News - Afrikan Heroes

EAIF Commits 30 Billion to Launch West Africa’s First Social Asset-Backed Security

October 31, 2023

The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, has committed up to XOF 30 billion (equivalent to USD ~ 48 million) to launch West Africa’s first ever social asset-backed security. The XOF 60 billion (equivalent to ~ USD 96 million) bond will be issued by special purpose vehicle Fonds Commun de Titrisation de Créances Electricité Pour Tous (FCTC EPT) in local currency, building towards universal access to electricity in Côte d’Ivoire.

The first phase of the security, backed by revenue from energy tariffs collected from the launch of the government-led Electricity for All (PEPT) programme, will modernise the country’s power sector. Improving access to energy and boosting economic productivity, predominantly in rural areas, the bond will enhance sustainability across the energy industry, in line with the PIDG ambition to achieve the UN’s Sustainable Goal on Affordable and Clean Energy (SDG 7).

EAIF will act as a co-investor, deploying capital in two tranches alongside the International Finance Corporation (IFC). The combined commitments of up to XOF 60 billion will encourage participation by local investors. Africa Link Capital is serving as the mandated lead arranger with distribution being managed by local brokers BoA Capital Securities and NSIA Finance. The instrument has been certified as a social bond, having received a second party opinion from ratings agency Moody’s.

As part of the PEPT programme aimed at achieving 100% electrification across the country, the implementing agent – Compagnie Ivoirienne d’Électricité (CIE) – will use the proceeds of the bond to substantially expand last mile connectivity. This will contribute to financing the connection of up to 800,000 additional low-income households to the national grid over the next four years, supporting SDG 7. The landmark transaction also aims to ensure the longevity of the Ivorian energy sector by installing prepaid meters to improve revenue collection.

Deepening the role of local capital markets in financing critical development priorities across Côte d’Ivoire, the issuance builds on EAIF’s growing track record of anchoring social and green impact bonds. In addition, it increases EAIF’s local currency commitments in West Africa, previously anchoring a bond issued by telecoms giant Sonatel and investing in a bond funding the relocation of West Africa’s third busiest seaport.

The asset-backed security is a first for EAIF and cements the fund’s status as an essential partner in growing the country’s energy sector. Côte d’Ivoire is EAIF’s largest country exposure, with all investments designed to strengthen the burgeoning power sector.

Launched in 2014, PEPT has achieved over 1.6 million connections to date. Revenue collected from energy tariffs over this period will be used to back the bond and support expansion of the programme in mainly rural areas, where access to electricity is much lower than urban areas. Targeting low-income households will empower marginalised communities and boost overall economic equality in the country.

Enabling customers to top-up prepaid meters from mobile phones strengthens revenue collection, which is critical to improving sustainability of energy sectors across the continent. Modernisation of the country’s energy sector is reflected in a novel approach to infrastructure financing, marking a first-of-its-kind transaction in the region.

Commenting on the transaction, Folatomi Fayemi, Investment Specialist at Ninety One, fund manager of the Emerging Africa Infrastructure Fund, said, “We are delighted to play a pivotal role in improving the lives and prospects of Côte d’Ivoire’s most underserved communities, while signalling the possibilities of financial innovation to the rest of the market. By breaking new ground with this transaction, we hope to accelerate and deepen the participation of domestic capital markets in Africa’s sustainable development.”

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

South African Airways Prepares To Relaunch Its 1st Intercontinental Route

October 30, 2023

South African Airways is relaunching its intercontinental route between Cape Town and São Paulo, marking an important step in the airline’s recovery. The new route aims to bring down airfares due to competition and help SAA develop its operations. Despite past challenges, including financial difficulties and operational issues, SAA is looking towards a brighter future with plans to expand its network and add more aircraft.

The final countdown has begun as South African Airways (SAA) prepares to operate its first intercontinental route in three years, with a flight between Cape Town International (CPT) and São Paulo Guarulhos (GRU) in the next 72 hours.

At an event in Cape Town on October 26, South Africa’s Minister of Public Enterprises, Pravin Gordhan, officially relaunched the national carrier’s intercontinental connection in front of an esteemed crowd that included Brazil’s Vice Minister of Tourism, airline executives, and other stakeholders.

