of more Free trade areas and Economic Development Zones (EDZs) programs which encompass Export Processing Zones (EPZs) and Special Economic Zones (SEZs) to stimulate manufacturing of value added goods for regional markets and export to other countries. These Economic zones offer an abundance of opportunity for investors all over the world to come and invest in the zones while at the same time afforded attractive incentives to facilitate such investment and generation of profit as well. Labor With more students graduating from universities in various fields the skilled labor thus this will position investors with sufficient workforce to fill various positions. There is also plenty of unskilled labor which demand a lower payment than the skilled labor. Minimum wage $180 per month Average monthly wage $500 Investment incentives. Access to various services related to permits, licenses and approvals in the TIC One Stop Facilitation Centre. The recognition of private property and protection against any non-commercial risks. Tanzania is an active member of the World Bank Foreign Investment Insurance wing, MIGA (Multilateral Investment Guarantees Agency). Likewise Tanzania is a member of The International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank Zero percent (0%) Import Duty on Project Capital Goods, Computers and Computer Accessories, Raw Materials and Replacement Parts for Agriculture, Animal Husbandry and Fishing, Human and Livestock Pharmaceuticals and Medicaments, Motor Vehicle in Completely Knocked down (CKD) form and inputs for Manufacturing Pharmaceutical Products. Ten percent (10%) - Import Duty for Semi-processed/semi finished goods). Introduction of pay and refund scheme for excise duty paid on fuel purchased by eligible companies. 100% capital expenditure to Mining & Agricultural sectors. The Income Tax Laws allows 50% Capital allowances in the first year of use for Plant and Machinery used in manufacturing processes and fixed in a factory, fish farming; or providing services to tourists and in a hotel Thereafter, wear and tear rates apply to the remainder as below: VAT Deferment granted on project capital Goods such as Plant & Machinery. However the persons has to carry on an economic activity, keeps proper VAT records and file returns, has no Tax outstanding and VAT payable in respect of each unit of the Capital goods is twenty million Shillings or above. Taxation Tax Rate Income tax 30% Employment income 15% Corporate income tax 30% Import tax 18% Export tax 18% VAT 20% General utilities Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment 67USD 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.2USD Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) 64 USD A meal with a drink can cost 5USDRead More
August 5, 2019
Zambia lies in a central position in southern Africa surrounded by quite a number of countries. It is a landlocked country between Angola in the west, Namibia, Botswana and Zimbabwe in the south, Mozambique, Malawi and Tanzania in the east, and the Democratic Republic of Congo in the north. Location on the map. Zambia's flag Zambia is 752,614 square kilometers (290,586 square miles) in size. This makes Zambia the 39th largest country in the world. Population: 17.08 million million people Economic statistics GDP : $ 26.72 billion USD(2018) GDP Per Capita: $1672.30 GDP Growth Rate 3.70% Currency Kwacha Setting up a business in Zambia Minimum investment amount Investment of not less than US$250,000 in any sector or product. The registration procedure starts with Name Clearance. If all documents are lodged in, the process to obtain an Investment Certificate takes about 10 days. Documents needed for investors to start up a business in Zambia 1.Copy of Certificate of Incorporation issued by PACRA 2.Certificate of Share Capital 3.Official list of Shareholders and Directors 4.Proof of finance (audited financial statements, certificate of deposit at the bank or latest bank statement) 5.Detailed Business Plan 6.TPIN and Tax Clearance Certificate 7.Proof of having secured a place/land to operate from (Lease Agreements or Title 8.Deed or Letter of Offer) 9.Depending on the sector, proof that relevant sector permits or licenses have been lodged. Why invest in Zambia ? The country of Zambia has been peaceful and democratic for many years, Its characterized with both social and political stability as well as a healthy macroeconomic environment, with economic growth averaging around 6 percent per annum since 2003. The business reforms have helped in improving the country’s rank worldwide, the results are as : Ease of Doing Business - World Bank Zambia is ranked 5th in COMESA Global Competitiveness Index – World Economical Forum Zambia is ranked the 11th most competitive country in Africa Doing business - Forbe's annual ranking Zambia is ranked 9th by Forbes as the best