The Finance and Economic Development Committee in Morocco’s House of Representatives has adopted the first part of the amended Finance Bill 35.20 for the 2020 fiscal year. The majority of the committee (20) voted for the bill against 10 who voted against it during a meeting on July 11. The amended Finance Bill seeks to support the mechanisms necessary to boost the resumption of economic activities in Morocco and preserve employment.
Head of Government Saad Eddine El Othmani
The House of Representatives will hold two plenary sessions to vote on the first part of the bill. During the first session, the Finance and Economic Development Committee will deliver a presentation of the report, and Moroccan MPs will discuss the intentions of the parliamentary groups regarding the project. The second session will hear the response of Minister of Economy Mohamed Benchaaboun, followed by a vote on the first part of the Finance Bill.
The COVID-19 pandemic has adversely impacted Morocco’s economy, suspending activities in several sectors. The country is gradually resuming a number of economic activities, but the crisis has pushed the government to implement changes to the 2020 Finance Bill in order to address the unprecedented circumstances. On July 6, King Mohammed VI chaired a ministerial council in which Minister of Economy Benchaaboun presented his department’s recommendations to respond to the economic crisis. The official said the amendment of the Finance Bill aims to support the gradual recovery of the Moroccan economy through three pillars.
The first pillar pledges to promote public investment while the second intends to preserve employment in the private sector by tapping into Morocco’s Special Fund for the Management and Response to COVID-19 to provide support for sectors enduring pandemic-induced challenges. The third pillar seeks to adhere to the country’s administrative reform.
Head of Government Saad Eddine El Othmani acknowledged that the economic repercussions of COVID-19 have been notable, announcing the government’s plans to freeze hiring in the public sector next year.
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
There could be a sharp decline in foreign direct investments (FDIs) this year due to the Covid-19 pandemic. Last year, the region posted mixed fortunes with inflows to Uganda increasing by 20 per cent to $1.3 billion due to continued development of oil fields and an international pipeline, as well as projects in construction, manufacturing and agriculture.
James Zhan, Unctad director of investment and enterprise
Inflows to Kenya however dropped by 18 per cent to $1.3 billion compared with $1.6 billion in 2018, despite several new projects in information technology and healthcare.
There could be a sharp decline in foreign direct investments (FDIs) this year as the Covid-19 pandemic continues to ravage economies across the globe. The latest World Investment Report 2020 by the United Nations Conference on Trade and Development (Unctad) shows that FDIs in East Africa declined by nine per cent to $7.8 billion in 2019, from $9 billion in 2018.
Last year, the region posted mixed fortunes with inflows to Uganda increasing by 20 per cent to $1.3 billion due to continued development of oil fields and an international pipeline, as well as projects in construction, manufacturing and agriculture.
Inflows to Kenya however dropped by 18 per cent to $1.3 billion compared with $1.6 billion in 2018, despite several new projects in information technology and healthcare. In Tanzania, inflows remained largely unchanged at $1.1 billion. Ethiopia is still the biggest FDI recipient in the region despite recording a decline in 2019 after attracting inflows worth $2.5 billion, from $3.3 billion in 2018. The drop was attributed to instability in certain parts of the country, including regions with industrial parks.
The report forecasts FDI inflows to the continent will fall by 25 to 40 per cent in 2020, exacerbated by low commodity prices. “Although all industries are set to be affected, several services industries including aviation, hospitality, tourism and leisure are hit hard, a trend likely to persist for some time in the future,” said James Zhan, Unctad director of investment and enterprise. The decrease comes after the continent recorded a 10 per cent decline in FDIs flows to $45 billion in 2019 from $46 billion in 2018.
In Africa, Egypt remained the largest FDI recipient in 2019 with inflows increasing by 11 per cent to $9 billion despite a cumulative 11 per cent decline in the North Africa region to $14 billion. It was followed by South Africa with FDI of $4.6 billion, a 15 per cent decline from 2018, and Nigeria with a $3.3 billion, a decline of 48.5 per cent driven by a slowdown in investment in the oil and gas industry.
