Concerns over the ruling party's fitness to govern dominate the overall outlook, which is compounded by its predilection for communicable disease control, especially Ebola and Zika. While progress is being made, it continues to lag its peers.
June 17, 2021
Africa - West
Production Sharing Contract ("PSC")-based fiscal regime, where royalty rates and profit oil splits vary with production rates, with some incentives for deep-water operations. Cost recovery is negotiable. The contractor is liable for income tax, and there is an additional profits tax (the Supplementary Tax) which is based upon project profitability.
Corruption and fiscal mismanagement are common, but the longer-term economic outlook remains buoyant due to its natural resources, energy opportunities, and arable land. China has dramatically increased its role in the past few years with a variety of infrastructure investments. Investors should proceed with caution, realizing that the potential for high profits comes with significant risk.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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