Beginning October 1, 2019, a 9% levy will be charged mobile phone users for communication services in Ghana.
The Communication Service Tax (CST) was previously set for 6%, however, it was raised to 9% during the presentation of the 2019 Mid-year Budget Review by the Finance Minister.
The Finance Minister, Ken Ofori-Atta, told Parliament that the levy was increased in a bid to build a viable technology ecosystem in Ghana.
MTN Ghana has also circulated the information below on social media.
The Ghana Chamber of Telecommunications explained the implementation of the new levy thus: For every GH¢1 of recharge purchased, a 9% CST fee will be charged leaving GH¢0.93 for the purchase of products and services.
“Dear customer, with the increase in Communications Service Tax — CST to 9%, effective 1st October 2019, CST of 9% will be applied to every recharge. Thank you,” Vodafone Ghana has informed its subscribers.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Nigeria’s Co-Creation Hub (CcHub) which recently acquired Kenya’s largest technology hub, iHub in a landmark deal has announced it is raising US$60 million for its Growth Capital investment arm to boost startups across Africa.
Here Is All You Need To Know
According to the Chief executive officer (CEO)of CcHub Bosun Tijani, the fund was currently in the process of raising US$60 million, which he hoped would be completed within the next 12 months.
CcHub’s Growth Capital is a social innovation fund that supports high potential, early-stage businesses building next generation infrastructure. Its pilot fund has made six investments, in Nigerian startups Taeillo, LifeBank, Riby, Edves, Delivery Science and DrugStoc.
This new, bigger Growth Capital fund will make investments in startups across the continent.
The hub has previously invested in about 25 startups directly through its angel fund and in-house incubation programme.
Startups in Rwanda and Kenya will be among the beneficiaries of the enlarged Growth Capital fund, as will those from other African countries. The fund also sees iHub indirectly fulfil a pledge made in December 2016, when it said it planned to raise a pan-African investment vehicle of its own.
About CcHub
CcHub has been expanding of late, launching a Rwandan hub in February and just last week announcing the acquisition of the Nairobi iHub. The deal brought two of Africa’s flagship tech hubs together to form a pan-African entity focused on accelerating the growth of tech innovation and entrepreneurship.
The iHub, launched in 2010 and home to internationally-recognised companies such as BRCK and Ushahidi, will retain its name and senior management structure, with Tijani becoming CEO across both locations.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
The Nigerian government appears to be abandoning the previously proposed 7.5% VAT increase on all VATable goods and services. Parliament seems to be dancing to a different tune now. The highest legislature in the country, the Senate is proposing to tax Nigerians on all calls, sms or the cable stations they make, send or watch. The tax would be fixed at 9%.
“A 9% communication service tax shall be levied on such Electronic Communication Services like Voice Calls; SMS; MMS; Data usage both from Telecommunication Services Providers and Internet Service as well as Pay per View TV Stations.” Nigerian Senator Ali Ndume, Chairman of the Senate Committee on Army said.
Here Is All You Need To Know
The Bill entitled ‘Communication Tax Bill, 2019 (SB.12)’ sponsored by Chairman of the Senate Committee on Army, Senator Ali Ndume, passed the first reading at plenary on Wednesday.
The bill will now go for second reading before being referred to the appropriate committee for further legislative action including public hearing.
The proposed introduction of the tax is meant to replace the 2.2% increase in the Value Added Tax being planned by the Federal government as announced by Finance and National Planning Minister, Zainab Ahmad, recently.
The Communication Service Tax Bill provides that the rate of the tax is 9% of the charge for the use of the communication service.
A Look At Some Provisions of The Bill
The Bill provides among other things that:
“There shall be imposed, charged payable and collected a monthly Communication Service Tax to be levied on charges payable by a user of an Electronic Communication Service other than private Electronic Communication Services.”
It further provides that
“The tax shall be levied on Electronic Communication Services supplied by Service Providers.”
