Andrew Stegmann

Frasers Hospitality Expands Business In Africa, Middle East

For the first time also, Frasers will expand into Saudi Arabia with properties in Jeddah, Khobar and Riyadh. This is in tune with the development of Jeddah Economic City and the government’s plan to expand the Jeddah King Abdulaziz International Airport. Because of this, inbound tourism is set to increase 6.1 percent per annum by 2020.

Meanwhile, new properties in Congo and Nigeria will mark Frasers Hospitality Group’s initial expansion into the African market. The growth potential of some areas in Africa is promising, thus an essential aid to the group’s growth strategy.

“The Middle East and Africa are significant growth markets in our global expansion plans. As the regions continue to emerge as business hubs, our properties in key cities will be well positioned to cater to the needs of travelers,” said Choe Peng Sum, Chief Executive Officer of Frasers Hospitality Group, in a statement to Travelers Today.

Meanwhile, business spending in Africa is expected to grow from $2.6 trillion in 2015 to $3.5 trillion by 2025, which is likely to see an increase in business travel to the region. “We are targeting key business centers such as Nigeria’s capital Abuja and Africa’s largest city, and we look forward to expanding our footprint in the region in the coming years.”

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Andrew Stegmann

No African citizens granted visas for African trade summit in California

Every single African citizen who requested a visa was rejected, according to the organizer of the African Global Economic and Development Summit

An annual African trade summit in California had no African attendees this year after at least 60 people were denied visas, according to event leaders.

The African Global Economic and Development Summit, a three-day conference at the University of Southern California (USC), typically brings delegations from across Africa to meet with business leaders in the US in an effort to foster partnerships. But this year, every single African citizen who requested a visa was rejected, according to organizer Mary Flowers.

Some are now questioning whether the denials to the Los Angeles event could be tied to the anti-immigration policies of Donald Trump, who is pushing forward with a travel ban against six Muslim-majority countries despite ongoing legal challenges.

Flowers said roughly 60 to 100 people from at least a dozen nations were denied entry to the summit, which went on as planned with a much smaller group last Thursday through Saturday.

“I don’t know if it’s Trump or if it’s the fact that the embassies that have been discriminating for a long time see this as an opportunity, because of talk of the travel ban, to blatantly reject everyone,” Flowers said in an interview on Monday. “These trade links create jobs for both America and Africa. It’s unbelievable what’s going on.”

The problems for the trade summit mark the latest example of restricted travel to the US under Trump, whose controversial immigration policies and rhetoric have impacted a wide range of industries and communities. Soccer players, musicians, doctors, tech workers, protesters and others from across the globe have been denied access to the US, which has also experienced a slump in tourism since Trump’s inauguration.

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Andrew Stegmann

South African working in Dubai worried stiff over new tax plans

A South African working in Dubai is disturbed by a proposal that could subject him to paying tax back home. He writes:

“I’m a South African living in Dubai and the new proposal on taxing those of us who live abroad in countries where we are not taxed on our income has us all very worried.”

The Fin24 user is referring to the 183 day rule that exempts remuneration earned by any person (resident or non-resident) for services rendered for and on behalf of an employer.

In this regard, if the individual spends a period of 61 continuous days and an aggregate 184 days outside South Africa, the remuneration derives for services rendered outside South Africa will not be taxable in South Africa.

However, Dubai, which attracts South Africans, is a non-tax jurisdiction so South Africans working there will not pay any taxes. The government is now trying to plug this loophole in order to get South Africans in countries like Dubai to pay taxes back home.

I think you have good reason to be concerned. In essence, the exemption will be removed, thereby leaving South Africans subject to full SA taxation, with no credits because no local taxes otherwise apply.

However, there may be one important escape. South Africa cannot tax you unless either:

(i) you are a SA common-law tax resident (i.e. you view SA as your eventual home), or
(ii) you reside in SA for any significant period of time during the relevant tax year (i.e. are an SA tax resident by virtue of the days test)

The law still needs to be drafted in this regard, so the proposal is not yet effective. I recommend that SA residents working abroad obtain tax advice when the proposal finds its way into law.

Treasury told Fin24 draft legislation on the proposed tax will be published later in the year for further consultation.

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Andrew Stegmann

Zimbabwe to engage South Africa over special dispensation permits

HARARE – The Zimbabwean government will be engaging the South African government this coming week to iron out the issue regarding Zimbabweans who are living and working or studying in the neighbouring country under a special dispensation permit, which expires on the 31st of December this year.

197 790 Zimbabweans living in South Africa under a special dispensation permit face deportation when the permit expires by year end.

Home Affairs Minister Dr Ignatius Chombo told a media briefing in Harare this Friday (yesterday) that the Zimbabwean embassy in South Africa has indicated that the South African Home Affairs Minister Mr Malusi Gigaba will be announcing the cabinet position on the review of the special permits and chances are high that the permits will not be extended.

The Home Affairs Minister said the Zimbabwe Special Permit (ZSP) was introduced in 2009 after a memorandum of understanding was signed between the two countries to facilitate the regularisation of Zimbabweans living in South Africa without proper documentation.

The ZSP allowed holders to work, conduct business or study in the neighbouring country for three years.

Dr Chombo will be travelling to South Africa on Friday to engage his counterpart Mr Gigaba over the issue.

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