Ethiopia may give up majority control over its telecommunications monopoly in a second phase of privatization once it’s sold 49% of the company next year.
The government could also issue more mobile-phone network licenses over the long term beyond the two already planned for March 2020, Balcha Reba, director-general at the Ethiopian Communications Authority, said in an interview in Addis Ababa.
“We have a monopoly. That’s our problem,” he said. Privatizing Ethio Telecom will improve service quality, increase choice for customers and spur investment as the country’s population of 100 million grows, according to Balcha.
“In the future, the government may even release some of its shares from the 51%,” he said, while adding that the market would first need to become competitive and more mature.
International carriers including Orange SA, MTN Group Ltd. and Vodafone Group Plc’s African unit are among companies that are interested in expanding in Ethiopia, seen as the last major market on the continent closed to independent operators. They are keen to tap a nation with a relatively low level of data penetration and internet access, as well as the second-highest population in Africa — though one that’s been prone to government-imposed internet blackouts.
Next year’s sale will also boost the government’s scarce foreign-exchange reserves, Balcha told Bloomberg in his office in the center of the Ethiopian capital. That’s needed to pay for imports and for foreign companies to operate successfully in the country.
Mobile Banking
Ethiopia is also considering whether to issue mobile-banking licenses, Balcha said. He cited work underway at the country’s central bank to lift current restrictions. Wireless carriers have found a lucrative sideline offering financial services in many parts of Africa where formal banking infrastructure is scarce.
Yinager Dessie, governor of the National Bank of Ethiopia, did not immediately respond to calls seeking comment.
The sale of a minority stake in Ethio Telecom may lead to a review of the company’s equipment suppliers, which include Huawei Technologies Co. and Ericsson AB, Balcha said. “Whenever a company’s privatized, the 49% also have their say,” he added.
Ethiopia will add 5G technology in October, though it must first decide on the frequency band, he said.
Ethio Telecom has annual sales of about 45.4 billion birr ($1.5 billion) and more than 50 million subscribers, the company said last month.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Whether intentional or not, the tech startup landscape has been optimized for middle- and upper-class white males. According to one analysis, 77% of venture-backed founders are white and 90% of them are men.
If you are a nontraditional tech entrepreneur — meaning you aren’t a white man — it’s important to understand the environment you’ll be navigating and the challenges you need to overcome to succeed in this field.
Cheryl Contee, the award-winning CEO and co-founder of Do Big Things
1) Don’t Be Afraid to Fail Up
While every entrepreneur knows failure is a possibility, women and minorities feel more social pressure to be risk averse. Risk carries a higher price for them, real or perceived. This is especially true if you are a black or brown person. We are surrounded by news and media that teach us we will be treated differently because of the color of our skin, even in seemingly safe situations. This narrative is validated every time we are eyed suspiciously for simply walking down the sidewalk, told to “dim our light” or “smile more,” and of course, when we are confused for another person of color in the office.
Don’t let it stop you from moving forward. It’s true that discrimination and bias are prevalent in the workplace. It’s true that microaggressions are still widespread. It’s true that you might not get the result you want because your appearance doesn’t match someone else’s expectation. It’s true that if you make a mistake, it might seem larger in someone’s mind than if the offender were white. It’s also true that, to have the same amount of success as a white male entrepreneur, you’re going to have to work twice as hard and be twice as good. What all this means is you need to conquer your fear and go in with the right mindset.
Initially, you’re going to feel a lot of pressure. Maybe becoming an entrepreneur is perceived as a bold and an unconventional career choice in your community. Maybe your ambition makes you a role model, and your success would mean you beat the odds. Maybe you’ll ask yourself: “Will the people who look up to me be ashamed if I fail? If I take this leap and it doesn’t work out, will I ever be able to get another job?”
Move past this fear of failure by remembering that a startup can bring returns, even if it fails — and most startups do fail. Whether it’s low revenue or core team conflicts, sometimes your business won’t work out the way you hoped. But if that happens, the next VCs you approach, or the next company you apply to, will see an ambitious, hard worker who took a chance, ran a company, and made executive decisions. They’ll see a person who’s been through the fire and held their head up high when they came out the other side. Someone who has learned a lot in a short period of time.
