Month: March 2020

The Finance Bill, that became law as of February 1, 2020, among other things, increased the Value Added Tax (VAT) rate from 5% to 7.5%. The additional revenue is intended to fund healthcare, education and infrastructure. To mitigate the impact of the VAT rate increase, the Government expanded the list of VAT-exempt items to include staples such as bread,cereals, all kinds of fish, flour and starch meals;fruits, nuts, pulses and vegetables,root vegetables, meat and poultry products,milk,salt and herbs, and natural water and table water.

The Bill is also not intended to be a ‘one-off’ document as the government intends to amend the Finance Act annually along with each appropriation Bill; as a way to ensure that there exists a more integrated fiscal structure in governance, and more efficient planning.

The key changes in the statute lean towards the Federal Government’s stance that the ‘common man’ was considered in the development …

There is only one road left to achieving the Sustainable Development Goals (SDGs) set for Africa for 2030 and that is through sustainable businesses.The sluggish progress to date has been primarily a consequence of ‘putting all our eggs in one basket’ and expecting the state to deliver the SDGs, which it cannot.

A prime obstacle in that is finance. The SDG Center for Africa estimates the financing gap to achieve the SDGs is running at between $500bn and $1.2tn a year. That is simply beyond the reach of the public sector, with the Center estimating that delivering basic state functions of health care, education, water, energy, and road infrastructure requires more than 50 per cent of the GDP of most African countries.

However, for the private sector, pursuing the 2030 goals of eradicating Africa’s hunger, poverty, and inequality and improving health care will deliver its own rewards, creating business opportunities …

When we speak of inclusivity in healthcare, cleft lip and palate surgery is often considered a footnote in the priorities given to healthcare financing. Around the world, many children with clefts live in isolation, making it difficult to make friends and go to school, but more importantly, have difficulty eating, breathing, and speaking. As we seek to achieve Universal Health Coverage, the long-term benefit of treating a single cleft at an early stage can bring in as much as $50,000 to the economy. This economic benefit therefore deserves to be considered a priority as governments address paediatric surgical care.

The Fourth meeting of the Global Initiative for Children’s Surgery (GICS IV) which took place in Johannesburg from 17^th-18^th January 2019, brought together providers and implementers of surgical services for children, along with health, advocacy, and policy experts. Participants discussed the current state of surgical care for children …

The state of data privacy is a widely discussed topic of conversation. The new EU data protection law is setting Kenya up for the next step towards foreign investment opportunities. In short, these new legal standards will place restrictions on the handling, storing and shareability of personal user data.

Following the announcement on 8 November 2019 that President Kenyatta signed the European Union General Data Protection Regulation, aligning Kenyan legislation with the EU, great interest was ignited as the new legislation offers more regulated safeguards against the misuse of personal information. Furthermore, it comes with a substantial fine of three million shillings or a two-year jail sentence, should the terms be violated.

Digital-lending apps, in particular, have come under scrutiny for malicious attacks that gain access to smartphone data without consent to determine creditworthiness. With mobile technology and digital apps on the rise, wehave already started to see resistance …

The deadly coronavirus (COVID-19) which has now spread over 60, with 93,000 cases and more than 3,000 deaths in China, is projected to hurt the African airline landscape, taking away $40 million in revenue.

At the moment, Africa has witnessed confirmed cases in Senegal, Nigeria, Egypt, Algeria, Morocco and Tunisia.

The outbreak has made big-industrial players such as British Airlines, United Airlines, Cathay Pacific to trim their routes to various destination, including northern Italy, South East Asia, to evade further trouble with the virus.

On that line, African airlines have taken their own path to curb the scenario, as Tanzania’s emerging airline halted its scheduled flights to China, Kenya’s court order made Kenya Airways postpone flights to China, and Rwanda did the same.

However, Ethiopia faced criticism for not realizing the flights’ cancellation to China, like its fellow players.

