The online gambling industry is aware of the huge potential that the African continent has. The approximate population of 1.3 billion people indicates only a small portion of that potential is currently used. However, Africa is developing in every area, and that includes online gambling expansion.
According to estimations, the African sports betting industry alone is worth around $40 billion. As for online gambling, new players are attracted to it every day. Here is an overview of laws and statistics related to web-based gaming in major African markets.
The last report published by the South African Gambling Board indicates that this country’s gross gambling revenue was $1.9 billion in 2018. While sports betting and lotteries are holding the top spot, online casinos started attracting most players.
Many big industry names welcome players from South Africa. It’s not hard for a player to find the best real money online casino that perfectly fits their needs. As for SA laws, only land-based bookies can open an internet platform. However, players can still enjoy web casinos based elsewhere. It’s in the government’s interest to adjust its legal framework and encourage legal online gambling. A considerable interest expressed by the players means that this can be a way for the government to increase its revenue.
Uganda is among the loosest African countries when it comes to gambling laws. Their regulations established most online gambling forms as legal. That includes web casinos but also sports betting and lotteries.
The statistics indicate Uganda has over 600 registered casino businesses, which is impressive. The government generates over $10 million yearly from online gambling, while Ugandans spend over $40 million annually on betting activities.
It’s not easy to acquire a license in Uganda. The terms indicate that you should pay over $1.5K for a license, and there is a 29% tax on corporate income.
Nigeria is a large country with an estimated population of 195 million people. Unfortunately, many industry sectors are poorly regulated. You can see that by the unstable policies in the automotive industry. Fortunately, online gambling is legal since 2004, when this country lifted the national gaming ban.
The estimation is that every third adult Nigerian bets on sports. If you do the math, that’s $2 billion annually or $5 million daily invested on sports wagers only!
As for online casinos, the first was opened in 2013. While it still hasn’t reached the popularity of sports betting, it’s clear there’s a lot of room for internet gaming to progress. At this moment, web casinos are popular in big cities, and that’s understandable since that’s where people have the best internet coverage.
Ghana offers beautiful beaches, dazzling nature, and many other attractive sights for tourists. If you find yourself in this country, you can rest assured that gambling online is legal. Furthermore, the Ghanaian government legalized both internet and offline gambling. Apart from accessing domestic gaming sites, you can also play on those based overseas. That increases the choice of web casinos available to people in Ghana.
Sports betting is dominating throughout this continent, and Ghana is no different. It’s interesting to note that you can even place a bet by making a phone call. As for casinos, apart from roulette and classic table games, Ghanaians enjoy playing bingo.
Kenya can compare to Ghana in terms of regulations and web gaming popularity. Although playing online is legal, it’s still not attracting many players. That’s because the country should work on improving mobile internet connections throughout Kenya. As that improves, they’ll see an increase in gaming revenue.
At this point, Kenya has around $40 million of gross gambling revenue. The majority comes from sports betting since four out of five gamblers regularly wager on football games.
What Will Happen in the Future?
We expect to see online casinos tapping into the unused potential of the African continent. It’s evident that it won’t be possible without things changing in the countries themselves.
Check out these predictions that could happen soon in Africa:
● More countries will legalize and offer an improved framework for online gambling. Some countries will see an interest in reducing taxes to motivate new providers to launch their businesses.
● The internet will become faster and more accessible throughout Africa.
● An increase in western influence will lead to a rise in people interested in web gambling.
● Earnings for the middle class, but also other classes, will improve. That means people will have more funds for leisure activities, which will boost web gaming.
Africa is a fantastic continent and the next focus of the global gambling industry. Many reputable casinos already accept players from countries where gambling is allowed. Playing games like roulette, poker, and bingo online will attract more players and even achieve the popularity of sports betting. The only important thing is that national governments understand the opportunities provided by these industries and optimize their regulations.
Kenyans to start using Chinese-built expressway in March: official
Kenyans will begin using the Chinese-built Nairobi expressway in March, three months earlier than anticipated, an official said on Friday.
Kenyans will begin using the Chinese-built Nairobi expressway in March, three months earlier than anticipated, an official said on Friday.
Kung’u Ndung’u, the director-general of the Kenya National Highways Authority (KeNHA), said construction works on the road currently stand at 82 percent, bringing it closer to completion.
“Construction of the Nairobi Expressway continues to make good progress with its completion status standing at 82 percent. The project is on schedule for opening to the public by March,” said Ndung’u in a notice.
He observed that construction of the operation and monitoring center stands at 99.5 percent while 98.5 percent of elevated sections have been built.
Kenyans are eagerly awaiting the completion of the 27 km road that will cut travel time from the south to west of Nairobi to about 20 minutes from two hours currently during peak time.
Kenyan President Uhuru Kenyatta in December made an extensive inspection tour of the expressway which is financed and constructed by the China Road and Bridge Corporation (CRBC).
Kenyatta hailed the expressway as a key infrastructure project, noting that the highway is bound to reduce the traffic gridlock that people have experienced and that has added to the cost of doing business in the country.
