Made In Africa Inc. has received $190 Million term sheet facility from the African Export-Import Bank (Afriexim Bank) to finance the company’s acquisition of African Fabric Holdings BV, Netherlands, also known as Vlisco Group. The facility, broken into two tranches, will also be used to provide working capital to Vlisco group following the acquisition.
Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative
Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, signed on behalf of the Bank while Kojo Annan, Chairman and Founder of MIA, signed for the company during a ceremony held on the sidelines of the Creative Africa Exchange Weekend (CAX WKND) taking place in Kigali.
Vlisco Group designs, produces and distributes fashion fabrics, especially of the African wax print style, for the West and Central African market and African consumers in global metropolitan cities. Its fabrics have grown into an essential part of African culture, receiving widespread attention from the art, design and fashion worlds.
CAX WKND, which is featuring more than 2,000 participants and 250 exhibitors from 68 countries, is organised by Times Multimedia and sponsored by Afreximbank and other partners, as the opening act of activities planned under the CAX Programme to bring together African creative talents from the music, arts, design, fashion, literature, publishing, film and television sectors.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The world’s leading pharmaceutical and personal healthcare manufacturing Giants such as Johnson & Johnson , Lilly, Novartis , Pfizer , GSK and the Bill & Melinda Gates Foundation have joined forces with Philanthropic organisations like the Last Mile Health and Living Goods to increase access to community-based primary healthcare for nearly 1.7 million people in up to six African countries.
Vas Narasimhan, CEO of Novartis
This laudable initiative is part of their shared commitment to accelerate universal health coverage. The Health Worker Training Initiative is a three-year investment, generously matched by The Audacious Project, and totals USD $18 million.
Harnessing the synergy of cross-industry collaboration is key to advancing universal health coverage. Living Goods and Last Mile Health have pioneered the community health worker model and are continually exploring novel approaches to training and retaining community health workers. By teaming up with Johnson & Johnson, Lilly, Novartis, Pfizer, GSK and the Bill & Melinda Gates Foundation, precious resources and acumen can be maximized. All are united by the belief that community health workers play a catalytic role, and all share a commitment towards advancing universal health coverage.
Leveraging the unique expertise of each organization will drive tech innovation and deepen impact. In addition to financial contributions, industry partners will contribute disease-specific expertise and experience in the discovery and development of new tools, which will supplement the community health worker models pioneered by Last Mile Health and Living Goods, in partnership with government.
Investing in community health workers produces some of the best returns in health. Community health workers can yield a 10:1 return on investment, due to a healthier population, increased employment, and lower odds of health crises. In addition, community health workers can help primary healthcare systems serve the majority of a population’s health needs, which means community health workers are one of the most efficient and effective ways to achieve universal health coverage. This partnership is a response to the growing call to action globally to advance universal health coverage and Sustainable Development Goal 3.
“Focused investment in community health workers can accelerate progress to make universal health coverage a reality,” said Dave Ricks, chairman and CEO of Lilly and president of the International Federation of Pharmaceutical Manufacturers & Associations. “Public-private collaboration is critical to help governments lower barriers to quality care and innovative medicines that save and improve people’s lives.”
“Community health workers are the critical frontline to sustainably impact the health of communities in resource poor settings,” said Vas Narasimhan, CEO of Novartis. “Novartis is committed to strengthening healthcare systems and is proud to be part of this coalition to use digital technologies to reimagine the future of community health delivery.”
The three-year investment will cover three areas mainly; supporting the training and deployment of 2,500 digitally-enabled community health workers, reaching nearly 1.7 million people by 2022. Community health workers will be trained and deployed in Liberia, Kenya, Uganda, Malawi and up to two additional countries.S
Supporting Last Mile Health’s Community Health Academy, which is an open source, digital learning platform for community health workers and health systems leaders used worldwide. Training curricula for community health workers initially focuses on diarrheal diseases, family planning, malaria and pneumonia, with further modules expected to address non-communicable diseases, such as diabetes and hypertension.
And the last would be to contribute expertise and personnel to Living Goods’ new Kenya Performance Lab to develop mobile-based tech innovations that will improve community health worker productivity, strengthen supply chains and better identify obstacles to coverage.
The Lab will leverage the knowledge and assets of partners in areas including data science, behavior change, performance management, analytics and technical health expertise. Innovations would be introduced in Kenya and then scaled to other countries within the broader initiative.
Together, these pieces of the investment aim to scale up access to life-saving primary healthcare while building stronger, tech-enabled community health programs for the future.
