This is the first “Tax in Africa” survey of its kind and it originates from a growing need among foreign investors who are considering Africa as a viable investment destination. The survey focuses on key tax, business and regulatory challenges faced by companies operating in Africa. The main findings of the survey confirm the view that tax systems across the African continent are extremely divergent and most require modern tax reforms to make the region more attractive to doing business. Other trends emerging, which are consistent with global trends, are the focus on managing tax risk and compliance, the need for tax function effectiveness within companies and the growing demand for tax skills.
I want to thank all participants who took the time to contribute. The success of the survey is directly attributable to their enthusiastic participation.
We hope that you find the results of the survey interesting and useful and we welcome any feedback and comments.
Executive Summary
The main findings of the survey can be summarised as follows:
- South Africa is perceived to be the country that presents the greatest tax challenges on the African continent, followed by Nigeria and the Democratic Republic of Congo (“DRC”).
- Angola has the most difficult business and regulatory challenges on the African continent, followed by the DRC.
- Of all taxes, withholding and expatriate taxes are viewed as areas of particularly high tax risk.
- Political risk and exchange controls pose the greatest business and regulatory challenges.
- The greatest tax challenges facing a tax function in Africa relate to compliance with tax laws and practice and recruiting quality tax staff.
- Only 23% of participants surveyed felt that their companies were fully compliant in the area of share options’ taxation.
- Only 11% of participants surveyed felt that a tax strategy had been fully implemented in their respective companies.
- The management of compliance risk is the area of most concern to participants surveyed, followed by the management of operational risk.
- The greatest management challenges facing a tax function in Africa relate to managing relationships with fiscal authorities and finding tax staff with the required experience.
- 53% of those surveyed would like their tax advisers to understand their business and tax-risk appetite better, and to think more commercially.
- Those surveyed were most interested in finding out more on tax risk management, tax developments in Africa, GST/VAT, holding company structures and expatriate taxation issues.
Download the survey (245Kb) 