“For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of Electronic Communication Service.”
The target of the Bill
The targets Tax on the such Electronic Communication Services like Voice Calls; SMS; MMS; Data usage both from Telecommunication Services Providers and Internet Service as well as Pay per View TV Stations,
Once the bill is passed,
“The tax shall be paid together with the Electronic Communication Service charge payable to the service provider by the consumer of the service.”
“The tax is due and payable on any supply of Electronic Communication Service within the time period specified under sub-clause (5) of whether or not the person making the supply is permitted or authorized provide Electronic Communication Services.”
Authority In Charge Of Tax Collection
The Bill provides that:
“The Federal Inland Revenue Service (FIRS) established under section 1 of the Federal Inland Revenue Service (Establishment) Act, 2007 shall be responsible for collection and remittance of tax, any interest and penalty paid under this Bill.”
Consequently, “the FIRS shall pay the tax collected together with any interest and penalty into the Federation Account.”
Who Pays The Tax
Under the Bill, while the tax payers may be the end users of those services proposed to be tax, it is the duty of all service providers to file a tax return to account for the tax.
“The tax return shall be in a form prescribed by the FIRS and shall state the amount of tax payable for the period and any related matters that may be required.
The return and the tax due to the accounting period to which the tax return relates shall be submitted and paid to the FIRS not later than the last working day of the month immediately after the month to which the tax return and payment relates,” the Bill reads in part.
However, under the Bill:
“The FIRS may extend the period within which the tax return may be submitted and payment made on application in writing by a service provider, where good cause is shown by the applicant. “The extension shall (accordingly) be communicated to the applicant in writing and shall state the circumstances under which the tax return shall be submitted for the particular period.”
Penalty For Non-Payment of The Tax
Under the Bill, any “service provider who without justification fails to submit to the FIRS the tax return by the date is liable to a pecuniary penalty of N50, 000.00 and a further penalty of N10, 000.00 for each day the return is not submitted.”
Sponsor of the bill, Senator Ndume while justifying the proposed tax said the imposition of tax on communication service is a better way of distributing wealth in such a way that would not affect the ordinary people. According to him, increasing VAT would have very deadly effect on the economy as it could affect prices of goods and services and take them beyond the reach of the ordinary people.
The Implication of This Bill In Relation To The New Digital Tax Proposed By The FIRS And The Proposed 7.5% VAT
The draftsman of the Bill, by coming up with this Bill, obviously has Nigerian internet users in mind. Recall that Nigeria’s tax authority, the FIRS has hinted at the introduction of VAT for all online purchases in 2020. However, until Nigeria’s Value-Added Tax Act is further amended, there is nothing much the agency can do in terms of enforcing its proposed digital tax. The draftsman of the new Bill appears also to be a step smarter here. By renaming it communication sevice tax, instead of digital tax or VAT(amendment), the bill appears to have cast its tax nets wider. Payers of the tax would now not only include internet-savvy users who can buy or sell online but indeed all Nigerian phone users whether connected to the internet or not. The Global State of Digital in 2019 report discovered that there are 98.39 million internet users in Nigeria.
Source: Jumia Nigeria mobile report
According to a recent report released by Nigeria’s leading ecommerce company, Jumia there were over 172 million mobile subscribers Nigeria in 2018, accounting for a penetration rate of 87% of the population. Compared to the figures on internet users, the latter is way too high and more realistic.
In practical terms, 9% of every ₦100 ($0.28) mobile phone recharge voucher in Nigeria is ₦9, meaning that mobile phone users would only be exposed to ₦91 airtime credit. The effect of multiplying ₦9 by over 172 million phone users could only be imagined.
For now, Nigerian government can afford to shelve the proposed highly controversial 7.5% VAT or the internet tax, originally pegged at 5%. The road to the new communication service tax appears to be the quickest compared to the highly vague and often technical alternative of VAT.
