Browsing: Entrepreneurship

Parliament of the United Republic of Tanzania. www.theexchange.africa

Tax relief or a better legal framework for SMEs and start-ups would have been a major milestone for Tanzania’s private sector development agenda, however, the Finance Act does not address the heavy burden that start-ups and SMEs face when doing business in Tanzania and furthermore the proposed allocation of local government to the improvement of local entrepreneurship infrastructure was proposed, it was subsequently removed along with the contribution of local government finances to women entrepreneurs as well.

It would have been an opportunity for the Finance Act to enact amendments to certain Anti-Money Laundering Act and Economic Crimes Act provisions that treat tax offences as economic crimes or money laundering offences that are unbailable offences when they should be treated as tax offences that attract hefty fines and/or penalties.

Other areas that could have been amended are the problematic provisions of the Tax Administration Act including section 52(10) which provides that an objected assessment/decision is confirmed and subject to appeal if the Commissioner fails to determine it within 6 months of admission to name just a few.

World Bank further notes that the unified digitisation of the East African economy is estimated to generate up to a US$2.6 billion boost in GDP and 4.5 million new jobs that will largely benefit those at the bottom of the pyramid.

Data by GSMA reveals that by the end of 2020, 495 million people subscribed to mobile services in Sub-Saharan Africa, representing 46 percent of the region’s population, an increase of almost 20 million on 2019.

GSMA revealed that smartphone connections will more than double by 2025 in Sub-Saharan Africa with the East African Community registering the largest incremental growth, led by Rwanda and Tanzania. 

Entrepreneurs are catalysts for business.

They have a highly desirable and fundamental effect on the wider economy through establishing new businesses of providing not only goods and services to customers but also providing job opportunities to individuals in various industries.

No country can survive without a thriving breed of entrepreneurs! They literally keep the wheels of the economy turning through their activities.

However, long-term trends, assessed in decades rather than years, demonstrate that African countries are becoming increasingly appealing as investment locations. All of this is taking place in the world’s last demographic dividend region: Sub-Saharan Africa will soon be the only place on the planet with birth rates at or above replacement level. Telecommunications platforms, agribusiness, and energy are all emerging as new value chains.
However, the shift away from extractive sectors isn’t solely due to improved investment climates in Sub-Saharan Africa – extractives, for example, account for a lesser portion of total investment, but the rate fluctuates in reaction to oil prices. Other countries in the Global South have advanced, resulting in increased labour costs and mature consumer markets, implying reduced long-term profits.

Kenya is one of the most diversified and fastest growing economies in Africa, with an average growth rate of 5.7%, inching closer by the day to its ambitious vision of becoming a middle-income country in the next decade. Central to this robust growth has been the invaluable contribution made by co-operatives, popularly known as Savings and Credit Co-operative Societies (SACCOS); which not only play a pivotal role towards the country’s Gross Domestic Product (GDP), but also leave an ineffaceable mark in the lives of millions of members, so much so that the country was recently selected in a series of country studies by the renowned international co-operative research group, the U.S Overseas Co-operative Development Council (OCDC).