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ARICA – Tax evasion in Africa: International trade, even worse than GAFA

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L’actualité du jour, c’est comment Google a réussi en 2019 une évasion fiscale de 75 milliards $ (!) taking advantage of Ireland’s very flexible tax jurisdiction to export its taxable profit to the tax haven of Bermuda… 

This case is a reminder of the growing responsibility of the digital sector in the erosion of fiscal resources that countries need to finance public spending.

Like Africa, the number of Internet users reached 600 million people according to undisputed statistics, and a significant share of them contribute to Google’s turnover. The tax evasion widely practised by digital multinationals is currently being fought by several countries, but this legitimate crusade must not obscure Africa’s main tax challenge.

For Chafik Ben Rouine, the president of the Tunisian observatory of the economy, The internationalization of the debate on illicit financial flows obscures the fact that the biggest erosion of the tax base in Africa is taking place in the international trade of goods and services. A position shared by Jean Mballa, the executive director of the NGO CRADEC, in Cameroon, whose recent study highlighted the fact that his country has lost in 10 years the equivalent of 31,$5 billion in foreign trade.

One of the ways of tax evasion in Africa is through the transactions that multinationals carry out with other subsidiaries of their groups. In its report on development in Africa, the black continent loses $88.6 billion a year due to false billing in international trade. 

Management fees, trademark fees, financial services, transportation, etc. Because these services are invoiced by subsidiaries located outside African countries, several tax administrations in the region tax them at a minimum and sometimes even deduct the resulting expenses from the tax base. Thus, according to data from the Centre for International Trade, between 2015 and 2019, African countries bought international services for a total of $781 billion. 

A stock of capital that enjoys a tax that is more than tolerant, but a strong desire for change is expressed all over the world in this regard. The FACTI Panel, a body set up by the United Nations Economic and Social Council, has made innovative proposals. It suggests, for example, that any action by individuals or companies that reduces the resources that can finance development in the world should be sanctioned.

Even the USA has put an end to the tax dumping race by announcing its adherence to the principle of a minimum tax rate for multinationals. Certainly, African and international NGOs are waiting to see whether these good intentions will be confirmed in political acts. 

For Tax Justice Network, a London-based NGO, people in poor countries will begin to experience a beginning of tax justice, when the principles of automatic exchange of financial and tax information are applied worldwide, country-by-country financial performance reporting, real property ownership transparency, and an international asset management register.

Source: Ecofin Agency/ By Idriss Linge

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BUSINESS

SENEGAL – Link Sunugal International: an asset for the autonomy and future of Senegal

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A wind of hope is blowing on the Senegalese diaspora. It is neither mistral nor tramontane. Supported by the International Business Council – Invest (IBC), “Link Sunugal International”, in a spirit of solidarity and belonging, is preparing to travel across Europe to strengthen links between the Senegalese diaspora and local opportunities. This event, sponsored by Camille Bounama Sylla, ambassador and honorary president of the association, will take place from November 2024 to March 2025. A quintet of European cities is part of a dynamic of support for Senegalese entrepreneurship and promotion of the Social and Solidarity Economy (SSE).

IBC, the keystone
Founded in 2019 by enthusiasts, the IBC, driven by a common ideal, has established itself as a pioneering structure in support of diaspora economic projects. Operating as a non-profit organization, this organization, with thousands of volunteer members around the world, shares a common interest: to see Senegal shine through its own sons and daughters. The association, by facilitating the creation of networks and the establishment of partnerships, supports members through mentoring, access to industry experts and training for better business management.

Link Sunugal International: an alternative financing call
More than just a tour, Link Sunugal International is an appeal for funding and financial autonomy. From Stuttgart to Paris, via Offida, Madrid and Lisbon, this odyssey will bring together actors whose mission will be to channel the resources of the diaspora to boost a dynamic of progress in Senegal, with the objective of curbing illegal immigration. The digital universe of e-marketing and e-banking will be widely explored. It will be an opportunity for exhibitors to gain international visibility, which will not only promote their products but also develop networks across borders.

An XXL program: training, meetings and gala evening
The day will begin with a warm welcome, exchange of glances and smiles. Each guest will receive the honors due to him. In this symphony of exchanges and know-how, crucial topics such as project financing, the fight against illegal immigration and investment strategies will be discussed in depth. A second, equally important phase will consist of a sharing of experiences among Senegalese entrepreneurs, with the intervention of APIX Senegal, which will present opportunities for local and diaspora investors.

IBC, an effective participatory network
The IBC is not content with promises or fine words. She has achievements, including a farm in Diembering, which covers 16 hectares and combines agricultural training, poultry farming and product processing. Thanks to a 100,000 euro grant, this farm employs more than 500 young people and women who are trained to become development engines for an autonomous and prosperous Senegal. Through this tour, the IBC is boosting and mobilizing funds for concrete socio-economic projects. The Link Sunugal International tour is an invitation to build, hand in hand, an autonomous and solidary future for Senegal. The IBC invites everyone to write together a new chapter for Senegal.