And when you pitch yourself for the next big opportunity, your story should never be “I failed.” It should be “I tried something bold and it didn’t work out the way I’d hoped. Here’s why.” Remember, if you don’t take the risk at all, you fail before you even begin. Think of risk as a chance to succeed — even if you fail.
2) Find the Right Investors
Conventional wisdom will tell you the first startup funding round should take about six months. This may be true for the traditional founder, who, because of his background, often has more resources at his fingertips. He is more likely to come to the table with financial backing and interpersonal connections. Those connections can help with introductions to potential funders, team members, clients, media, and strategic partners. He may even come from a family of entrepreneurs, or have access to higher-ups who serve as mentors.
But if you’re a woman, a minority, or you come from a low-income background, you probably have fewer resources to tap. Many minority and female startup founders are just like my business partner and me. As a technologist, I’m one of the highest earners in my extended family. If I tried to pass a hat around when I launched my startup it’s more likely that, by the end of the conversation, I’d have a list of people who owed me $20. When you are the most successful person in your family, a “friends and family” round of funding will not be possible. Investors might read your lack of resources as a lack of hustle and be more reluctant to offer you that all-important seed capital.
This means you’re going to need investor or bank funding earlier in your startup’s lifecycle. But who receives money is too often determined by who feels the most familiar to those giving it. Some investors have been quite blatant about their own bias — and even discrimination — in making these kinds of decisions. John Doerr, the acclaimed venture capitalist, spoke about this during a 2008 interview. “They all seem to be white male nerds who’ve dropped out of Harvard or Stanford, and they absolutely have no social life,” he said of his investments in Google, Amazon, and Netscape. “When I see that pattern coming in — which was true of Google — it’s very easy to decide to invest.”
Nontraditional founders don’t fit that mold. Finding the right investors and raising the funds you need could take a long time. This will impact your burn rate. To prepare, plan to be looking for twelve months or longer. If you have six to 12 months to raise money, and it takes you twelve or longer, that will directly impact your payroll. Be smart about stretching that dollar as far as you can. Look into strategic partnerships. You know the space and the technology with which you need to integrate — those are the potential partners you should prioritize. Many organizations may be especially interested in a partnership if you show them how you can improve their products, and if you do, your relationship may even lead to an offer.
And don’t give up. Even if you’re beyond the twelve-month time frame, focus on finding that first investor who gets you and your vision, and who wants to support you. Early seed investors are a good option, and are easier to find than you might think. Simply search keywords like “angel investors,” “angel networks,” “startup accelerators,” or “startup incubators” online. Then add phrases that help narrow the search towards those looking for people like you. Joining a social network specifically designed to help investors and entrepreneurs connect, such as Angel.co, F6S.com, or even LinkedIn, is another a good way to meet the right people.
3) Level Up Your “Army of One” Mentality
There was a time in my career when I was passed over for a big promotion as a result of gender and/or racial bias. I had to make a tough decision to stay at the company or go out on my own. When I decided to take the leap and leave, I knew I was ready to launch a tech startup and be my own boss — an idea I had thought about for years. I tweeted in attempt to put feelers out and expand my network: “Hey y’all, I’m available for new projects. Who wants to partner with me?” I sent that message because I knew this truth: Even the best founders can’t do everything themselves.
But for so many people who’ve been in my shoes, there’s a temptation to isolate. When you experience discrimination at work, it can fracture your trust in larger systems and their ability to recognize your talent, contributions, and drive. Instead of connecting with others, you become an “army of one.” This mentality can carry you to the point I was at — ready to launch — but it can also keep you from going any further.
To succeed in the startup world, you need a good team. Research shows that investors are looking for a team that not only has experience, but also entrepreneurial passion and shared strategic vision. A good team will supplement your weaknesses as a founder, help you refine your idea, and handle parts of the business that aren’t your superpower. You don’t have to have all of your team members in place when you start fundraising, but you should have an idea of where you sit on the team and where the other team members will factor into the overall equation. Other core team members usually include the tech lead, sales and marketing lead, and an advisor.
