The World Bank has classified Mauritius as a high-income country for the first time, joining Seychelles as the second high-income economy in Africa. The institution classifies the world’s economies into four income groups — high, upper-middle, lower-middle, and low. This is based on Gross National Income (GNI) per capita (current US$), calculated using the Atlas method. The classification is updated each year on July 1st based on the previous year’s national account information and using data provided by Statistics Mauritius for 2019.
‘It is important to note that this classification is done over 2019 data and thus does not yet reflect the economic impact of Covid-19’, said Erik von Uexküll, WB Country Representative for Mauritius. ‘It is possible that a strong recession this year due to Covid-19 would cause Mauritius to temporarily return to upper-middle income level next year once the 2020 data is considered. But in a longer-term perspective, this is a great achievement that reflects the efforts and dedication of generations of Mauritians to build a better future for their children, and I would like to congratulate the people of Mauritius for reaching this milestone.’
According to the figures released by the World Bank, Mauritius’ GNI per capita for 2019 is US$12,740, a 3.5 percent increase over the 2018 figure. The annually adjusted high-income threshold is now at US$ 12,535.
Low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,035 or less in 2019. African countries that made this round include: Guinea-Bissau, Sierra Leone; Burkina Faso; Somalia; Burundi; South Sudan; Central African Republic; Liberia; Sudan; Chad; Madagascar; Congo, Dem. Rep; Malawi; Eritrea; Mali; Togo; Ethiopia; Mozambique; Uganda; The Gambia; Niger; Guinea; Rwanda.
Lower middle-income economies are those with a GNI per capita between $1,036 and $4,045. African countries that made this list include: Angola; Algeria; Kenya; Benin; Senegal; Capo Verde; Lesotho; Tanzania; Mauritania; Cameroon;Tunisia; Comoros; Congo, Rep.; Côte d’Ivoire; Morocco; Djibouti; Egypt, Arab Rep; Zambia; Eswatini; Nigeria Zimbabwe; Ghana.
Upper middle-income economies are those with a GNI per capita between $4,046 and $12,535. African countries that made the list include: Botswana; Equatorial Guinea; Gabon; Libya; Namibia; South Africa.
High-income economies are those with a GNI per capita of $12,536 or more. African countries that made this list include: Mauritius and Seychelles.
For more details on the World Bank’s income classification:
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
To strengthen and drive its innovations in response to competition, Mobile Telecommunications Network (MTN) has swapped CEO’s across three African countries. The countries are Benin, Cameroon, and Liberia. With the new development, the CEO of MTN Benin will move to Cameroon, while the CEO of MTN Liberia will take over at Benin.
Stephen Blewett will now be Country CEO in charge of operations in Cameroon, and with this appointment, Blewett who presently heads MTN operations in Benin Republic, will now move to Cameroon to manage the Group’s larger business in the central African country. Blewett who is vastly experienced in the field of telecoms was formerly CEO of Altech Autopage Cellular, will take the helm in Cameroon on 1 August when Uche Ofodile, the current CEO of MTN Liberia, will become the CEO of the Benin business.
“Under Stephen’s leadership, MTN Benin recorded double digit revenue growth for three years running,” said Karl Toriola, vice president for MTN’s West and Central Africa region, in a statement. “Uche leaves a business with double digit year-on-year revenue growth, enjoying a nine-point market share improvement against its competitor.”
Blewett’s time in Benin has not been without incident. In 2017, he was ordered by the government to leave the West African country Blewett has been CEO of MTN Benin, an operation of 5.5 million subscribers, for the past five years. His time in Benin has not been without incident. In 2017, he was ordered by the government to leave the West African country. This was after it emerged that the telecommunications regulator there was claiming US$213-million in spectrum fees. The dispute was subsequently resolved and Blewett returned to the country — but only six months after he was expelled.
In Cameroon, Blewett will replace Hendrik Kasteel, who left MTN Group in March. Since then, MTN Cameroon chief financial officer Ebenezer Bodylawson has been acting CEO, steering the operation of more than 10 million subscribers. Ofodile joined MTN in 2018. Since then, she has repositioned MTN Liberia as a competitive player in the market and grown its customer base to 1.45 million, the group said.
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
Growing backlash against racism and traces of slave past has consumed its latest victim in the entertainment industry with the sledgehammer on five Leon Schuster movies which Showmax said have negative racial correlation. According to the MultiChoice Group-owned streaming media platform Showmax, the five Leon Schuster-made movies has been permanently removed because the titles contain “negative racial stereotyping and prominent elements of blackface”.
