More Africa NewsAngola: Parliament is studying a tax and customs incentive scheme in favour of Africell

July 8, 2021by myles0

The Angolan government places great hopes in Africell to revive the dynamism of the national telecoms market. To guarantee the new telecoms company every chance of success, the State is ready to grant it several advantages for the next eight years.  

At the request of the government, the Angolan parliament is studying a tax and customs incentive scheme for Africell, the country’s fourth mobile operator, which announced the launch of its operations in December. If approved, the telecoms company could benefit from exemption, fixing and reduction, among others, on the rate of industrial tax, capital investment tax, stamp duty, value added tax , property tax and other charges for a period not exceeding eight years.

According to Ruth Mendes, the president of the Economic and Financial Commission of the National Assembly, the government has requested this tax exemption to facilitate Africell’s entry into the country. During her speech on Angolan public radio, Friday, July 2, she said that the tax relief that Africell will benefit from when it starts up should allow it to quickly take its marks with consumers and gain a safe value over the years.

In Angola, where Angola Telecom, Unitel and MS Telecom are battling, the mobile penetration rate has steadily fallen since 2014. It has fallen from 54.25% to 46.3%, according to the latest data from the Angolan Institute. communications (Inacom) and Digital Report 2021 from Hootsuit and We are social. While the government is determined to make digital technology an engine of national economic growth, the Internet penetration rate is only 31% with access prices still considered quite high by the population. A situation that the Angolan government considers deplorable in a country of 33.40 million inhabitants.

Through the financial solidity that the Angolan government wants to help Africell acquire through the tax and customs incentive regime, it is more the interest of the populations that is targeted. Freed from a certain number of regulatory charges, the company will be able to invest accordingly in its network to improve the country’s telecom coverage rate and facilitate the populations’ access to telecom services, relaunch competition on tariffs and quality of service. Achievements that will help make populations active players in the country’s digital transformation.

Source: Agence Ecofin

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