Returning to Brazil

South African Airways will return to Brazil on Tuesday, October 31, serving the South American country from two cities, four times a week in total. The first flight, SA226, will depart CPT at 12:55 and arrive at GRU at 16:35 local time. The return flight, SA227, will depart GRU at 18:05 and arrive at CPT at 06:40 (+1). This service will be operated twice weekly on Tuesdays and Saturdays.

SAA will also fly to São Paulo from Johannesburg (JNB), with the inaugural flight on Monday, November 6. SA222 will leave JNB at 11:20, arriving at GRU at 16:35 local time. On return, SA223 will depart GRU at 18:05 and arrive at JNB at 06:40. This service will be operated on Mondays and Thursdays.

While SAA has been criticized for splitting the service between the two cities, the company’s Chief Commercial Officer Tebogo Tsimane said, “We have created an effective schedule which is ideal for both business and leisure travelers, and our schedule is fantastic for connecting traffic.” Nevertheless, the service will mark the first time Cape Town has had a direct connection with South America in over a decade.

Expanding international operations

SAA expects its new intercontinental route to contribute immensely to developing the airline and South Africa’s aviation sector as a whole. With the currently high airfares on routes to and from South Africa, the carrier hopes the new competition will bring prices down. It had previously scheduled the Airbus A340 on the route but eventually swapped it with the more efficient A330.

According to the DPE, the launch of São Paulo is a sign of more long-haul flights in the near future. It is the first step on SAA’s journey to recovery on the international scene, and the carrier will focus on expanding its network to give South Africans access to more destinations. SAA is also preparing to launch its next transcontinental route between Johannesburg and Abidjan, with a thrice-weekly service starting November 14.

Emerging from business rescue

South Africa’s flag carrier recently celebrated two years of its rebirth after emerging from business rescue in 2021. Once considered among the world’s best, SAA has been battling several financial and operational challenges for years. It entered business rescue in 2019 and began pulling international routes at the dawn of the COVID-19 pandemic. By April 2020, it had suspended all domestic operations and only returned in September 2021.

Speaking at the event, Minister Gordhan said that state capture had severely affected the airline, with the government injecting about $2.72 million over a period of ten years. However, he highlighted that SAA is back on track.

“SAA is, in many ways, an entity rising from the ashes of State Capture like a Phoenix. A few years ago, we thought that with all the damage that had been done to SAA, it wouldn’t survive. And there were many who thought that the best way to deal with the future of SAA was to liquidate it. Today we are running with an SAA that is still very much alive and has been brought out of ICU.”

Despite State Capture and the effects of the pandemic, Gordhan sees an SAA with a bright future. The company expects to add more aircraft soon and boost its presence in the domestic and regional markets. It is also going through a semi-privatization deal, which the minister expects to be completed by the end of the year or early next.

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

Vodafone is Poised to Offload its Spanish Operation

Balesh Sharma, MD for Vodacom South Africa

Vodafone Group is close to selling a stake of at least 50% in its Spanish business to Zegona Communications in a deal that values the asset at more than €5-billion, according to people familiar with the matter. The firms are finalising details of a transaction and an announcement could come in the coming days, the people said. London-based Zegona, an acquisition vehicle, has beaten other bidders including private equity firm RRJ Capital in the process, the people said.

While discussions are at an advanced stage, they could still be delayed or even falter, according to the people. Vodafone didn’t immediately respond to a request for comment made outside of normal business hours. A spokesman for Zegona reiterated the details of a statement on 22 September, when the company confirmed talks with Vodafone and said it was discussing financing with its banks.

Newbury, England-based Vodafone has been trying to do a deal in Spain for more than a year. Its previous CEO, Nick Read, said the market needed consolidation, but ended up on the sidelines as its rivals agreed to merge. Following years of eroding earnings, Read’s replacement, Margherita Della Valle, demoted the unit to Vodafone’s so-called “cluster” of smaller European businesses and placed it under strategic review.

The British carrier has been working with an adviser as it evaluates options for the Spanish business, Bloomberg News reported in July. Warburg Pincus was among those considering a bid for the assets, while Apollo Global Management has also shown initial interest, people familiar with the matter said previously.

In September, Vodafone said it was in talks with Zegona about a potential deal for the Spanish unit. A consortium led by RRJ Capital, the buyout firm run by former Goldman Sachs banker Richard Ong, was weighing an offer for the assets as well, Bloomberg News reported last week.

