The African Continental Free Trade Area agreement is gathering momentum on streamlining intra-African trade across the continent, thereby providing exciting opportunities for pandemic recovery and growth.
Organizations that rely on supply chains in Africa are looking at ways to strengthen pandemic-impacted chains. Many effective treatments aimed at boosting the health of ailing chains are being implemented, including those that rely on digitization, sustainability standards, and improving infrastructure and manufacturing capacity.
The Labor Appeal Court in South Africa recently considered the binding nature of confidentiality agreements in the workplace. Both employers and employees should note that the courts will consider each case on its merit and will consider the scope and reach of the agreement, and the substance of any disclosure that breaches this undertaking.
Competition authorities in Africa are displaying a unity of focus in African antitrust enforcement action, simultaneously targeting similar sectors and issues in multiple jurisdictions across the continent.
In December 2021, the existing exemption that excludes medical devices and in-vitro diagnostics from the application of sections 18A and 18B of the Medicines and Related Substances Act was extended. This extension means that suppliers of medical devices and in-vitro diagnostics are permitted to supply their products according to bonus, rebate and incentive systems for another three years.
As an essential component of South Africa’s energy transition, the production, transport, storage and use of green hydrogen, has been the subject of numerous policy updates and public and private sector commitments in the country, especially in the last year. The timeline of developments is not expected to slow down as South Africa zeroes in on solutions to its energy crisis that enables it to also address climate change and deliver on its decarbonization targets.
Our Banking & Finance, Competition & Antitrust, Mergers & Acquisitions and Trade partners in Johannesburg outline ten reasons to turn your attention to African trade and investment opportunities in the coming year. Some of these reasons include the rise in commodity prices, shifting patterns and alternative financing, digitization and competition law and enforcement.
Draft guidelines to the COMESA Competition Regulations, 2004 were published for public comment in October 2021. The guidelines are intended to provide clarity, transparency and certainty on the policies and procedures of the COMESA Competition Commission. Based on international best practice, they address the determination of fines and administrative penalties, as well as settlement and hearing procedures.
All but four of the OECD G20 Inclusive Framework members, including South Africa, have signed an agreement that will reform the world’s tax system. Two African countries – Kenya and Nigeria – have not yet signed the agreement. The new two-pillar system will set out a reallocation of taxing rights as well as a global minimum tax rate for certain organizations. It is expected that these changes will address global tax revenue imbalances, which is expected to benefit African countries.
The growth in demand for online retail services has led to extensive disruption in the Consumer Goods and Retail (CG&R) sector in Africa. Africa-based CG&R businesses have been adapting their digital operating models to keep up with demand, and multinational e-commerce organisations operating in the region are recording rapid growth. However, this digital expansion in the CG&R sector has numerous tax implications, both locally and regionally.