Tag Archives: foreign investors
foreign investors: Latest News
Staff, 5:25 pm
Top United States investors, under the US-Nigeria Council platform, are looking at exploring market opportunities domiciled in the Nigerian economy. Their intentions were made known at the just concluded 72nd United Nations General Assembly, which convened a high powered business dinner with top US investors with interest in Nigeria, a statement by USNC on Monday indicated. The USNC is a business-to-business organization that works to promote partnerships between Nigerian and American companies.
Kurt Davis Jr., 10:24 am AFKI Original
Mauritania requires no royalty payments, which is not the norm. This is a benefit for oil, gas and mining explorers anxious about paying royalties when commodity prices are unpredictable. Mauritania’s corporate income tax rate is relatively low at 25% — a plus in a region where the tax and fiscal systems can change any investor’s outlook on risk and reward. Large government irrigation projects have aided agricultural production in the desert. Israeli technology and cropping strategies have had some success in other parts of Africa. There is potential here, but it requires investment in technology — not always a priority in agriculture.
Kevin Mwanza, 8:44 am
Foreign investors in Tanzania are considering pulling out of the nation or expanding operations into other countries due to higher taxes introduced by President John Magufuli in efforts to drive the economy by cracking down on revenue evasion and corruption. Magufuli’s government has already increased taxation on mobile money transfers, banking, and tourism and cargo transport service providers.
Global Risk Insights, 7:05 am
Mounting violence in Ethiopia has seen over 500 killed, as protests against the government’s economic and human rights policies continues. The tensions at the heart of the crisis are systemic ones, yet what makes the violence particularly worrisome is that foreign investors have become prominent targets. Foreign businesses are being systematically attacked in protest of the government’s development-centric approach
Staff, 12:01 am
Ethiopia’s economy is expected to overtake Kenya’s this year, buoyed by massive government spending on infrastructure. The IMF estimates Ethiopia’s GDP will grow to $69.21 billion this year, narrowly edging out Kenya’s at $69.17 billion. Kenya is viewed as more democratic than Ethiopia, where authoritarian rule is marked by crackdowns on the press and its own citizens, such as the Oromo. Kenya also has a more open economy, while Ethiopia closes most sectors of its economy to foreign investors.
Global Risk Insights, 6:37 am
President John Magufuli may be reducing corruption and security risks but has also influenced a trend toward increased risk of expropriation, creating uncertainty for foreign investors. Tanzania’s government has commenced a national project which will see undeveloped land larger than 20 hectares seized from investors and given to farmers. In May 2016 alone, the government expropriated over 1,800 hectares of land
Staff, 5:42 am
MSCI have announced they are considering removing Nigeria from the MSCI Frontier Markets Index given restrictions on currency trading and the resulting deterioration of FX liquidity impacting investors’ ability to repatriate capital. This is a risk we’ve been highlighting for the last six months or so (see below) so shouldn’t come as a complete surprise, and JPMorgan and Barclays have already removed Nigeria from their respective local currency emerging market bond indices. MSCI plans to announce its decision on or before 29 April – and in the meantime is seeking feedback from investors.
Kevin Mwanza, 3:41 am
A move by the Central Bank of Nigeria (CBN) to lift a ban on commercial banks accepting cash deposits in foreign currencies from their customers and transfer of hard currencies abroad has not excited investors are the regulator expected. CBN came under fire from foreign investors and international institutions after it banned transfer and depositing on foreign currencies to curb speculation against the naira
Kevin Mwanza, 4:36 am
Local manufacturers in Nigeria are having a difficult time growing their businesses in the country in what some claim is favoritism by the federal government towards foreign investors and importation of cheap products from Asian nations such as China and India. It is much more “riskier” as an indigenous investor to manufacture in Nigeria than it is “to fight Boko Haram”, according to Eric Umeofia, chief executive Officer at Erisco Foods
Staff, 12:01 am
Ethiopia may emerge as an African powerhouse like South Africa and Nigeria and ahead of Kenya, its regional rival. But the Ethiopian government doesn’t let in retailers such as Shoprite or Nakumatt. “The service sector here is one of the most restrictive in the world,” says a frustrated foreign banker. The official reason for keeping Ethio Telecom a monopoly is that the government can pour its annual $820m profit into roads. If the government opened the airwaves to competition as Kenya has, it could probably sell franchises for $10 billion. Safaricom is Kenya’s biggest taxpayer.
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