Income tax

12 Months Ended

Dec. 31, 2024

Major components of tax expense (income) [abstract]

Income tax

30 Income tax

Income tax payables and receivables are comprised of the following:

	As of December 31,
In thousands of USD	2023	2024
Income Tax Prepayments	2,000	3,041
Total Income tax receivables	2,000	3,041
Income Tax Payables	547	869
Provision for Income Tax	12,880	12,641
Total Income tax payables	13,427	13,510

The Group maintains provisions for uncertain income tax treatments where it is not probable that the tax authorities will accept the Group's tax position under applicable tax laws and regulations. Management assesses these positions assuming full examination by tax authorities and measures the uncertainty using either the most likely amount or the expected value method, depending on which better predicts the resolution of the uncertainty. As described in Note 36, subsequent to year-end, the Group received a Court decision which did not fully resolve the underlying uncertainty of the tax position. Therefore, the Group has maintained the corresponding provision for income tax.

The reconciliation of tax expense and the effective tax rate was as follows:

	For the year ended December 31,
In thousands of USD	2022		2023		2024
Loss before Income tax from continuing operations	(206,162)		(98,600)		(97,559)
Loss before Income tax from discontinued operations	(25,128)		(4,917)		—
Loss before income tax	(231,290)		(103,517)		(97,559)
Statutory tax rate(1)	19.25	%	27.98	%	27.27	%
Expected income tax benefit	44,512		28,963		26,603
Tax effects of:
Sundry permanent differences	(1,141)		(2,547)		(4,891)
Effect of functional to local reporting currency in Germany	(4,948)		(3,040)		(4,976)
Equity Transaction costs	18		8		1,386
Share based payments	(1,734)		(1,506)		(1,670)
Tax Expenses	(1,438)		19		1,321
Bad debt expense	(1,180)		(1,841)		(2,784)
Management fees	(4,367)		(4,268)		(9,289)
Interest expense	(777)		(567)		(385)
Unrecognized deferred tax asset arising from timing differences relating to:
FX unrealized gain/loss	863		(1,407)		1,851
Share based payments	277		85		(38)
Tax Expenses	192		3,328		322
Sundry temporary differences	(101)		1,079		(766)
Minimum tax	(637)		(665)		(554)
Deferred tax not recognized (mainly tax losses carried forward)	(31,573)		(20,885)		(8,281)
Deferred tax: relating to origination and reversal of temporary differences and tax losses	(4,946)		2,583		606
Income tax expense	(6,979)		(661)		(1,546)
Effective tax rate	3.02	%	0.64	%	1.58	%

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(1)The Statutory tax rate consists of an average tax rate weighted in proportion to accounting profit/(loss) in each geographical territory.

Income tax expense is comprised of the following:

	For the year ended December 31,
In thousands of USD	2022	2023	2024
Current tax (expense) / income	(2,033)	(3,244)	(2,152)
Deferred tax (expense) / income	(4,946)	2,583	606
Total Income tax (expense) / income	(6,979)	(661)	(1,546)

Tax losses available for offsetting against future taxable profits were as follows:

					As of December 31,
					2022	2023	2024
In thousands of USD Country	Duration	Rate			Accumulated tax loss [gross]	Accumulated tax loss [gross]	Accumulated tax loss [gross]
Germany **	Indefinite	30.2	%	*	(27,142)	(36,125)	(43,942)
Morocco	4 years	31.0	%		(37,863)	(29,780)	(23,636)
Egypt	5 years	22.5	%		(100,454)	(62,390)	(32,426)
Nigeria	Indefinite	30.0	%		(252,909)	(137,013)	(17,837)
South Africa	Indefinite	28.0	%		(53,251)	(56,532)	(56,638)
Kenya	10 Years	30.0	%		(86,933)	(74,817)	(105,886)
Ivory Coast	5 years	25.0	%		(35,101)	(30,144)	(9,233)
Ghana	3 years	25.0	%		(6,852)	(6,316)	(4,255)
Other	N/A	N/A			(81,040)	(71,163)	(90,791)
Total					(681,545)	(504,280)	(384,644)

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* In Germany, the calculation of current tax is based on a combined tax rate of 30.2%, consisting of a corporate income tax rate of 15.8% and a trade tax rate of 14.4%.

** Accumulated tax losses related to Trade Tax amount to USD 71,057 thousand as of December 31, 2024 (USD 64,942 thousand as of December 31, 2023 and USD 53,474 thousand as of December 31, 2022), not included in the table above.

Various tax rules may limit the use of the tax losses above.

No deferred tax asset has generally been recognized in respect of the tax losses as the latter may either be time barred at the time when they could have otherwise offset taxable profits, may be subject to limitations as to their use, or there is no tax opportunity or other evidence of recoverability within a short timeline. This general principle is subject to a few exceptions disclosed in Note 9. The previously unrecognized tax losses of prior periods used to reduce current tax expense amounts to USD 6,270 thousand.