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issue 325 | 07 Oct 2019

Africa

UN urges Africa to reform tax codes for digital economy

The United Nations urged all African countries to reform their fiscal laws in order to enhance their tax revenues from the digital economy.

United Nations Economic Commission for Africa's economic affairs officer Uzumma Marilyn Erume told journalists in Nairobi that the digital sector in Africa is growing by approximately 40% annually.

"African countries need to review their tax policies to ensure that their governments capture their rightful share from the digital economy," Erume said on the sidelines of the seventh pan-African conference on illicit financial flows and taxation.

Erume said Africa has one of the lowest tax revenue to gross domestic product (GDP) rates in the world.  She thus called for the continent to explore areas where it can expand the tax net without necessarily affecting macroeconomic stability.

Source: Namibian

Africa

National Energy Services Reunited announces multiple contract awards worth USD100-million in North Africa

National Energy Services Reunited Corp. a national, industry-leading provider of integrated energy services in the Middle East and North Africa and Asia Pacific, has reported multiple awards in North Africa valued up to USD100-million.

The awards are for well intervention services for a period of up to three years.

“These awards allow us to further diversify our customer base in this fast-growing region and are a testament to our growing ability in the region,” said Sherif Foda, Chairman of the Board and CEO of NESR. Mr. Foda added: “These well intervention contracts also allow us to deploy newer technologies that reduce our overall footprint at the wellsite and lead to more efficient and safer operations.

Source: Africa Business Communities

Angola

VAT is introduced in Angola on 1 October 2019

Angola will be on the list of countries of the Southern African Development Community (SADC) that charge Value Added Tax (VAT) replacing Consumption Tax, starting in the country with a flat rate of 14%.

VAT will initially be charged to 1,600 companies registered with the Tax Office of Large Taxpayers and others that have voluntarily joined the general scheme.

Source: Macauhub

Cape Verde

Portuguese group Caixa Geral de Depósitos may start selling bank holding in Cape Verde

Portuguese state-owned financial group Caixa Geral de Depósitos (CGD) may start the process of selling its 59% stake in Banco Comercial do Atlântico, in Cape Verde, according to a decree published in state gazette Diário da República that came into force.

“The disposal of Banco Comercial do Atlântico will not affect the strategy of CGD’s international presence in Cape Verde, which will continue through Banco Interatlântico, which is based on the transformation of CGD’s previous branch in Cape Verde into a locally-run bank,” the Government said in the decree.

Source: Macauhub

Ivory Coast

Submarine cable to deepen telecom infrastructure in West Africa

Telecommunications company MainOne has landed its submarine cable in Grand Bassam, Cote d’Iviore, which is the final leg of the ongoing expansion to reach Senegal and Cote d’Ivoire. The Grand Bassam landing which follows the recent completion of the landing in Dakar, Senegal will extend the reach of the cable into Cote D’Ivoire and neighbouring countries. The deployment is also notable because it is the first commercial cable in service to deploy spectrum sharing capabilities guaranteed to deepen infrastructure sharing and lower the cost of delivering broadband services to West Africa.

The availability of such increments in capacity is expected to further accelerate the deployment of 4G services in addition to fixed broadband across the region.

Source: ESI Africa

Ivory Coast / Kenya

Côte d’Ivoire and Kenya listed among top five in trade growth index

Côte d'Ivoire is the market that has most rapidly improved its trade growth potential over the past decade, according to new research issued by Standard Chartered.

The Trade20 index, which identifies the 20 rising stars of trade, places African markets Côte d'Ivoire in the top spot, and Kenya at number three.
Kenya is consolidating its position as the trading hub of East Africa, while Côte d'Ivoire is cementing its position as a West African trading hub. Ghana also performed well in the index, placing just outside the top 10.

Source: ESI Africa

Mozambique

Total acquires a stake of Anadarko’s shareholding in Mozambique LNG

French oil and gas company Total recently concluded the acquisition of Anadarko’s 26.5% operating interest in the Mozambique LNG project for a purchase price of USD3.9-billion.