Make sure that your team is a diverse and inclusive one, in as many forms as possible. Beyond race and gender, consider people from different economic and ethnic backgrounds, people with a disability, and more. Investors and future team members will look for diversity as a signal of your values and your understanding that having multiple perspectives will help you outperform competitors and maximize outcomes.
4) Skip the Business Plan in Favor of a Pitch Deck
The best way to find investors, customers, team members, and suppliers is to talk to as many people as possible about your idea. Go to networking events, seek out mentors, and tell friends. Find an accelerator or incubator program that can help you work on your business and introduce you to investors. Use AngelList, LinkedIn, F6S (as mentioned above), and find other social media communities on platforms like Twitter (#startup, anyone?) and Facebook Groups dedicated to your topic of interest. Don’t worry if not everyone gets it. Your objective is to get feedback, adjust, and connect with people who want to join forces, or who can introduce you to stakeholders who do.
Once you’ve determined that your idea is viable and you’ve gained some support, begin working with your team to develop a startup pitch deck. (Nobody reads traditional business plans these days.) To capture the attention of investors, make 10 slides that tell the story of your startup, and answer the questions that prospective customers or stakeholders will have. Here’s a rough blueprint you can use to get started:
Slides 1–4 introduce what your startup is trying to do:
Slide 1: your vision or big idea
Slide 2: the problem
Slide 3: the solution
Slide 4: the market
Slides 5–10 address your business model:
Slide 5: how you’ll make money (cost vs. price)
Slide 6: where people will buy your product
Slide 7: your marketing strategy
Slide 8: how you compare to the competition
Slide 9: your team (reference the previous point)
Slide 10: the investment you’re asking for
Show your pitch deck to as many people as possible before you go into formal pitches. You’ll gain insights that will help you identify areas for improvement and fine-tune each slide.
5) Show Investors the Money
You are likely very passionate about your product or service and how it can change people’s lives. But investors want to know first and foremost how you are going to make them money. Don’t diminish your passion when it’s time to pitch, but be sure you are also presenting the cold hard facts.
Your startup may be solving a problem that impacts your community. Maybe you’re pitching a service focused on the multibillion dollar black haircare market, or shapewear designed for women (believe it or not, some investors had a tough time wrapping their minds around Spanx at first). But there is a chance that the problem you care deeply about doesn’t impact the daily lives of your white male investors — and the majority of investors are white males. Don’t be surprised if they are dismissive, write your idea off as irrelevant, or demand more information. You will have to work harder than most to take them on a journey during your pitch, to help them see the world through your eyes, and to imagine the game-changing opportunity your startup offers.
One way to do this is to “show them the money.” Present data points that highlight the size of the market they’re unfamiliar with, how much that market spends on the competition you’re going to crush, and how much they could be spending on your product.
Take the case of Candance V. Mitchell and Chanel Martin, two entrepreneurs who wanted to raise funds for Myavana, a startup offering personalized hair service for women of color. When presenting to investors, they drove home the fact that hair products for African-American women is a $3 billion market in the U.S. and secured $200,000 in funding from pitch competitions, as well as $25,000 from Dream It Philly’s accelerator in 2014.
If you do manage to secure funding, don’t think you’re out of the woods just yet. Remember, none of this will be easy. Chances are, you’ll be undercapitalized. While there’s been a big increase in startups with nontraditional founders over the past 10 years, those with black female founders have raised only 0.0006% of the $424 billion in total tech venture funding raised since 2009 — almost nothing. This means you probably won’t have as much money to play with as your white male Silicon Valley peers.
Stay on the up and up. During your entrepreneurial journey, a lot of things will happen that will make you think you can’t go on, or that you don’t have what it takes, or that you will never be good enough, or that you should just do what others tell you to do. Believe in yourself and follow what is the next right move for you. If you fail, you will learn. If you slip, pick yourself up. Just keep going. Entrepreneurship is about having the resolve, the persistence, the character, and the perseverance you need to keep rising toward your prize.
