Deloitte SA Blog


Your Tax Guide to business in Africa

The Guide to Fiscal Information: Key Economies in Africa 2014/15

Guide to Fiscal Info


A recently published IMF World Economic Regional Outlook estimated that growth in Africa over the next two years will continue to sustain on its strong growth trajectory over 5 percent, well above established developed economies and comparative emerging markets.

There are boundless business opportunities that present themselves to entities willing to take the next step to expand into the African market. Africa has established itself as a critical market in the global landscape which simply cannot be ignored by business.

Doing business in Africa however is not without its challenges, which includes political and regulatory uncertainty, shortage of skilled workers, corruption and excessive bureaucratic processes, inadequate infrastructure, lack of reliable financial information, etc.

It’s important to keep in mind there is no single uniform collective Africa to invest in. Multinational companies are advised to carefully consider the full regional landscape when investing in African markets. Most importantly business must identify the nuances and distinctions of the targeted investment countries.

To better navigate the African landscape across the different economies Deloitte has published its Guide to Fiscal Information: Key Economies in Africa 2014/15, which contains a summary of tax and economic information pertaining to key economies in Africa. Details of each country’s income tax, VAT (or sales tax), and other significant taxes are set out in the publication. In addition, investment incentives available, exchange control regimes applicable (if any) and certain other basic economic statistics are detailed.


How the SA Healthcare and Life Sciences industry can maximise investor capital

Life Sciences and HealthcareSouth Africa has the largest pharmaceutical products market in Africa, and its expenditure on pharmaceutical products per capita is the fifth highest in Africa. South Africa also has a well-established local manufacturing industry, supported by foreign investment.

There is however a rising threat of competition from generic pharmaceutical producers, mainly from India and China, which should make it an imperative for local manufacturers, as well as the other segments forming part of the Life Sciences and Healthcare (LSHC) Industry, to ensure that it maximises investor capital through utilising the various incentives available from the Department of Trade and Industry (the dti). This report examines:

  • Research and Development: Section 11D tax incentive; The Support Programme of Industrial; Technology and Human Resources for Industry Programme Innovation; Technology Innovation Agency; Technology Transfer Fund
  • Infrastructure: Critical Infrastructure Programme; Special Economic Zones*; Industrial Development Zones
  • Manufacturing: Section 12I tax incentive; Manufacturing Investment Programme; Manufacturing Competitiveness Enhancement Programme.
  • Supplier Development programmes: Black Business Supplier Development Programme; Incubation Support Program (ISP)
  • Shared Services Centres: As result of companies expanding globally they frequently establish dedicated back-office or shared service centres that supply accounting, marketing, human resource and other back-office services to other jurisdictions
  • Carbon and Energy matters: Section 12L; Carbon Tax; Climate Change Funds; Green Energy Efficiency Fund; Renewable Energy

Click Here to download the full article

If you prefer a more detailed discussion on the contents of the article, contact Valter Adao (Healthcare and Life Sciences Leader at Deloitte Southern Africa) at

We welcome you to subscribe to the Deloitte newsletter where we introduce Deloitte thought ware prepared by our industry and subject matter specialists on a weekly basis.

Deloitte Tax News looks at issues relevant to manufacturing

In this edition of Tax News, we  look at some issues that are relevant to many corporate taxpayers in South Africa but that will be of particular interest to those involved in the manufacturing industry, including the incentives and tax allowances available to manufacturers, income tax and VAT issues relating to contract and toll manufacturing arrangements, and the Department of Trade and Industry’s new Automotive Production and Development Programme (APDP).

We consider the research and development (R&D) tax allowance claimable under section 11D of the Income Tax Act and the cash grant that is available to manufacturers under the Manufacturing Competitiveness Enhancement Programme (MCEP), and we examine the relief that businesses can obtain against the threat of cheap imports and customs duty by way of tariff lobbying with the International Trade Administration Commission of South Africa (ITAC).

This edition also contains a thought-provoking article that outlines the significant risks that tax and finance departments face by using spreadsheets and how these issues can properly be addressed, and we provide an update on the curriculum of our tax training solution, the Deloitte School of Tax.

In our personality slot, we profile Patrick Earlam, who heads up our Manufacturing group for the South African tax practice.

We trust that you will enjoy and benefit from the content in this publication.