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
July 8 was all like every normal day, focused on work. I had no inkling there would be a storm, even though we have weathered many storms and floods in Abidjan in recent times. Like a jolting bolt of thunder, everything changed when my wife, Grace, called my attention to a news item that the Prime Minister Amadou Gon Coulibaly had died. I told her this couldn’t be true as he just came back and as far as I knew he was fine.
Prime Minister Amadou Gon Coulibaly
I quickly went to look at the news. I had not seen any official confirmation. I made frantic calls. Alas! Amadou Gon had died indeed. What a tragedy! This was a storm with massive lightning like no other. I couldn’t control my sadness. This man who had served his nation so loyally and with such dignity has passed on, while at work.
My thoughts went to his dear wife and family who have been thrown into sorrow, suddenly. My mind went to President Alassane Ouattara, to whom he was a beloved son, a loyal partner and confidant for some 30 years. My mind went to the government of Côte d’Ivoire, and the nation where I lived for 5 years in the 1990s and now for another 5 years so far as President of the African Development Bank. A beautiful nation whom Amadou Gon served dutifully, diligently, passionately and faithfully until his last breath.
Amadou Gon was an exemplary leader. He was my friend. I remember calling him while in Paris. I was concerned about him and although we had exchanged messages, I still was not satisfied. I wanted to hear his voice. We spoke. I was very happy he was well.
Amadou Gon deserved to be well. He was such a great champion of programs to accelerate the development of his country. He carried the vision of the President and the government wholeheartedly into every meeting, into every discussion. We met very often, and every time I was always amazed at how this very humble and serious minded public servant always put the development of his country first.
He worked very closely with the African Development Bank. He visited the Bank several times and took great interest in all matters that affect the Bank. He worked so hard with the Bank and several development partners to bring life to the social development policy of the government.
Dr. Akinwumi Adesina, President of the African Development Bank Group
A humble man. A selfless man. A faithful man. A shining light. We met and spoke together on several forums around the world: on the plane, at airports, in high level forums and summits. My impression of him was the same: calm; wise; insightful. A man of few words, whose every word was always well honed for impact. He spoke always from his heart. And he had a heart of gold.
My heartfelt condolences go to his dear wife and family, and his aged mother. May God comfort them. My heartfelt condolences go to President Allassane Ouattara, President of the Republic of Côte d’Ivoire. Mr. Président, you have lost your closest ally and confidant, who served you and his nation faithfully until his last breath, working for the good of Côte d’Ivoire. May God comfort you, the government and good people of Côte d’Ivoire.
My dear brother, Amadou Gon, thank you for your friendship. I was looking forward to us meeting again, in our usual warm brotherly embrace, to chat on your favorite topic: development of Côte d’Ivoire. But Alas! That is no longer to be. I guard emotions and memories of your life – your great life; and dedication and contributions to your nation. Thank you Prime Minister Amadou Gon Coulibaly. Thank you my dear friend and brother, Amadou Gon. Rest well. You will be sorely missed.
Akinwumi Adesina is the President of African Development Bank
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
This is not the best of times for Wheat Farmers in the North African region as the impact of recent drought has wreaked havoc on production. A release from the United States Department of Agriculture (USDA) says that there is as much as 60% reduction in production in the region. The massive drop in production is not unconnected with the recent heat waves and dry weather conditions which strained Morocco’s agricultural production. The Ministry of Agriculture estimates a 42% decrease in cereal production, causing the government to increase imports to meet consumer demands.
Morocco’s domestic wheat consumption is approximately 47.1 million tons. However, current production stands at 17.4 million tons. The shortage has also led Moroccan authorities to forgo typical tariffs on wheat that are used to protect local farmers. The Ministry expects to resume tariffs on wheat before the start of 2021.