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AGRICULTURE

IVORY COAST – The country celebrates its local meals

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On October 25, 2024, in Abidjan, under the high-level signs of Place Palmeraie, Place Marcory, Auchan Latrille and Hyper U Sococé, the aromas of freshly baked bread and soumbara flavours blend into the freshness of Grandes et Moyennes Surfaces (GMS). Between warm scents and perfumes, Dr BAH-KONE Ranie-Didice, Executive Secretary of the National Council for the Fight against Expensive Life (CNLVC), took his time. There is nothing more sacred than this reunion with these products drawn from our lands.

A baguette of bread, a whole story
For this fifth edition of the Festival des Farines Locales, there was a crowd, but also a rich selection of breads and pastries made from local flours: fonio, cassava, mil, soya, sorghum. Every passer-by had a bite, a smile on his face. Each piece of bread tells a story, from the field in remote villages to the expert hands of bakers and the purchase. Each aroma emanating from these crispy breads originates in the heart of the Ivorian terroirs.

October, Festival of Local Flours
This festival is part of the fifth edition of the Month of Local Consumption, initiated by the West African Economic and Monetary Union (WAEMU). Every year, October becomes a month dedicated to the promotion of food heritage, where consumption habits are tinged with a renewed awareness. In addition to their taste, these products demonstrate the importance of incorporating more local raw materials into the diets of Ivorians. By reducing dependence on often expensive imported products, this initiative could help to boost and strengthen the domestic economy.

Month of Local Consumption, an asset for the sub-region
This festival is not unique to Côte d’Ivoire: it is an initiative of WAEMU. Thus, all populations in the member states are invited to cultivate a local way of life, reducing their dependence on imported products and building a strong and resilient regional economy. Dr. Ranie-Didice Bah-Koné said the event is an invitation to reinvent our recipes, to reconnect with the very essence of the land that feeds us: “This festival is a tribute to the country’s recipes.”

For a resilient economy
This WAEMU initiative aims at food self-sufficiency in Africa, to reduce its dependence on external aid. This festival embodies the hopes of a sub-region ready to take back control of its destiny with its own resources, regain self-sufficiency and celebrate the wealth of a continent with almost unlimited resources. The Local Consumption Month and the Local Flour Festival have demonstrated that Côte d’Ivoire has the resources to achieve food self-sufficiency. Simply trust the talents and know-how of its craftsmen.

FARINE

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BUSINESS

SENEGAL – The Senegalese delegation at SIAL Paris 2024

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From 19 to 23 October 2024, the International Food Show (SIAL Paris) brought together in Paris Nord Villepinte the world’s agrifood players. More than 7,500 exhibitors from 205 countries presented their products and innovations, making this edition a must-attend event for professionals in the sector. Among them, the Senegalese delegation, led by Madjiguène Ndoye, delegate of Promosalons Senegal, marked its presence at this international showcase of the agri-food industry.

A Senegalese Delegation Inspired by Food Professionals
The strong Senegalese delegation, led by Madjiguène Ndoye, created a remarkable buzz during this event. Representing Senegalese professionals through public and private institutions as well as the Association des Commerçants et Industriels du Sénégal (ACIS), she highlighted the dynamism of Senegal on the world agri-food scene. Madjiguène Ndoye, PROMOSALONS representative for Senegal, Mali, Burkina Faso, the Gambia, Mauritania and Guinea Conakry, has worked to increase the visibility of Senegal and the sub-region. The delegation took advantage of each meeting opportunity to share and build business partnerships and discover innovations in the sector.

The SIAL, Growth Engine for Agri-Food in Africa
This edition of SIAL has proven to be much more than a show. It is a true catalyst for agri-food innovation and sustainability, highlighting more than 400,000 products. Discussions on ecological practices and food safety were at the heart of the event. Senegal, as an emerging country in this sector, has taken the opportunity to learn from best practices. The Senegalese delegation demonstrated the country’s commitment to align with global trends, such as organic farming and local processing of raw materials. This sustainable approach could play a crucial role in the country’s food resilience, which faces many climate and economic challenges.

Senegal to Conquer New Markets
SIAL Paris wanted to welcome as many African companies as possible, including the Senegalese delegation, because the African continent challenges the global agri-food scene. The presence of the delegation, led by Madjiguène Ndoye, opened up new business opportunities and attracted foreign investment. Senegal’s participation in SIAL Paris 2024 marks an important step in the country’s desire to establish itself on the international agri-food scene. By combining innovation, sustainability and competitiveness, Senegal aims to become a major player in agriculture in Africa.

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