“Well-trained community health workers play an integral role in providing quality care in low-resource settings,” said Andrin Oswald, Co-chair of the CEO Roundtable Executive Council and Director of Life Sciences Partnerships at the Bill & Melinda Gates Foundation. “The Gates Foundation is committed to working with partners across sectors to achieve universal health coverage, which is necessary to achieving the Sustainable Development Goals and reducing the burden of diseases that disproportionately affect pregnant women and young children. We thank the companies involved in this initiative for their efforts to increase data-driven solutions to train and deploy effective community health workers.”
“This partnership will play a critical role in helping to scale and empower the world’s most promising health resource—community health workers—so that they can thrive and effectively save lives,” said Dr. Jane Aceng, Uganda’s Minister of Health. “Ensuring community health workers have the right training, digital technology, medical equipment and supervision is critical for ensuring they can help transform health outcomes, no matter where people live.”
Each of the six investors will contribute USD $1.5 million total over the next three years. This funding will be matched by the Audacious Project through an existing USD $50 million matching commitment to scale community health workers in Africa, resulting in an USD $18 million total investment.
This investment will also support the sustainability of community health worker programs. Living Goods and Last Mile Health partner with governments to deploy digitally-empowered community health workers. Not only will this partnership support community health workers to reach more patients, but the curricula and tools developed through the investment will support improved community health worker performance for years to come.
“We are inspired that healthcare companies are taking collective action to strengthen community health systems in the public sector across sub-Saharan Africa to advance universal health coverage,” said Liz Jarman, CEO of Living Goods, and Dr. Raj Panjabi, CEO of Last Mile Health.
“This partnership is much more than a financial commitment; it joins a growing movement of philanthropists, companies, and governments that have committed to scale digitally-empowered community health workers and build stronger primary healthcare systems across Africa to ultimately save more lives”, he added.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The general secretariat of the Economic Community of Central African States (ECCAS), the governments of the Central African Republic, the Republic of Congo, the Democratic Republic of Congo (DRC) and the Republic of Chad are organizing a round table in Brazzaville (Congo) on 19 March 2020 with a view to finance a dozen projects expected to be carried out between 2020 and 2029.
ECCAS General Secretary, Ahmad Allam-mi
According to the ECCAS General Secretary, Ahmad Allam-mi.“To establish the foundations for sustainable development and successful regional integration, Central Africa must overcome many challenges, including the construction of a multimodal transport network for the movement of people and goods”.
Organized with the support of the African Development Bank (AfDB) under the high patronage of the Congolese President, Denis Sassou-Nguesso, the roundtable aims to raise 3 billion USD for a first phase of priority investments (Priority Investments Program – PIP 2020-2024) to continue the efforts made by the member countries of the sub-region which is at the crossroads of the continent’s major trade flows, to develop roads and transport.
Despite significant progress in recent years, Central Africa still ranks last in the ranking of African countries with the best road infrastructure (barely 8% of the total road network). The same result applies to the asphalting of roads: only 2.2% of roads in the sub-region are paved.
In order to accelerate regional integration in the ECCAS zone and boost growth in this region, which is particularly rich in natural resources, oil and mining, the organizers have targeted a dozen projects, including three flagship transport infrastructure projects which they will present to donors in Brazzaville next March.
These projects include the construction of the Road-Railway Bridge between Kinshasa (DRC) and Brazzaville (Congo), the construction and rehabilitation of the Ouesso/Bangui/N’Djamena road, the missing link in the trans-African road corridor Pointe Noire/Brazzaville/Ouesso/Bangui and Ndjamena; and river development works, upgrading of existing ports, construction of new ports and development of berths on the Oubangui River and its tributaries.
The round table will also be an opportunity for its organizers to review the Consensual Master Plan for Transport in Central Africa (CMPT-CA) and to measure its impact since its launch, in 2004, by the member states of Central Africa to connect the 11 capitals of the ECCAS zone.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Nigerian banking group Access Bank just created a subsidiary in Cameroon. With an initial capital of about XAF14.5 billion, the new subsidiary’s headquarters will be in Douala, Cameroon’s economic capital.
Iyabode Soji-Okusanya, Administrative Board Member
The administrative board of this subsidiary is constituted of seven members with only one Cameroonian, the legal notice published for the creation indicates. These members are Patience Melone, Iyabode Soji-Okusanya, Fatai Oladipo, Abraham Aziegbe, Ibukunoluwa Odegbaike, and Elliz Nzo Azu.
Created for a duration of 99 years, the bank has chosen Price Water House Coopers as its external auditor and will operate in the management of current accounts, savings collection, checks payment and credit granting.
