Lex Africa Guide 2012 Full - Afrer.org

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investments signed with Germany, Italy, Netherlands,Sweden, Switzerland, United Kingdom, USA, China andQatar;the tax convention relating to double taxation of the WestAfrican Economic and Monetary Union (WAEMU orUEMOA in French) signed on 26 September 2008 whichcame into force on 1 January 2009;the protocol of Kyoto approved on 23 September 2007;the Basel Convention on the Control of TransboundaryMovements of Hazardous Wastes and their Disposal whichcame into force in 1992.Membership of International and Regional OrganisationsIvory Coast a member of the World Bank, the InternationalMonetary Fund (IMF), the African Union (AU), the UnitedNations (UN), the African Development Bank (ADB), the WestAfrican Economic and Monetary Union (WAEMU) and theEconomic Community of West African States (ECOWAS).Economic developmentThe disputed November 2010 presidential election and resultingcivil war caused serious economic dislocation. The Governmenthas tried to ease the tax burden on businesses and is initiatingpolicies to promote investor security and fight corruption toimprove the business climate and promote economic growth.Road and TransportThe road network is estimated at 85 000 km with only 6 500 kmof paved road including 150 km of expressway. A project toextend the expressway to Yamoussoukro, the political capital, isin progress. Ivory Coast is linked to Burkina Faso by a railroad of1 156 km. During 2011, the Government started a project torehabilitate several roads to the economic capital, Abidjan.Several other projects for road rehabilitation and asphalting areexpected through the country. There are about 980km ofwaterways but these are not exploited. The country's mainairports are Abidjan and Yamoussoukro. The airport of Bouakéhas not been used in the last ten years due to the civil war. Thereare airfields in all the main towns.EnergyIvory Coast relies on petroleum, gas and electricity. Its reservesof petroleum and natural gas are estimated at 100 million barrelsand 700 billion cubic meters respectively, with a daily productionof 100 000 barrels and about 108 million cubic meters. Localdemand for petroleum (25 000 barrels per day) and gas (108million meters cubic) is covered and the balance is exported.The country produces electricity of about 5758 Gwh of whichabout 1 066.4 Gwh is exported. Energy products comprise about28% of export revenues.TelecommunicationsTelecommunications are regulated under a specific code and bythe regulator, the Agence desTélécommunications (ATCI). Therehas been significant growth (especially in mobile phones) andthe political crisis since 2002 did not materially affect the sector.There are five mobile telephone operators (MTN, Orange,Atlantique Telecom, Comium Group and Green Network) whichcover about 60% of the country. Other operators may be grantedlicenses. There are about six internet service providers andmore than 400 000 internet users.Trade and IndustryIvorian industry represents 20% of the country’s gross domesticproduct (GDP) and employs about 13% of the population. It ischaracterized by a large number of small and medium sizedenterprises. Ivorian industry is the most competitive of theWAEMU region and its main sectors are food products,petroleum, textiles, building and civil engineering, buildingmaterials and chemical engineering. Foreign trade is based onthe export of raw materials (cocoa, coffee, cashew nuts, hevea,wood and petroleum).Information and Communications TechnologyThe Government has established a free trade zone forbiotechnology, information and communication technology inthe former political capital Grand-Bassam. Through this project,the Government intends to increase access to information andcommunication technology. Initiatives have been taken toencourage companies to use the zone. They are grantedexemption from custom duties and income tax for five years andVAT on their consumption of electricity, water and petroleumproducts. The tax on turnover is levied at the rate of 1% with thepossibility of a 50% remission. The manager of the zone, VITIB,assists companies to establish themselves in the zone.MiningIvory Coast has deposits of gold, iron, bauxite, nickel and cobalt.However, the contribution of the sector to Ivory Coast’s grossdomestic product is negligible and is estimated at only 1%. Mostdeposits are not exploited. Some administrative restrictions (forexample complex permit procedures) constitute obstacles toinvestment in the sector. In addition the mining code of 1995 isconsidered to be obsolete. The import or export of gold from orto a foreign country requires the prior approval of the Minister ofFinance.AgricultureAgriculture remains the key sector of the Ivorian economy. Itemploys about 60% of the population, provides 34% of the grossdomestic product and represents about two-thirds of exportrevenue. The key products of the sector are the traditionalexport products, cocoa and coffee. Ivory Coast remains thelargest cocoa exporter in the world and the 4th largest coffeeexporter. In addition to these traditional export products,bananas, pineapples, cotton, cashew nuts, oil palm and heveaare produced together with a large variety of subsistence cropssuch as plantains, cassava, yams, potatoes and rice. The countryis however not food self sufficient and must import some basicconsumer products such as rice, meat, fish and dairy products.Labour RelationsLabour relations are governed by the Labour Code of 1995 andcollective bargaining agreements dated 1977 betweenemployers and trade unions. There are two kinds of employmentcontract, a long-term contract and a fixed term one. Expatriatesrequire a work permit. The law formally forbids discriminationon any basis (like religion, race and gender). The guaranteedminimum wage is FCFA 36 667. Companies are required toregister their employees for social security.27
