Kenya

The High Court in Kenya has declared the minimum tax unconstitutional. This tax was introduced by the Finance Act, 2020, with an effective date of 1 January 2021. The tax was computed at the rate of 1% of gross turnover and was payable regardless of taxable profits. The judgment, which was delivered this week, will be welcomed by companies that would’ve been required to pay the tax, especially in light of the economic impact of Covid-19. However, the ruling will be a blow to the government’s plan to raise approx. $191-million from the tax.

Angola

New Property Tax Code Rules have been published via Presidential Decree 191/21, of 10 August 2021. The rules cover the registration, valuation and revaluation of real estate for the purposes of the provisions of the Property Tax Code. These rules revoke Presidential Decree 81/11, of 25 April, and Presidential Order n.º 1069/11, of 29 December 2011

Ghana

The Bank of Ghana has recently issued the Mergers and Acquisitions Directives, 2021 and Explanatory Notes on the Revised Mergers and Acquisitions Directives. These directives, which apply to companies regulated under the Banks and Specialised Deposit-Taking Institutions Act, 2016, set the minimum conditions for a proposed merger or acquisition and prescribe post-merger and post-acquisition requirements for regulated financial institutions. They aim to ensure that the interests of a regulated financial institution, its depositors and creditors won’t be threatened by a change in significant shareholding or control, and that the merger/acquisition doesn’t adversely affect competition and the stability of the financial system.

COMESA (several countries)

The COMESA Competition Commission has issued its first fine for failure to notify a transaction to it within the prescribed time period under article 24(1) of the COMESA Competition Regulations, 2004. The fine, which was imposed on 6 September 2021, was in relation to the proposed acquisition by Helios Towers Ltd. of the shares of Madagascar Towers S.A and Malawi Towers Ltd. The fine imposed was 0,05% of the parties’ combined turnover in the common market in the 2020 financial year