Kenya and Nigeria have withdrawn from a global tax reform plan preventing multinational corporations from easily shifting their profits to low-tax countries. The regional economic heavyweights had been weighing up taking part in the project, led by the Organisation for Economic Cooperation and Development (OECD), that envisages introducing a global minimum tax aimed at giving countries a partial share of the tax revenue where the profits are generated. The plan was introduced in response to the increased digitalization of the global economy. But only 23 African nations among 136 countries worldwide are taking part in the reform project, including South Africa, Senegal, and Egypt. This means less than half of Africa’s countries are participating, and as the project details are finalized, calls are growing to find a cheaper alternative for African nations. ‘Deal for the rich’ “There’s a …