The Nigerian government may have finally caught all Nigerians in its tax net.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
For businesses desiring to raise funds from banks in Nigeria, beginning from January 1, 2020 may be the best time to do so as more banks may be rushing after them. Recallthat the Central Bank of Nigeria recently made it mandatory for money deposit banks in Nigeria to maintain loan to deposit ratio of 60% effective September 30, 2019. A new review has been made on that by Nigeria’s central bank.
In its most recent directive to banks and other money deposit banks in Nigeria, the apex bank (CBN) has further raised the Loan to Deposit Ratio of banks from 60 to 65 percent.
Here Is All You Need To Know
The CBN gave the directive in a letter signed by the Director of Banking and Supervision, Bello Hassan, to all banks on “Regulatory measures to improve lending to the real sector of the Nigerian economy.”
The CBN indicated that the credit level in the sector grew by N829.4bn or 5.33 percent at the end of May from N15.56tn to N16.39tn as of September 26.
The circular read:
“The Central Bank of Nigeria has noted the appreciable growth in the level of the industry growth credit, which increased by N829.4bn or 5.33 per cent from N15.56tn at end of May 2019 to N16.39tn as at September 26, 2019 following its pronouncement on the above initiative.
“In order to sustain the momentum and in line with the provisions of our earlier letters, the minimum Loan to Deposit Ratio target for all Deposit Money Banks is hereby reviewed upwards from 60 per cent to 65 per cent. “Consequently, all DMBs are required to attain a minimum LDR of 65 per cent by December 31, 2019 and this ratio shall be subject to quarterly review. To encourage Small and Medium Enterprises, retail mortgage and consumer lending, these sectors shall be assigned a weight of 150 per cent in computing the LDR for this purpose,” it said. The CBN said “failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50 per cent of the lending shortfall implied by the target LDR”
This is The First Time The Central Bank of Nigeria Is Weighing In On Minimum Lending Ratio
Previously, there Nigeria had no rule on minimum loan-to-deposit ratios. However, many Nigerian lenders have pegged ratios of about 40%.
However, Nigerian banks are so reluctant with lending to businesses and have resisted lending to businesses and consumers and instead piled their cash into naira bonds, which yield 14.3% on average, one of the highest rates globally.
Lenders worry that with inflation at more than 11%, extending more credit could endanger the financial system through an increase in non-performing loans, or NPLs.
That makes some analysts skeptical of whether the new measures will work.
“Forcing banks to lend under the current macro-economic situation will only result in a buildup in Non-performing loans,” analysts at Lagos-based CSL Research, including Gloria Fadipe, said in a note to clients.
“This could pose a risk to financial stability.”
CSL estimates it could result in an additional 1.4 trillion naira ($3.9 billion) of lending if the central bank gets its way.
Bad Loans
Non-performing loans as a percentage of total credit in the Nigerian banking industry declined to 11% in the first quarter from 14% a year ago, according to the National Bureau of Statistics. Past experience with such measures isn’t encouraging. The central bank last year allowed banks to use their statutory cash reserves to fund manufacturers on the condition that such loans were at a maximum interest rate of 9% and a minimum maturity of seven years. The lenders didn’t take advantage of the policy due to credit risk and high returns on government bonds, according to Michael Famoroti, an economist and partner at Stears Business.
The Implication of This To Businesses
With this move, it is expected that Nigerian money deposit banks are going to loosen up money to Nigerians. For businesses desiring to raise funds, from January 1, 2020 may be the best time to laugh as more banks would be rushing after them. However, it remains whether Nigeria’s commercial banks would not fight back, by either setting up SPVs or lending to more stable corporations, in which case the vision of the CBN may have been defeated.
In any case, businesses should, once again, dust up their loan procurement files and get set for January 1, 2020.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Many people think that Switzerland’s wealth is due to its status as a fiscal haven. But Panama, Cyprus, and the Republic of Liberia, are also fiscal havens.
