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 (i) Investment authorities

Angola

(i) Is there a national investment authority?

ANIP is the national investment authority and was established by the Private Investment Act and by its Organic Status as mentioned above and has the responsibility to implement the national policy on private investment and promote, coordinate, guide and supervise the private investments in Angola.

(ii) If so, what is the procedure for application and approval?

The application to be submitted to ANIP is a standard form upon payment of a fee of USD 150. Other relevant documents must also be provided to ANIP such as a draft of the agreement, the certificate of eligibility, among others. After approving the proposal of private investment, ANIP shall issue a Certificate of Registration of Private Investment, allowing the project company to invest in accordance with what was decided. More information can be obtained in ANIP website (www.investinangola.com).

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

The ANIP approval grants to the developers of power projects tax and exchange incentives, such as exemption from customs fees for a specified period of time, exemption from payment of tax on profits and deduction up to 100% of some costs of the investment.

Guinea

(i) Is there a national investment authority?

There is a national investment authority called the OPIP (Office of Private Investment Promotion- One-Stop-Centre) created in September 1992. The OPIP is a public establishment with administrative character (EPA) and is placed under the authority of the Ministry responsible for promoting the private sector.

(ii) Application process: If so, what is the procedure for application and approval?

OPIP centralizes the administrative, legal, fiscal and other formalities required from enterprises and companies in accordance with regulations in force. So, investors may do in a single place and on the same documents all administrative formalities for the creation or extension of companies. It centralizes procedures and the processing of dossiers presented and advises on the eligibility of projects to regime under the Investment Code.

(iii) Fiscal and other benefits: what fiscal or other benefits does this approval give a developer and/or a lender?

With the BOT convention, the state gives guarantees to the developer of the power project. Those guarantees are listed in the Art 7: 7.1 and 7.2, Art 9 of the BOT Law (reference: see above). Investors which hold a BOT Convention enjoy full rights of the protections granted by the Investment Code with out doing other procedure.

The Fiscal and other benefits for projects approved to be eligible for the regime of the Investment Code are:

  1. Foreign investors may own 100% of the shares of the company for the projects in the sector of Industry, mining, agriculture, commerce, and services.
  2. Importation duty: Exemption of duties on equipment, materials and tools comprising the investment, a single tax on entry of 6% for raw materials of "enterprises agreees" is payable.
  3. Exemption of "Impots sur les Societes": Exemption of minimum tax for 3 years for SMEs certified. Exemption for 5 years of "impots sur les benefices des enterprises exportatrices" in proportion to their turnover in exportation.
  4. Exemption of BIC (Impot sur les Benefices Industriels et Commerciaux) for 3 to 8 years depending on the zone of implementation of the project.
  5. The investor is protected against any particular measure of nationalization, expropriation or requisition, except for public purposes provided by law.
  6. Foreign investors are allowed freely to transfer capital and dividends.

Ivory Coast

(i) Is there a national investment authority?

There is a national investment authority called the Investment Promotion Centre of Ivory Coast (known as CEPICI). CEPICI was established by decree n* 93-774 of 29 September, 1993, and is designed to be a "Guichet Unique" or one-stop- shop for an investor in terms of legal and regulatory provisions that apply to a project and the award of certain benefits.

(ii) If so, what is the procedure for application and approval?

The application process for the approval under the Ivory Coast's Investment Code is set out in the Title III of the Investment Code (see above), and the Decree n* 95-712 dated on 13th September 1995 (see above).

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

Power generation projects are eligible under the regime of declaration or the regime of accreditation set out in the Investment Code (see below). The benefits an eligible project may be awarded include:

(A) Regime of Declaration:

(I) Exemption of Trade and Industry Profits (BIC) and non-commercial profits (BNC).

(II) Exemption from patent and licensing.

(B) Regime of Accreditation:

(I) Single entry duty of 5% on imports of equipment, materials and spare parts.

Kenya

(i) Is there a national investment authority?