Deep transformation

Spain’s telecoms market, already one of Europe’s most competitive, is expected to undergo a deep transformation in the coming months. Orange and Masmovil Ibercom are awaiting regulatory clearance to merge in a deal that will create Spain’s largest carrier, ahead of Telefonica.

The European Commission is tipped to impose strict conditions for the merger, which could potentially lead to Orange and Masmovil having to sell certain assets to a smaller rival. The decision will be taken as a sign of the commission’s willingness to allow consolidation in the sector.

Zegona, which describes itself as having a “buy-fix-sell” strategy, has already played a key role in the sector’s consolidation in Spain. Founded in 2015 and run by former Virgin Media executive Eamonn O’Hare, the company bought and sold Spanish operator Euskaltel to Masmovil Ibercom, a deal that took the market from five players down to four.

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

Nigerian Airfares Double Amid High Fuel Prices & Lack Of Foreign Currency

Nigerians are experiencing worries over the rising costs of domestic flight tickets which have nearly doubled due to rising fuel costs and foreign currency shortages, leaving many consumers uncertain about their December travels. The devaluation of the Naira against the US dollar has caused challenges in the aviation industry, with a significant fuel price hike threatening to further increase ticket prices.

Popular holiday destinations like Abuja, Port Harcourt, Owerri, Uyo, and Enugu have already seen significant increases, with fares expected to be even higher between December 15 and January 5.

Ahead of the busy festive season, airline operators in Nigeria have increased flight ticket prices in local currency by nearly 100% on certain routes due to the continued rise in fuel costs and shortages of foreign currency.

Nigeria has one of the most robust domestic aviation sectors in Africa, with over 10 active scheduled carriers connecting several destinations within the country’s borders. In 2022, about 16.1 million passengers flew through Nigerian airports, with 78.2% of all traffic being served by domestic carriers.

December is usually the busiest, with the highest number of flights and passenger activity recorded during this period. However, before this year’s holidays, average domestic fares that were below ₦75,000 ($95) may peak at over ₦130,000 ($165), leaving many consumers uncertain about their December travels.

The steady devaluation of the Naira (₦) against the US dollar has caused significant challenges in the aviation industry. According to The Guardian Nigeria, the price of aviation fuel is now at nearly ₦1,000/liter ($4.81/gal). In the domestic and international sectors, the open market rate of ₦1,200/$1 and almost 400% fuel price hike have threatened to double the already high ticket prices and further shrink the air transport industry.

The Guardian reports that airlines have increased ticket prices to cover the cost of operations but have not entirely put it on consumers. Foreign operators have also increased the price of tickets. During the weekend, the IATA Rate of Exchange (IRoE) increased in one leap by ₦139 from ₦842 to ₦981 against the US dollar.

While IATA stood against increasing airfares, it expressed concerns over Nigeria’s complicated foreign exchange liquidity crisis. The same crisis has kept over $700 million of airline funds trapped in the country. About $300 million of this amount is legacy debt, which is still yet to be remitted to IATA by the Central Bank of Nigeria (CBN).

While African carriers face several operational challenges, the price of aviation fuel is among the biggest. It accounts for over a third of all costs. As a deregulated commodity exclusively controlled by suppliers, the price consistently fluctuates according to the rate of the Naira against the Dollar.

Over the weekend, the price of jet fuel increased by nearly 20% from ₦800/l ($3.70) to ₦1000/l ($4.61/gal), depending on the location. Lagos Murtala Muhammed Airport (LOS) had the lowest rate of ₦935 per liter ($4.30 per gallon). In other regions, Abuja (ABV) had ₦975/l ($4.49/gal)), ₦970/l ($4.46/gal) in Port Harcourt (PHC), ₦985/l ($4.53/gal) in Kano (KAN), and an average of ₦1000/l ($4.61/gal) per liter in the Upper North region, where it is also subject to availability.

Abuja, Port Harcourt, Owerri, Uyo, and Enugu are among the most popular destinations in Nigeria during Christmas. Fares from Lagos to these cities have already increased by nearly 100%, and a travel agent, Gina Chika, told BusinessDay that this was noticed as soon as the fuel price went up.

