Tech

Like Nigeria and Zimbabwe, Rwanda wants to tax digital companies like Netflix, Google, YouTube …

Published

3 years ago

March 11, 2022

Rwanda has joined a list of African countries like Nigeria and Zimbabwe who have announced plans to tax online services and digital companies consumed within the country.

Earlier this week, the Federal Government of Nigeria announced plans to tax foreign digital service providers offering services such as Netflix, Google, YouTube, and Amazon.

Some of these service providers are video streaming sites, social media platforms, and companies that offer downloads of digital content. They are expected to pay digital tax to the Federal Inland Revenue Service.

The principle that allows international tax and cross-border activities was designed after the need for industrialization post WW11 in the 1920s and known as permanent establishment (PE) status.

The principle requires that a business only be taxed in a country where it creates sufficient physical presence. Since most companies in the digital economy can operate in a country without setting up appearances, the rule does not capture them.

image culled from qz.com

According to the Rwanda Revenue Authority (RRA), a proposal has been presented before the Ministry of Finance and Economic Planning from where it will undergo several procedures before implementation if approved.

“When you pay for services such as Netflix, you are using money that you have generated in Rwanda. So, we are asking, why don’t we collect VAT on these services yet they are being paid for by our citizens? If you pay 12 dollars a month for Netflix, why don’t we keep some of that amount at the source here?” Jean-Louis Kaliningondo, the Deputy Commissioner General of RRA said.

“If you go to Western countries, for example, France, you find that Amazon pays VAT yet it is not a French company. European countries are collecting VAT on services provided by foreign platforms, he added.

In November 2021, Ghana announced plan to introduce 1.75% levy on all electronic transactions including on mobile money payments, bank transfers and merchant payments to widen the tax net.

A number of African countries have expanded the scope of their indirect taxes to cover digital services, but only a few have thus far implemented some form of direct digital services tax that applies to non-residents with no physical presence in their respective countries.

Tech

DR Congo sues tech giant Apple over illegal mineral exploitation

Published

15 hours ago

December 18, 2024

Isaac Dachen

The Democratic Republic of Congo (DRC), has filed a criminal case against the European subsidiaries of tech giant, Apple, accusing them of illegal mineral exploitation and allegedly using “blood minerals” in its supply chain.

In the suit filed on Tuesday, the DRC alleges that Apple has bought contraband supplies from the country’s conflict-ladden east and Rwanda, zones in which it allege the materials are mined illegally and then integrated into global supply chains before ending up in tech devices.

The DRC suit specifically mentioned Apple subsidiaries in France and Belgium, accusing the tech giant of using conflict minerals in its supply chain.

The DRC is a major source of tin, tantalum, and tungsten which are used in electronic devices, with some mines controlled by armed groups responsible for human rights violations.

International lawyers representing the African country’s government have accused Apple’s local subsidiaries of taking these minerals from conflict areas and laundering them through international supply chains, with one lawyer telling journalists that Belgium had a moral duty to act given its history of exploiting the country’s resources under colonial rule.

However, in its response, Apple claims it conducts supplier audits and does not directly source primary minerals.

https://www.thenews.com.pk/print/1262670-dr-congo-sues-apple-over-alleged-illegal-mineral-exploitation

Tech

Moroccan retail-tech startup Z raises $1.5m to drive intense growth

Published

4 days ago

December 15, 2024

Isaac Dachen

Morocco-based B2B retail-tech marketplace, ZSystems, has announced closing a $1.5 million seed funding round which will see it carry out its ambitious expansion dreams.

In a statement by co-founder and CEO, Meriem Benabad, the funding round was led by Morocco-based Venture Capital firms, MNF Ventures (through its MNF II fund), Witamax (through Fund II and III), Cash Plus Ventures, and Kalys Ventures.

“This funding marks a pivotal moment for Z, as we aim to scale operations and bring cutting-edge solutions to traditional retail.

“Our vision is to empower small businesses and unlock growth across Morocco and Africa,” Benabad said.

According to Benabad, the newly acquired capital will support Z’s technology development, product catalogue expansion, and preparation for its next growth phase.

“Z is reshaping the retail landscape by integrating technology and innovation across the value chain. Its scalable platform empowers traditional retailers and brands with direct access to consumers, reviving competitiveness in traditional trade (hanouts), which accounts for 85% of the FMCG market,” he added.

Founded in 2022 by the trio of Benabad, Samer Choumar and Youssef Ait-Haddouch, Z’s platform empowers traditional retailers and brands with direct access to consumers, reviving competitiveness in traditional trade (hanouts), which accounts for 85% of the FMCG market.

Since launch, the startup has helped over 15,000 active retailers, and seen more than 800,000 orders placed.