Seven titles have been removed in total in an “initial review of the content on Showmax”. The streamer earlier removed all Schuster movies from its platform pending the review.“Of the six Leon Schuster movies reviewed, we will be reinstating Frank & Fearless. The other five will not be returning. We recognise these movies are a product of their time and were created with positive intent,” Showmax said.
“Showmax is an entertainment service and we don’t endorse the views or actions that take place in the shows and movies on our platform. It’s not our place to tell people what is right or wrong, nor what they should find offensive. But we will make decisions as to what content we are comfortable hosting,” it said in a statement.
“We believe that platforms such as ours have a role to play in bringing people together through shared experiences. We don’t want to shy away from polarising topics but we also don’t want to sow division. We won’t always get the balance right but we’ll do our best to listen and to learn from our mistakes.”
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
Telma Madagascar has switched on its 5G commercial network to offer subscribers high-speed services enabled by the new generation of mobile connectivity and powered by Ericsson, the 5G network is now live in multiple cities in Madagascar.
“Today’s announcement marks an important milestone in our long-standing partnership with Telma, as we launch the first 5G network in Madagascar. 5G will accelerate the digital transformation of all society sectors as well as industries in the country, enabling new opportunities and applications in areas such as healthcare, education, energy services and agriculture. We look forward to driving joint innovations with Telma, bringing our industry-leading technology in support of Madagascar’s connectivity vision and our commitment to Africa,” Fadi Pharaon, President of Ericsson Middle East and Africa, says.
Here Is What You Need To Know
Telma activated the 5G network on 3.6–3.7 GHz mid-band using the latest radio access and transport products from the Ericsson Radio System portfolio.
With Telma’s launch, Ericsson currently has 41 live 5G networks in 24 countries. Ericsson’s live networks are part of the 95 commercial 5G agreements or contracts the company has with unique operators globally, of which 55 are publicly announced 5G deals.
Two key 5G use cases for the Madagascar market are enhanced mobile broadband (eMBB) and Fixed Wireless Access (FWA).
With greater capacity, higher data speeds and reduced latency, 5G will power new experiences for Telma customers, from gaming and entertainment services, to IoT and business applications.
Healthcare and education are areas that will deeply benefit from this technology.
Ericsson was selected by Telma in October 2019 to upgrade its core and radio network in Madagascar building on the two companies’ existing 5G partnership.
“5G will transform how we use and adopt technology and will have a huge impact on businesses and society in Madagascar. It will bring high speed, ultra-low latency and highly secure connectivity to a massive number of devices and is a technology that will unlock a vast array of new use cases through Telma’s next-generation network. We are very proud to be among the first countries in the world to roll out this technology. It’s a new step ahead for Madagascar as one of the leading ICT countries in the Indian Ocean and Africa,” Patrick Pisal Hamida, CEO, Telma Madagascar, says:
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
The recent travel restrictions placed by the European Union coupled with restrictions of visa issuance are de facto preventing a lot of projects to move forward and to successfully contribute to the recovery of the continent warns the African Energy Chamber. The continuation of travel restrictions and suspension of visas and travel between Africa and Europe is heavily restraining the oil & gas industry’s recovery efforts. Because of its international nature, the oil & gas sector relies on global value-chains and successful cooperation and movement of people, goods and services between foreign and local contractors. The ongoing travel bans and restrictions of visa issuance are de facto preventing a lot of projects to move forward and to successfully contribute to the recovery of the continent.
Major international oil companies such as Total, BP, Shell, Eni, ExxonMobil, Chevron or Equinor and independents such as Kosmos Energy, BW Energy, Maurel & Prom or Tullow Oil that operate a major share of Africa’s daily oil and gas production are currently unable to operate fully and safely because of such travel restrictions. Similarly, they directly impact the operations of the major international services and EPC companies supposed to work on major projects, such as Saipem, TechnipFMC, Schlumberger or Halliburton.
“We cannot base our recovery narrative and hopes on the oil & gas sector and at the same time forbid the movement and travel of the workers and employees supposed to make that recovery happen,” declared Nj Ayuk, Executive Chairman at the African Energy Chamber. “We are urgently calling for pragmatism and the adoption of realistic measures that put workers’ safety and economic recovery at the center of public and travel policies priorities,” he added.