Africa not only offers low taxes to international companies but also offers them capacity. However, countries in Africa remain in low income status while Switzerland remains one of the wealthiest countries in the world.
Not only this, all of Switzerland’s wealth comes without having natural resources and by not compromising on democracy and human rights. In fact Switzerland can boast one of the most egalitarian political systems in the world. Also, its welfare system is as good as that of Norway or Denmark.
In addition, its citizens not only have the right to vote every 4 years but every four months! The Swiss don’t just choose their leaders but they choose their policies with referendums happening several times a year. Switzerland has one of the world’s best political systems. Some argue that this is the reason as to why they are successful. In fact, the Swiss system is so good, that it could be a model for other countries. Here are some key aspects of it:
Decentralization
From a political standpoint, Switzerland is what is known as a confederation, and it is the only confederation that exists on the planet. It is made up of 26 states which are called cantons. The only thing that these cantons have in common are a constitution, foreign policy and a currency — aside from that they are totally different from one another. For instance, if you make a salary of 5,918USD and you live in the region of Jura, you are going to pay an income tax of 14 percent. But if you made the same amount of money and you live in the region of Zug, your income tax is only going to be 4%. If you have a shop in Geneva, you are going to have to close your shop at 6PM. But if you own a shop in Zurich you are free to keep your shop open for as many hours as you want.
The cantons can adjust their laws and pluralities as they see fit. What is more important is that they can compete with each other; this explains why in general the cantons have such low taxation.
Switzerland is so decentralized that they have four official languages; German, French, Italian and Romansh. When you visit Geneva which is in the French speaking part, you are not going to hear anyone speaking German. The billboards, road signs, and local newspapers are all in French. The same applies to Zurich with German or Lugano with Italian.
No head of government
Every country has a head of government who is responsible for certain things. Well, not Switzerland. Yet they are not living in anarchy. What they do is vote for a federal parliament which is similar to congress in the United States. This parliament then chooses seven (7) people who are going to become something like ministers or secretaries. All of these seven people have the same amount of power.
Each year one of them takes a turn becoming Switzerland’s international representative. Technically this person is the president of Switzerland but he or she does not have specific powers over the other 6 people. This is an important difference in the Swiss mentality because in other countries the president is a really powerful person but in Switzerland it is just a symbolic thing because the entire decision making is done by a team.
Flexible Democracy
The most important part of the Swiss political system is their referendums. Most of their laws are chosen by a popular vote, some at a federal level while others at a cantonal level. Proposal for a referendum requires only 50,000 signatures while one that’s going to amend the constitution requires 100,000 signatures. Other countries allow their population to have referendums too, for example Spain. But to seek a referendum in Spain requires 500,000 signatures, and they cannot do any referendums that can change the constitution.
Switzerland holds several referendums every single year. Every four months, the Swiss go to the polling stations and they will vote for any proposal that has been put forward in the previous four months. These polls usually have big turn outs of more than 60%.
Free market capitalism
It would be very easy for a populist, anti-capitalist leader to emerge in a system like this, right? Remarkably, Switzerland is to the free market what France is to the wine industry. Don’t forget that this country is geographically isolated by mountains and has practically no farming land. This means that it has had to sign free trade agreements with pretty much every country on earth.
It is undeniable that Switzerland is a commerce loving nation BUT no more so than the European Union. The Swiss actually subsidize their agriculture as much as the Europeans or the Americans do — yet they also participate in the same trade embargoes that exist with Iran and Russia. The only difference is that Switzerland has embraced free trade since 1874 while the rest of the world has been doing it for the last few decades.
Neutrality in global affairs
Switzerland will not participate in any armed conflicts, making it one of the few neutral countries in the world. They even stayed out in the Second World War despite most of the population being against Hitler. While the rest of the Europe ripped itself apart, killing millions and spending billions in reconstruction, Switzerland didn’t and they used all their savings to improve their system.
