2012 americas school of mines · 2015-06-03 · • dodd-frankact (july 2010), section 1502 •...
TRANSCRIPT
2012 Americas School ofMines
www.pwc.com
Francophone AfricaFrancophone Africa
Gilles de Vignemont
Agenda
Section one: Overview of Africa
Section two: Hot Topics
Section three: PwC in Africa
PwC
Section three: PwC in Africa
Summary
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Section one: Overview of Africa
PwC 3
Larger than:
China,+ the USA,+ Western Europe,
Africa is BIG !!!
PwC 4
+ Western Europe,+ India,+ Argentina,+ British Isles …
combined
A continent of cultural and legal diversity
French speaking countries
Spanish /Portuguese speaking countries
English speaking countries
PwC 5
A world where 6,000 languages are STILL spoken!!
English speaking countries
Arabic / French speaking countries
Arabic / English speaking countries
Systems based on civil law principles:
French legal system (Napoleonic Code)
Portuguese, Spanish and Italian legal systems
Overview of African legal systems
PwC 6
Portuguese, Spanish and Italian legal systems(largely based on Roman law)
Systems based on common law principles
Mixed civil law / common law based systems
Strategic Rationale for Investing in Africa
Increasingglobal demandfor Africa'sresources
1 billion potentialcustomer (headingtoward 2 billion by2050
PwC 7
Growing Consumerism Capital isflowing morefreely, whichfacilitates trade
Securing access to raw-materials
Big misperceptions about Africa still existespecially in the mainstream media
Francophone Africa (20 countries + North Africa)
Benin Burkina Faso Cameroon Cote d’IvoireCentral African Rep
PwC 8Tchad
Congo DRCComores Equatorial Guinea
Gabon Guinea Mali
Niger Senegal Togo
Madagascar Mauritania
Djibouti
Mauritius
Corruption in Africa: perception index 2011
VERY CLEAN
PwC 9Source: Transparency International
HIGHLY CORRUPT
NODATA
Section two: Hot Topics
PwC 10
Guinea’s Hot Topics
- New mining legislation dated September 2011
- 15% free stake for the State in project with option to purchase anadditional stake up to 20%
- New anti-corruption provisions
- Quotas on hiring of expatriates (“Local Content”)
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- Quotas on hiring of expatriates (“Local Content”)
- Creation of a new Local Development Fund
- Capital gain tax (10%) on direct and indirect transfer of mininglicences and companies’ shares which owns the licences
Other francophone countries’ Hot Topics
- Burkina Faso: 20% capital gain tax on direct transfer of mininglicences
- Mali: pending legislation seeks to raise State’s share from 20% to25%
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25%
- Madagascar: suspension of new mining permit
- Mauritania: new mining code has been adopted very recently
Common Hot Topics
- Harmonization of mining legislation
◦ Common mining code in UEMOA (West African Economic andMonetary Union)
◦ Unified legal framework for mineral exploration and mining
- Transfer pricing
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- Transfer pricing
◦ Strengthening of transfer pricing statutory laws, enactingregulations, issuing practice notes, and building capacity to dealwith transfer pricing issues.
◦ Increased scrutiny: a common area of focus in the extractionindustry.
◦ Advanced Pricing Agreement provision: option for more certaintyrelative to transfer pricing
Common Hot Topics
- Value Added Tax on import of fuels:
◦ Exploration vs. construction vs. Production
◦ Exemption or recoverability
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- WHT on interest:
◦ Exemption or reduced rates
◦ Rulings ?
◦ VAT on interest ?
Conflict mineral
• Dodd-Frank Act (July 2010), Section 1502
• Requires persons to disclose annually whether any of the conflictminerals that are “necessary to the functionality or production of aproduct” originated in the DRC or an adjoining country.
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product” originated in the DRC or an adjoining country.
• If applicable, engage an independent, private sector firm to audit thedue diligence procedures and findings included in the ConflictMinerals Report .
Africa Mining Vision (AMV)
• Adopted by the African Union
• Objective: building a sustainable future for Africa’s extractive industry
• Action plan with 9 program clusters, adopted in December 2011:
- Mineral rents & management
- Geological & mining formation systems
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- Geological & mining formation systems
- Building human & institutional capacities
- Artisanal & small scale mining
- Mineral sector governance
- Research & development
- Environmental & social issues
- Linkages & diversification.
Extractive Industries Transparency Initiative (EITI)
Compliant countries
• Central African Republic
• Mali
• Mauritania
Candidate countries
• DRC
• Gabon
• Guinea
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• Niger
Candidate countries
• Madagascar (suspended)
• Burkina
• Cameroon
• Chad
• Cote d’Ivoire
• Republic of Congo
• Togo
Countries not in the program
• Benin
• Equatorial Guinea
• Djibouti
• Senegal
• North African countries
Section three: PwC in Africa
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PwC’s Africa Network
• Leading firm in Africa, extensive network of offices in most of theAfrican continent and providing tax, assurance and advisory services.
• More than 56 permanent offices in 31 countries across the continentemploying more than 7,000 professional staff.
PwC
• The only firm with U.S.-based African Tax Group. - A team of taxprofessionals from Africa.
• Fully integrated delivery between PwC U.S. and the PwC Africanetwork offices
Summary
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Summary
• Increased democracy:
- Governments anxious to ensure nations’ mineral resources arefairly distributed
- Local communities development, capital gain taxes
- Examination of current mining legislation and review of existing
PwC
- Examination of current mining legislation and review of existingmining contracts
• Rise of resource nationalism (Local Content):
- Mandatory government participation
- Quotas on expatriates, local procurement
• Emphasis on greater accountability and transparency
- EITI, FCPA, Dodd-Frank Act
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Thank you !
Gilles de Vignemont
African Tax Group in New York
© 2012 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the United Statesmember firm, and may sometimes refer to the PwC network. Each member firm is a separatelegal entity. Please see www.pwc. com/structure for further details.
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