From West to Southern Africa, landmark energy projects worth billions of dollars have been delayed because of the ongoing pandemic of Covid-19 and its subsequent lockdowns and travel restrictions. However, and as economies gradually reopen, a new wave of travel restrictions, especially on the issuance of visas between Europe and Africa, is adding up to the list of challenges the industry faces to play its key role in the continent’s economic recovery. Such restrictions are threatening the efficient operations of global value-chains whose functioning is critical to enable Africa’s energy projects to move forward.
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 the continent of Africa to achieve quality and robust economic recovery, there is the need to open windows of opportunity to investments from different parts of the world instead of pursuing a narrow investment approach. This formed the thought behind President Paul Kagame’s invitation to American investors to participate in economic opportunities as Africa emerges out of the Covid-19 recovery process for mutual benefit.
The President made the call while opening the four-day Corporate Council on Africa (CCA) Leaders Forum. The CCA, which was established in 1993, promotes business and investment between the United States and African countries. Opening the forum, the President said that there are mutually beneficial opportunities emerging as the continent seek to recover and get past the pandemic. Last week, the African Union launched a medical supply platform pooling the procurement of essential health items implemented in partnership with the African private sector.
The initiative is spearheaded by business magnate Strive Masiyiwa at the African Union’s invitation. Kagame noted that there is room for American private sector participation in the initiative. Another aspect that has room for collaboration he said is ensuring adequate fiscal space for Africa which is essential for a sustainable public health response as well as to preserve jobs and livelihoods.
An additional opportunity on the continent is to work together in trade especially with the upcoming launch of the African Continental Free Trade Area. “The US has been a strong supporter of development through trade such as with AGOA, as these internal trade obstacles continue to fall, we look forward to strong engagement from American companies and investors working together with African firms,” Kagame said.
Kagame said that in response to the pandemic and its effects, closer and stronger cooperation between countries and partners will allow for better and stronger response as countries strive to deal with public health challenges, trade and business.”Free trade benefits more from the understanding that we cannot avoid working together if we want to thrive,” he added. Highlighting Rwanda’s recovery outlook, the Head of State said that the local economy prior to the pandemic was strong, stable and with growth in the medium and long term assured. This, he said, gives the government confidence in investing in the recovery of the economy.
He also noted that the Covid-19 curbing measures such as lockdown, testing, tracing among others had proven to be effective as the country continues to see recoveries. The first case of Covid19 was reported in Rwanda about 100 days ago.The summit was held under the theme: “Resilient U.S.-Africa business engagement to drive post-Covid-19 recovery”.
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
Many African countries have identified digital taxation as the best way to improve revenue generation and also curb corruption within taxation procedures. This is the drive behind efforts by Kenya to inch towards full digitalization of its taxation procedures. Following the footsteps of South Africa, Kenya and Nigeria are rethinking the need to broaden the discourse on digitalization of tax processes. Six years ago became the first country on the continent to introduce taxes on e-services. South Africa’s method was to make registration within the country an obligation once companies crossed a threshold of over ZAR50,000 ($3500 at the time). The threshold has changed since then and from April 2019, became ZAR 1 million ($70,500).
Other countries on the continent are now playing catch-up with Kenya passing its finance act into law in 2019 with countries like Nigeria following suit with the passage of its finance bill .In Kenya, the biggest change in its finance act was the decision to expand the tax base with the introduction of digital taxes. The country is also making digital market services subject to VAT.
According to the country’s finance act “Income from a digital marketplace includes income accrued in or derived from Kenya. Digital marketplace is defined as ‘a platform that enables direct interactions between buyers and sellers of goods and services through electronic means”.Kenya’s finance act will impose a 1.5 per cent tax on the gross transaction value of digital Services as well VAT at 14 percent on a number of goods.
With a global recession on the horizon and many countries facing potential loss of revenues because of COVID-19, the timing for a conversation on taxes could not be better. It is important to also note that the OECD is also in the process of releasing guidelines for digital taxes globally .But Kenya is not waiting, especially since it has a Sh2.7 Trillion ($25 bn) 2020/2021 budget to finance, and a huge deficit looming is not the best economic outlook for the East African country.
According to the World Bank’s recent outlook on Kenya “The COVID-19 shock is expected to further reduce growth… with large impacts on services (transport, retail trade, tourism, events, leisure, etc), industry (manufacturing and construction), and agriculture” Despite the economic imperatives, the big question for Kenya is how it will implement its new tax regime.
