Mionot, an Israeli Company formerly managing the Kilimanjaro
Hotel used to divert the clients of Kilimanjaro to its own hotel,
The Africana Vocation Village.?!

TARIFF PROTECTION, DUTY AND TAX CONCESSIONS

One of the important immediate advantages that the foreign
partner derives from the partnership is the tariff protection, which
is quite high for locally produced goods in many A frican countries.
This considerably reduces the competition that the foreign firm
would otherwise have to face from rival ologopolies virtue of
having brought in new investment and especially when the local
company participates with public corporation and is considered a
public enterprise, is entitled to all sorts of tax and import duty con-
cessions.

PRIORITY IN GOVERNMENT CONTRACTS, ETC.

Being considered a public enterprise means it gets priority in
government contracts, tenders, etc. It would also be easier to get
work permits for its expatriate staff, gurantees that a certain por-
tion of its remuneration may be repatriated not to mention the fact
that the state bureaucracy as a whole looks favourably and would
give priority to public enterprise, and thereby the foreign partner
in the public enterprise.??

OUTLET FOR THE PRODUCTS OF THE GROUP.

The foreign partner who is a managing agent is in a very good
position to encourage the sale of the products of the parent com-
pany; to hire out patents, trade marks etc; to make use of the R. &
D. programme already developed by the Group, at a fee-even to
push obsolete machinery onto the local subsidiary. Most im-
portant of all, and the common feature of the partnership relation,
is the manipulation of intercorporate prices thereby enhancing the
profits and/or reducing the costs and taxes of the parent company
or the Group as a whole.?®

PRESSURING THE GOVERNMENT.

Partnership with state capital substantially facilitates the use of
infrastructural activities, such as loans from the nationalised
banks, by foreign partner. Where the public corporation is a part-
ner, the government does all the pressuring necessary to get things
done.

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