Botswana firm reduces profits from high Kenya taxes: report

GABORONE, Wednesday - High taxes in Kenya has eaten into the revenue of a Botswana Stock Exchange (BSE) listed software development company, RPC Data.

The state-owned Daily News of Botswana reported today that RPC Data had to pay 20 percent tax from the Sh16-million contract it carried out for Kenya’s Ministry of Finance.

However, the Kenyan contract boosted the company’s revenue to 74 percent for the financial year ended May 31, 2008. In Uganda and Zambia, RPC Data did not record profits, though there are good prospects in the Zambian operations.

RPC Data was formed in 1989 and has subsidiaries in Botswana, Uganda, Zambia and India.

The private daily, Mmegi reported on Wednesday that Japan has joined the rush to exploit Botswana’s vast mineral and energy resources.

The paper said a 50-member Japanese delegation jetted into Botswana this week to explore trade and investment opportunities. The delegation had a meeting with President Ian Khama.

The head of the delegation and Japan Vice Minister of the Economy, Trade and Industry, Takamori Yoshikawa said the mission signalled the beginning of the fulfilment by his country in May to double investment in Africa.

He said Botswana is the first stop in a tour to explore opportunities to fulfil the promise. From Botswana the mission will go to Mozambique, Madagascar and South Africa. Two other teams have been dispatched to East and West Africa.