Implementing a joint venture with tax exemptions in East Africa

 

The Challenge

A global NGO formed a joint venture with a partner institution in East Africa to provide much-needed health support to the country's people. The country's government had made high-level commitments to provide tax benefits to the joint venture, but lack of clarity regarding the relevant tax provisions had stalled implementation. Securing the somewhat unusual tax exemptions required action at the working level.

The ASG Approach

ASG set out to help our client more fully understand the political and economic dynamics driving the government's decision-making process. Leveraging our local affiliate, we engaged with government authorities to determine the best strategy for successfully managing the issue. After gathering the relevant information and history, the ASG team consulted with senior officials, seeking confirmation that the government would abide by its previous commitments.We advocated for greater consistency on tariff exemptions and obtained written assurances regarding the favorable tax treatment that the nonprofit joint venture would receive.

Results

ASG helped our client achieve its goals, as the tax authority granted the joint venture a formal authorization of tax exemption. The NGO was then able to move forward with its plans and focus its time and financial resources on its core health and humanitarian mission.