Moroccan wheat imports have already seen a significant increase over the past two years. In 2018, Morocco imported 3.7 million tons of wheat, compared to 5.1 million tons in 2019. In the past year, imports have increased to 5.8 million tons. Other North African countries such as Tunisia and Algeria are experiencing similar poor harvests and decreases in production. Although Egypt, with greater irrigation areas, has been spared the severity of drought and agricultural impact.
Morocco’s Ministry of Agriculture remains optimistic about the country’s agricultural GDP and reports that crops other than wheat are doing well. Agricultural products such as citrus fruits and olive trees may offer hope for some farmers and keep the agricultural GDP loss at no more than 5%.In June, the Ministry of Agriculture reported that Morocco had harvested 1.3 million quintals of wheat since mid-May. At the time, the Ministry expressed satisfaction with the outcomes, noting collaboration and productivity within the agricultural sector, stakeholders in marketing, and imports.
In recent months, regions throughout the country have struggled to maintain sufficient water supply for irrigation systems. The Moroccan government has taken several initiatives to begin improving the retention rates of dams and address the need for infrastructural development throughout the country.
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
Plans by Ugandan fintech startup bank Eversend to expand operations especially with its cross-border money transfers and fully digitalise its products in line with its virtual, digital-only platform has attracted the right attention as it was able to raise over $1million through crowdfunding. Eversend, a digital-only finance platform providing cross-border money transfers among other services was able to close an oversubscribed Seedrs crowdfunding campaign having secured EUR897,000 (US$1.015 million) in investment.
Eversend Founder and CEO Stone Atwine
Established in 2017, Eversend also provides multi-currency wallets and currency exchange, and plans to offer personal loans, savings, group savings, merchant payments and investments in the future. Available on Android and iOS, the startup has over 40,000 registered users and is growing at around 30 per cent month-on-month.
The startup has acquired a money lending license in Uganda, and taken part in programmes such as the Google Launchpad Africa accelerator, CATAPULT: Inclusion Africa, the Westerwelle Young Founders Programme, and the Ecobank Fintech Challenge. In November 2019, competing against 1,700 companies, it was named winner of the Helsinki-based Slush startup competition. Eversend launched its Seedrs campaign targeting a raise of EUR550,000 (US$613,000) in return for 7.67 per cent equity, but ended up raising substantially more. In the end, the startup raised EUR897,000 (US$1.015 million), valuing the business at EUR6,616,739 (US$7,373,065).
The crowdfunding forms part of a wider funding round being raised by Eversend, which is in the process of being completed. The startup will use the funds for product development, user acquisition, and regulatory compliance, while it also intends to expand its offering to Nigeria, Francophone Africa, and Europe. Some of the funds will remain in company accounts as working capital to beef up Eversend’s netting off reserves.
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
Buoyed by plans to expand its lending portfolio to accommodate its growing clientele base, Zambia’s gender focused microfinance startup Lupiya has raised a US$1 million funding round to help it continue to scale and roll out its services that ensure Zambians, especially women, are able to participate in the economy through its financial inclusion strategy. The branchless digital microfinance platform that leverages technology to make the process of borrowing simpler and easier for people and businesses located across the country has in recent times witnessed a growth in client base driven primarily by its accessibility and ease of engagements with customers.
Lupiya chief executive officer (CEO) and co-founder Evelyn Kaingu
The funding which comes from Enygma Ventures, a $6.8 million fund launched late last year with a focus on investing in women entrepreneurs in the southern Africa region will help in the scaling up process of the microfinance bank so says the CEO of Lupiya Evelyn Kaingu. Kaingu who is also the co-founder of Lupiya said that “we are thrilled with this investment, it has come at the right time in the interesting financial climate many businesses are experiencing as a result of the COVID-19 pandemic,” said Lupiya chief executive officer (CEO) and co-founder Evelyn Kaingu.