IPA aims to encourage foreign investment and facilitate the issue of licences and permits for foreign investors by the issuance of an Investment Certificate by the Kenya Investment Authority ("KIA"). The KIA issues both general and industry-specific licences, these include: 

  1. up to 6 immigration entry/work permits for ex-patriate managers and investors;
  2. import or export licences under the Imports as provided for in the Exports and Essential Supplies Act;
  3. trade licences;
  4. local government licences;
  5. development permission provided under the Physical Planning Act; and
  6. an EIAL.

(ii) If so, what is the procedure for application and approval?

The application form for an investment certificate is provided in the Act. Under TIPA a foreign investor would be entitled to an Investment Certificate when a minimum of USD$100,000.00 is invested in Kenya. In addition, there are a number of requirements that a foreign investor must satisfy, the minimum requirement being employment for Kenyans, acquisitions of new skills and technology for Kenyans and contribution of tax revenues or other Government revenues.

Furthermore, TIPA stipulates that it is function of the KIA to assist the investor in obtaining incentives under the Income Tax Act, the Customs and Excise Act and the Value Added Tax Act.

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

The fiscal benefits for the developer under the Investment Promotion Act are exemptions from customs and excise duties for the importation of machinery and exemptions from certain other taxes.

Madagascar

(i) Is there a national trust authority?

There is a national investment authority called the Economic Development Board of Madagascar (EDBM). It was created by Decree 2006-382 dated on 31st May 2006 and it is governed by law 2007-036 dated on 14th January 2008.

The EDBM is mandated to co-ordinate and facilitate the approval of all investment projects. The EDBM brings all the various departments and public bodies required to grant and give the various permits and licences under one roof. The EDBM acts as a Government co-ordinator and facilitator.

(ii) If so, what is the procedure for application and approval?

Please contact us for further information.

(iii) Fiscal and other benefits: what fiscal or other benefits does this approval give a developer and/or a lender?

Any person or entity, Malagasy or foreign, is free to invest and settle in Madagascar, in compliance with laws and regulations in force, subject to the provisions applicable to certain sectors of activity.

Foreign investors receive the same treatment as that of investors of Malagasy nationality. They are free to hold up to 100% of shares in the company in which they operate subject to the provisions applicable to the various sectors.

The State guarantees the rights of individual or collective property.

The investor is protected against any particular measure of nationalization, expropriation or requisition, except for public purposes provided by law. Where applicable, the investor will receive a fair and prior compensation in accordance with applicable laws and regulations in this area.

Foreign investors are allowed to freely transfer abroad without prior authorization any payments relating to transactions between other current after-tax profits, dividends, wages, allowances and savings of expatriates.

Mali

(i) Is there a national investment authority?

Yes, the national investment authority is called API-Mali (Investment Promotion Agency of Mali). The API-Mali is a public establishment with administrative character (EPA) placed under the authority of the Ministry of Economy, Industry and Trade.

(ii) If so, what is the procedure for application and approval?

The API-Mali is a "one-stop centre" for all the procedures of businesses starting and investor's assistance. It grants the approval for the eligibility of a project at the Investment Code.

The procedure for application and approval is detailed in the Decree of application of the Investment Code.

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

The fiscal and other benefits owned by project approved under the Investment Code are:

  • Foreign entities operating in Mali are free to transfer their capital and income overseas.
  • The exemption for one year of importation taxes for materials, machinery, tools and spare materials construction useful for the project.
  • Companies using 60% or above of local raw materials are exempt from the IBIC (tax on business profit), IS (corporate tax) and the patents and licences fee for four years.

Mauritius

(i) National investment authority: is there a national investment authority?

The BOI has been established under the Board of Investment Act 2002 and is the official investment promotion agency of the Government of Mauritius.

(ii) Application process: If so, what is the procedure for application and approval?

The project company many register itself as an investor by completing a registration form that may be obtained from the website of the BOI.

(http://www.boimauritius.com/wnlwnlresources/InvestorForm.pdf)

(iii) Fiscal and other benefits: what fiscal or other benefits does this approval give a developer and/or a lender?

Upon registration with the BOI, the latter may assist a developer in respect of obtaining a BLU or an EIA license as mentioned in item 6 of the registration form.

Morocco

(i) Is there a national investment authority?

There is a Moroccan Agency for Investment Development but it is not mandatory for any investment project to be approved or discussed with the Agency.

