FDI woes and tax rises ad infinitum

If I say so myself, I was somewhat flabbergasted to the point of being flummoxed by two recent press reports on taxation and foreign direct investments (FDIs). Keep your shirt on, unclench your fists – and I’ll explain anon…

A news report by the African Press Organization [APO ] titled ‘Morocco top-ranked investment destination in Africa for 2017’ stated that “ Morocco, Egypt, Algeria, Botswana and Ivory Coast were the Top-Five investment destinations” in Africa.

Released in Abidjan, Ivory Coast, on March 26, 2018 by the Quantum Global Research Lab, the ‘2018 Africa Investment Index’ states that the “Top-Five investment destinations attracted a combined net FDI of $12.8 billion in 2016…”

Noting that “Morocco’s the most attractive economy for investments flowing into Africa,” the Index states that this is “based on its increasing solid economic growth, strategic geographic position, increased foreign direct investment, external debt levels, social capital factors and overall favorable business environment.”

According to the Quantum Global Research Lab managing director, Prof MthuliNcube, “African economies are turning their attention towards diversification to stimulate industrial development, and to attract investments in non-oil strategic sectors.

Morocco has been consistent in attracting an inward flow of foreign capital, specifically in banking, tourism and energy sectors – and through the development of industry.”

There’s the magic formula: ‘the development of industry.’ This is exactly what the firth-phase Tanzania government of President John Magufuli is hell-bent for leather doing today: pursuing a development agenda that’d see to Tanzania becoming a semi-industrialized, middle-income Economy by year-2025 under its ongoing Five-Year Development Plans and the overall National Development Vision-2025.

But, as it so happens, Tanzania isn’t one of the Top-Ten ranked investment destinations – the other ‘Top-Five’ being South Africa; Ethiopia; Zambia; Kenya and Senegal.

Nor is Tanzania among the ‘Bottom-Ten’ in terms of favored investment decisions. The bottom-ten are the Central African Republic; Liberia; Somalia; Eritrea; Equatorial Guinea; The Gambia; Sierra Leone; Guinea; Sao Tome-&-Principe, and Zimbabwe at the tail-end!

So: where’s Tanzania lurking in the FDI stakes here, pray?

That was one of the two issues which had me more than worried…

The other was the ‘brief’ on page 8 of The Citizen edition of April 9 this year frighteningly titled ‘Uganda Government proposes fresh taxes.’

Reportedly, the Government of veteran President Yoweri Museveni “proposes to increase taxes on wines, spirits, beers, airtime and money transfers to widen the revenue envelope and fix the ailing Economy,” the Nation Media Group reports.

Bills tabled in the ongoing Parliamentary budget session in Kampala also aim to tax ‘Savings and Credit Cooperative Societies’ (SaCCoS) “just a year after (the Museveni government) exempted them from paying taxes for the next ten years…” Sheesh!

The Museveni Regime has been in place since 1986, and if it still has to keep hiking taxes on mundane consumer items like beverages for more than 32 years, this can only cast doubt on Officialdom’s thinking capacity: thinking out of the box, around corners/bends and through the darkest of tunnels.

Unfortunately, this incapacity isn’t confined to Uganda. If you don’t believe this, let’s just bide time till Budget Day for the East African Community member-nations next June… Tears, I say!