Chika added that ticket prices for Christmas don’t usually go up until November, but that is not the case this year. For example, Air Peace’s one-way Lagos-Abuja tickets, which previously sold between ₦55,000 ($70) and ₦65,000 ($82), now range from ₦100,300 ($127) to ₦162,000 ($205). Similarly, an economy ticket from Lagos to Enugu or Kano costs ₦100,300 ($122.6).

Aero Contractors, United Nigeria Airlines (UNA), and other carriers have also increased fares on various domestic routes. UNA Chairman and Spokesperson for the Airline Operators of Nigeria (AON) told The Guardian that Nigerian carriers should be commended for not passing the whole cost of operations to customers.

“We are subsidizing the cost of seats per flight. So, if you see fare increases now, please understand. They may still be higher because we are actually not covering the cost of operations. The little adjustment is to serve the public better. It is better to fly safe, be viable, and remain in business than just flying cheap and risk collapse.”

Airfares will be even higher for travel between December 15 and January 5. A one-way economy ticket from Lagos to Owerri, previously sold at ₦50,000 ($61), will sell at ₦105,000 ($128), while a business class ticket sells at around ₦190,600 ($241). During that period, Dana Air’s tickets from Lagos to Abuja will cost about ₦126,000 ($160) for economy flexible, ₦210,000 ($265) for business saver, and ₦250,000 ($316) for business flexible.

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

IMF Completes First Review of Credit Facility for the Islamic Republic of Mauritania

An IMF mission led by Mr. Felix Fischer held discussions on the first review of the program supported by the Extended Fund Facility and the Extended Credit Facility arrangements, approved by the IMF Executive Board on January 25, 2023 for a total amount of SDR 64.40 million, approximately US$ 86.9 million over 42 months and a new program supported by the Resilience and Sustainability Facility (RSF).

Upon the completion of the mission, Mr. Fischer made the following statement:

“IMF staff and the Mauritanian authorities reached a preliminary agreement on the completion of the first review of the economic program supported by the Extended Fund Facility and the Extended Credit Facility. Subject to approval by IMF Management and the Executive Board, Mauritania will benefit from a second disbursement of SDR 16.10 million (approximately US$ 21.1 million) under the Extended Fund Facility and the Extended Credit Facility.

“IMF staff and the Mauritanian authorities also reached agreement on reforms to be supported by the Resilience and Sustainability Facility, for a total amount of SDR 193.2 million (or US$ 253.1 million), representing a maximum access of 150 percent of quota. The RSF arrangement will support Mauritania’s efforts to strengthen its resilience to climate shocks, to enhance its disaster risk management capacities, and to accelerate the transition toward cleaner energy sources. This agreement is subject to the approval of IMF Management and the Executive Board, currently envisaged in mid-December 2023.

“The new program under the RSF will support reforms in the following four areas: (i) incorporating climate issues into public financial management (PFM) and public investment management (PIM); (ii) social protection against climate shocks; (iii) decarbonization; (iv) the strengthening of the institutional framework for water management, providing disbursements in line with the pace at which reforms are implemented. The reforms supported by the RSF will also help Mauritania to meet its Nationally Determined Contributions (NDCs) commitments, which were updated in 2021.

“In 2023, economic growth is expected to slow to 4.8 percent compared to 6.4 percent in 2022, reflecting a return to normal of extractive sector activity and the lagged effect of tighter monetary policy in 2022. Inflation is continuing its downward trend and is expected to slow to 4.5 percent at end-2023 compared to 11 percent at end-2022 reflecting lower food and energy prices, fiscal consolidation, and the lagged impact of tighter monetary policy in 2022. The non-extractive primary balance, including grants, is expected to decrease to -3.8 percent of GDP against -7.5 percent in 2022. The current account deficit is anticipated to decline to 12.1 percent of GDP (compared to 16.6 percent at end-2022), while international reserves are expected to stabilize at around US$ 1.9 billion (equivalent to 6.4 months of non-extractive imports) in 2023.

“The economic outlook remains uncertain. An escalation of geopolitical tensions could affect Mauritania through new terms of trade shocks. More frequent climate disasters, especially flooding, could deteriorate infrastructure, arable lands and agriculture production, maintaining food insecurity relatively high. Delays in the start of the Greater Tortue Ahmeyim (GTA) gas project and adverse price fluctuations in commodity markets could lower fiscal revenue, increase external financing needs, and worsen the medium-term debt profile. On the upside, the implementation of future GTA gas project phases would improve the economic growth and the balance of payments.

