Uniglo welcomes you to a new year and our first newsletter for 2017. While 2016 has been a tumultuous year, we have been busy facilitating many exciting changes for 2017 to offer a broader spectrum of services to our clients in terms of payroll, taxes and mobility.
We have expanded our services into Africa and we can now offer full compliancy in the following countries:
Angola, Botswana, Cameroon, Democratic Republic of Congo, Egypt, Ethiopia, Ghana, Ivory Coast, Kenya, Libya, Madagascar, Mozambique, Namibia, Nigeria,
Sierra Leone, South Africa, Swaziland, Tanzania, Uganda and Zambia.
We are currently negotiating to include Mauritius, Mali, Rwanda, Lesotho and Zimbabwe and we aim to add 30 African countries to our portfolio by the end of the year.
More companies are outsourcing to Africa as there is a demand for services due to their exponential population growth and a wealth of natural resources. Africa does not come without its bureaucratical red tape and numerous challenges such as erratic currency fluctuations, currency Limitations, occasional political instability, arduous Immigration procedures or lack thereof which can change at the drop of a hat.
Angola has been facing endemic currency restrictions in the past year and this has affected many industries in Angola with expat workers and Angolan entities who trade globally. The currency of Angola has been devaluated and the plummeting of the oil price has seen the Kwanza plummet to an all time low.
While the official currency of Angola is not the US Dollar, they have been using it as a second currency for many years until the Kwanza devaluated and two of the major banks has stopped issuing vast amounts of dollars to Angola. Some banks have completely cut the supply of Dollars at the end of November 2016.
The aim of the foreign exchange restrictions was primarily designed to shield the local currency, and is now having a knock on effect on investors and business owners for repatriating capital, paying expat employees or paying for imports.
The consequences of this, is that the black market in dollars is doing a thriving trade. The current black market rate is 270-300 Kwanza per dollar, whereas a year ago, it was legitimately trading at 103-135 to the dollar.
Despite the gruelling costs of the black market dollar rate, forex restrictions and inefficiencies in the Angolan banking systems, the informal market has been the only option for Investors. Currencies are currently taking 2- 6 months to be repatriated out of Angola and preference is given to major players in the Oil and Gas industry and funds for imports- Angola Imports 95% of their produce.
In addition to this, expat employees being paid from Angola have been waiting some months for their salaries and many Oil companies have lost a few employees due to the crisis.
It is not all doom and gloom though. While the Oil industry has predominantly been the major contributing factor to their GDP, the Telecommunications, Power Generation and Diamond Mining Industries are starting to boom and in a few years time will be some of Angola’s major contributors.
While the dollar situation is not likely to improve within the upcoming year, there is an alternative for employing expat workers in Angola.
We have a fully compliant solution in Angola, who will employ local and expat contractors under our partners entity and officiate the work visa process as well as registration and payment with taxes. Multi- national companies will be able to pay Uniglo the funds outside of Angola and we in turn can pay the contractors their salaries locally or abroad. Our partner company will register the contractor for tax and we will ensure that all necessary taxes are paid into Angola and therefore paid timeously.
Tax planning solutions
Expatriate tax can be a real burden, especially in locations with a language barrier. We’ve taken the headache out of your foreign contracts by sourcing the very best international accounting services to advise and assist you. We will save you time and money. We offer completely free, no-obligation quotes on advice on how to reduce your international tax bill.