Cheryl Contee is the award-winning CEO and co-founder of Do Big Things, a digital agency that creates new narrative and new tech for a new era focused on causes and campaigns. She also is the Amazon bestselling author of Mechanical Bull: How You Can Achieve Startup Success.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Women-led startups in Southern Africa can now pitch to Enygma Ventures, a R100-million ($6.8) venture capital (VC) fund which will invest up R2-million in women led startups from the Southern African Development Community (SADC).
Here Is All You Need To Know
The fund was founded by husband and wife duo Sarah and Jacob Dusek who are the founders of US adventure-hospitality firm Under Canvas.
The US-based fund will be run locally by operating partners and husband and wife team Lelemba and Sandras Phiri of the Africa Trust Group.
Engyma Ventures will hold a three to six-month investor readiness programme in January
Lelemba Phiri, who is the Africa Trust Group principal said the sector agnostic fund will hold a three to six-month investor readiness programme which will kick off at the end of January next year.
List of Southern African countries
How To Apply
Applications are open to women-founded or led ventures and will close on 1 December.
To be considered for the programme, applicants must have scalable SADC-based businesses with a proven revenue model and business concept.
In addition, the ventures must have demonstrated growth and be looking for early-stage or growth capital.
First Batch of Investment Will Be In 10 Women-Led Startups
Phiri pointed out that Enygma Ventures is the first VC fund that is focused on investing in women startups in the Southern Africa Development Community region.
“We’re taking 10 women entrepreneurs in this first cohort and depending on how ready they are at entrance we will look to invest within that six months,” she said.
Sarah Dusek, commenting in an earlier statement, said she is understands the unique struggles and challenges of building a big business, being a founder and CEO herself.
Added Dusek:
“We want to help women think big. We will create flexible financial solutions for them with efficient and strategic deployment of capital whilst also providing helpful tailored support.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Ghana ’s Communications Ministry has ordered Mobile Network Operators (MNOs) to stop passing on the 9% Communication Service Tax (CST) to subscribers.
In a letter addressed to the National Communications Authority (NCA), and published in full below, the Communications Ministry stated that the CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated.
“At a series of meetings held between the Ministry of Communications, Mobile Network Organisations (MNOs) and the NCA on 7th and 8th October, 2019, we were informed that prior to 4th September 2019, MNOs had not been passing on CST to subscribers but had decided to take advantage of the 3% increase to pass on the entire tax to subscribers. This has effectively increased their profit margin at the expense of subscribers,” the letter explained.
MTN, AirtelTigo, Vodafone and Glo have been charging their customers the full amount of the revised Communication Service Tax (CST) since October 1, 2019.
The CST, which has been increased from 6% to 9%, has been applied to any recharge purchase by subscribers.
For every GH¢1 of recharge purchased, a 9% CST fee is charged the subscriber leaving ¢0.93 for the purchase of products and services.
According to the Ministry of Communications statement, which has been copied to all the telcos, this is wrong.
Finance Minister Ken Ofori-Atta in the Supplementary Budget announced an increase in the CST from 6% to 9%.
Source: National Communications Authority (NCA), 2016
According to the Finance Minister, the increase was to help develop the foundation for a viable technology ecosystem in the county.
This will comprise putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.
Mr Ofori-Atta maintains that sharing ratio would be done in a way that the National Youth Employment programs would continue to receive the same portions as the current cycle. In 2018 the tax was first introduced at an Ad Valorem Rate of 6 per cent.
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Kenya attracted more than half of East Africa’s financial deals in the first eight months of this year, cementing its position as the region’s investment hub.
According to the latest research by corporate finance advisory firm I&M Burbidge Capital (IMBC), Kenya took up 57 out of the 87 deal that the region attracted over the period.
Kenya’s closest rival Tanzania, the report said, clinched a measly 11 business agreements.
Uganda, Rwanda and Ethiopia, on the other hand, posted eight, six and five deals respectively. According to IMBC, Kenya’s position was boosted by recent big-ticket transactions, including Actis LLC’s joint venture (JV) with South Africa’s Improvon Group.