“In this context, the authorities’ economic and financial program is on track and its implementation has been satisfactory. All the performance criteria for end-June 2023 have been met, and most of the structural benchmarks for March 2023 to September 2023 have been observed. In particular, a tax policy unit has been set up and an action plan based on the governance diagnostic was published on time. The submission to Parliament of the medium-term fiscal framework and the revised law on the Nouadhibou Free Trade Zone, along with the operationalization of the interbank foreign exchange platform, have been carried out with a delay.

“The team would like to thank the Mauritanian authorities and all other interlocutors for their warm welcome, productive discussions, and excellent cooperation.”

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

Ivory Coast Implements VAT on Online Sales Platforms and Digital Services

October 29, 2023

In a move to bolster its tax revenue, Ivory Coast has recently announced a significant change in its tax policy. Online sales platforms and digital services in the country will now be subject to the Value Added Tax (VAT). This decision, issued by the General Tax Directorate (DGI), marks a substantial shift in the country’s fiscal landscape.

The affected operations span a wide range of digital services, including online advertising, data services, online marketplaces, digital content, online gaming, cloud computing, social media platforms, search engines, and both business-to-consumer (B2C) and business-to-business (B2B) transactions.

Notably, the DGI’s announcement includes a definition of “online markets,” describing them as services through which a digital platform directly connects service providers with potential clients, thus facilitating transactions between the parties involved. These markets encompass various services, such as online food delivery and the online rental of accommodations and vehicles.

Businesses impacted by this new tax policy will be required to declare and pay VAT in either euros or US dollars, using designated foreign currency bank accounts. These account details will be provided on the official DGI website.

The implementation of this tax policy change is set to take effect within a six-month timeframe from the date of the announcement. This adjustment is consistent with Ivory Coast’s broader fiscal strategy to increase its tax base and adapt to the evolving digital economy.

This new tax measure was originally introduced in the fiscal appendix to the 2021–899 Finance Act of December 21, 2021, for the year 2022. It specifically targets online service sales and commissions collected by digital platforms that do not have professional facilities within the Ivorian territory.

The decision to levy VAT on online sales and digital services reflects the global trend of countries adapting their tax policies to address the challenges and opportunities presented by the digital age. Ivory Coast’s move aligns with international efforts to ensure that the digital economy contributes its fair share to the national tax revenue.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Ivory Coast Digital VAT Ivory Coast Digital VAT

Black Friday to Create an Extra R26.6-Billion in Retail Turnover in South Africa

Egypt’s President El-Sisi Speaks with UN Secretary-General on Gaza

Egyptian President, Abdel Fattah el-Sisi

Today, President Abdel Fattah El-Sisi received a phone call from Secretary-General of the United Nations António Guterres.

Spokesman for the Presidency Counselor Ahmed Fahmy said the call focused on the latest developments pertinent to the ongoing diplomatic efforts to stop the escalation in the Gaza Strip, including the resolution of the United Nations General Assembly in this regard, which stipulates the implementation of an immediate humanitarian truce that preserves the lives of civilians and allows the entry of relief aid to the Gaza Strip immediately and sufficiently.

Views were also exchanged on cooperation efforts between Egypt and the international organization regarding the protection of civilians and the access of humanitarian aid to the Gaza Strip, through the mechanism agreed upon under the supervision of the United Nations.

Mr. Guterres expressed appreciation for Egypt’s key role in this regard, praising its firm commitment to working positively towards peace and stability. The President also expressed Egypt’s appreciation for the balanced positions of the Secretary-General, as well as the role of the United Nations at the political and humanitarian levels.

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

International IDEA and ECOWAS Host the 2nd Annual Retreat for Special Envoys

October 27, 2023

The Second Annual Retreat for Special Envoys of Regional Economic Communities and High Representatives, on Constitutional transitions as well as unconstitutional changes of Governments in Africa held in Abuja, Nigeria from 24th to 25th October 2023. The theme for this year’s Annual Retreat was on “Inclusive Constitutional Transitions after Unconstitutional Changes of Governments.”