Download the full article . . . . Deloitte Tax News – Focus on Manufacturing

If you have any questions or require additional information, feel free to contact Mark Silver at or Moray Wilson at

Do you have any comments or feedback? Feel free to contact us and do share this article with you colleagues

Duane Newman of Deloitte Tax explains how treasury’s R25bn package will support growth in SA

This article, authored by Duane Newman (lead director for Deloitte Tax Management Consulting), explains how  the R25 billion allocated by National Treasury will be used to support growth in South Africa. You may contact Duane at

Click Here to access the original article published on MoneyWeb

Grants and incentives will be a national focus over the next six years

The Medium Term Budget Policy Statement (MTBPS) issued by Finance Minister Pravin Gordhan on 25 October 2011 announced that the Medium-Term Expenditure Framework (MTEF) will introduce an economic support package to encourage improvements in competitiveness and promote structural change within the South African economy.

Following the contraction of capital expenditure during the 2009 recession, private capital investment has started to revive, expanding at an annual rate of 4% during the second quarter of 2011. The growth is largely attributable to purchases of machinery and transport equipment. Despite the capital investment recovery, real investment during the second quarter of 2011, remained 8% below pre-recession peak levels.

In response to the slowdown in the global economy South African’s fiscal and monetary policy remains supportive of growth. The employment gains and poverty reduction that government aspires to achieve require structural reforms to set the economy on a different growth path that increases labour absorption, improves international competitiveness, ensures a more equitable distribution of wealth and a transition to a green economy.

To achieve these goals government will make R25 billion available over the next six years through various grants and incentives to assist enterprises, boost industrial development and accelerate job creation. 

The primary focus of the R25 billion grants and incentives fund is to facilitate investment that attracts employment intensive industry and services to South Africa.  The incentives will build on the current incentives on offer for industrial investment, technology and training. Current incentives have not achieved the jobs creation estimates as initially planned. In many instance less job opportunities have been created. Also the incentives have not been widely accessed. Incentives for IDZs will be improved. At the moment there are no real incentives for investing in an IDZ.  The goal is to develop the IDZs into competitive logistics hubs participating in global supply chains and entrenching South Africa as a crucial gateway for trade into Africa.   Also very important is the alignment of trade, investment and energy policies to support the transition to a green economy.  Policy coherence in this instance is required to successfully transition to a green economy. 

Government acknowledges that investment in economic infrastructure has to coincide with a more competitive labour market that supports higher economic growth.  Transforming the South African labour market can only be achieved through adequate job creation, training and community works projects. These objectives are being pursued by means of the recently launched Jobs Fund administrated by the Development Bank of Southern Africa. The Jobs Fund was established at the beginning of the year with a value of R9 billion. So far only R352 million has been spend. A far more effective administrative system is required going forward to assist with job creation. 

The transition of South African economy to a green economy can only be achieved through major investments in renewable energy by the private sector. To facilitate the required investment the Industrial Development Corporation and the Development Bank of Southern Africa will have a specific focus on funding green projects.

The Department of Energy has moved away from a capital subsidy systems. It will rather provide appropriate feed in tariffs.  Other initiatives include reducing carbon emissions through government’s integrated resource plan, the proposed carbon tax and the introduction of a dedicated fund for green economy initiatives. 

Grants and incentives will be a national focus over the next six years as government attempts to achieve the country’s economic goals through incentivising investment that correlates with these objectives.

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How will mineral beneficiation affect your business?

This paper, prepared by Ebrahim Takolia of Deloitte Consulting, South Africa, is aimed at all decision-makers, across all industries. I have provided an introduction below and welcome you to download the full paper which is very comprehensive and highlights challenges, opportunities and the effects mineral beneficiation will have on businesses. If you have any questions or require additional information, you may contact Ebrahim Takolia at Click Here to download the Deloitte Mineral Beneficiation paper.

Positioning for mineral beneficiation – Opportunity knocks

Mineral beneficiation is a priority for governments of resource rich countries that would like to leverage the potential of mineral beneficiation to create local employment and drive economic growth. Many governments are developing strategies for domestic mineral beneficiation.

South African President, Jacob Zuma, has said that mineral beneficiation is a priority for his government and will finalise and adopt a beneficiation strategy as its official policy. In June 2011, government released a strategy that identified a number of instruments such as policies, legislation and incentives that can be put in place to enable beneficiation.

A mining company will typically be in one of the following assessment phases with respect to beneficiation:

Strategic Assessment: an analysis of the strategic considerations as well as risks and opportunities for mineral beneficiation, particularly focusing on the business case and taking into consideration government incentives and social imperatives like job creation;

Feasibility Assessment: the beneficiation opportunities have been identified and feasibility studies need to be undertaken to determine the viability of such initiatives; or

Implementation: the feasibility of an initiative has been determined and an implementation plan and schedule needs to be developed.

This paper is the first in a series about beneficiation and will be updated as legislation and incentives come into effect, which assesses the merits of beneficiation.

Download the full article . . . . Positioning for mineral beneficiation – Opportunity knocks

We welcome your feedback on this interesting and topical subject!

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