country among 54 African Countries to do business. Investment opportunities in Zambia. Investment Incentives Tax Incentives Corporate Income Tax : 0% for 5 years Zero percent tax rate on dividends for 5 years No Import Duty on equipment and machinery for five years Non tax incentives Investment guarantees and protection Free facilitation for application of permits, licenses, land acquisition and utilities Location support Multi Facility Economic Zones Industrial Parks Rural Area Economic zones Multi-Facility Economic Zone (MFEZ) Six (6) areas have been declared as MFEZs and /or Industrial Parks vis-à-vis: Chambishi, Lusaka East, Lusaka South, Lumwana; and Ndola (Sub Saharan gemstones exchange) and Roma as an Industrial Park. These zones make Zambia competitive through increased activity in the trade and manufacturing sectors, which have numerous positive spillover effects in other sectors such as utilities, transport, agriculture and services. The zones have good infrastructure in place in order to attract and facilitate establishment of world-class enterprises in the zones. The MFEZs blend the best features of the free trade zones (FTZs), export processing zones (EPZs) and the industrial parks/zones concept and create the administrative infrastructure, rules, regulations etc that benchmark among the best dynamic economies. The blending of physical infrastructure with an efficient and effective administrative infrastructure will create the ideal investment environment for attracting major world class investors. Utilities Electricity Commercial tariffs - 15kva C1 – consumption up to 700kwh energy charge / kwh 0.31 Fixed monthly charge / kwh 55.09 Rent Ware house / Factory rent Neat warehouse (800 sqm) located in industrial area off Mumbwa Road near Chinika Erf Size 2 400 m², Floor Area 800 m² price 2557 USD Per Month. Lusaka East Multi-Facility Economic Zone With an internal net area of 1426 square meters open space, with high headroom. Some also have space for an office in addition to the warehouse area the rent can cost $ 4, 911 per month amounting to $ 3.5/square meter. Other utilities Basic (Electricity, Heating, Cooling, Water, Garbage) for 915 sq ft 77.6 USD 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans 1.50ZMW Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) 898.00 ZMW Apartment (3 bedrooms) in City Centre 8,936.32 ZMW Apartment (3 bedrooms) Outside of Centre 5,439.09 ZMW Food is relatively cheap. With avariety of choices one can choose from. The cost for a plate can be 10-20USD for a good meal. Labour Zambia has plenty of labour both skilled and unskilled labour .The labour costs are generally low compared with other countries. Average monthly Wage 300-500 USD Minimum wage 53 USD Cost of Living Cost of living in Zambia is 51.62% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Zambia is 73.63% lower than in United States (average data for all cities). Graphic presentation of daily expenditures Successful companies which have invested in Zambia.Read More
July 31, 2019
The Republic of Kenya is in East Africa and neighbors Ethiopia, Somalia, Tanzania, Uganda, Sudan. Size:582,646 sq. kms. Capital city Nairobi Population: 43.18 million GDP: 89.00 USD Billion Per capita:$3,238 Kenya is a member of UN, AU, EAC, COMESA, ACP, Non-Aligned Movement, and WTO among others. It hosts headquarters of UNEP and Habitat. Kenya is also a regional headquarters for numerous international and NGO Agencies. It also hosts regional offices of World Bank, IMF, IFC, WHO, UNDP, UNHCR, UNESCO, East African Development Bank, Eastern and Southern African Trade and Development Bank (PTA Bank) among others. Capital requirement For a foreign investor to qualify for an investment certificate, the minimum value of his proposed investment should be USD 150,000. In deciding whether to issue an investment certificate, KenInvest considers the extent to which the investment will contribute to the Kenyan economy by increasing the number and quality of jobs in Kenya. Training Kenyans in new skills or technology, encouraging economic development, allowing the transfer of technology, adding to tax revenue or affecting foreign exchange. Company registration The Registrar of Companies is responsible for business registrations in Kenya. He/she issues certificates of compliance for foreign companies, certificates of incorporation for local companies and certificates of registration for sole proprietorships and partnerships. If all documents have been submitted correctly, the certificate of incorporation will be issued within 5days. Firms must then obtain registration with National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF) and the Kenya Revenue Authority (KRA) . Documents required for an investment certificate You will need to submit the application forms together with copies of: Certificate of