“The two companies have created a JV called ImpAct to build a 40-hectare industrial business park development at an estimated cost of $111 million (Sh11.5 billion),” said the firm’s analysts Edward Burbidge and Linda Obwora.
“The new development will be called Nairobi Gate Industrial Park and will be Kenya’s biggest industrial real estate investment to date.”
According to IMBC, in the month of August alone, East African countries witnessed a total of 12 disclosed deals valued at more than $173.5 million (Sh18 billion).
“This brings the total deal value and volume for the year to date to more than $1.3 billion (Sh130 billion) and 75 respectively,” said the firm.
IMBC found that the highest volume of deals to date in the region was recorded in the financial services sector, which boasts 18 out of the 75 disclosed deals.
“Other sectors that have seen significant deal activity are the energy, oil and gas sector, healthcare sector and the agribusiness sector,” said the company in its report. The real estate sector despite attracting the least number of deals had one of the highest value sizes in the ranking at more than $159.4 million (Sh15 billion).
The research also showed that the region and Kenya in particular, attracted the highest number of deals in private equity at 36 while mergers and acquisitions followed with 19 deals.
Meanwhile, joint ventures and private equity (PE) exits in East Africa performed poorly, with each recording six deals. Bonds and commercial paper ranked bottom with one deal each.
However, the region’s mergers and acquisitions led the deal size at $562.6 million (Sh56.2 billion) followed by PE at $292.5 million (Sh29.2 billion ) while PE exits follow at $224 million (Sh22.4 billion).
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Zimbabwe has increased the average electricity tariff by 320% to let the state power utility ramp up production and improve supplies at a time of daily rolling power cuts, the national energy regulator said on Wednesday.
Power cuts lasting up to 18 hours have hit mines, industry and homes and, together with a devastating drought, have been cited by the Zimbabwean treasury as among the main reasons why the economy is set to contract by up to 6% in 2019.
However, the jump in power costs will further anger Zimbabwean citizens who have, in the past week, seen sharp rises in fuel and basic goods prices. Salaries have not kept pace, prompting citizens to blame President Emmerson Mnangagwa’s policies for the worst economic crisis in a decade.
The Zimbabwe Energy Regulatory Authority (Zera) said it had approved an application by Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to raise the tariff to 162.16c (10.61 US cents) from 38.61c.
This is the second increase in three months, following one in August.
Zera said the tariff hike was necessary after inflation soared — the International Monetary Fund (IMF) says it was about 300% in August — and due to a plummeting Zimbabwe dollar currency, which was re-introduced in June.
The new tariff will allow ZETDC to raise money to repair its generators, as well as pay for imports from SA’s Eskom and Mozambique, which cost US$19.5m every month, the regulator said.
Hopes that Zimbabwe’s economy would quickly rebound under Mnangagwa, who took over after the late Robert Mugabe was deposed in a coup in November 2017, have faded fast as ordinary people grapple with soaring inflation which has eroded earnings and savings.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
For taking the route less traveled, for being humble enough to recognize that leadership is service, for cutting a figure that is quite in contrast to what obtains mostly in Africa where leaders want to be seen as demigods, for seeking peace, even at the expense of his office and life, the prime minister of Ethiopia, Abiy Ahmed was roundly acknowledged as desirous of winning this year’s Nobel peace prize. And the Norwegian Parliament did just that, by awarding the Prize to him.
New Zealand prime minister, Jacinda Ardern
He won the coveted prize beating other potential winners considered in the running for this year’s prize which includes the 16-year-old Swedish climate activist Greta Thunberg, Angela Merkel, the German chancellor, and Hong Kong activists. Another figure who was considered was the New Zealand prime minister, Jacinda Ardern principally because of her response to the Christchurch shooting in her country and also Alexis Tsipras and Zoran Zaev, the prime ministers of Greece and North Macedonia, who ended 30 years of acrimony between their countries. Ninety nine Nobel peace prizes have been awarded since 1901, to individuals and 24 organisations. While the other Nobel prize laureates are announced in Stockholm, the peace prize is awarded in the Norwegian capital, Oslo.
