via Min Mnangagwa calls for common tax and trade laws | The Chronicle November 21, 2013
AFRICAN countries should cooperate and have a harmonised taxation system to equally benefit from foreign investments, Justice, Legal and Parliamentary Affairs Minister Cde Emmerson Mnangagwa said yesterday.
Officially opening the Forum on China-Africa Cooperation (Focac) fourth legal meeting in Victoria Falls yesterday, Cde Mnangagwa said the continent should push for the uniformity of investment and trade laws.
“In Zimbabwe for example, export industrial zones have been established to attract investment and all taxes will be exempted in the first five years after the programme of an investor has been officially approved. A tax of five percent will then be levied for the next five years. Currently there are wide variations within regions on the one hand and in the country and continental level on the other,” he said.
“As a way forward, I believe that consideration should be given to determine a harmonised taxation system to avoid international competition on favourable taxes. We have a situation where there is disequilibrium in relation to investment and procedures to investment as some are easy in other countries and difficult in others and therefore the need to harmonise such taxes.”
Cde Mnangagwa said China-Africa investment had increased to more than $15 billion over the years.
“We need to conclude bilateral investments treaties between China and African countries as a tool for leveraging and promoting the much needed investment. BITs provide a legal framework for the reciprocal protection of investments since they are recognised as enforceable at international law,” he said.
Cde Mnangagwa applauded the China-Africa cooperation for having a positive impact on the economic development of Africa.
He said Chinese business investments in Africa were enhancing job creation, infrastructural development and other benefits.
“China’s direct investments in Africa continue to alleviate the gravity of unemployment problems, thereby improving the quality of life of many families. To facilitate more investment, therefore I believe that it is imperative for participants to deliberate on how to prevent corruption, abuse of power, privilege and undue influence and formulate resolutions on how the scourge can be extirpated at both country and continental levels,” said Cde Mnangagwa.
He said Chinese investment projects were being carried out in 49 countries in Africa in fields like trade, production, processing, resources development, communication and transport.
“China has also been investing heavily in the construction field, especially in areas such as water supply, transport and power supply at relatively low cost,” said Cde Mnangagwa.
COMMENTS
Well if you want to be in harmony with the region, then you have to get rid of the 51% indigenization tax. No new investor wants to deal with it, even the Chinese – except that ZANU-PF makes an exception for their “friends,” from China who are re-colonizing the country.
@DL. Please consider that China is investing all over the world. Why is China not colonising say Nigeria when it invests there? Indeed why England, Kenya, USA, Russia, Australia? All these inhabit the same planet as Zimbabwe. Enough.
Munkee, you are correct, China is investing all over the world… even the USA, as we all know.
However, by my definition they are the new colonial masters if the Government puts their needs before their own citizens, which is what’s now happening in Zimbabwe. They are the only ones who are exempt from the 51% indigenization rule and most other regulations, which just gives them more power to rule. ZANU-PF bends over backwards to allow the Chinese to succeed, and yet does not care about the wellbeing of it’s own citizens.
It may also be happening in other countries as well. Indeed, the Chinese have as much as announced that is their intention. They’re planning to “invest,” $1 trillion dollars in Africa in the next 8 years to control the supply of many raw materials – so as to grow their own economy to the peril of the rest of the world.
After all, when the British first colonized the then Rhodesia, they were also colonizing other countries and territories as well. So far as Rhodes were concerned, they were just pursuing business opportunities; quite like the Chinese are now. So therefore, the Chinese are Zimbabwe’s new colonial masters and Robert Mugabe and ZANU-PF are giving it to them on a silver platter… literally giving them the crown jewels for the financial equivalent of a few trinkets.
I do believe the Chinese own a substantial part of London business properties and businesses. Don’t see the Brit’s complaining about foreigners and running in circles like headless chickens shouting about Indigenization.