While ride-hailing platforms like Uber demanded for clarifications of the finance law since 2019, there has been little certainty as to how the finance bill would be implemented in Kenya. But we can now see the first signs of implementation. Earlier in the week, the Kenya Revenue Authority (KRA) set up a new unit to track revenues generated from every digital transaction within the country.
According to the KRA’s deputy commissioner of policy and domestic taxes, Caxton Masudi: “to ensure that the digital market sector pays their fair share of taxes, KRA has set up a dedicated unit to facilitate the taxpayers in this sector in the determination and accounting for taxes,”The commissioner also said that they will use “transaction tracers” as the taxes begin to be imposed. At this point, what is clear is that services are taxable if they are paid for using a Kenyan Bank, SIM card or Credit card. Access to the Bank or telco information will be possible because of a planned partnership with Kenya’s Communications Authority.
Regardless of the partnership, KRA’s new unit has its work cut out thanks to the expansive scope of taxes it plans to collect. Taxable supplies include; tickets for live events, supply of music and film and any other digital marketplace supply as determined by the commissioner. Despite Kenya’s clear political will to move forward with digital taxes, it is clear that a lot of mistakes will be made along the way until there’s a singular interpretation of its new finance laws.
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
Inspite of new regulations adopted by the European Union in opening the Shengen borders, Italy said it will still be cautious by applying a more stringent rule after the region opens its borders to 14(+1) approved non-Schengen countries on July 1.
The Italian government said yesterday that travelers wishing to visit Italy from outside the Schengen Area will be required to quarantine for 15 days upon entering the country.
In a statement from the government, the Italian Ministry of Health insist that there will be compulsory isolation period from July 1 and continue for a period of at least two weeks. The notice came as the European Union prepared to open its borders on July 1 to 14(+1) to travelers from non-Schengen countries. Despite the EU’s travel permissions, states within the union reserve the right to implement country-specific regulations and travel restrictions.
Considering Italy’s overwhelming number of confirmed COVID-19 cases throughout the pandemic, the country is choosing to open its borders with prudence. The Ministry of Health will permit travelers under specific circumstances including work or study needs, health reasons, and other urgent matters. Approved travelers from outside the Schengen Area will not enjoy the freedom to travel within the country until they complete their quarantine.
“The situation on a global level remains very complex. We must prevent the sacrifices of the Italians from being frustrated in recent months,” said Italian Minister of Health Roberto Speranza after signing the official order. In addition to Morocco, the EU also approved travelers from Tunisia, Australia, Canada, Georgia, Japan, Montenegro, New Zealand, Serbia, South Korea, Thailand, and China to enter the Schengen Area starting July 1. Certain countries’ approval status will remain pending until reciprocity measures are met. Although Morocco’s international land, air, and sea travel remains suspended due to the country’s continued state of emergency measures, sources indicate that Morocco may open its borders not long after July 10.
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’s leading fintech firm, Carbon has proved investors right by highlighting the appeal of fintech transparency with good profitability for a second year running. The company returned a whooping $17 million in revenue as its audited report records $312,905 in profit after tax in 2019. With developments occasioned by the global shutdown Carbon was able to transit from just a lending company which was its initial purpose, to a fully fledged financial services firm with units handling investments, personal finance management, insurance and small business advisory with rumours making the rounds that Carbon has an ambition of becoming a digital bank
Looking at the impact of Carbon last year shows it close to a million loans valued at $64.1million in 2019 with the average loan at $65.8 which company sources say was the same level from 2018. But a larger income tax bill ate into the company’s 2019 balance, reducing net profit by 23.5%. However, the CEO Chijioke Dozie still believes that Carbon is work in progress as he insists there is still a lot of work to be done in terms of becoming more profitable, trying to be as diligent as possible in giving the right loans to the right people. Carbon is driven by the thinking that merely stacking new products on a shiny purple-themed app isn’t a sufficient customer acquisition strategy for a pan-African mission.
Co-founders Chijioke and Ngozi Dozie are credentialed financial professionals, with Ivy League MBAs. They are scions of the Nigerian banking family that ran a bank which, until it was acquired last year by Access, was the country’s most digital-minded bank. There’s a depth of experience and networks in both privileges to draw from while building a new African digital bank. But to truly convince potential users who are more secure with legacy banking, Carbon’s leadership is doubling down on a high level of transparency as both the catalyst and converter. Private companies are not obligated to publish their accounts. African startups who do so tend to be the exception.
