Africa Investment Clubs Consultant

The retail industry across the globe is rapidly evolving as players in the sector continue to explore innovative ways of improving consumer experience. The food and beverage industry, which accounts for a significant share in the retail market, has been on the forefront of this revolution. Primary producers, manufacturers and retailers are continually seeking innovative ways of lifting profitability, adopting to changing lifestyles and improving consumer experience and definitely, sales. This has seen the retail industry take a new course and slowly migrate from the predominantly used physical stores to more convenient shopping systems. Arguably, e-commerce and last mile delivery seem to be wading their way into the market with analysis signaling that this retail space might grow into becoming one of the largest and fastest growing trends in the food and beverage industry. According to Statista, the revenue in the worldwide online food delivery segment shall hit US$18.9 billion in 2020...

The Covid-19 pandemic has caught the world completely by surprise and its huge global impact is likely to be felt for years to come. As the virus begins to spread at a quickening pace in many African countries, efforts to prevent its spread, including protracted stay-in-place lockdowns, have already had devastating consequences for their economies, leaving small businesses reeling from a sharply reduced demand for their goods and services. Following the pandemic, it’s unlikely that our lives will ever be the same again. Just as we have reluctantly adapted to the security precautions now routinely involved in air travel, so will the world be forced to adjust to a new normal: one that requires us to undertake all activities with a view to protecting ourselves from viral infection. Opportunities for African SMEs A post-pandemic Africa doesn’t need to lead to financial ruin for the African entrepreneur and, indeed, adaptation to the new normal can present opportunities for innovative small...

  Tech-enabled freight and delivery services are attracting attention from investors. Where does a freight truck go after it delivers its cargo? In much of the world, logistics companies use technology to match available vehicles with shippers that need to move goods, ensuring that every mile is paid for. But automating freight management has been difficult in Africa, where drivers are typically solo operators scheduling their own jobs. The process regularly results in “empty runs” – trucks with no cargo for the return route, forcing drivers to idle for days. That’s part of what makes logistics costs in Africa almost double that of North America, according to data from supply chain firm Armstrong & Associates. The high price holds back trade and raises costs for consumers, making basic necessities like diapers, soap, and food unaffordable for many. Africa’s supply chain is broken . But technology created by African e-logistics companies is beginning to patch the sup...

Company Law The principal statute dealing with company law is the Companies Act. The Companies Act sets out provisions dealing with all aspects of company law including the incorporation of companies generally, share capital provisions, shareholders rights, offers to the public, the management and administration of companies, accounts, directors duties, consequences of winding up and the regulation of foreign companies based in Zambia. A company incorporated outside Zambia which has established a place of business in Zambia must apply to be registered as a foreign company pursuant to the Companies Act.  A foreign investor can set up a place of business in Zambia by setting up a branch or the incorporation of a company. For purposes of corporate taxation, a company is deemed to be a resident in Zambia if the company is incorporated in Zambia; or the central management and control of the company during a particular fiscal year was conducted in Zambia. Further, where a non-resident co...

 Income Tax Income tax in Zambia is chargeable pursuant to the provisions of the Income Tax Act, Cap. 323 (ITA). Personal income tax is paid by people resident or deemed to be resident in Zambia. Pay As You Earn is the method for collection of income tax from persons who are gainfully employed as the employer is required to deduct the tax from the individual’s salary or wages and remit the same to the ZRA. In addition, income tax is charged directly on profits made by corporate bodies such as limited liability companies and trusts. Therefore, businesses are subject to corporate income tax on trading profits and other taxable income such as interest, royalties and rental income.  In general, expenses and losses of a revenue nature that are wholly and exclusively incurred for the purpose of the businesss are allowable as deductions. For other sources, to be deductible, expenses must have been incurred wholly and exclusively in the production of the income from that source. The I...

Overview The Government actively supports, facilitates and rewards new companies in all sectors of enterprise. This support is equally available to indigenous and foreign-based companies without any discrimination whatsoever against offshore companies. Large and small enterprises are equally welcome. The ZDA Act guarantees foreign investment against compulsory acquisition or nationalization without compensation. Time-wasting procedures that may confront foreign investors elsewhere have been greatly eliminated in Zambia and legal requirements have been reduced to an absolute minimum. Streamlined processing of paperwork and rapid decisions, guided by the Agency, greatly facilitate all aspects of importation of equipment and export of products. Prime growth sectors for investment are manufacturing, agriculture and agro-processing, tourism and mining. Others offering potential investment opportunities include: construction, transportation, energy, telecommunications and IT services. Invest...

Sole Proprietorships A sole proprietorship is advantageous in Zambia due to a number of reasons including the fact that from a tax point of view, a sole proprietorship does not pay corporate tax but rather the sole proprietor pays income tax. Partnerships The Zambian law which governs partnerships is the English Partnership Act of 1890 which is applicable to Zambia by virtue of the English Law (Extent of Application) Act, Cap. 11. The statutory law contained in the Partnerships Act has been supplemented and interpreted by judicial decisions and general principles of common law. The Companies Act of Zambia prohibits the formation of an association or partnership consisting of 20 or more persons where such association or partnership is not a body corporate. This provision however does not apply to a partnership formed for the purpose of carrying on a prescribed profession or calling. Companies Companies in Zambia are regulated under the Companies Act, Cap. 388. There are various types of...

Investment Under The Zambia Development Agency Act Zambia has now opened the doors for foreign investment both in terms of foreign direct investment and portfolio investment. In line with the economic reforms, Zambia is encouraging private investment in all major productive sectors including agriculture, mining, manufacturing, tourism and energy. It has introduced new economic policy measures, liberalised open market trade and investment conditions. Export processing zones have been established and applications for zoning are being encouraged. Zambia also has numerous opportunities for investment in the agro-industry (horticulture and floriculture, tobacco-processing, cotton-ginning, crop production for the processing industries); in industry (consumer goods); in tourism (holiday accommodation, managed safaris, licensed hunting safaris and organised holidays). In a bid to encourage investment in Zambia, the Parliament has enacted a number of statutes that are meant to facilitate and pr...

  An Investment club is formed by people in the business of investment; people who want to make money. Investment clubs are dedicated for those who are looking for a secondary income; for those who want to get FINANCIAL FREEDOM and FINANCIAL INDEPENDENCE. These people can be people in an institution, fellow employees, friends, family members, clients, colleagues, church mates, or fellow Muslims. £         Fees As I think about my proposed club, I also need to think of the various fees that members will be required to pay, and the reason for the figures. I should also put a figure on the various types of fees. These fees are as follows. £        Registration fee , which is a one of payment, used to cover costs of registering the club, etc. £        Monthly investment fee , for saving to invest in various investment vehicles or businesses. £        M...

  Corporate governance is concerned with ways in which all parties interested in the well-being of the firm (the stakeholders) attempt to ensure that managers and other insiders take measures or adopt mechanisms that safeguard the interests of the stakeholders. The investment clubs have three boards namely; supervisory board, board of directors, and the management boards. 1.       The supervisory board comprises of three members who are not in leadership. 2.       The management board has should have between 3-9 members. 3.       Board of directors should have between 3-9 members too. The core function of corporate governance is the responsibility of the board of directors. €        Board of Directors Every investment club is required by law to have a board of directors. Its legal function is to govern the affairs of the investment club. Board of directors is the...