Incorporation, Memorandum and Articles of Association Issuance of The Investment Certificate from KenInvest upon conforming to Health, Environment and Security requirements. Therefore, if an investor does not have an entry permit or if environmental impact assessment is required, these will need to be obtained before the KIA approves the investment certificate. Why invest in Kenya ? Kenya is the largest economy in East Africa with a strong growth prospective and a faster growing middle class, Kenya is one of the most attractive FDI destinations in Africa. Strategic geographic location the country has a port which is busy throughout the year. Reduced costs of energy and improving availability of energy around the country. Large presence of multinational companies choosing the country to establish there headquarters. Well established private sector Wide market access . Kenya is a member of different economic organisations such as COMESA, EAC and SADC. Political stability and favorable investment policies . Investment sectors in Kenya. Agriculture sector ; innovative commercial oriented modern farming, fishing and livestock. Manufacturing, whole sale and retail. Kenya is among the countries with a diversified and competitive manufacturing sector. ICT sector Oil and minerals Kenya is blessed with a variant of minerals and potential mines which need to be exploited. Financial sector consists of banking, capital markets and insurance. Tourism sector. Kenya is one of the top tourist destination in East Africa with top 10 long haul destinations offering high –end diverse and distinctive visitors experience. Investment Incentives in Kenya. Kenya guarantees capital repatriation and remittance of dividends and interest to foreign investors, who are free to convert and repatriate profits. Private enterprises, both foreign and domestic, can freely establish, acquire, and dispose of business enterprises according to the Companies Act. The Constitution of Kenya provides protection against the expropriation of private property. Only permitted subject to the payment of prompt and fair compensation. Opportunities for Investors Source. Kenya investment Authority. Taxation Labor Labor is quite available in Kenya and relatively cheap. Salary and wages depend from the skills the employees got. Average Monthly salary 200-500USD Average wages 80$-100$ Cost of living Summary about cost of living in Nairobi: Four-person family monthly costs: 1948 USD (202,662.25KSh) without rent . A single person monthly costs: 489 USD without rent. Cost of living index in Nairobi is 46.87% lower than in London. Cost of living rank 244th out of 383 cities in the world. Nairobi has a cost of living index of 42.69. Utilities Electricity provision is focused on urban areas and relatively low in rural areas. Current total installed electricity generating capacity is 1,720 MW. However, electricity generation depends significantly on hydro-electric power. Price for industries and commercial usersRead More
Water is provided at the following average rate. Prices; Unit Value Water USD 0.62 1 m3 industrial consumption Internet costs Unit Value Internet USD48 6 Mbps, Unlimited Data, Cable/ADSL Transport costs Below are average prices of transport in Kenya. The prices indicated will vary from the actual prices on the ground and are to be used only as an indicator Prices Unit Value Freight transport USD 1400 40' container from Mombasa port to main commercial city(Nairobi) Land costs Indicative rental costs are displayed below. The charges are exclusive of service charge and tax. Prices
Investors rights Protection from expropriation The Constitution of Kenya guarantees protection of private property. At the same time, the Foreign Investment Protection Act guarantees against expropriation of private property by government. However, private property may be expropriated where it is in the public interest and where due process is followed. In such cases adequate and prompt compensation must be provided. This is detailed in the Land Act. Some Multinational brands in Kenya
|450 Volts||KES||5.75 /Unit||Fixed Charge= KES 800, Demand charge per KVA= KES 600|
|11,000 Volts||KES||4.75 /Unit||Fixed Charge= KES 2500, Demand charge per KVA= KES 400|
|33,000 Volts||KES||4.49 /Unit||Fixed Charge= KES 2900, Demand charge per KVA= KES 200|
|66,000 Volts||KES||4.25 /Unit||Fixed Charge= KES 4200, Demand charge per KVA= KES 170|
|132,000 Volts||KES||4.10 /Unit||Fixed Charge= KES 11,000, Demand charge per KVA= KES 170|
|Office space||USD||3.20 - 3.0||In main commercial city, per m² per month|
|Warehouse||USD||1.9 - 2.5||7.5 km from main commercial city, per m² per month|
|Furnished expatriate house||USD||2000 - 4000||3-bedroom with garden, in main commercial city, per month|
|Unfurnished expatriate house||USD||1000 - 2000||3-bedroom with garden, in main commercial city, per month|