As required by the rules in force, the launch of Access Bank Cameroon’s activities in Cameroon is still subject to the issuance, by the Ministry of Finance and the banking commission COBAC, of various legal notices and authorizations to the bank’s shareholders.
If it succeeds in launching its subsidiary in Cameroon, Access Bank Plc will become the 16th commercial bank to operate in the country and will meet one of its compatriots, United Bank of Africa (UBA), on that market. Let’s note that it is entering the Cameroonian market some years after the departure of another Nigerian group, Oceanic Bank International namely.
Some years ago, Oceanic Bank International took over 54.5% of Union Bank of Cameroon’s (UBC) assets saving it from bankruptcy. However, in 2011, Ecobank had to buy Oceanic Bank International’s assets in UBC, which is a well-rooted bank in the Anglophone regions of Cameroon.
Let’s note that last January 15, 2019, Access Bank Plc’s executive director Victor Etokwu announced that apart from the Cameroonian subsidiary, the banking group would create subsidiaries in two other African countries this year. The banking group will then have 18 subsidiaries in Africa.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award winning writer.
He could be contacted at udohrapulu@gmail.com
The regulatory environment for women’s economic participation has improved over the past two years, but Nigeria is missing mention among 40 countries that enacted 62 reforms that will help women.
World Bank Group President, David Malpass
The women– half of the world’s population, would need the reforms to realise their potential and contribute to economic growth and development, a new World Bank study has said.
Still, the results are uneven, as women in many countries have only a fraction of the legal rights of men, holding back their economic and social development.
The study, “Women Business and the Law (WBL) 2020”, measures 190 economies, tracking how laws affect women at different stages in their working lives and focusing on those laws applicable in the main business city.
It covers reforms in eight areas that are associated with women’s economic empowerment, conducted from June 2017 to September 2019, precisely on mobility, workplace, pay, marriage, parenthood, entrepreneurship, assets and pension.
In Nigeria, while the financial inclusion level is on the upswing, it is mostly men that are captured into the system, while women, across regions of the country are setback by religious, cultural and educational factors, limiting their potential.
The World Bank Group President, David Malpass, said legal rights for women are both the right thing to do and good from an economic perspective. When women can move more freely, work outside the home and manage assets, they are more likely to join the workforce and help strengthen their country’s economies.
“We stand ready to help until every woman can move through her life without facing legal barriers to her success.”
The WBL index measures only formal laws and the regulations, which govern a woman’s ability to work or own businesses– a country’s actual norms and practices are not captured. The global average score was 75.2, which improved slightly from 73.9 two years ago.
Clearly, much more work remains as women in many countries have only a fraction of the legal rights of men, holding them back from opportunities for employment and entrepreneurship.
While Nigeria may have attained some of the reforms, with the majority being mere norms and practices, lack of full legislative backing and implementation still challenge the achievement of the targets, while women’s economic participation continue to under-perform.
In Sub-Saharan Africa, 11 economies implemented 16 reforms in seven areas, but the Democratic Republic of Congo introduced social insurance maternity benefits and equalized retirement ages, while in Côte d’Ivoire, spouses now have equal rights to own and manage property.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award winning writer.
He could be contacted at udohrapulu@gmail.com
Following the recently announced rules from the Payments Association of South Africa (PASA) to reduce the maximum value of cheque limits to R50,000 ( $3,472) businesses are urged to adopt electronic banking channels.
Kenneth Matlhole, FNB Business Spokesperson
The updated rules come into effect in May 2020, with an eight-month grace period to be granted for cheques that are yet to be processed by the due date.
Kenneth Matlhole, FNB Business Spokesperson, said several businesses and public institutions that still have cheques built into their operations will be heavily impacted by the decision. This ranges from schools, churches, scrap metal dealers, agriculture, motor industry, fiduciary services and auctioneers, among others.
Matlhole unpacked important factors for businesses to consider as they reduce their reliance on cheques, prior to the implementation of the new rules:
Act now — depending on the nature of the business or institution, moving away from a traditional payments system may result in cash flow disruptions. Business should allocate enough time for migrating to new payments systems. It is also essential to ensure that staff members are trained accordingly.
Business to business transactions — whether the business is receiving or issuing cheques, it is advisable to communicate and inform business associates and suppliers about the new payment systems/ arrangements and reach a mutual understanding.
Businesses can offer discounts or incentives for suppliers or business associates to adopt electronic banking channels, to help speed up the process.