The investment will enable Lupiya to continue ensuring Zambians can easily access financial services when they need them. With around 70 per cent of Zambians lacking the necessary collateral to secure a loan, the startup works to close this gap.
“We are excited to partner with Lupiya to make an extraordinary difference to the lives of particularly female Zambian business owners, who run small and medium sized businesses,” said Sarah Dusek, managing partner and co-founder of Enygma Ventures. “We believe the access to capital is a key strategic initiative to enable job creation, enterprise stimulus and in turn economic growth.”
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
Defying the negative impacts of the Covid-19 pandemic, a Zimbabwean entrepreneur has launched the first local brand of hand-rolled cigars in the continent of Africa with plans to produce more than 252 million kilogrammes of tobacco making it the sixth largest producer in the world. Nearly all of it is the “golden-leaf” Virginia used for cigarettes and most of that is exported to China, Germany and other international markets. Upon returning last year to his homeland after 15 years working in the United States, Shep Mafundikwa was determined to start a business that would “benefit” Zimbabwe.
Shep Mafundikwa
“Though I am not a smoker, I noticed a preponderance of cigar lounges across the United States and decided I’d try to corner some of that market,” said Mafundikwa, 54, who worked for an American airline. He started with trips to Cuba and the Dominican Republic, both premium cigar producers, where he recruited Dominican cigar-rolling maestro Elias Lopez. The pair selected air-cured Burley tobacco, a darker variety that accounts for a small percentage of local production.
In May, Mafundikwa launched Mosi Oa Tunya Cigars — the local Lozi name for the Victoria Falls, which translates to “the smoke that thunders”. “It was like building a house from scratch,” Mafundikwa recalled. “Though I had settled on hand-rolled cigars there was still equipment needed.”One of the first setbacks was the brittle nature of Zimbabwe’s tobacco, which forced Mafundikwa to import special wrappers. When the coronavirus hit Zimbabwe in March, progress was delayed for weeks by a country-wide lockdown.
Mosi Oa Tunya eventually opened in May and Lopez has since been teaching seven Zimbabwean women the craft of rolling cigars.
“They are rolling about half of the more than 200 cigars a day they should roll when they have the experience,” said Lopez, whose eventual target is 2,000 cigars per day. Mafundikwa deliberately recruited an all-female rolling team to “empower women” and “provide them with an income”. Zimbabwe’s economy has been crippled by years of mismanagement and corruption under the late ex-president Robert Mugabe that forced millions to leave the country. Galloping inflation has wiped out savings and caused most companies to collapse or relocate.
Manufacturing is limited and more than 80 percent of Zimbabweans are out of work. “I was unemployed but can now support my family,” said cigar roller Gamuchirai Chibaya. “We all see a future here.” Mosi Oa Tunya cigars come in different sizes, prices and flavours that send wafts of cherry and vanilla across the factory.Mafundikwa said he was targeting both seasoned and novice smokers. The idea (of smaller size) is to provide an option for those who cannot afford to buy the cigars,” he added.Restaurant-owner Peter Mubi is a member of Zimbabwe’s small community of cigar aficionados. He was enthusiastic about Mosi Oa Tunya and said he plans to stock the brand once his restaurant — shuttered by coronavirus — reopens.
“Refined taste and aroma without being too strong,” Mubi exclaimed, pointing to the finger of ash clumped beyond the cigar’s burning tip — a sign of “good quality”. Gun shop owner Preemesh Mohan Doolabh considers Zimbabwean cigars to be of similar quality to Cuban brands. “If you blindfolded me and made me smoke both, I wouldn’t be able to tell the difference,” he said.
As the brand seems to have passed muster at home, Mafundikwa is eyeing new markets abroad, where he will go up against the Cuban and Dominican brands that inspired him. Mosi Oa Tunya also has African brands to compete against: Morocco’s Habanos, which is seeking to expand to the US, and another new southern African manufacturer — Mozambique’s Bongani luxury cigars.
