Why Canadian Companies are looking for African Markets
According to the World Bank, six of the world’s ten fastest growing economies in the world are in Africa. The list is based on the Real GDP growth at Market Prices and includes Ghana (8.3%), Ethiopia (8.2%), Côte d’Ivoire (7.2%), Djibouti (7%), Senegal (6.9%) and Tanzania (6.8%). With these potential economies, the African Development Bank is powering the African Investment Forum, a marketplace platform that integrates strong partners and wants to attract investment to the continent.
During the last forum that took place on November 7th, the Development Finance Institute Canada ( FinDev Canada) and the African Development Bank signed a memorandum of understanding in which Africa will have a positive direct impact in climate action, job creation and empowering women through Canadian Investment.
The Development Finance Institute Canada (DFIC) Inc. ( FinDev Canada) was created in January 21018 with the aim of combat poverty and supporting the growth of business in developing markets.
In addition, the Canadian government has a Foreign Investment Promotion and Protection Agreement (FIPA´s) that are bilateral agreements that encourages foreign investment through a framework of legally-binding obligation and rights. So, in order to succeed in Africa, the government has negotiated FIPA´s with Benin, Burkina Faso, Cameroon, Côte d’Ivoire, Guinea, Mali, Senegal and Tanzania and they are looking to increase the number of negotiations with other countries.
With this background, worth mentioning that the potential sectors for Canadian Investment are:
The United Nation Economic Commission for Africa modelling estimates the expected increase in intra-African trade in agro-food products to be is 20-30%.
Most product categories benefit especially dairy products, meat products, sugar, rice, cereals, vegetables, fruit and nuts; beverages.
There is a predominance of the primary wood processing such as sawing and rotary cutting, while the secondary wood process (moldings, profiles, parquet and ply) are increasing investments.
There are future investment opportunities for tertiary wood processing (joinery and cabinet making), and potential for other by-products like pulp and paper.
Mineral & Metals
➔ Potential in extraction and processing of the following mineral and metals:
➔ Copper and copper products
➔ Manganese and by products
➔ Diamonds and by products
➔ Rare earth metals
➔ Phosphate and by products
● ICT and Digital: Telecom, tech-parks and digital services
● Tourism: Transport, tour operations, hotels across Africa
● Logistic and Distribution: Cargo air transport
● Energy/Renewable: Wind, solar & hydro
● Banking, Finance & Insurance:
● Health: Care delivery, medical supplies manufacturing and distribution
● Education: Education, research, skilling in Industrial Revolution 4.0
As you can see, there is a plenty of opportunities Africa is currently offer to the World. If you want to cross the bridge and expand your market, the Canaries Islands are the best Gateway Solution.
Setting-up your company in the Canaries Island will allow you to enjoy a Tax Incentive of 4% (ZEC) and be based on the most strategic geographic zone, where you will be able to reach the African Market and also the European. Our team of experts will advise and guide you through all steps you need.
Novara Capital Group is an international tax & capital investment consulting firm. We specialise in Corporate Structuring, European Union Tax Incentives, IP Positioning, and Transactions / M&A. We provide intelligent corporate structures, advice, and an integrated service which cross delivers in businesses. We advise companies globally to accelerate international growth, optimise net profits, and enhance equity value leveraging Intellectual Property and Licences. Our in-house experts specialise in International Tax Law, Company Law & Cross Border Jurisdiction, Investment & Asset Management, Mergers & Acquisitions, and Operational Management.
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