Since his election as the Prime Minister after the surprising resignation of the former Prime Minister last year, Abiy has pushed through reforms at home, dramatically changing the atmosphere in what was known as one of the more repressive states in Africa.His public renunciation of past abuses by previous rulers drew a line between his administration and those of his predecessors, as did the appointment of former dissidents to senior roles, as well as large numbers of women. Abiy according to observers brought something different to power, intelligent, suave, young, cyber-nerd and humane. And he has generously deployed all these attributes to drive change in his country working through government institutions. Being the first Prime Minister from Ethiopia’s most populous ethnicity, Oromo who for decades have complained over economic,cultural and political marginalization, he came into office breaking stereotypes and myths by appointing more women into high-profile jobs than any other Prime Minister in the history of Ethiopia.
As part of his bridge building efforts, he lifted bans on political parties,releasing imprisoned journalists and firing series of hitherto untouchable officials, some accused of torture. Moreso, we campaigned for the planting of millions of tress which further won him international support and recognition.The Norwegian Nobel committee said the award recognised Abiy’s “efforts to achieve peace and international cooperation, and in particular his decisive initiative to resolve the border conflict with neighbouring Eritrea” which has lingered for over two decades years leading to a bloody war. Moreso, Abiy has pushed for political and economic reforms on all fronts, seeking for peace within Ethiopia by granting generous concessions to many of the ethnic groups agitating for autonomy and independence.
According to the Nobel peace prize website, 301 candidates had been put forward for this year’s award. However, the committee does not announce the names of nominees until 50 years have passed.
Abiy, 43, has forged a reputation as a daring leader prepared to take risks to tackle decades-old problems. A former military officer specialising in cyber intelligence, the peace deal with Eritrea surprised and delighted tens of millions of people across East Africa. The conflict had cost both countries dearly in lives and scarce resources, and was a brake on development across much of the volatile region.
Born in western Ethiopia, Abiy joined the resistance against the regime of Mengistu Haile Mariam as a teenager before enlisting in the armed forces,reaching the rank of lieutenant-colonel. He has a doctorate in peace and security studies. After a stint running Ethiopia’s cyber-intelligence service,he entered politics eight years ago and rose rapidly up the ranks of the Oromo faction of the EPRDF, which has historically been at odds with the Tigrayans.
Analysts say Abiy’s mixed Christian and Muslim background, and fluency in three of the country’s main languages allow the new leader to bridge communal and sectarian divides. One personal acquaintance described the new Nobel Laureate as “always looking ahead for the future”shortly after Abiy survived an apparent assassination attempt in 2018. Former colleagues said shelves of books on religion, philosophy and science filled Abiy’s office. “He is physically active and very well organised … He did not have a secretary because he wanted his office to be accessible.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
Morocco is exploring the possibility of adopting hybrid Marijuana in its efforts to attract investment and attention to its burgeoning Marijuana market. The country’s Rif Mountains which have long been renowned for its cannabis is experiencing an upheaval as traditional varieties are being smoked out by foreign hybrids which offer higher yields for farmers and greater potency for consumers. The local strain of marijuana known as Beldiya in the local language is quite coveted by consumers but they are gradually disappearing from the fields Morocco due to influx of foreign hybrids of the plant.
Morocco has long been a leading producer and exporter of hashish — refined cannabis resin — even though the production, sale and consumption of drugs is illegal in the country. A quarter of hashish seizures worldwide originated from Morocco between 2013 and 2017, according to the United Nations Office on Drugs and Crime. While Morocco’s cannabis cultivation is falling, the adoption of hybrids means hashish production has remained stable.