More than 4,000 Kenyan workers in various cadres have been employed by the project with tonnes of construction materials sourced locally, according to KeNHA.
Mali Junta Slams French ‘Breach’ of Airspace As Paris Urges EU Sanctions
The Mali military junta has condemned what it calls a “clear breach” of its airspace by a French military aircraft during the week, warning of potential consequences should it happen again. This comes as France has urged the European Union to impose sanctions on the military régime in Bamako, that has failed to honor a timeline for a return to democracy.
In a statement released on Wednesday, Malian government spokesman Colonel Abdoulaye Maiga stated that a complaint had been issued to France after one of its military planes travelled between Coted’Ivoire’s economic capital Abidjan and the northern Malian city of Gao on Tuesday.
According to the military government, the flight was a “clear breach” of Malian airspace given the closure of most of the country’s land and air borders due to regional sanctions recently imposed on the country.
The junta claims the French military plane had switched off its transponder, preventing it from communicating with Malian aviation authorities.
In the wake of the incident, the Bamako government says it will “refuse all responsibility for the risks to which the perpetrators of these practices may be exposed in the event of a further violation of our airspace”.
🔴#Mali: un aéronef de Type A400 immatriculé FNBAN de l’Armée a “survolé l’espace aérien malien sans autorisation, le 11 janvier 2022”, selon un communiqué du Colonel Abdoulaye Maiga, ministre de l’Intérieur. Le gouvernement malien dénonce “la violation de son espace aérien”. 1/2 pic.twitter.com/qiBIJiZSqo
Ecowas shutters land, air borders
The French military have denied the Malian government’s claims, saying that the plane’s transponder had been switched to “military mode”, adding that “all procedures were respected” and the aircraft’s flight plan had been approved.
On Sunday, the Economic Community of West African States agreed to close all land and air borders with Mali and impose a trade embargo over delayed elections.
The sanctions – backed by France – came after Mali’s military government proposal in December that it would hold onto power for up to five years before restoring democracy.
Mali’s junta, led by Colonel Assimi Goita, took power in August 2020, promising to hold elections on 27 February.
Military junta “trying to fool” traditional allies
Meanwhile France has sad it will urge the European Union to impose further sanctions against Mali.
Speaking on Wednesday, French foreign affairs minister Jean-Yves Le Drian said that Mali risked being “suffocated” unless the military junta lived up to its responsibilities and stopped seeking to “fool” the country’s traditional partners.
With France holding the rotating EU presidency, Le Drian said that the EU measures would be in line with the unprecedented sanctions recently agreed with Ecowas.
The issue is due to be discussed by EU foreign ministers at a meeting in the French city of Brest this Thursday, as France maintains that Mali is now a “European issue”.
“The junta is trying to fool all of its partners,” said Le Drian, noting how Bamako had called for help from Russian Wagner mercenaries as well as the “unacceptable” slipping of the election schedule.
With France already seeking to tighten the vice on the military rulers in Bamako, national carrier Air France said Wednesday that in line with official decisions it was suspending flights to and from Mali until further notice.
Investors will now pay 10% tax on sale of shares in any Nigerian company
Investors on the Nigerian Stock Exchange are to pay a Capital Gains Tax of 10% on the sale of shares according to provisions of the signed Finance Act 2021. The tax is applicable on the disposal of shares worth N100 million and above.
The tax also extends to anyone selling shares of any company even if the shares are not listed on the stock exchange which inadvertently includes the sale of shares by private equity firms, startups, venture capitalists, or any shareholder looking to sell shares in Nigeria.
The law however exempts anyone who sells shares and reinvests the proceeds in purchasing another company’s shares or the shares of the same company within the same year. However, this is provided that you invest all the proceeds within a year. Any part of the proceeds not reinvested will be taxed while the balance reinvested will not be taxed.
What the Nigerian Finance Act says about tax on shares
This was captured under Part 1 Section 1. Of the Act, which states as follows;
“Without prejudice to any other applicable law, the gains accruing to a person on disposal of its shares in any Nigerian company registered under the Companies and Allied Matters Act shall be chargeable gains under this Act except where —
(a) the proceeds from such disposal are reinvested within the same year of assessment in the acquisition of shares in the same or other Nigerian companies:
Provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection;
(b) the disposal proceeds, in aggregate, is less than N100,000,000 in any 12 consecutive months, provided that the person making the disposals shall render appropriate returns to the Service on an annual basis; or
(c) the shares are transferred between an approved Borrower and Lender in a regulated Securities Lending Transaction.”
The act also specifies a capital gains tax of 10% on the disposal of the shares.
“Without prejudice to the provisions of section 2 of this Act, the rate of capital gains tax on disposal of shares under this section shall be 10%.”
What this means
For anyone selling shares: If you are an investor looking to sell shares then you pay a 10% tax on the capital gains you make selling the shares if you do not reinvest the proceeds into shares.