Many Cigar enthusiasts across Africa have welcomed the development as overdue judging from the quantity of tobacco Africa exports annually to Europe and North America. They however, urged African producers to cultivate the staying power to build brand and breaking into market stressing that it takes a long time for cigars to go from basic to premium, regardless of actual quality. “If they don’t have enough market in their local space, it’ll be really tough”, a Cigar expert in Lagos said, adding that “I don’t know about cigar culture in their home country, but it is still quite niche in South Africa and Nigeria, for instance where I belong to cigar clubs”. Giving example with the Arturo Fuente brand, he said that “while they may not be competing with storeyed Habanos like Cohiba and Partagas, they sell about 40 millions cigars annually and have kept their space in the premium cigar lounges, yet they are Dominican and started like 100 yrs ago, helped by Cuban embargo, but struggled to achieve premium status and gain market share until the 70s”. I’ll be looking out for this African brand and hoping they succeed, he concluded.
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
Already designated as the world’s next travel and aviation market, Africa’s travel and tourism industry have suffered a big blow to its growing hospitality industry upon which many countries hinged hopes of economic diversification away from natural resources. Already lost $55 billion due to the closure of borders across the continent in attempts to stave off the spread of the novel coronavirus, and without likely expensive bailouts from governments like their counterparts all over the world, African aviation industry is in a dire situation.
Amani Abou-Zeid, Commissioner for the African Union
According to the African Union, a continent where safaris are a powerful overseas tourism market, the sector has been crushed by hard lockdowns that sealed air, land and sea borders. Africa’s travel and tourism industry have lost $55 billion due to the closure of borders across the continent in attempts to stave off the spread of the novel coronavirus. “The impact is really severe,” says Amani Abou-Zeid, Commissioner for the African Union during a virtual briefing organised by the World Economic Forum and the WHO within the week.
“We are talking here about $55 billion lost within three months in a year when we were supposed to see an increase in travel and air transport.” Adding that there are airlines that may not survive COVID-19.
She would go on to say that, in Africa, tourism is not a luxury but a livelihood for millions across the continent. Times Live writes that countries in Africa are forging ahead to re-open air traffic and save their massacred tourism industries despite a steady rise in infections. A handful of states opened their borders last week, countries like Zambia and Sierra Leone. Senegal is set to re-launch international air-travel from 15 July. “As we are going to open… we are also now pushing for intra-African tourism,” Abou-Zeid says. She calls for “Africans to see Africa” and pushes for lower taxes, reduced ticket fares and visa facilitation to encourage tourism between African nations.
Prosper Zo’o Minto’o of the International Civil Aviation Organisation (ICAO) says that the impact the virus has had on the African airline industry is ‘alarming.’ Zo’o Minto’o estimates that a $20 billion stimulus package, at the very least, would be required to aid the industry back into the sky as it was before the pandemic struck.
As of now, the continent has recorded more than 420,000 COVID-19 cases and over 10,000 deaths. South Africa is the hardest-hit country in sub-Saharan Africa, accounting for a third of total numbers in the region.WHO regional chief Matshidiso Moeti has warned of a “certain underestimation of cases” due to test kit shortages and the tendency to test only symptomatic patients.
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
The short-term shock of the COVID-19 pandemic and its economic fallout will have a significant impact across Africa. But the continent has a newfound resilience and will come back stronger, especially if African governments seize the current opportunity for effective leadership argues Landty Signe.
Despite apocalyptic predictions, Africa may be better positioned than many think to weather the combined shock of the COVID-19 pandemic, collapsing commodity prices, and global economic recession, assuming its leaders act wisely. While African economies’ performance has varied, overall progress during the last two decades has made the continent more resilient than ever before.
Landry Signé, a professor and co-director at Arizona State University’s Thunderbird School of Global Management
The worse economic fundamentals and forecasts become, the more mysterious stock-market outcomes in the US appear. At a time when genuine news suggests that equity prices should be tanking, not hitting record highs, explanations based on crowd psychology, the virality of ideas, and the dynamics of narrative epidemics can shed some light.
