Africa Ireland Economic Forum 17 June 2016

Transcription

1 Africa Ireland Economic Forum

2 Agenda 1 Introduction and background 3 2 Opportunities to enhance trade and investment between Ireland and Africa 3 Irish companies our experience 10 6 Confidential Information for the sole benefit and use of s Client. 2

3 Introduction and background Confidential Information for the sole benefit and use of s Client. 3

4 1 Introduction and background Ronan MacNioclais Partner, Leader of the Africa Business Group E: T: +353 (1) Confidential Information for the sole benefit and use of s Client. 4

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6 Opportunities to enhance trade and investment between Ireland and Africa Confidential Information for the sole benefit and use of s Client. 6

7 2 Opportunities to enhance trade and investment between Ireland and Africa Africa s cities of opportunity Africa is characterised by a number of distinct geographic regions. These regions demonstrate significant differences in terms of culture, stage of economic development and market needs. A company s product/service offering will often dictate where best to invest. Overall index Johannesburg Casablanca Algiers Accra Nairobi Lagos Tunis Addis Ababa Cairo Casablanca Algier s Abidjan 10 Accra Kampala Cairo Accra, Lagos, Nairobi, Cairo, Addis Ababa and Kampala rank in the top ten of both indices Confidential Information for the sole benefit and use of s Client. Lagos Tunis Johannesburg Kampala Kigali Cairo Addis Ababa Lusaka 1 Nairobi Dar es Salaam 10 Opportunity index Dar es Salaam Lusaka Nairobi Lagos Accra Abidjan Kigali Addis Ababa Kampala 7

8 2 Opportunities to enhance trade and investment between Ireland and Africa Where are Irish companies investing? Africa represents an increasingly attractive destination for Irish investments. This is driven by exciting growth prospects demonstrated by a number of African economies: Western Sahara Algeria Libya Egypt Mauritania Cape Verde Senegal Gambia Guinea Bissau Guinea Sierra Leone Liberia Mali Niger Nigeria Chad Sudan South Sudan Ethiopia Djibouti Equatorial Guinea Democratic Kenya Rwanda Republic of Congo Tanzania Zambia Namibia Botswana Comores Mayotte Reunion Mauritius Seychelles South Africa Swaziland Leosotho Confidential Information for the sole benefit and use of s Client. 8

9 2 Opportunities to enhance trade and investment between Ireland and Africa What sectors are Irish companies investing in? We have seen Irish investments in a number of sectors in Africa: Beverages Financial Services Agriculture & Agribusiness Main Industries Infrastructure & Engineering Pharmaceuticals Education Technology/ICT Confidential Information for the sole benefit and use of s Client. 9

10 Irish companies our experience Confidential Information for the sole benefit and use of s Client. 10

11 3 Irish companies our experience Considerations before deciding to invest in Africa Before deciding to invest in Africa, what do you need to consider? Understand the rules and regulations! Become familiar with the business culture Understand the local market Important to have a local business partner/agent Confidential Information for the sole benefit and use of s Client. 11

12 3 Irish companies our experience Now that you have decided to invest what are the key considerations? Once the decision to invest has been made, what are the key considerations? Branch v Company Transfer Pricing Debt v Equity Capital/ exchange controls Key considerations Local employees v Foreign employees Withholdin g tax Cash extraction Local finance v Foreign finance Confidential Information for the sole benefit and use of s Client. 12

13 3 Irish companies our experience 10 simple rules of thumb to help your business thrive in Africa Irish businesses looking at Africa should follow these 10 simple tax and regulatory tips: 1 A practical understanding of the local tax/regulatory environment is essential. 2 Keep a tight control on cash taxes deducted at source. 3 Holding structures/exit strategies should provide flexibility, substance and tax efficiencies. 4 If negotiating, seek the assistance of knowledgeable local advisors. 5 Use formal procedures if negotiating tax/regulatory settlements. Confidential Information for the sole benefit and use of s Client. 13

14 3 Irish companies our experience 10 simple rules of thumb to help your business thrive in Africa - continued 6 6 Avoid trapped funds by understanding exchange/immigration controls. 7 7 If reorganising a group structure, seek appropriate tax advice. 8 8 Tax/regulatory rules change often. Keep up to date with new developments. 99 Detailed TP rules are the norm Keep up to date with tax compliance. Proof of compliance is often required. Confidential Information for the sole benefit and use of s Client. 14