With this development, farmers have shifted to another strain called Critical by the locals which they say is more coveted by both consumers and buyers. Critical is a product of the Netherlands but has easily adapted to Morocco. It is the lastest hybrid created in the laboratories in Europe to be introduced to Morocco. This according to farmers have led many especially those in the region of Ketama, located in the heart of the Rif Mountains range to shift to Critical because the seeds give a much higher yield. Local officials say that major cannabis producers decide what to plant and hybrid plants have become a market all on their own. This is coming at a time government have started paying more attention to cannabis production. Other hybrids that are making waves in the country are “Pakistana”, “Amnesia” and “Gorilla”, because of their potency and affordability. Market sources say that Critical sells for 2,500 dirhams per kilo ($252, 230 euros), while Beldiya goes for up to 10,000 dirhams per kilo.
The high yields of imported hybrid cannabis plants come at a cost however. The strains require heavy fertilization, which can damage the soil. And their insatiable thirst threatens the region’s water supplies, according to the OFDT. Critical grows in the dry summer, requiring heavy irrigation, while Beldiya is planted in winter, depending only on rainfall. Some locals complain that major producers enforce the planting of hybrids even in arid areas.
In 2003, 134,000 hectares (330,000 acres) were under cannabis cultivation, falling to 47,500 hectares by 2011 under a large official reconversion programme, according to a 2015 study by the French Monitoring Centre for Drugs and Drug Addiction (OFDT). But modern hybrid strains produce five to 10 kilos (11 to 22 pounds) of hashish per quintal, a traditional unit of weight equivalent to 100 kilos, compared to a single kilo for kif, as local cannabis is known. “The substitution of hybrids for kif might explain why the production of Moroccan hashish has barely decreased,” the study said. Locals say that in Ketama, kif is part of the culture.
Hybrids like Critical are notable also for high levels of THC, marijuana’s main psychoactive chemical. The adoption of hybrids explains the “rapid and significant increase in the average THC content” of seized Moroccan hashish, according to the OFDT. Analysts say that European consumers no longer want hybrid cannabis on account of its high THC levels. Traditional Moroccan cannabis remains highly coveted, particularly by advocates of legalisation. Cannabis decriminalization they say remains controversial in the conservative country as proposals to legalise it have so far met fierce political opposition.
That explains why producing it and smoking it are tolerated by the authorities and its cultivation provides a livelihood for 90,000 to 140,000 people in an otherwise deprived region known for its poor soil. People in the area say that it was mostly traffickers or intermediaries who bought the cannabis harvest for smuggling to Europe or other Moroccan towns.
One of the reasons the production of cannabis is in the upswing in some parts of Morocco is because job prospects are rare and there is high rate of youth unemployment so young people do whatever that pay for their keeps, says a community leader in the area.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
As part of efforts aimed at bridging economic and trade gap within the continent, especially for Lusophone countries of Africa, the African Development Bank and the governments of Equatorial Guinea and Portugal have signed a country-specific memorandum of understanding for the implementation of the Lusophone Compact, which aims to accelerate private sector development in Portuguese-speaking countries of Africa, known as PALOPs. Equatorial Guinea is the sixth and final PALOP country to sign the Compact after Angola, Cape Verde, Guinea-Bissau, Mozambique and São Tomé and Príncipe.
Cesar Mba Abogo, Minister of Finance, Economy and Planning of Equatorial Guinea
The Lusophone Compact is a financing platform that provides risk mitigation, investment products and technical assistance to accelerate private sector development in Lusophone African countries. In Equatorial Guinea and elsewhere, project preparation has been identified as one of the main impediments to making projects bankable. The Portuguese Government allocated 400 million euro in guarantees and other risk sharing mechanisms in the 2019 national budget to support the implementation of the Compact.
The signing ceremony which took place in Bata last week was between Cesar Mba Abogo, Minister of Finance, Economy and Planning of Equatorial Guinea, Manuel Grainha do Vale, Chief of Mission of Portugal in Equatorial Guinea and Racine Kane, Deputy Director General for the Central Africa region at the African Development Bank. Also present at the ceremony were Equatorial Guinea’s Minister of Foreign Affairs and Cooperation Simeón Oyono Esono Angue, Minister of Trade and Promotion of SMEs, Micha Ondo Bile, Minister of Justice, Salvador Ondo Ncumu, several secretaries of state, and over 50 representatives of the public and private sector.