Moreover, when considering the administration process, storage of physical paper, and the cheques clearance waiting period, migrating to electronic payments which are more efficient will no doubt be an incentive to migrate to electronic payments.
The same guiding principles for alternative payment adoption should be applied to inter-company funds transfer where cheques have been used as a mechanism to allow for money flow between linked franchises and business entities.
Adopt electronic banking channels — once a thorough analysis of how the business uses cheques has been conducted, the next step is to identify the most appropriate and efficient electronic banking channel to use. Furthermore, businesses that are still receiving B2B cheque payments should ensure that their systems are updated and ready to accept electronic payments.
“Given the reduction of cheque limits due to several issues including fraud, it may not be viable for businesses to continue using cheques.
“Regardless of the final decision to be taken by businesses, on thing is clear, the imminent reduction of cheque limits to R50,000, leaves businesses and institutions with no choice but to ultimately reduce their reliance on cheque payments,” Matlhole said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award winning writer.
He could be contacted at udohrapulu@gmail.com
Kenya ’s first green bond was listed for trading on the Nairobi Securities Exchange on Monday, offering investors the chance to put money into an environmentally-friendly fixed income security for the first time in the Securities Exchange’s 65 year history. Green bonds raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.
Kiprono Kittony, a member of the board of the Nairobi Securities Exchange (NSE)
The bond, worth Sh4.3 billion ($42.5m), was issued by Nairobi property developer Acorn Holdings last October to build student accommodation.
“Our capital markets, our investors and indeed our government have started to take climate change seriously ,” said Kiprono Kittony, a member of the board of the Nairobi Securities Exchange (NSE).
“They will be listing the green bond also on the London Stock Exchange next week which is a first also to have a Kenyan shilling bond listed in the United Kingdom.”
What are Green Bonds and why are they even so important?
Your company can raise money to finance its projects by issuing bonds to the public. Suffice it to say that loans are for individuals what bonds are for companies, government or government agencies. In any case, Green Bonds are bonds which are used to raise capital precisely for environmentally friendly projects i.e. projects that are climate friendly and leave little or no adverse effect on the environment. So whether your company desires to embark on investment in forestry, agriculture and aquaculture; solar power, wind power, hydropower; water treatment plants, water distribution infrastructure, water capture and storage; Green buildings (commercial real estate development) modern rail, Bus Rapid Transit (BRT) schemes, your company can raise money from the public by issuing/selling Green Bonds on the floor of the Nigerian Stock Exchange.
Green Bonds are different from ordinary bonds because any money raised from issuing the bonds to the public would only be used to finance new and existing projects with environmental benefits. In 2017, Nigeria issued its first ever Green Bonds worth USD 29.7m which were targeted towards solar energy projects, as well as national afforestation programs. The Securities and Exchange Commission, and the Federal Ministry of Environment, and the Federal Government through the Debt Management Office (DMO) have also doled out Green Bonds Issuance Guidelines.
Why Green Bonds Are Better.
They are Tax-Efficient
Once you purchase bonds of any type in Nigeria, for instance, there is no taxation on the interest earned by you on these bonds. This is because Section 33 of the Personal Income Tax Amendment Act 2011 (PITA) exempts from personal income tax, bonds issued by Federal, State and Local governments and their agencies; bonds issued by corporate and supra-nationals, and interest earned by holders of these bonds and securities.
In the case of a company , there is zero taxation on trading income generated from corporate or government bonds, treasury bills and other short-term securities. This is pursuant to Nigeria’s Companies Income Tax (Exemption of Bonds and Short-Term Government Securities) Order 2011 (CITA Gazette). However, these exemptions are only for a period of ten years — ending January 2022.
Hence with this, your company can save more of its funds from taxation.
Green Bonds Attract Investors Faster to Your Business
Investors are increasing looking for green bonds because they are a way of killing two birds at a time. Most companies are now required to be ESG (Economically, Socially and Environmentally) compliant. Investing in green bonds is a way of fulfilling this compliance requirement, at the same time raising more funds. This two-way approach makes green bonds more attractive to investors
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award winning writer.
He could be contacted at udohrapulu@gmail.com
The Ethiopian Ministry of Trade and Industry announced that it has lifted excise tax imposed on export of pickled and white blue leather products, effective January 06, 2020.
Teka Gebreyesus, State Minister of Trade and Industry,
Teka Gebreyesus, State Minister of Trade and Industry, said stated that the tax imposed on the export of semi-finished leather products has a seriously deterring effect on the sector. Mentioning that the tax was “high”, he said the government has decided to lift the tax on the export of pickled, white blue and crest products in an effort to rescue the sector.