However, in relatively low-trust business environments, tech startups – by their frequent reference to “disruption” – take on a burden of proof, to inspire confidence and change perceptions about dysfunction. For the earnest and ambitious, profit and loss statements do not have to be a privilege solely for investors’ consumption. Carbon lent 76% more and, with $17million, accrued 70% more in revenue. But the real metric for progress last year was in the other lines of business feeding its base in Nigeria, and now being exported to Kenya where it launched last December.
According to the report, transactions like bill payments and bank transfers from Carbon wallets increased by a factor of 23, amounting to $141.7million in value. The company introduced the wallet in December 2018 to replace the former process of sending requested loans to customers’ bank accounts. It opened the window for add-ons like loan top-ups, cashback rewards, and loyalty freebies like health insurance. A virtual card for direct withdrawals from the wallet is planned for the coming months.
This plan assumes a progressive shift away in Africa from reliance on traditional offline financial services to more trust in tech. Diversifying from lending alone also has the effect of luring users who may be averse to indebtedness. But Carbon will tailor rollout to the peculiarities of each market. COVID-19 has prevented them settling into Kenya, where there are no less than 50 digital lending platforms competing for an adult population that is over 80% financially included.
Reports of predatory lending have increased red tape in the East African country. A newly gazetted directive bars digital lenders from reporting defaulting borrowers below certain amounts to credit bureaus, among other rules. It increases the time it will take for a new entrant like Carbon to comfortably express its various services. “We haven’t really had a chance to test the engine,” Dozie says, but they have given out enough loans to calibrate their algorithm.
In Nigeria, they have reduced lending to shore up against the uncertainty caused by the pandemic, revising the repayment schedule for 9,016 loans. However, Dozie says they are currently at more than half the level achieved last year, in value and volume.Carbon’s products need overall improvement, in responding to customer complaints (see responses to this tweet) about deductions, and notification lags, among others. The pandemic’s impact on the Nigerian economy could have an effect on the company’s bottom line. Profit in the next report might as well be less impressive than what this year’s report contains.“It will be easier to beat [this year’s] numbers in naira terms, but we are all at the mercy of macroeconomics on the dollar terms,” Dozie says.
He says they will report whatever happens, as part of a long-term pitch to customers who, he believes, will be impressed by an honest expression of financial strength. Otherwise, focus remains on leveraging other strategic moves from 2019, notably the acquisition of payments startup Amplify. The latter’s intellectual property has gone into developing an SME platform, as well as in developing Carbon Express, a smartphone keypad button that can be used for instant transactions within any app.
Carbon acquired Amplify particularly for this feature and their engineering. Maxwell Obi, one of Amplify’s two co-founders who joined Carbon as part of the deal, has left the company, but the others have been instrumental in building valuable aspects like an iOS app.Another value-adding space is credit reporting. Carbon doesn’t produce the reports; they source from partner bureaus, and make them available to customers.
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
Barclays has been granted a Financial Advisory and Intermediary Services (FAIS) license by the Financial Sector Conduct Authority (FSCA) in South Africa. As a result, Barclays Bank PLC bankers will now be able to proactively reach out to and meet individuals in South Africa, to offer the advisory and discretionary products and services offered by Barclays Private Bank.
“We are excited that this licence will allow the Private Bank to service individual clients in South Africa, including the delivery of tailored investment solutions to meet the specific and complex needs of Family Offices and (U)HNWI, while also complementing our existing Investment and Corporate Banking businesses,” Amol Prabhu, Africa Market Head, Barclays Private Bank said.
Amol Prabhu, newly appointed Africa Market Head for the Private Bank will have regulatory accountability for the Africa businesses. Based in Johannesburg, Mr Prabhu has held several roles for Barclays during the past 15-years, most recently leading the establishment of Barclays Investment and Corporate Banking services in Africa.
By leveraging collaboration between Barclays Private Bank, a leading Investment House providing banking and investments services and solutions to Family Offices and (Ultra) High Net Worth Individuals, and Barclays Corporate and Investment Bank, Mr Prabhu will play a key role in the delivery of the full spectrum of the Bank´s capabilities for African clients seeking global and offshore solutions.
“We consider South Africa and the wider African continent to be an exciting growth market for the Private Bank and are pleased to be able to provide our first class global services to Affluent, High Net Worth and Ultra High Net Worth Individuals in the region, whilst also connecting them to the broader Barclays offering. We also look forward to servicing our clients seeking offshore solutions,” Salman Haider, Head of Global Growth Markets, Barclays Private Bank said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.