Andrew Stegmann
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Ghana Reopens Borders to International Commercial Flights September 1st

This information was provided to us courtesy of Globetrotters Legal.
The government of Ghana announced August 30, 2020, that the country’s airspace will be opened to international commercial flights effective September 1, 2020.

Travelers must take note of the following protocols and the attached for further information.

  1. A negative COVID-19 PCR test result obtained 72 hours before arrival from an accredited laboratory in the country of origin is required;
  2. Compulsory wearing of face masks for passengers;
  3. Mandatory COVID-19 test at the airport terminal, at a fee to be borne by the passenger (should not exceed GH 500). The test result will be available within thirty (30) minutes;
  4. Testing at the airport not required of children under the age of five (5);
  5. Passengers, who test positive for COVID-19, will be handled by the health authorities for further clinical assessment and management;
  6. Passengers, who test negative, can enter Ghana to go about their lawful activities and will be advised to continue to observe COVID-19 safety precautions during their stay in Ghana; and
  7. Departing passengers will be required to take A PCR test 72 hours prior to departure and present a negative result to port health officials for verification before being allowed to complete departure formalities;

Ghanaian land and sea borders will continue to remain closed to human traffic until further notice.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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Relocation Africa Nigerian Immigration Interview With Kunle Obebe

Lynn Mackenzie, our Immigration Lead, recently had the privilege of interviewing Ola Alokolaro, from Advocaat Law, about Cameroon and Sierra Leone’s immigration landscape.

To listen to Lynn and Ola’s conversation about immigration in the current context, click here to view the recording, or view it below.

Kunle’s bio

Kunle is recognized as the foremost Nigerian lawyer in immigration, employment and labor matters and is frequently sought after as local counsel for large international companies. He is said to be the “the first port of call” and has a “long standing reputation” in the market (Who’s Who Legal – Nigeria 2014).

Kunle advises multi-national corporations, Fortune 500 companies, high net-worth individuals and Nigerian companies on issues relating to regulatory compliance with particular reference to expatriate and Nigerian employee work authorization in and out of Nigeria and corporate and commercial law.

He is a certified Global Mobility Specialist and a regular speaker at Nigerian and international conferences/seminars on regulatory compliance and emerging corporate immigration issues in Nigeria.

He is the Managing Partner and Chair of the firm’s Dispute Resolution, Immigration and Employment & Labour Practice Groups at Bloomfield Law Practice.

 

We would like to say a huge thank you to Kunle for his insights. We hope you enjoy the recording.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].  

Andrew Stegmann
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Opinion: African Grid Operators That Don’t Open Up to Solar Risk Being Left Behind

African grid operators that don’t put solar power onto their systems risk being bypassed as prices for solar production and storage continue to fall, John van Zuylen, CEO of the Africa Solar Industry Association, tells The Africa Report.
 
There are already many places where solar energy is the cheapest option says Van Zuylen, who is based in Kigali. That means the prospect of “a significant uptake of solar in the African energy mix, grid-connected but probably mostly off-grid. By rejecting solar, the national utilities may create themselves a new problem: losing their reliable customers.” Less than 1% of the world’s solar capacity is in Africa.
 
According to the Institut Montaigne in Paris, sub-Saharan Africa is the world’s only region where demographic growth since 2000 has been faster than the speed at which populations are being given access to electricity.
  • Only around 10 solar power plants of more than 5MW have been connected to the grid in the whole of sub-Saharan Africa, excluding South Africa, the Institut says.
  • Africa has been largely absent from the global solar power plant deployment, which constitutes a “collective failure”, the Institut argues.
  • It’s only going to get worse if nothing is done: in 2040, almost 95% of the world’s population without access to electricity will be in sub-Saharan Africa, the Institut says.
Many African national grids are in poor condition and cannot absorb more than 20-30MW in a single location, limiting opportunities, Van Zuylen says.
  • For grids that don’t have these technical constraints, questions about risk-sharing, government guarantees and bankable off-take agreements have significantly limited the number of projects coming to fruition, he adds.
  • Meanwhile, solar home systems and mini-grids still require heavy subsidies to provide electricity at affordable prices for rural populations, which are often the ones with the lowest available income.