- For example, if you sell shares you bought for N100 million for N150,000,000 and decide not to reinvest the entire N150 million, you pay tax on the gain of N50 million you made. This means you pay a tax of N5 million.
- If you reinvest just N130 million, then you pay tax on N20 million which is N2 million in tax.
- If you do not make a profit (or gain), you do not pay any tax.
Who do you pay the tax to?
Individual Investor: This is anyone other than a registered company who is selling shares in any company. Taxes are paid to the state inland revenue service via the personal income tax. For example, if you reside in Lagos, then that tax goes to the Lagos State Inland Revenue Service. This will mostly be high net-worth individuals.
Corporate Investor: For foreign investors, pension funds, private equity firms, venture capitalists, or any corporate that invests in startups, the taxes will be paid to the Federal Inland Revenue Service.
Implications for investors
- For the first time in decades, investors in Nigerian companies will pay tax when they sell shares they own without reinvesting the proceeds within a year.
- This will definitely affect investors in the Nigerian stock market whose capital gains can easily be administered through stockbrokers or sny intermediaries.
- Currently, the only tax that is applicable on the equities market is the 10% withholding tax on dividend payments. This tax is deducted at the source.
- Investors will now have to be smarter about how they manage their portfolios deploying more tax avoidance tactics to reduce the tax paid when they takeout profits from investments.
- There will also be a need to acquire the software and human resource in the finance department of corporates to help document these transactions and analyze tax implications.
- Individual investors (especially HNIs) will also likely need to calculate their taxes themselves or employ consultants to do it for them.
Why is the government taxing the sale of shares?
After decades of applying a zero tax on sale of shares, the Buhari administration has introduced taxes many think are a disincentive for investing in the equities market.
- Before now, one of the many attractions of investing in Nigerian Stocks is the zero tax on capital gains, unlike most countries that tax the sale of shares.
- However, the Nigerian Government has been under intense revenue strains struggling to cope with ballooning multi-year budget deficits. This tax is an attempt to help shore up revenues.
- Supporters of this tax also cite the need to balance things out especially for institutional investors who shelve dividends and thus avoid paying withholding tax. Instead, they rather sell the shares and pocket the capital gains avoiding tax liability.
- This law now requires that they pay tax if they do not reinvest the capital gains within a year.
- Thus this tax is targeted at institutional investors and HNI’s who sell hundreds of millions in shares.
How much could the government make?
- The Minister of Finance, Zainab Ahmed was not specific on how much the government hopes to rake in annually.
- According to data from the Nigerian Stock Exchange the total transaction value of foreign and domestic investors on the exchange was N1.9 trillion and N21 trillion in 2019 and 2020 respectively. The figure is N1.74 trillion as of the year to date November 2021.
- Total foreign portfolio outflows (amount taken out by foreign investors from the equities market) were N523, and N482 billion in 2019 and 2020 respectively. It is currently N540 billion as of November YTD 2021.
- Assuming a profit of 10% for foreign investors who took their money out of equities in 2021, the government could pocket capital gains of N5.4 billion in stock market equities from just FPIs.
- This assumes the entire amount is from investors who dispose over N100 million which is unlikely.
Hope for Zimbabwe Small Pineapple Farmers After Cyclone Idai’s Rampage
A group of 45 farmers in Rusitu Valley in Chipinge, a district in Zimbabwean eastern province of Manicaland have from December 2021 started exporting nearly 50 tonnes of their pineapples to the Netherlands.
These farmers were victims of Cyclone Idai, a tropical cyclone which hit their home area of Chipinge and Chimanimani in 2019, killing over 180 people, destroying 7,000 households and infrastructure and leaving 4,000 people food insecure. During this time, their pineapple crops were not destroyed.
Most of Zimbabwe’s prime farming areas incur heavy post-harvest losses because their produce often rots by the roadside as they struggle to secure markets and transport for their produce.
These challenges saw the the 1,300 Chipinge farmers establish the Rusitu Fruit Growers and Marketing Trust, that engaged with the country’s export promotion body, Zimtrade. Here, the farmers were offered training and technical expertise on how to grow pineapples organically and export to overseas markets.
Most Viewed Posts
- Nigeria: Govt Plans to Lift 35m Nigerians Out of Poverty in Five Years (2,016)
- Other Types of Intimacy that can Improve Your Relationship Asides the Sexual Type (1,526)
- Google founders earn $42 billion in 100 days (1,349)
- Top Health Tech Start-up’s in Nigeria (1,245)
- Ways hackers break into your WhatsApp account, and how to curb it (1,143)
HEALTH3 weeks ago
Broccoli and Everything New You Need to Know About it
HEALTH3 weeks ago
(VIDEO) Meet Julia Vins The Cute Russian Bodybuilder Who Proved Sexy & Strong Can Coexist
BUSINESS4 weeks ago
How to Make Your First 1 Million Dollars in 2022
NEWS3 weeks ago
(VIDEO)20 Mysterious Things Caught on Video & Google Earth