Switzerland does have a military, but this army is entirely defensive and will only be used to expell external attacks. It will never be used to fight in anything outside of self-defense. This is where we see one of the few drawbacks of the Swiss system — the military or should we say…. their militia.
The drawback, of course, is not that they won’t attack anyone. It is that every Swiss citizen must spend one month, of every single year, from age 18 to age 30, serving in the military. Even after this service period they must keep a gun at home. Plenty of people argue that this system is good with pundits saying it creates more entrepreneurs and less economic disparity. It is during this time in the military that the rich and poor are mixing together. Several startups and companies have been created from relationships that were formed while people were serving in the military.
The big question is… What about the freedom to choose? Should government force you to work in a place that you may not want to work?
Ease of doing business
This is another area where Switzerland shines. Despite the differences from one Canton to another, Switzerland has very low taxation overall. The laws to start a company are straight forward. Anyone can see those laws by just going online. Switzerland is one of the most transparent countries in the world which has encouraged a lot of international companies to establish their fiscal residence in Switzerland. But it’s also very easy for Swiss people, living in Switzerland, to set up their own company
Banks do make up a large part of the Swiss economy but it probably not as much as people think. There are many other industries in Switzerland including Logitech, Nestle, and Norvatis. They are among the most popular companies in the world.
All of this is being done in a country with a population that is smaller than New York city’s. Switzerland perfectly embodies the argument that it is not the country’s natural resources or luck to determine a country’s success but rather its systems of government and institutions that do this.
The Swiss have a lot to teach Africa in this regard.
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.
Africa’s richest man, Aliko Dangote has made a donation of $20m to The African Center focused on Accelerating Change in Global Narratives about Africa in Policy, Business and Culture. This donation came even as the Bill and Melinda Gates Foundation announced additional $5 million grant at the Future Africa Forum. Aliko Dangote said that the donation became necessary because of the urgent need to tackle and correct some of the negative perceptions of Africa by the outside world. The donation was made to The Africa Center in New York, United States of America towards reversing the trend.
President of the Center and a Group Executive Director of Dangote Industries, Halima Aliko Dangote
The Africa Center is a leading non-profit institution focused on challenging historical stereotype around the African continent and a hub for creating an intersection of African policy, business, and culture and recreating narratives about Africa’s economic and cultural significance today and into the future.
Sharing in Dangote’s vision, the Bill & Melinda Gates Foundation noted that the new $5 million grant at the Future Africa Forum will be directed to the Center’s capital campaign and for the development of its policy initiatives. Other foundations, corporations, and individuals that provided leadership support for the capital campaign, including the Mo Ibrahim Family, and the New York City Department of Cultural Affairs, were also recognised at yesterday’s event, which marked the conclusion of the second phase of construction.
In recognition of his love and unusual passion for the continent, Dangote was honoured as the main hall of The Africa Center, was named “The Africa Center at Aliko Dangote Hall”. Speakers at the event which was part of The Future Africa Forum, praised the efforts of Dangote describing his various philanthropic interventions in Africa and beyond as very significant. The Forum was this year’s signature policy and business dialogue event of The Africa Center in partnership with the Aliko Dangote Foundation. Dangote, Africa’s leading entrepreneur had announced that the donation was towards the completion of the second phase of The Africa Center’s physical space, which he described as transformative, thus enabling the Center to accelerate its capital campaign, to further activate its public spaces and programming, and support ongoing operations.
Speaking on the gesture, Dangote said the donation through the Aliko Dangote Foundation is focused on supporting The Africa Center’s work in transforming global understanding of the continent and promoting partnership and collaboration between Africa and the rest of the world. He added that the Africa Center is showcasing Africa in a contemporary, multifaceted manner as a center of innovation, growth, and limitless potential, which makes this project extremely important and worthy of support through his foundation. “There is an opportunity to establish new narratives about Africa today, with its unrivaled mix of people, ideas, and resources, which are both its greatest strength and the basis for its tremendous, untapped promise. The connections The Africa Center will make between Africa, the United States, and the rest of the world, including members of the Diaspora, are needed more now than ever before.”