Urban subsidies

National grids are best placed to do something about it. According to a global outlook for solar power to 2024 published by SolarPower Europe in June, African utilities with access to an urban customer base may be able to finance connections for poorer rural households by subsidising them with revenue collected in cities.
  • Projects situated near these urban centres are more bankable due to economies of scale, the possibility of future capacity expansions and a lower risk of under-utilisation, SolarPower Europe says.
Some countries are becoming supportive of solar. Van Zuylen points to the example of Senegal, which this month removed VAT on all solar products, including water pumping systems.
  • The decision is part of a strategy that seeks to achieve universal access to electricity in Senegal by 2025.
  • Institut Montaigne says that of the 10 plants connected to sub-Saharan grids, four are in Senegal.
The best thing to do for grid operators is to “guide and accompany a smooth integration of solar in their grids,” Van Zuylen says. “If they do not do so, it could very well be that more and more customers will gradually disconnect from the grid completely as solar plus storage is not only reliable but also increasingly cost-competitive.”

The Bottom Line

Foot-dragging national grids risk being left behind as falling prices for solar and storage equipment have the potential to be a game-changer.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
,

Financial Emigration: Changes to the Withdrawal of Retirement Funds in South Africa

This information was provided to us courtesy of JJ Accounting Services Mauritius.

The draft Taxation Laws Amendment Bill (“TLAB”) was published on 31 July 2020. As announced in the Budget Speech, any South African leaving in future will be subject to a much stricter process from 1 March 2021 onwards.

The amendment comes as no surprise, as government made its intentions clear in the February 2020 Budget Speech, per Annexure C to the Budget Review: “As a result of the exchange control
announcements in Annexure E, the concept of emigration as recognised by the Reserve Bank will be phased out. It is proposed that the trigger for individuals to withdraw these funds be reviewed”.

Current position

Under the current dispensation, taxpayers may withdraw their retirement funds prior to their retirement date, upon emigration for exchange control purposes, where such emigration is recognised by the South African Reserve Bank. This concession is provided for in the respective definitions of “pension preservation fund”, “provident preservation fund” and “retirement annuity fund” (collectively referred to as “retirement funds”) in section 1 of the Income Tax Act No. 58 of 1962 (“the Act”). Each definition makes provision for withdrawal where a person “is or was a resident who emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control”.

In essence, the above proviso permits a person to withdraw his retirement benefit upon completion of a process of emigration through the South African Reserve Bank.

Proposed amendment

The proposed amendment follows the February 2020 Budget Speech, where the government made its intentions clear to overhaul this process as part of the modernisation of its exchange control system, as stated in Annexure C to the Budget Review: “As a result of the exchange control announcements in Annexure E, the concept of emigration as recognised by the Reserve Bank will be phased out. It is proposed that the trigger for individuals to withdraw these funds be reviewed”.

The TLAB, specifically paragraphs (h), (k) and (m) of section 2(1), gives effect to this decision, by amending the proviso to the aforementioned definitions in section 1 as follows: “is a person who is [or was] not a resident [who emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control] for an uninterrupted period of three years or longer” (emphasis added).

In other words, reference to the emigration process is substituted with a new test that requires a person to prove they have been non-resident for tax purposes for an unbroken period of at least three years. This new test will apply from 1 March 2021. How this must be proved other than ‘financial emigration’ remains unclear at this stage.

Practically, as from the effective date of 01 March 2021, retirement benefits will be locked in South Africa for at least three years. The proposed amendment signals a big policy shift from a fiscal perspective, but this is one piece to a bigger puzzle that should have those who seek to emigrate on high alert.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].