In his keynote address, Ambassador Dr. Abdel-Fatau Musah, the Commissioner of Political Affairs, Peace and Security of the ECOWAS Commission bemoaned the increasing trends of coups in the region. These trends he said are taking place in a complex and dynamic international landscape, marked by an unprecedented convergence of geopolitical and geostrategic shifts, impacts of health pandemic, economic challenges, digital advancements, climate and environmental concerns, as well as socio-cultural dynamics.

The Commissioner further reiterated how reassuring and instructive a recent Afrobarometer survey (2022) on democratization trends in Africa suggests that, generally, support for democracy and democratic norms remains high across most of the continent, even though the levels of support differ from country to country.

The second Annual Retreat built on the lessons learned from the first Annual Retreat for Special Envoys and High Representatives that was held in Banjul (The Gambia) in October 2022. The various panels at the Retreat assessed the principles, functions, design and operational modalities of a regional mechanism/facility that can be used as a vehicle for rapid deployment of technical support for regional interventions to strengthen inclusive constitutional transitions.

Furthermore, the retreat presented a platform for reflecting and exchanging experiences and lessons learnt among RECs Special Envoys, High Officials as well as other participants on building an inclusive and legitimate democratic framework during constitutional transitions and post transitions phases.

Among the speakers and special guests were H.E. Goodluck E. Jonathan, Former President of the Federal Republic of Nigeria; Dr. Mohamed Ibn Chambas, Former President of the ECOWAS Commission and currently the African Union Envoy on Silencing the Guns and H.E. Ambassador Plomp, Netherlands Ambassador to Nigeria and ECOWAS.

Prior to the Retreat, the Secretary General of International IDEA and Former Vice President of Costa Rica, Dr. Kevin Casas-Zamora, paid a courtesy call on Amb. Dr. Abdel-Fatau Musah on 23rd October 2023, to discuss areas of collaboration especially on Democracy, Good Governance and Electoral affairs. The two institutions also discussed the possibility of developing a Memorandum of Understanding to guide and strengthen their partnership.

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

SA’s Public Enterprises Department to be Shut Down Next Year

The South African government has made known its plans to shut down the department of public enterprises, which oversees seven of the biggest state-owned companies, when a new administration takes office after elections in about a year’s time.

President Cyril Ramaphosa announced the closure of the department in his state-of-the-nation address in February, in accordance with a resolution taken by the ANC. Power utility Eskom, ports and freight rail operator Transnet and the other companies will then fall under direct control of their line ministries.

“This department is coming to an end,” deputy minister of public enterprises Obed Bapela told MPs on Wednesday. “When the president announces the cabinet after the elections, this department will cease to exist and so will its ministry.”

Nadia Valley, the department’s acting director-general, said preparatory work to close the department is under way, pending the issuing of a presidential directive.

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

Nigeria Demands $72 million in Back Taxes From MTN

MTN Group said it is reviewing a demand by a Nigerian tribunal for unpaid taxes. This comes after a Lagos-based Tax Appeal Tribunal ordered MTN to pay US$72.6-million (about R1.4-billion), according to documents verified by two government officials. Calls to the tribunal for comment weren’t answered.

“We are reviewing the decision of the tribunal and will comment on this when we release our trading statement” on 27 October, the company said on Wednesday in response to questions.

MTN Nigeria Communications contributes more than a third of the group’s total revenue.

This development follows continuing issues of tax disputes in many countries across Africa. MTN has a history of impasses in Nigeria and was victorious in a conflict in the West African nation in 2020, when the government dropped a $2-billion claim for back taxes after a 16-month battle.

More recently, Ghana had to abandon a $773-million back-tax bill against MTN that the company disputed.

In the Democratic Republic of Congo, its rival Vodacom Group has been embroiled in a tax demand that led the government to seal parts of its offices and freeze its bank accounts.

Last week, six telecommunications CEOs — including MTN’s Ralph Mupita and Vodacom’s Shameel Joosub — urged African leaders and policymakers to “rationalise” tax for the mobile industry through the development of targeted fiscal policy reforms, such as the removal of tax on low-cost smartphones and sector-specific tax, according to an agreement signed in Rwanda.

Nigeria is MTN’s biggest market by subscribers and the Lagos-listed unit, MTN Nigeria Communications, contributes more than a third of the group’s total revenue.

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