(ii) If so, what is the procedure for application and approval?

In the event that the investment project exceeds 25 Mo USD, it is recommended that the project is presented to the Moroccan Agency for Investment Development. This would enable the investor to negotiate directly with the KoM for more favourable tax and customs incentives, than the incentives available under the investment charter of 1995.

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

Fiscal and other benefitis (tax holidays) are negotiated on a case by case basis.

Mozambique

(i) National investment authority: is there a national investment authority?

Yes. The Ministry of Planning - Investment Promotion Centre (Centro de Promoção de Investimentos - CPI) is the Mozambican investment authority.

(ii) Application process: If so, what is the procedure for application and approval?

An application shall be submitted to the Minister of Planning via the Investment Promotion Center (“CPI”). For such purpose, it is necessary to fill a standard form and deliver a detailed proposal of the project including (i) design, (ii) sketches, (iii) equipment and labour force required, (iv) planned costs and benefits, (v) investment schedule, (vi) financing structure, (vii) land required, (viii) technical reports, (ix) relevant environmental issues, (x) corporate information, and (xi) evidence of technical and financial capacity to develop the project. Pursuant to the Investment Law Regulations the minimum amount of a foreign investment project is presently set at, roughly, US$ 80,000.

(iii) Fiscal and other benefits: what fiscal or other benefits does this approval give a developer and/or a lender? 

The approval of the investment project secures certain incentives / benefits provided for in the IL and the ILR, notably (i) to repatriate profits generated by the branch, (ii) to import/re-export the equipment required, (iii) to hire foreign workers in excess of the quota regime set forth in the labour legislation and (iv) to obtain fiscal benefits and customs duties exemptions.

 

Niger

(i) Is there a national investment authority?

Yes, the national investment authority in Niger is the CCAIAN (“Chambre de Commerce, d'Agriculture, d'Industrie et d'Artisanat du Niger” or Chamber of Commerce, Agriculture and Industry). The CCAIAN is a public establishment created in 1997 in order to promote private investment in Niger. In order to realise its activities, the CCAIAN has sub-centres which are the Centre of Promotion of Investment (CPI) and the Centre of the Formalities of Companies (CFE).

(ii) Application process: If so, what is the procedure for application and approval?

The Power project could be eligible under the Regime C of the Investment Code. The application process on the eligibility is set out in the Investment Code (see above).

(iii) Fiscal and other benefits: what fiscal or other benefits does this approval give a developer and/or a lender? 

The fiscal and other benefits owned by Power project approved to be under the Investment Code are:

(A) Implementation Phase:

  • Total exemption of all taxes and duties levied by the state to the exclusion of the statistical tax but including VAT on materials, tooling and production, equipment and directly contributing to the achievement of the agreed program.
  • Exemption from duties and taxes levied by State including VAT on services, on the work and services in support directly to the achievement of the investment program approved.

(B) Operation Phase:

  • Total exemption of Patent, Property tax or the tax real estate, BIC (tax on business profits) and IMF (minimum tax).
  • Exemption of duties and taxes on exports of their product.

(C) Benefits for both of the phases:

  • Exemption from taxes and duties excluding the statistical tax and VAT on raw materials, consumables and packaging manufactured locally or imported in case of unavailability of similar local products.
  • Stabilization of the tax rate and the method of determining the tax base.
  • The possibility to  reduce  by 50% the rates of duties and taxes on fuel (gas oil, fuel oil) and any other energy sources  used in the installations. This exemption is granted within an annual quota and
    recognized by the competent administrative authority as used in the facility.

Nigeria

(i) Is there a national investment authority?

Generally, the Securities and Exchange Commission ("SEC") is responsible for regulating corporate investments in Nigeria, while the Nigeria Investment Promotion Commission ("NIPC") regulates foreign investments and the grant of requisite approvals thereto.

Where a project involves a project company with foreign ownership, then the project entity would need to be incorporated in Nigeria and registered with the NIPC and to obtain a business permit.

(ii) If so, what is the procedure for application and approval?