28REPUBLIQUEDEMOCRATIQUEDU CONGO (DRC)DJUNGA & RISASI AVOCATSFirm InformationLanguages spoken: English and FrenchContacts: Lambert S. Djunga and Pierre M. RisasiTelephone: +243 81 884 6225/700 8309Mobile: +243 98 233 468Fax: +243 81 301 6638Email: djuris@djuris.com and Lambert.djunga@djuris.comForms of BusinessPrivate limited liability companyPublic limited liability company or Joint Stock CompanyLimited partnershipGeneral partnershipCo-operative societyBranch of foreign company.A foreign investor seeking to invest in the DRC can operate byeither forming a Société Privée à Responsabilité Limitée(Limeted Liability Share Partnership) (SPRL), a Société parActions à Responsabilité Limitée ) (Joint Stock Company) (SARL)or a branch office of a foreign company. The most popularcorporate form for small to medium investments is the SPRLwhich limits shareholder liability to the shareholder’s capitalcontribution. Shares are only transferable betweenshareholders or to a shareholder’s heir upon that shareholder’sdeath. All other transfers are prohibited without the unanimousapproval of the shareholders. There must be at least twoshareholders who need not be residents of the DRC or naturalpersons.SARLs are best suited for large investments. It must have aminimum of seven shareholders and is usually managed by aboard of directors which delegates day-to-day managerialpowers to a managing director. Like a SPRL, the shareholders of aSARL are only liable up to the amount of their respective capitalcontributions. The statutes of the SARL must be notarized andfiled with the Commercial Court for incorporation.TaxationThe general system of taxation in the DRC is based on theprinciple of territoriality and tax is accordingly levied on allincome that is derived from the DRC. The following are the maintaxes:corporate tax at 40%;corporate tax for mining companies at 30%;withholding tax on income frommovables at 20% and for mining activityat 10%;personal income tax rate is based on asliding scale with a maximum of 30%;property tax is levied from US$0.30 toUS$1.50 per square metre of the built property;tax on rental income at 22%;Valued Added Tax (“VAT”) at the uniform rate of 16% on thelocal sale, import and provision of services.The law introducing VAT was promulgated in 2010 but itseffective date was 1 January 2012. VAT replaces turnover taxwhich is no longer applicable in the DRC.Investment Climate and Exchange ControlDRC welcomes all foreign investment. The exchange controlregulations currently in effect are very liberal and commercialbanks are authorized, subject to relevant tax being paid, to freelytransfer dividends, capital gains and interest and capital onforeign loans out of the country. Upon disinvestment, investorsmay freely remit capital without any restriction. Residents of theDRC are authorized to hold foreign currency accounts with localcommercial banks.Intellectual PropertyPatents, trademarks, designs, and commercial names areprotected by the provisions of the Intellectual Property Law.There is a general registry located at the Ministry of Economywhere trademarks, patents and designs may be registered. DRCis a member of the World Intellectual Property Organization(WIPO).IncentivesThe DRC has promulgated a new Investment Code to encouragethe investment of local and foreign capital in activities whichcontribute to the economic and social development of thecountry. The Code provides for one general regime under whichCode benefits may be granted. For a project to benefit from theprovisions of the Code, the investment must be at leastUS$10 000 for small and medium sized businesses andUS$200 000 for other enterprises. The Investment Codeprovides the following concessions and incentives:duty-free importation of all new plant machinery andequipment associated with the project as well as spareparts up to 10% of the Cost, Insurance and Freight (CIF)value of the equipment;free export of local semi-finished or finished products;exemption from corporate tax and tax on share capital;exemption from real estate or property taxes.The duration of these exemptions depends upon the location ofthe investment and may vary from three to five years.Business OpportunitiesThere are opportunities for investment in the mining sector,petroleum, agricultural production, forestry exploitation, localmanufacturing, infrastructure and tourism in the eastern part ofthe country.Membership of International and Regional OrganisationsThe DRC is a member of the International Monetary Fund (IMF),World Bank, United Nations (UN), African Union (AU) andAfrican Development Bank (ADB). The DRC has also recentlyadhered to the OHADA Treaty on Business Law which will governthe form of its business organisations and promote the rule oflaw by instituting the Common Court of Justice and Arbitrationas the highest court of appeal with the power to overturndecisions by local courts.
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Page 9: 8The corporate tax rate for non res
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Page 14 and 15: of which 2 300 kilometres are paved
Page 16 and 17: three or more shareholders. The boa
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Page 24 and 25: egistration form with the the Finan
Page 26 and 27: COTE D’IVOIREANYRAY & PARTNERS LA
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Page 38 and 39: occurred). The tax may be paid in t
Page 40 and 41: law in the realm of marriage and su
Page 42 and 43: capital gains tax applies subject t
Page 44 and 45: Exchange ControlsThe Exchange Code
Page 46 and 47: Sole trader.SACRANIE, GOW & CO.MALA
Page 48 and 49: MALIJOHN FFOOKS & CO PROJECT FINANC
Page 50 and 51: Membership of International and Reg
Page 52 and 53: the financial year (applicable to c
Page 54 and 55: Tax holiday of freeport operators w
Page 56 and 57: MOZAMBIQUECOUTO, GRAÇA & ASSOCIADO
Page 58 and 59: protected by this legislation which
Page 60 and 61: Treaties and Bilateral AgreementsNa
Page 62 and 63: Traditional and customary courts he
Page 64 and 65: General Application in force in Eng
Page 66 and 67: Economic Co-operation and Developme
Page 68 and 69: SENEGALMAME ADAMA GUEYE & ASSOCIÉS
Page 70 and 71: South African business and Governme
Page 72 and 73: client” information gathering req
Page 74 and 75: use of interest rates or usury tran
Page 76 and 77: Khair Port.Sudan has a modern road
Page 78 and 79:
Trade and IndustryTextiles.MiningCo
Page 80 and 81:
facing unprecedented decline in dem
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UGANDAKATENDE, SSEMPEBWA & COMPANY
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exemption for interest paid abroad
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estrictions on externalising profit
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ZIMBABWESCANLEN AND HOLDERNESS LEGA
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