Author: furtherafrica.com

FurtherAfrica is an online platform centralising news and content on the development and growth story of Africa. Content Syndication is done in partnership with The Exchange. The platform focuses on Southern Africa with an interest in economic growth, investment opportunities, financials and everything else in between.

900 mozambique dollar puzzle

further africaOn May 8th, Mozambican Constitutional Council decided that the acts regarding loans to Mozambican state-owned companies (Proindicus, S.A. and MAM, S.A.) and sovereign guarantees given by Mozambican Government are null, and consequently those loans are void.

Having the Mozambican Constitutional Council considered the debts and the guarantees unconstitutional, it means that they never had juridical existence in Mozambique, fact that is reinforced by the circumstance of both National Assembly (through a Parliamentary Inquiry Commission) and Administrative Court had never accepted them as legal.

Constitutional Council based its decision in the following arguments:

  1. Mozambican Government could not concede sovereign guarantees of such amounts, since they were superior to the legally established maximum amounts;
  2. to grant them, according with Mozambican Constitution, the Government would need to request a legislative authorization to National Assembly, which did not happened;
  3. Mozambican Government also violated Mozambican law when agreed loans that were not concessional, since it
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900kenneth insights

further africaFurtherAfrica Insights – COVID19 series with Kenneth Njoroge from the Money Series Africa in Kenya.

A conversation about how the crisis is affecting one of the cornerstones of the Kenyan economy: Small and Medium companies. Kenneth gives his insights on how the government is handling the crisis and the opportunities arising as we prepare to come back to a new normal.…

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Aderonke Alex-Adedipe and Fabio Scala

Further AfricaNigeria has a rich venture capital environment and in our new reality, startups will need to adapt to fund themselves. Fabio Scala from FurtherAfrica spoke to Aderonke Alex-Adedipe, a partner of Pavestones Nigeria to understand how the upcoming regulations will impact the market, particularly in regards to crowdfunding platforms and the eligibility and limitations companies may see in effect once the crisis is over.…

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900 cracked phone

FurtherAfricaAfrica has some of the most expensive mobile data services in Africa. With the increase in connectivity via smartphones, people in emerging markets can use their portable devices for more things each passing day. Most of us have a smartphone with mobile data that we can carry anywhere and as soon as we step home we switch to our Wi-Fi not to overuse our mobile data; which is most of the time unfairly overcharged.

However some people do not have the privilege to afford both mobile data and internet at home, so they opt for the more expensive but more portable mobile data. Everyday, people in emerging African countries are forced to take this decision and are sometimes charged the most expensive prices in the world for mobile data. What is important to know also is the dependency and impact of smartphones in lower income communities.

With a difficulty in …

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Corona Virus in Mozambique

FurtherAfricaAs long as Coronavirus pandemic spreads across the planet, National Governments take more measures. To acknowledge and accompany all policies daily adopted happens to be a difficult task. Considering this new reality, we present this Legal Guide, where companies and individuals may easily understand what are the most important laws and rules in force, regarding Coronavirus impact on economy and society.

State of Emergency Decree (Presidential Decree no. 11/2020, March 30)

State of Emergency takes effect between April 1st and 30th, although it has been extended until the 30th of May, on the 29th of April. Its declaration led to the implementation of several measures to mitigate the spread of the virus and safeguard public health, namely:

  • Mandatory domiciliary quarantine for 14 days to all people that recently travelled abroad and to those who had contact with confirmed cases of COVID-19. In these cases, it is strictly imperative to comply
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The base criteria for loans worldwide is the usage of a rank-like system used to categorize nations from “best to worse”.

A lower rating is given to a country that holds a large amount of this foreign debt and that usually takes longer to pay the debts. This debt is held mostly in the form of Eurobonds held by international Stock Exchanges, most common the London SE and Irish SE. The value issued between 2018 and 2019 was greater than the value issued in fourteen years from 2003 to 2016.

According to the IMF(International Monetary Fund), many African nations are piling up debt at excessive interest rates with low chance of full- payment due to the accumulation of debts and disparities in  currency exchange rates. Government debt as a percentage of gross domestic product in sub-Saharan Africa has doubled in the past decade, heading back toward the level it reached …

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I remember landing in Mozambique over a decade ago to an atmosphere of excitement. Foreign companies at that time had recently discovered major natural resources.
It was the time of the “coal rush” in the northern province of Tete and the initial gas discoveries in the Rovuma basin. It was the beginning of a long journey that years later would see the country start one of the largest LNG projects in history. I have always said that development would happen and be sustained by four pillars. Like dominoes they would fall sequentially, pushing each other in the following order: natural resources; infrastructure; industry and commerce; and agriculture.

I have been approached many times by investors looking for agriculture projects, but time and again the business model fell because there wasn’t the infrastructure to make it viable. Similarly, investors in industry would remark that many projects would simply not have enough …

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This article aims to give a general overview about the path towards the opening of a company in Mozambique, bearing in mind the opportunities that the Mozambican Market currently offers and the challenges potential investors may have in understanding the basis and ethos of the legal regime.
First, it is fundamental to explain briefly the more common types of companies before describing more profoundly the legal formalities needed to start a business.

The legislation regulating the incorporation of a company in Mozambique is foreseen in the Mozambican Commercial Code (CCM), enacted by Decree-Law 2/2005 of December 27, which was last amended by Decree-Law 1/2018 of May 4. There are three types of unlimited liability companies (partnerships, limited partnerships and partnerships by shares) and three types of limited liability companies (capital and industry companies, private limited liability companies and public limited liability companies). The focus of this analysis will lay on …

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Dubai-Africa partnership, a new era of growth & prosperity with HE Hamad Buamim

Dubai sits at the crossroads of Africa, the Middle East, Asia and Europe. To say that this is a strategic location would be a major understatement. This city is an incredible story of entrepreneurial success and has become an inspiration for African countries and other developing nations across the globe.

In anticipation of the 2019 edition of the Global Business Forum Africa in Dubai (GBF Africa), FurtherAfrica had the privilege of talking to the man leading an institution that plays a fundamental role in supporting the development of Dubai’s business community. His Excellency Hamad Buamim, President and CEO of Dubai Chamber of Commerce and Industry has been at the helm of the non-profit public organisation since 2006. International expansion is a major focus for Dubai Chamber which operates 10 representative offices around the world, including 4 in Africa.

Since it began building its presence in Africa, the …

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