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ADu ReVIeW

Africa’s time has arrived: PwC

frica’s time is now – according to Australia-Africa practice, is to stimulate tive tax rate,” Marion said.
APwC corporate tax partner Ollie Mar- and encourage that discussion to further “Clearly it’s important to make sure
ion – but questions still remain over how encourage investment into Africa.” that not only do you need to think about
to maximise its investment potential. In the latest instalment of its annual the in-country tax implications, but also
Despite foreign direct investment slid- publication on the African tax landscape, what it means from a cross-border per-
ing 13% globally last year, Africa was PwC studied the impacts of investing in spective.”
a standout performer with 11% growth the continent from abroad, once again Marion added that collaboration was
achieved over the past 12 months. Asia using its theoretical gold mine as a focal the best option for all concerned parties
(4%) was the only other region to record point for its investigation. if they wanted to achieve optimal finan-
an increase. Common tax challenges such as cial benefits.
“The African opportunity is here and change of control, residency, registration “Certainty in terms of tax, legal and
now; the only question that remains is duties, VAT refunds and repatriation of other matters like socio-economic stabil-
how can we maximise its potential,” Mar- profits were all taken into consideration. ity and access to infrastructure, will help
ion said. The study found a $100 profit from Africa attract its fair share of global capi-
“In our mind, we think the answer lies the African-based theoretical gold mine tal,” he said.
in a wide spectrum of stakeholders, most would attract an effective tax rate of 70% “Whilst you might think miners and
notably the African governments, but after $30 is paid directly to the local gov- governments are on different sides of the
also with those who are looking to invest ernment, a $14 withholding tax is also fence, essentially by working together
in Africa. incurred and Australian investors have they can actually create better economic
“We often see that tax – legal and oth- forked out $26 of income tax. prosperity for the continent.”
er regulatory matters – has a really im- “From the $100 profit in Africa, $30
portant role in this discussion and we feel ends up in the hands of the ultimate – Michael Washbourne
our role at PwC, particularly as part of our shareholder, so essentially a 70% effec-

Resolute recognised

esolute Mining Ltd emerged as the ma- Syrah Resources Ltd was recognised Resources Ltd and Volt Resources Ltd
Rjor winner from the inaugural Australia- as the winner of the “Best Innovation in were the category’s other finalists.
Africa Minerals & Energy Group (AAMEG) Corporate Social Development” for its The awards judging panel was com-
Africa Awards. Balama professional training centre in prised of AAMEG chief executive William
Presented at the close of the first day of Cabo Delgado, Mozambique. Witham, PwC Australia-Africa practice
Africa Down Under, Resolute walked away Tanzanian-focused juniors Strandline leader Ben Gargett, The African Dream
with the “Best Work- Foundation found-
force and Industry er Fadzai Matam-
Development Ini- banadzo and
tiative” award for its The University of
Malian talent devel- Western Australia
opment programme regional develop-
in the country’s ment co-director
south. Fiona Haslem-Mc-
Mineral sands Kenzie.
producer Base Re- Lifetime AAMEG
sources Ltd was memberships were
highly commended also awarded to
in the same cat- inaugural chief
egory for it efforts in executive Trish
developing Kenya’s O’Reilly, founder
mining workforce and current board
through its Kwale member Bill Turn-
operation. er, corporate social
Other finalists responsibility advi-
were Austral African sor Robin Budden
Survey Group, Capi- and Paydirt Media
tal Drilling, Minopex, Pty Ltd execu-
DRA and Globe UWA’s Fiona Haslem-McKenzie, Base Resources managing director Tim Carstens, tive chairman Bill
24-7 Recruitment & Resolute Mining managing director John Welborn, AAMEG chief William Witham, Syrah Repard.
HR Consulting. Resources chief people officer Jordan Morrissey, The Africa Dream Foundation’s Fadzai
Matambanadzo and PwC Australia-Africa practice leader Ben Gargett

Page 38 OCTOBeR 2019 aUSTRaLIa’S PaYDIRT