Comparison of Africa freezone entities in 2022

Africa free zones compared Egypt Libya Nigeria Kenya
Summary at a Glance
Total year 1 engagement set up costs? US$22,750 US$20,370 US$12,990 US$19,300
Total year 2 costs (incl. audit and tax)? US$10,050 US$8,150 US$4,290 US$4,500
Minimum paid-up share capital required? US$1,000 US$36,000 US$61,958 US$2
Name of the most popular free zone? Alexandria Free Zone Zwara Free Trade Zone OK Free Trade Zone Athi River Export Processing Zone
Free zone mostly popular for: Manufacture Manufacture Manufacture Manufacture
Total engagement period? 3.5 months 6 months 4 months 4 months
Exempt from corporation tax and VAT? Yes Yes Yes Yes
Our Client must travel? Yes No No No
Average monthly warehouse rental (per sq. m.)? US$4 US$2 US$5 US$5
Manufacturing allowed in the free zone? Yes Yes Yes Yes
Corporate tax payable No No No 10 years tax holiday
Literacy % of population? 73.80% 91% 59.60% 78%
English language proficiency % of population? 35% 20% 53% 19%
Incorporation Requirements
Branch office or LLC recommended? LLC LLC LLC LLC
How long to secure a corporation number? 4 weeks 3.5 months 5 weeks 3-4 weeks
Minimum number of shareholders? 1 1 2 2
Minimum number of directors? 1 1 2 1
Resident director required? Yes Yes No No
Resident representative or agent required? No No No No
Corporate directors allowed? Yes Yes No No
Public register of shareholders & directors? Yes Yes Yes Yes
Special permit or license required? Yes Yes Yes Yes
Minimum amount of paid-up capital? US$1,000 US$36,000 US$61,958 US$2
Fast solution (turnkey) available No No Yes No
Tax and accounting considerations
Global sales exempt from corporate tax? Yes Yes Yes Yes
Local GST or VAT (%)? 10-25% No No No
Tax incentives for manufacturing startups? Yes Yes Yes Yes
Withholding tax payable on dividends? 10% 0% 0% 0%
Global sales exempt from GST/VAT? Yes Yes Yes Yes
Average customs tax on imports? 0% 0% 0% 0%
Social contributions payable on employees in FTZ? No No No No
Corporation tax payable on local sales? No 0% 0% 0%
Annual audited financial statements required? Yes Yes Yes Yes
Access to how many double tax treaties? 56 8 11 10
Bank account characteristics
Healy Consultants PLC's preferred bank? SCB Cairo NCB SCB Lagos SCB Nairobi
Do I travel to open the bank account? No No No No
Minimum deposit (USD)? US$1,000 US$1,000 US$1,000 US$1,000
Can open US$, €, £ corporate bank account? Yes Yes Yes Yes
US$, €, £ corporate visa debit cards available? No No No No
Country currency controls in place? No No Yes Yes
Corporate ATM card available? Yes Yes Yes Yes
How many banks in the country? 41 16 21 42
WEF bank rating out of 144 110 142 78 54
WEF ease of getting credit out of 144 129 142 137 33
Employment considerations
Average skilled labour monthly salary? US$300 US$3,800 US$300 US$550
Average unskilled labour monthly salary? US$200 US$2,850 US$230 US$240
Average social contributions (% salaries)? 26% 11.25% 10% 5%
Minimum national salary? US$150 US$360 US$202 US$106
Mandatory labour unions? No No No No
Minimum notice to dismiss employees? 2 months 1 month 1 week 1 day
Minimum redundancy indemnity? 1 month 1 month 0 1 day
Quotas on foreign workers? 25% 25% Yes No
How long to get work permit approved? 6 months 6 months 4 months 4 months
Manufacturing considerations
Electricity prices, (US$ per kWh)? 5 5 cents 9 cents 20 cents
Rank for getting electricity (by WB)? 144/189 126/189 182/189 127/189
Rank for transport infrastructure (by WEF)? 125/144 144/144 133/144 65/144
Rank for customs procedures (by WEF)? 81/144 139/144 132/144 92/144
Average tariffs on imports? 16.80% 0% 11.70% 12.70%
Government incentives for startups? Yes Yes Yes Yes
Internet connectivity rating? 88/144 106/144 140/144 124/144
Global business efficiency index? 131/189 188/189 169/189 108/189
Does the country have maritime access? Yes Yes Yes Yes
Logistics considerations
Proximity of seaport in kilometers? 4.3 36.3 28 469
Proximity of airport in kilometers? 6.7 25 45.2 23
Proximity of rail in kilometers? 223 N/A 30.1 16.7
Computer literacy % of population 50% 16.50% 38% 39%
Local purchasing power (GDP per capita)? 3,226 11,046 1,692 1,016
Local market size (in USD billions)? 271.4 67.6 286.5 45.1
Average annual inflation rate 2014-15? 13.10% 9.70% 9.20% 6.72%
Average unemployment rate 2014-15? 12.70% 19.50% 8.20% 40%
Population in millions 84.2 6.1 169.3 44.4
Monthly warehouse rental (per sq. m.)? US$4 US$20 US$5 US$5
Manufacturing space rental (sq. m.)? US$3.5 US$10 US$5 US$5
Can rent office outside free zones? Yes Yes Yes Yes
Can the entity hire local staff? Yes Yes Yes Yes
Can the entity hire expatriate staff? Yes Yes Yes Yes
Free zone work permit fee per person US$3,950 US$3,950 US$3,950 US$3,950
Estimate of engagement costs US$ US$ US$ US$
Healy Consultants PLC's engagement fees 8,950 10,370 12,990 8,750
Company secretary and legal registered office 2,400 1,100 2,150 2,200
Estimate of Government registration fees 600 6,100 1,610 100
Corporate bank account opening 4,950 2,950 4,950 4,950
Estimate of total outgoings in Year 1 22,750 20,370 25,600 19,300
Draft sales invoice attached View invoice PDF View invoice PDF View invoice PDF View invoice PDF

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