Transfer pricing risks for multinationals

The emergence of economic trading blocs such as Sadc, Comesa and EAC has proved to be a significant boost for developing economies especially when it comes to efficient utilisation of resources.

Major African oil, natural gas and mineral producers in Africa, such as Tanzania, have been told to be careful about signing deals with multinational companies whose main agenda is to reap profits.

There’s lots wrong with consumer pricing in Tanzania, dating back to the late 1980s when the govt re-adopted the free market economy system – going at it hammer and tongs in the 1990s. In the event, a free market economy (of sorts, anyway!) has remained in place to this day.

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An investigation into possible price coordination by British energy suppliers is likely to undermine the market framework that has helped make them more valuable than their European rivals.

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