Wednesday was a taxing day for developing economies hoping to attract investment from the United Kingdom and grow domestic resources.
Parliament approved a tax treaty Wednesday with Senegal that will allow U.K. companies to pay a fraction of the developing country’s standard tax rate. The goal of the treaty is to promote foreign direct investment between the two countries, which currently exchange less than $3 million in annual investments.
According to the International Monetary Fund, such treaties have “mixed” results, and whether they actually increase investment over the long-term remains difficult to measure.
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About the author
Molly Andersmollyanders_dev
Molly Anders is a former U.K. correspondent for Devex. Based in London, she reports on development finance trends with a focus on British and European institutions. She is especially interested in evidence-based development and women’s economic empowerment, as well as innovative financing for the protection of migrants and refugees. Molly is a former Fulbright Scholar and studied Arabic in Syria, Jordan, Egypt and Morocco.