Upon incorporation of the project company, it would be required to apply for registration with the NIPC and obtain a business permit, submitting the requisite documents. The application for registration with the NIPC is required to be accompanied by the following documents:

  • a duly completed NIPC application form; and
  • a copy of the applicant's certificate of incorporation.

While the application process is free of charge, obtaining a business permit pursuant to the registration is at a fee of N25,000.

Registration with the NIPC and the obtaining of a business permit typically take between two to three months.

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

Registration with the NIPC entitles the investor to rights of unconditional repatriation of his (a) investment capital; (b) dividends or profits (net of taxes) attributable to the investment; (c) payments in respect of loan servicing where a foreign loan has been obtained; and (c) the remittance of proceeds (net of all taxes), and other obligations in the event of a sale or liquidation of the enterprise or any interest attributable to the investment. This[k1] is conditioned upon evidence of Capital Importation- a certificate of capital importation is usually issued by banks as agents of the Central bank of Nigeria.

This is further guaranteed under the FEMMA. Upon registration and to effect repatriation, the investor need only instruct an authorized dealer (a licensed bank) to transfer the specified funds in any convertible currency upon presentation of appropriate documentation relating to the funds sought to be transferred. The NIPC Act also guarantees against the expropriation of such project company by the Federal Government.

South Africa

(i) Is there a national investment authority?

There is no national investment authority.

Tanzania

(i) Is there a national investment authority?

Investment is actively promoted and encouraged in terms of the Tanzania Investment Act (the "TIA") by the Tanzania Investment Centre ("TIC"). All Government departments and agencies are required by law to cooperate fully with TIC in facilitating investment. TIC is the primary agency of Government to coordinate, encourage, promote and facilitate investment in Tanzania and to advise the Government on investment related matters. TIC holds itself out as the focal point for investors and as the first point of call for potential investors; its stated aim is to be a "one stop facilitative centre for all investors".

(ii) If so, what is the procedure for application and approval?

TIC will require amongst other things the following basic documents in order to process an application:

  • copies of the project's Business Plan/Feasibility Study.
  • TIC application forms which are issued by the TIC at a fee of US$ 100.
  • A copy of the company's Memorandum and Articles of Association and Certificate of Incorporation.
  • A brief profile of each investors.
  • Evidence of sufficient finance capital available to implement the project.
  • Evidence of land ownership for the location of the project.
  • Company Board Resolution.
  • Project implementation schedule.
  • Fee of US$750.

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

  • the recognition of private property and protection against any non-commercial risks;
  • reduced import duty on project capital goods;
  • VAT deferment; and
  • the right to work permits for 5 foreign nationals on the project.

Uganda

(i) Is there a national investment authority?

The Uganda Investment Authority ("UIA") is mandated with the responsibility to provide/ approve both local and foreign investors' investment licences as well as highlighting investment opportunities and notifying them of the applicable investment incentives.

(ii) If so, what is the procedure for application and approval?

The application process is for an applicant to fill out a standard form attaching details of the investment, the business plan and any other relevant details. The application is then reviewed by the Board and a decision given.

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

There are no fiscal benefits as all exemptions are now granted by the Uganda Revenue Authority. Other benefits may include assistance with work permit applications.

Zambia

(i) Is there a national investment authority?

The Zambia Development Agency

(ii) If so, what is the procedure for application and approval?

The application process will require the following;

(A) Completed Application form (to be completed).
(B) Certificate of Incorporation
(C) Certificate of Share Capital
(D) Official List of Directors/Shareholders
(E) Copy of Investment Certificate
(F) Copy of latest Financial Statements
(G) Current employment levels of Applicants
(H) pay a fee of K1,280,000 inclusive of VAT at 17.5% at the time of applying and K650,000 when collecting the License.

Further the Government does through the Zambia Development Agency sign Investment Protection Agreements with investors which are intended to facilitate the granting of incentives and also provide for the protection of an investor's investment.

(iii) What fiscal or other benefits does this approval give a developer and/or a lender?

The ZDA Act makes provision for investors to apply to the ZDA for an investment licence, which will provide a number of fiscal and non-fiscal incentives to investors investing in a priority sector or product. In addition, the ZDA Act permits the Minister of Finance to issue additional incentives for major investments over US $ 10 million.

 

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