AFRICA – Mining codes, transfer pricing, contract negotiation…Although governments are becoming more and more experienced when it comes to dealing with private operators, the IMF is calling on them to help prevent tax erosion.
In 15 resource-rich sub-Saharan African countries, the mining sector contributes 10% of gross domestic product (GDP). However, state revenues from mining only account for 2% of GDP. This “does not represent a ‘fair’ distribution of benefits.” This is not a statement from an NGO but rather the International Monetary Fund (IMF).
Africa as a continent has always been a mystery as no one could ever tell if African nations were doing well or poorly. But Africa is the land of riches although it has gone unnoticed for decades.
It is with the help of other foreign agencies that African nations have slowly begun to see the potential their lands hold.
Although we may not see it Africa can solve most of its poverty problems if they were to apply a little more interest in what their lands hold. As it is the African desserts and safaris bring in almost 45% of their gross economic revenue. This can be lifter to about 55% or more if they make certain changes to the way it is seen by the rest of the world.
The Masai mara in Kenya for example is one of the most expensive holidays but people still go as the migration of the animals is breath taking and a once in a life time kind of experience for most people.
The IMF has come to realize that Africa itself is becoming self-aware and are beginning to realize how powerful they are as a continent and we couldn’t be happier for its people.