In my book Unlocking Africa’s Business Potential, I analyze the continent’s ongoing transformations and new economic opportunities. Applying that analysis today, six trends in particular will help to reduce the impact of the current crisis.
First, African economies are becoming increasingly competitive. Although the majority of African countries rank toward the bottom of the World Economic Forum’s 2019 Global Competitiveness Index 4.0, Mauritius, South Africa, Morocco, the Seychelles, Tunisia, Algeria, Botswana, Egypt, Namibia, Kenya, and Rwanda are all in the top 100. In addition, improved macroeconomic policies have enabled countries such as Ethiopia, Côte d’Ivoire, and Ghana to achieve significant GDP growth rates in recent years.
Second, Africans support the ongoing trend toward better and more accountable governance resulting from democratic elections, term limits, and increased civic participation. Over the last five years, Afrobarometer surveys have indicated that 68% of Africans prefer democracy, 75% support two-term limits for leaders, and 62% think that citizens must hold governments accountable, even if it slows down decision-making.
Recent political leadership changes and overall governance improvements reflect not only the vertical accountability that citizens exercise through elections. African countries have also made progress on horizontal accountability, involving government checks and balances, as well as what might be called diagonal accountability, or the effect of personal responsibility on institutions.
The third positive trend is demographic. Sub-Saharan Africa’s population is expected to increase from 1.1 billion to 1.4 billion by 2030, 2.1 billion by 2050, and about 3.8 billion by the end of the century. In 2030, over half of the continent’s population will be concentrated in seven countries: Nigeria, Ethiopia, the Democratic Republic of the Congo (DRC), Egypt, Tanzania, Kenya, and South Africa. The first four will each be home to more than 100 million people.
The share of Africans with available discretionary income will also grow, and is expected to surpass 43% by 2030. To support this trend, leaders should pursue policies that ensure that economic growth outpaces population growth, and that support the creation of quality jobs. Effective pro-poor interventions are also essential.
Moreover, Africa is currently the fastest-urbanizing region in the world. By 2035, over half its population will live in cities, and by 2050, nearly 60% will. These cities’ concentrated skilled workforces and relatively wealthy consumer bases will offer attractive opportunities for investors.
And, in recent years, child mortality in Africa has declined while fertility rates have remained unchanged, thus creating a demographic dividend. Today, the continent has one of the highest dependency ratios in the world, owing to the large number of children under the age of 15. But by 2030, they will be Africa’s workers and consumers.
Fourth, Africa’s innovative and productive potential has already attracted substantial foreign investment and finance. In the agriculture sector, for example, European, Chinese, Saudi Arabian, South Korean, and Indian companies are investing billions of dollars to buy or lease large areas of farmland. And countries such as Cameroon, the DRC, Ethiopia, Kenya, Madagascar, Mozambique, and Senegal are growing a variety of exportable produce, including flowers, lentils, palm oil, rice, sugar cane, bananas, and corn. Though the COVID-19 crisis may weaken investment in the short run, the continent will attract higher investment inflows in the longer run.
Fifth, Africa continues to diversify its trade patterns. Although trade with China, the United States, and the European Union still accounts for more than 30% of the continent’s total imports and exports, emerging trade partners are taking ever larger shares. For example, Africa’s trade with Brazil, India, Indonesia, Russia, and Turkey more than doubled between 2006 and 2016.
Furthermore, the African Continental Free Trade Area – a single continent-wide market for goods and services, with free movement of capital and people – entered into force last year, with 54 countries on board. The AfCFTA’s operational launch, however, has been delayed, due to COVID-19.
