The Southern Times

The Southern Times Friday 07 - 13 December 2018
21
■ BUSINESS
BUSINESS
BRIEFS
Tax benefits for
investments in Angola
increase with new law
Angola’s Private Investment
Law regulation,
which entered into force
on 30 October, increases
tax benefits for investors, at a time
when the country intends to stimulate
its non-oil economy and the
export sector.
The new regulation approves the
legal procedures for capital injections
carried out under the new Private
Investment Law of May 2018,
applicable to projects started after 30
October, and provision is made for a
transitional regime for other projects
already underway, according to the
regional coordination of the Legis-
PALOP+TL legal database.
For investment projects started
before 30 October, which are still governed
by the regulations of the previous
Law, interested parties should
request the application of Presidential
Decree No. 250/18, “an essential step
if they also wish to benefit from the
new more favourable regime.”
This regime, he added, includes,
among other things, “the new automatic
tax benefits for the holders
of Private Registration Certificate
(CRIP), assigned by the new competent
entity, the Private Investment
and Export Promotion Agency
(Aipex).”
For investment projects approved
before 26 June, the private investors
concerned may also expressly request
to fall under the scheme established
in the new LIP and its regulations.
The most favourable benefits
include reductions in Sisa Tax,
Urban Property Tax, Industrial Tax
and Capital Expenditure Tax set out
in the special regime for the new A,
B, C and D Zones in Law No. 10/18.
Other advantages, according to the
same source, are the exemption of
payment to Apiex for a year, namely
the costs of filing the request, of issuing
the CRIP, for a 2nd copy of or
changes to the CRIP, for issuing statements
and for reinvestment, ranging
from about US$100 to US$3,000
(40,000 to 1 million kwanzas).
The economic activities covered by
the priority sectors of activity that
benefit from the new special regime
are listed in detail in Presidential
Decree No. 250/18, “corresponding
to the market segments identifying
the potential of import substitution
or of promotion and diversification
of the economy, including exports.”
› Licínio Contreiras, CEO of AIPEX
The same source said “the benefits
and other facilities already granted
under previous investment laws and
regulations shall remain in force for
the time periods originally set, and
no extension thereof shall be permitted.”
The president of Aipex, Licínio Vaz
Contreiras, recently announced that
since the approval of the new law in
May 2018, the agency has received
57 investment proposals totaling
US$502 million.
Of these proposals, 30% are
related to foreign investment and the
remaining 70% to national investment.
- Macauhub
Zim's top miller
shuts down
Harare - One of Zimbabwe's largest food manufacturers,
National Foods, announced Tuesday
that it will shut down its two mills due to
foreign currency shortages.
The indefinite shutdown is expected to affect the supply
of bread whose price recently went up from US$1.10 for a
standard loaf to about US$1.50 as bakers cite high cost of
raw materials.
In a letter to its customers dated December 3, the company
said it has been facing difficulties in settling its foreign
wheat suppliers due to the foreign currency shortages.
"Due to delays in repatriating payments to our foreign
wheat suppliers, our wheat suppliers have today (Monday)
instructed National Foods to cease draw down of wheat
stocks. National Foods will mill out the wheat in process
and we anticipate both our mills in Harare and Bulawayo
to close on Wednesday, 5 December," the company's chief
executive Michael Lashbrook said.
The company warned that unless the payment situation
is rectified, it expects to be out of stock of baking flour
later this week.
"National Foods continues to work with the authorities to
resolve this foreign payment issue. We would like to reassure
you that we have a full pipeline of both imported and
local wheat booked and that once payment is made we will
immediately restart milling operations," Lashbrook said.
Zimbabwe's crippling foreign currency shortages have
resulted in shortages of critical imports such as fuel and
medicines.
Motorists are spending hours on end queuing up at pump
stations to get the scarce commodity while junior doctors
at the country's referral hospitals have gone on strike
demanding payment of their salaries in US dollars, among
other things.
This is the second strike by the doctors this year alone.
- Nampa/Xinhua
Diamond prospects
a concern in 2019
Windhoek – De Beers Group Chief Executive
Officer, Bruce Cleaver, has voiced concern
over Namibia’s diamond trading prospects
for 2019.
Speaking during a visit to State House on Monday, Cleaver
informed President Hage Geingob that although 2018 was a
good year for the diamond industry owing to the continuous
demand for the precious gem, the prospects for the forthcoming
year are bleak.
Cleaver explained that things are getting quite tense largely
because of the knock-on impact of the trade wars between
China and the United States.
He added that it is making consumers in China “a little
bit nervous”.
“The thing about diamond jewellery is that it’s a discretionary
purchase. You need to feel a bit positive about life before
you make a big purchase, because it’s a big emotional purchase,
and so I’m a bit worried about that,” he said.
Cleaver stressed that although he does not think the trade
tariffs are really aimed at the diamond industry, the unintended
consequences of it could be quite serious for the industry.
Diamond trade for 2018 was better in the US, not so good
in India and sort of average in China, Cleaver said, but raised
worries about 2019.
“If the Chinese don’t buy that’s not good for all of us. It
doesn’t mean that people like diamonds less; this just means
that they are nervous about their wealth and they are nervous
about what is happening in 2019,” he stated.
Geingob, on his part, said Cleaver’s analysis is “frightening,
but it’s good to be in the fold of the industry’s goings-on so
that plans can be made”.
De Beers owns Namdeb in equal shares with the Namibian
government. It mines diamonds at Oranjemund and along
the southwest coast of Namibia. - Nampa