The Equatorial Guinea MOU identifies a list of potential private sector and PPP investment projects, which will be reviewed by the Bank, Equatorial Guinea and Portugal and prioritized for further support. It also includes an indicative list of technical assistance projects to accelerate private sector and PPP growth.
Mba Abogo described the occasion as “an important element in our strategy to strengthen and diversify the private sector” and underlined the central role of the private sector and public-private partnerships (PPPs) in the nation’s Horizonte 2035 national development plan.
Speaking on behalf of the Bank, Kane emphasized its commitment to two central pillars of Equatorial Guinea’s development – diversification of its economy and the development of human capital – which he said will be reflected through the Compact. For his part, Grainha do Vale stressed that Portugal seeks to deepen its cooperation with Equatorial Guinea and that the Compact will be an important element in the development of that relationship.
Following the signing, the Bata Chamber of Commerce hosted the Bank delegation which included Ezekiel Odiogo, Head, Private Sector Investment at the Africa Investment Forum, at a roadshow event for the local business community. “The Africa Investment Forum is a unique platform for Equatorial Guinea to showcase its investment opportunities to the global investor community,” Odiogo said.
The presentations were followed by B2B meetings with select project sponsors. A day later, the program was repeated in Malabo, at the Malabo Chamber of Commerce, where more than 50 entrepreneurs participated and over a dozen B2Bs were held.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
For businesses rushing to Mauritius to benefit from their friendly tax policies, which used to be among the lowest in the world, EU has become the latest body (after OECD) to announce that this is no longer the case. European Union finance ministers have agreed to remove the United Arab Emirates, Switzerland and Mauritius from the bloc’s lists of countries deemed to be acting as tax havens, a move that activists called a “whitewash.”
Here Is All You Need To Know
The 28-nation EU set up a blacklist and a gray list of tax havens in December 2017 after revelations of widespread avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
Blacklisted states face reputational damage and stricter controls on transactions with the EU.
As part of the regular review of the lists, the ministers decided to drop the UAE from the EU blacklist that covers jurisdictions that have failed to cooperate with the EU on tax matters.
The Marshall Islands has also been removed from that list, which still includes nine extra-EU jurisdictions — mostly Pacific islands with few financial relations with the EU.
The UAE, the largest financial center which was blacklisted, was removed because in September it adopted new rules on offshore structures, the EU said, giving it a clean-sheet on its tax practices.
The Gulf state charges no corporate taxes, making it a possible target for firms seeking to avoid paying tax in the countries where they actually operate.
The EU does not automatically add countries that charge no tax — a sign of being a tax haven — to its blacklist, but it requested the UAE introduce rules that would allow only companies with a real economic activity there to be incorporated in order to reduce risks of tax dodging.
“SWEET TREATS”
Under an initial version of the overhaul, the UAE exempted from the requirement “all entities in which the UAE government, or any of the Emirates of the UAE, had direct or indirect ownership (no threshold) in its share capital”, an EU document said.
That reform was deemed insufficient by EU states and prompted an amendment, adopted in September, that excluded from the requirement only companies in which the UAE government owns directly or indirectly a 51% share of the capital.
This reform was considered by EU ministers as sufficient to remove the UAE from the blacklist.
Jurisdictions that remain blacklisted are Belize, Fiji, Oman, Samoa, Trinidad and Tobago, Vanuatu and the three US territories of American Samoa, Guam, and the US Virgin Islands.
Major economic partner Switzerland was removed from the EU gray list covering countries that have committed to change their tax rules to make them compliant with EU standards. It has delivered on its commitments, the EU said, and therefore is no longer listed.
They also removed the Indian Ocean island of Mauritius, Albania, Costa Rica, and Serbia from the gray list, leaving around 30 jurisdictions on the list.
Countries in the gray list could be moved to the blacklist if they fail to deliver on their commitments.
“The EU has whitewashed two of the world’s most harmful tax havens,” Chiara Putaturo of Oxfam, an anti-poverty group, said in reference to the decision of delisting Switzerland and Mauritius.
“Despite recent reforms, both countries will continue to offer sweet treats to tax-dodging companies,” she said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
