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Acacia Mining to pay $20m in corporate tax in 2016‏

ACACIA Mining PLC is to pre-pay 20 million US dollars in corporate taxes this year after signing a Memorandum of Understanding with the Tanzania Revenue Authority (TRA) last month in Dar es Salaam.

According to the Acacia’s CEO, Bradley Gordon, this proactive move was initiated by Acacia Mining PLC in recognition of the time the company has been operating in the country.

Acacia Mining, which entered the Tanzania mining sector as Barrick and later as African Barrick Gold 15 years ago has been making profit, according to Mr Gordon, in his internal communication to Acacia staff at the weekend.

However, much as the company has in most cases declared net profit across the mines it owns the fact of the matter is it has not yet recouped the USD 3.8bn it has invested into building and developing the three mines it owns.

Under Tanzanian mining law and the terms of the Mineral Development Agreements between Acacia Mining PLC and the government any profit made is used to offset the initial investment and therefore during that period the company is not required to pay any corporate tax.

Mr Gordon says in elaborating the issue of profit that “when running a business one needs to first exclude all costs from your income before you can declare a profit – the cost in this case is the initial capital cost that has been invested to develop the mines”.

“Whilst we make net profits, these are not taxable and our current projections are we aren’t due to pay corporate taxes until 2018”, he says.

According to Mr Gordon, the fact that the MOU between Acacia and TRA has been signed and has been recognised as a pre-payment by all parties makes it clear that in the TRA’s opinion, no corporate tax is currently owed by Acacia and therefore none has been evaded.

In its recent ruling, the Tax Revenues Appeals Tribunal (TRAR) accused the gold mining giant of running a sophisticated tax evasion scheme in the country.

Acacia has since appealed to the Court of Appeal against the ruling asserting that the company’s financial reports conformed to international best practices and were audited by global accounting firms and government organisations.

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TIC hailed for being shining example in Africa‏

TANZANIA Investment Centre (TIC) has been hailed for promoting investment in industries leading to development of a diversified and robust manufacturing sector.

SADC Investment Promotion Agency officers, who were in the country last week commended the investment centre for particularly promoting investments in industries that use modern technology to boost productivity.

In their visit to Serengeti Breweries Limited and Bakhresa after their two-day meeting, the officers said Tanzania had made important strides in attracting investments which use modern technology in food and beverage sectors which has made Tanzania as an exemplary country in sub-saharan Africa.

At Serengeti they saw modern production technology in brewing process where the General Manager, Helen Weesie, said Serengeti focused on quality and safety.

Serengeti Breweries Ltd (SBL) operates exclusively in Tanzania and is the 2nd largest beer company with a market share of about 25 per cent.

At Bakhresa industries, they were amused with the state-of-the-art of the factories in food and beverages and some were heard complaining why did the local investor, Said Salim Bakhersa choose to invest in a few countries only after they were told it had opened investmements in Malawi, Zambia, Rwanda and DR Congo.

They said such a successful investor, should be encouraged to invest in all SADC region.

Chief Executive Officer of Bakhresa industries, Mr Salim Aziz, hailed TIC for facilitating establishment of Bakhresa industries through investment incentives which have enabled Bakhresa investments in industries to become a success story.

TIC Investment Promotion Officer, Ms Lilian Mwamdanga, said the objective of the tour was to show SADC officials what Tanzania has accomplished so that they can learn and exchange experience.

She said it would reach time where TIC officials would travel to other SADC member countries to learn about their experiences in promotion of investments.

The Deputy Director for Industries in the Ministry of Industry and Trade, Dr John Mboya, said the two-day meeting was successful where SADC member states were so much attracted by investment promotion by TIC.

Tanzania is among top earners of foreign direct investments in the sub-Saharan Africa.

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Posted by on March 7, 2016 in Business News, Tanzania News

 

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President Buhari to appoint himself oil minister

President Buhari to appoint himself oil minister

President Muhammadu Buhari will hold Nigeria’s oil portfolio in his new Cabinet, rather than trust anyone else with the source of most of Nigeria’s revenue, he told Reuters on Tuesday.

“I intend to remain the minister of petroleum resources,” Buhari said in an interview on the sidelines of the annual meeting of world leaders at the United Nations General Assembly in New York.
A minister of state will oversee the day-to-day issues of the petroleum sector, he said.
Buhari has not named a Cabinet but is expected to submit candidates to parliament in the coming days.
A former general who briefly ruled Nigeria 30 years ago, Buhari has deep knowledge of the oil sector, having been head of the Petroleum Trust Fund under military ruler Sani Abacha in the 1990s and oil minister in the 1970s under President Olusegun Obasanjo.
A collapse of global oil prices has whacked Nigeria’s public finances and weakened its naira currency, delaying public salaries and fuelling inflation.
Buhari has said he will trace and recover what he has called “mind-boggling” sums of money stolen over the years from the oil sector.
The dealings inside the state-owned company NNPC are so opaque that PriceWaterhouseCoopers, commissioned to conduct a forensic audit over the missing funds, said it was unable to obtain sufficient account documentation.
Not only is oil money stolen through accounting gymnastics and oversight gaps, but oil itself goes missing at unmetered oilfield wellheads, pipeline taps and export terminals.
Buhari has already split the NNPC into two entities, and said on Tuesday he was considering breaking up the company further to improve efficiency and better root out corruption.
“I haven’t absolutely made up my mind about that. We want to see what we have done in reducing the size and redeploying most of the management. We want to see the impact of that before we decide further.”

 
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Posted by on September 30, 2015 in International News

 

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NBC Introduces ‘Mcheza kwao’ salary account campaign‏

NATIONAL Bank of Commerce is targeting salaried customers by providing more convenient banking services that will be accompanied by various benefits including loans for various purposes.

The NBC Bank Acting Head of Marketing and Corporate Relations, Ms Alina Maria Kimaryo, said in Dar es Salaam yesterday that more people were being encouraged to open salary accounts to enjoy wider range of banking services as well as grab various prizes through ‘Mcheza Kwao’ salary account campaign.

The services also include the recently introduced mortgage scheme “Hamia Kwako.”
She said at the last draw of ‘Mcheza Kwao’ salary accounts campaign that in just three months about 50,000 new and existing customers participated in salary accounts campaign.

During the draw, new and old customers had a chance to win cash of up to 50 per cent of their salary every month. The bank also removed some of bank’s mobile banking transaction costs to lucky winners when doing transactions on their salary accounts.

“Apart from different prizes provided by the bank, participants had a chance to win 50 per cent growth of their salary.

At the same time, our customers were eligible to qualify for the NBC mortgage scheme dubbed ‘Hamia Kwako’ that was launched recently in Dar es Salaam,” NBC Bank Direct and Development Manager, Mr Amos Lyimo, said.

Barclays Africa Group owns a majority stake in National Bank of Commerce in Tanzania and Barclays Bank Tanzania. The Tanzanian government and the International Finance Corporation are also shareholders in National Bank of Commerce.nbc house

Before ABSA Group acquired the Africa operations from Barclays in 2012, it owned 55 per cent of National Bank of Commerce in Tanzania. The merger led to ABSA Group taking on Barclays Bank Tanzania, leaving it invested in two competing banks in Tanzania.

NBC Ltd was formed in 2000 when NBC (1997) Ltd was partly privatized and sold to ABSA Group Ltd now Barclays Africa Group Limited of South Africa.

 
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Posted by on September 23, 2015 in Business News, Tanzania News

 

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