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Senegal joins tax reform train as Sall vows to remove ‘difficult’ rules

Published

1 year ago

July 8, 2023

Following his recent announcement not to run in next year’s presidential election, Senegalese President, Macky Sall has vowed to remove “difficult and repressive” customs and tax rules to enhance foreign direct investment.

President Sall made the position known while addressing over 50 foreign delegations at an investment forum in the capital, Dakar, promising to simplify its administrative processes to make its business climate more attractive.

“The fiscal environment is purposely set up in a way that it is not understood,” he said in an opening speech.

“We also need to reform the customs code, which honestly is also difficult and repressive, the tax code, and the civil procedure code.

“Senegal stands out in a continent where doing business can be challenging,” he said at the forum.

UK-Senegal trade ties were growing thanks to various projects including BP’s (BP.L) involvement in Senegal’s first natural gas projects, he added.

According to the World Bank, foreign investment in Senegal was flat year-on-year in 2022 at around $2.5 billion, while its real GDP growth fell to 4.2% in 2022 from a robust recovery of 6.5% of GDP in 2021 as a result of a fall in private investment, exports, and industrial production.

The term “foreign direct investment” refers to net investments made to purchase a long-term management stake in a company that operates in a country other than the investor’s own. Africa’s economy depends largely on investment outside its space. According to UNCTAD’s World Investment Report, 2022 FDI to African countries hit a record $83 billion in 2021. The 2023 report published on Wednesday shows that FDI flows to Africa declined to $45 billion in 2022 from the record height of 2021.

Tax regimes across the continent have been observed as possible factors for the decline in investment, particularly in cases of multiple taxation. Like President Sall’s promised tax reforms, his Kenyan and Nigerian counterparts have already announced reforms. In the case of Nigeria, its president, Bola Tinubu on Monday signed four Executive Orders, which include the suspension of the five per cent Excise Tax on telecommunication services, as well as the Excise Duty on locally manufactured products.

Related Topics:Featured President Macky Sall Tax reforms

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Moroccan annual inflation rises to 0.8% in November

Published

24 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”