Total operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

The Mozambique LNG project is largely de-risked since almost 90% of the production is already sold through long-term contracts with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a domestic gas component for in-country consumption to help fuel future economic development.

Source: ESI Africa

Mozambique

US federal bank provides loan for natural gas project in Mozambique

The board of directors of the Export-Import Bank of the United States (EXIM) voted unanimously to authorise a direct loan of up to USD5-billion to support the export of U.S. goods and services from multiple states for the development and construction of an integrated liquefied natural gas (LNG) project located on the Afungi Peninsula in northern Mozambique.

“In addition to supporting our U.S. workers here at home, there also is little doubt that this transaction will be transformative for the people of Mozambique. It is currently forecast that the life of project will have a net benefit of more than USD60-billion, which is more than four times the current gross domestic product of Mozambique. In addition, the project is obligated to provide domestic gas, which will support the expansion of electric generation capacity and the development of other industries in the country,” EXIM Chairman Reed said.

Source: Macauhub

Nigeria

Union Bank Secures USD200-million to fund SMEs and women initiatives

Union Bank of Nigeria Plc has secured USD200-million in funding via a partnership with sub-Saharan Africa financial services group, Atlas Mara Limited, in agreement with Overseas Private Investment Corporation (OPIC), the United States government's development finance institution.

In notification to the Nigerian Stock Exchange (NSE) yesterday, Union Bank said under the terms of the agreement, the bank will receive a 10-term credit facility of up to USD200-million from OPIC for investments in digitisation, on-lending to Small and Medium Enterprises (SMEs) and funding for women-led businesses, as part of OPIC's 2X Women's initiative which aims to catalyse USD1-billion for investment in women across developing nations.

Source: This Day

Nigeria

Businesses upbeat as Nigeria, South Africa mend relations, sign 32 deals

Members of the Organised Private Sector (OPS) of the Nigerian economy have welcomed the strengthening of the economic and diplomatic ties between Nigeria and South Africa that led to the signing of 32 bilateral agreements between both countries.

South African President, Mr. Cyril Ramaphosa and President Muhammadu Buhari, who is on a state visit to the rainbow nation, yesterday signed 32 trade and cooperation agreements, weeks after a wave of violence against immigrants, particularly Nigerians, in Johannesburg and Pretoria strained relations between Africa's top two economies.

Buhari and Ramaphosa said they regretted the violence and subsequent retaliation in Nigeria against South African businesses, pledging instead to deepen trade ties.

Source: This Day

Nigeria

Borders closure - customs generates N115-billion in September

The Nigeria Customs Service (NCS) said it generated N115-billion in September, the highest so far since the closure of the country's borders.  The Comptroller-General of Customs, Hameed Ali, disclosed this when he received the All Progressives Congress (APC) chairman, Adams Oshiomhole, in Abuja on Thursday.  Mr Ali explained that since the closure of the borders, the revenue being generated by the service was increasing on daily basis.

Mr Ali said the measures taken had compelled those who used to smuggle things into the country to go to the ports and pay necessary duties.  He said the aim is to ensure that the closure is sustained up till January 2020. Mr Ali said the main objective of the border closure was to ensure that neighbouring countries complied with the ECOWAS protocols on transit.

Source: Premium Times

Zimbabwe

Government spends USD2.5-billion on infrastructure

Government has spent over USD2.5-billion on infrastructure projects, which are key enablers to the achievement of targets set under Vision 2030. This was said by President Mnangagwa while presenting the State of the Nation Address (SONA) and officially opening the Second Session of the Ninth Parliament on Tuesday.

"The modernisation and rehabilitation of our infrastructure, in particular road networks, has resumed in earnest, with noticeable progress," President Mnangagwa said.  The President said the Hwange 7 and 8 Thermal Power Project, the Robert Gabriel Mugabe International Airport Expansion, borehole rehabilitation and drilling, and the construction of the new Parliament Building were projects well on course. "Dam construction projects such as the Marovanyati Dam, Gwai-Shangani Dam, walling of Causeway Dam, among others, are also on schedule," the President said.

President Mnangagwa said the country had raked in USD1.3-billion in tourism receipts.

Source: The Herald