Our representation for the export development to Africa has been successful.
- Africa Warehousing Scheme extended:
The Africa Warehousing Project has been extended for the financial years 2021/2022 and 2022/2023. The Africa Warehousing Scheme provides for Government’s financial assistance in terms of 60% refund on the Rental & Administrative costs of the Warehouse in Tanzania.
- Double Deduction of Expenditure Incurred on Research & Development (R&D):
- In order to encourage our local companies to export on the African market, a manufacturing company will be entitled to a double tax deduction in respect of expenditure incurred for market research and product development targeting the African market.
- The above measure will be amended to cater for specific cost such as:
- Consultancy Costs (hiring of experts, both Mauritian and Expatriate)
- Certifications and normalization costs (for setting up of international standards)
- Labelling costs
Besides the above 2 Budgetary measures, MEXA is working on an Export Credit Insurance Scheme for Tanzania to reduce the financial risks to our exporters under the Africa Warehousing Scheme.
We are further pleased to inform you that there are 11 companies involved in the Africa Warehousing Project, out of which 4 of them have reached the stage of exports to Tanzania, via the warehouse in Tanzania.