According to the International Air Transport Association (IATA), the global aviation …

Nigeria has just become the leading nation with the largest economy in Africa, after South Africa recent economic slump, when its economy contracted and sliding into a second recession in two years.

South Africa and Nigeria make up almost half of sub-Saharan Africa’s Gross Domestic Product (GDP).

While South Africa statistics office highlighted bad news for the nation, suffering from power crisis, Nigeria statistician showed a rather positive performance of the economy, which grew at about 2.55 per cent in the fourth quarter of 2019.

This growth was the highest quarterly performance since the 2016 recession. It is argued that Nigeria’s economic growth was anchored on its oil exports with production levels remaining stable throughout 2019.

The South African economy shrank by 1.4 per cent in the fourth quarter of 2019, this followed a contraction of 0.8 per cent, which points to the fact that—the second-largest economy in Africa floated …

With the multibillion flower export business in Kenya, national carrier Kenya Airways (KQ) and Emirates could make the segment a possible battleground to control freighting the commodity.

Already, Emirates is ahead of the pack in Kenya having freighted 2,000 tonnes of cut flowers from the East African nation through its Emirates SkyCargo in January.

Kenya Airways is also propping up for the general air cargo market of which flowers make up for a sizeable account in Kenya. The national carrier is aggressively moving to consolidate air cargo transport after successfully launching the first direct flight from Nairobi to the US.

With the Expo 2020 Dubai beckoning, Emirates is off to a good start with cut flower transportation from Kenya to its more than 155 destinations globally.

Last year, Emirates SkyCargo transported over 46,000 tonnes of flowers across the world with over 24,000 tonnes, originating from Kenya.

Valentine’s Day flowers demand…

China has become the central manufacturing hub of many global business operations and any disruption in its output is expected to have repercussions elsewhere through regional and global value chains.

With the Asian country being an important cog in the wheels of production worldwide, the outbreak of coronavirus in Wuhan has affected many companies with China’s Manufacturing Purchasing Manager’s Index (PMI), a critical production index, falling by about 22 points in February.

According to UNCTAD, this index is highly correlated with exports and such a decline implies a reduction in exports of about 2 per cent on an annualized basis.

Considerable impact on the economy and society

In other words, the drop observed in February spread over the year is equivalent to -2 per cent of the supply of intermediate goods, adds the UN’s trade body.

On February 23, 2020, China’s President Xi Jinping, in a televised address said, “It …

The world is on its heels as the coronavirus (COVID-19) has taken superpowers and developing nations hostage, limiting aerial movements, limiting large congregations, and drawing billions into containment plans. With all that in the fold, what has Tanzania installed to contain the virus outbreak ripples?

It is crucial to say China and Tanzania relations are historic, dating back to the 1960s. Prior to the virus outbreak, China and Tanzania had vibrant trading interactions, with bilateral trade volume reaching $3.976 billion according to the Chinese Embassy in Tanzania.

Both China and Tanzania (Ministry of Industries and Trade) have confessed to a serious downturn in trade following the coronavirus outbreak.

Meanwhile, Tanzania’s Ministry of Health Community Development, Gender, Elderly and Children, assured the nation that, Tanzania has no case of coronavirus and it is taking serious measures to keep the situation that way.

However, taking the health landscape into account, still—Tanzania lags …

South Africa’s economy has reduced by 1.4 per cent in the fourth quarter, this is according to information from the South African statistician on Tuesday.

This scenario followed a contraction of 0.8 per cent in the third quarter, which means that the economy was in recession for the last half of 2019.

South Africa last entered a recession – when the GDP falls for two consecutive quarters – in the second quarter of 2018. This is South Africa’s third recession since 1994.

Further, the stats office highlighted that, for the whole of 2019, the South African economy grew by only 0.2 per cent (in real terms). In 2018, it saw growth of only 0.8 per cent, and yet it is the lowest reading since 2009 when the economy contracted by 1.5 per cent.

GDP shrank 0.5 per cent year-on-year in the fourth quarter after a 0.1 per cent expansion in …