Berhanu Abate, President of the Ethiopian Raw Hides and Skin Suppliers’ Association, for his part, noted that although Ethiopian hides and skin are most preferred, high taxation had been hazardous to the sector’s performance. Mr. Berhanu said up to 80 percent of hide and skin traders withdrew from the industry discouraged by the high tax rate. Out of 17 leather processers, five have shut down while eleven get by producing much below their capacity, he added.
Highlighting that Ethiopia attracted no foreign direct investment (FDI) in the sector during the past seven years in spite of the “untapped potential” the sector has, Mr. Berhanu noted, the government’s decision to lift the tax will help address challenges.
To boost the productivity and export of the sector, Ethiopia is currently working to establish a Leather City Park at Modjo, it was learned.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award winning writer.
He could be contacted at udohrapulu@gmail.com
To help understand some of the underlying factors fueling violence and human rights abuses across the African continent, the Rotary International has endowed a Chair at one of Africa’s oldest citadel of learning, Makarere University Uganda. The Centre built in collaboration with Makerere University will offer a postgraduate certificate program to peace and development leaders who are from or who have worked in Africa to address the underlying challenges to peace in the region.
Olayinka Babalola, vice president, Rotary International Board of Directors
The year-long program in Peacebuilding, Conflict Transformation and Development will emphasize issues and solutions that are of particular relevance throughout the African continent and beyond. Hands-on experience will complement coursework that addresses topics including human rights, governance, and the role of the media in conflict. Other studies will focus on refugees and migration, as well as resource and identity-based conflicts.
The program will incorporate the Positive Peace framework pioneered by the Institute for Economics and Peace (IEP) as well as apply concepts grounded in mediation and negotiation, African philosophy, and indigenous mechanisms for conflict resolution.
“For centuries, we have looked at peace as the absence of violence, without fully considering the other drivers in play,” said Olayinka Babalola, vice president, Rotary International Board of Directors. “Instead of merely examining the causes of war, Rotary Peace Fellows at Makerere University will explore the underpinnings of peace to achieve tangible measures of human wellbeing and progress.”
The program is designed to accommodate working professionals with at least five years of proven experience in the areas of peace and development. There will be two cohorts a year each with 20 fellows, and the first class will begin in February 2021. The online application will be available in February 2020.
“Makerere University is situated at the heart of the Great Lakes region, which has experienced the most strife and the most conflicts in Africa,” said Barnabas Nawangwe, University vice chancellor. “We’ve had frequent experience with conflict, so we established our peace program more than 15 years ago to expand our expertise and augment our engagement in the area of conflict and peace. Partnering with an international organization like Rotary allows us to demonstrate on a global scale what we’ve been doing in our local environment. Based on our past rich experience, we can confront strife in populations all over the world.”
Every year, Rotary awards up to 130 fully funded scholarships for dedicated peace and development leaders from around the world to study at any of its seven peace centers programs. In just over 15 years, Rotary Peace Centers have trained over 1,300 individuals for careers in peacebuilding in more than 115 countries, and program alumni serve as leaders in both governmental and nongovernmental agencies, international organizations, and more.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
South Africans working abroad will face higher taxes as they will only be exempt from paying tax on the first R1m they earn elsewhere under the amendments to the Income Tax Act which are due to come into effect from March.
Chris Axelson, chief director for economic tax analysis in the Treasury
The country’s Treasury said that additional tax measures were under consideration to raise an extra R10 billion in fiscal 2021. “Given the fiscal position we find ourselves in, all tax options need to be on the table,” said Chris Axelson, chief director for economic tax analysis in the Treasury.
Under the changes, the totality of an expat’s income earned abroad would be subject to tax in South Africa.
The expat exemption only relates to South Africans who are tax resident, so the obvious answer would be to cease tax residency of South Africa”
“What this means is that, if they remain tax resident, they will be taxed fully on any allowances and benefits, as if they were just a normal employee working in South Africa,” Jean du Toit, editor of “Expatriate Tax — South African Citizens Working Abroad and Foreigners in South Africa”, told local news outlet Fin24.
One of the unforeseen consequences from what has been dubbed the ‘expat tax’ could be that South Africans abroad may simply decide to sever their ties with South Africa and cease their tax residency.
“Unfortunately, the solutions for the expat in relation to this amendment are now becoming very limited. The expat exemption only relates to South Africans who are tax resident, so the obvious answer would be to cease tax residency of South Africa,” du Toit added.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award winning writer.
He could be contacted at udohrapulu@gmail.com