Once fully operational, the AfCFTA will likely transform the structure of African economies by moving them away from low-productivity, labor-intensive sectors and toward higher-productivity, skills-intensive industrial and service activities. And by promoting intra-African trade, the agreement will foster a more competitive manufacturing sector, promote economic diversification, and encourage firms to benefit from continent-wide economies of scale. In short, the AfCFTA will enable countries to reduce poverty and accelerate their development by unlocking business potential and creating desperately needed and better-paid jobs.
Last but not least, African firms and countries are well placed to benefit from the Fourth Industrial Revolution (4IR), which is being driven by new digital technologies such as the Internet of Things, artificial intelligence, biotechnology, and 3D printing. By integrating 4IR technology into their current operations, companies will be able to leapfrog legacy infrastructure, strengthen Africa’s health-care systems and response to infectious disease, revitalize public-sector support, and establish mutually beneficial public-private partnerships.
Africa is also benefiting from the rapid expansion of its mobile broadband networks, which can attract investors to the information and communications technology sector. Kenya and Rwanda, for example, are implementing national strategies aimed at fostering technology adoption and innovation, while countries such as South Africa, Nigeria, and Egypt host a significant number of tech hubs. And creative entrepreneurs are launching a broad range of services to meet the needs of Africa’s citizens, with technology ranging from mobile applications for health care and agricultural finance to 3D printing of titanium metal parts.
The short-term shock of the pandemic and its economic fallout will have a significant impact across Africa. But the continent has a newfound resilience and will come back stronger, especially if African governments seize the current opportunity for effective leadership.
Landry Signé, a professor and co-director at Arizona State University’s Thunderbird School of Global Management, is a senior fellow at the Brookings Institution, a distinguished fellow at Stanford University, a World Economic Forum young global leader, and the author, most recently, of Unlocking Africa’s Business Potential.
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
The Moroccoan Government Council has adopted a draft of its amended 2020 finance bill. The Council chaired by Head of Government Saad Eddine El Othmani adopted after presenting it to King Mohammed VI on Monday, said Government Spokesperson Saaid Amzazi on July 7. Government sources say the finance bill amendments came in response to the COVID-19 pandemic and the different mutations in national and international economic contexts. During the presentation, Minister of Economy Mohamed Benchaaboun emphasized that the amended finance bill focuses on three main axes, namely the progressive restart of economic activity, the preservation of jobs, and the acceleration of administrative reforms.
Minister of Economy Mohamed Benchaaboun
The legal text insists on the establishment of sectoral conventions to relaunch Morocco’s economy, taking into consideration the specificities of every sector and the impacts of the COVID-19 crisis. The updated finance bill allocates MAD 5 billion ($518 million) to accompany businesses in their relaunch period, including public enterprises. The budget would allow companies to benefit from loans with a maximal interest rate of 3.5% and a reimbursement period of seven years.
Moroccan businesses will also benefit from a two-year grace period and a state-guarantee of the loans. The Moroccan government, through the Central Guarantee Fund (CCG), will guarantee 80% to 90% of the loans. The guarantee rate could also reach 95% for micro-sized businesses. Under the new finance bill, CCG would undergo institutional reform by adopting better international practices, optimizing its governance, modernizing its financial management, and adapting new monitoring and management protocols.
The rectified finance bill also allocates an additional MAD 15 billion ($1.55 billion) for public investments, increasing the total 2020 budget for public investments to MAD 86 billion ($8.92 billion), in order to accelerate the national economy. Regarding the preservation of jobs, the recently-approved legal text would facilitate both social and economic support for sectors in difficulty, such as transportation and tourism.
The new bill allows 80% of employees registered under the National Social Security Fund (CNSS) and working in hard-hit sectors to keep their jobs. It also allows the acceleration of the registration process for non-declared employees. Finally, in terms of administrative reforms, the amended finance bill aims to strengthen the business climate by simplifying and digitizing administrative procedures and generalizing payment through electronic methods.
The Moroccan government studied different macroeconomic scenarios and estimated that the gross domestic product could decrease by 5% in 2020, while the state budget deficit could reach 7.5%.
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
