Investing from Africa
Last updated 18 October 2026 · By Pradeep Kumar, India Solar
In short:
an investor from Africa can buy the Indian company that owns an operating solar plant under India's automatic foreign-investment route. India withholds
10–20%
tax on dividends paid to investors from Africa who give a tax residency certificate and Form 10F. South Africa and Kenya 10%; Nigeria has no treaty.
Your home-country rules
- South Africa: individuals may invest abroad up to the foreign investment allowance with SARS clearance; companies invest through their bank under Reserve Bank rules.
- Kenya has no exchange controls but is on the FATF grey list, so Indian banks apply enhanced checks.
- Nigeria's new foreign exchange manual took effect in June 2026; FX availability is the practical constraint.
Tax treaty and legal protection
- South Africa and Kenya: 10% Indian withholding on dividends under their treaties with India.
- Nigeria has no tax treaty with India, so the 20% domestic rate applies.
Documents you will need
- Company registration or passport
- Tax residency certificate and Form 10F where a treaty applies
- Source of funds and, where required, central bank or tax clearance
How we work with investors from Africa
- Mauritius holding companies need real substance; the 2024 treaty protocol adding a principal purpose test awaits India's ratification.
Related guides
- Tax on dividends from Indian solar companies, by country
- FDI rules for foreign buyers of Indian solar plants
- Buying an operating solar plant in India
Sources
Information as of October 2026. General information only, not tax or legal advice; rules change and depend on your circumstances.