In her remark, President of the Center and a Group Executive Director of Dangote Industries, Halima Aliko Dangote, who is also leading the Center’s successful capital campaign, described The Africa Center as an important gateway to understanding contemporary and future Africa and Africans. Expressing appreciation towards the landmark gesture, the Chief Executive Officer of The Africa Center, Dr. Uzodinma Iweala said the Center was proud of the humongous support of the Aliko Dangote Foundation and the Dangote Family, whose vision for the future of the African continent is perfectly aligned with The Africa Center’s mission to advance African policy, business, and culture of the 21st century.
He stated “We are profoundly grateful to the Aliko Dangote Foundation, the Mo Ibrahim family, the Bill & Melinda Gates Foundation, and all those whose generosity is enabling us to realise our plans to create a vibrant and essential center of ideas and action focused on the 54 nations and people of Africa and its Diaspora. According to him, since launching its public programming in January 2019, The Africa Center has attracted and engaged thousands of visitors in a series of inaugural performances, installations, talks, readings, book signings, and film screenings.
“The Capital Campaign has received remarkable leadership support from institutions and individuals that recognise the role it has to play in building bridges between cultures in a globalised world village. That support has enabled us to complete the first two public spaces and activate them with programming that has already proven to be compelling and popular among our local community. “We are building on this momentum by reaching out to additional business leaders and global philanthropists and asking them to invest in The Africa Center’s mission.” The Cultural Affairs Commissioner, Tom Finkelpearl said “Congratulations to The Africa Center on the announcement of this extraordinary gift from the Aliko Dangote Foundation and the conclusion of another phase of construction, marking the latest milestones for this important addition to NYC’s cultural landscape.”
The Africa Center is transforming the world’s understanding of Africa, its Diaspora and the role of people of African descent in the world; serving as the hub for the exchange of ideas around culture, business, and policy related to the continent, and in the spirit of collaboration and engagement with individuals and institutions who share the Center’s values. The Africa Center inspires enthusiasm, and advances thought and action around Africa’s global influence and impact on the inhabitants’ collective futures. This mission is guided by a leadership team that includes Board President Halima Aliko Dangote, Board Co-Chairs Hadeel Ibrahim and Chelsea Clinton, and CEO Dr. Uzodinma Iweala.
The Africa Center is a platform for sharing new ideas and strategies that challenge the structures and systems that support one-dimensional narratives of the continent, and that inform policies and ultimately affect the lives of African people, those of African descent, and the future of Africa. The event included a fireside chat with Mr. Dangote, Mr. Gates, and Mo Ibrahim, founder of Mobile Systems International (MSI), Celtel International, Founding Chairman of Satya Capital Limited, and Chair of the Mo Ibrahim Foundation, about the future of African business.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
As the negative effects of climate change hits closer home, the need for farmers to engage in responsible farming becomes more imperative, to this end Nestlé has launched a project aimed at helping Coffee growers across Africa, and most especially in West Africa to imbibe more responsible farming processes that promote sustainability and also protect the soil from depletion and erosion. This project according to company sources is aimed at impacting the livelihoods of thousands of farmers in the region to help them make more for themselves and their families and also their communities.
Head of Agricultural Services, Nestlé Central and West Africa, Fatih Ermis
In recognition of its efforts at preserving the environment and promoting sustainability, the NESCAFÉ factory in Cote d’Ivoire has for the third consecutive time this year, won the Eco-Citizen prize at the National Excellence Awards in the country. The factory was equally recognized for releasing only purified water into the environment and for none of its waste ending up in landfills. With our communities at heart, our coffee business upholds Nestlé’s worldwide commitment to protecting and safeguarding the environment and resources.
NESCAFÉ business which forms part of Nestlé’s NESCAFÉ Global Plan is committed to sourcing coffee beans for Nestlé responsibly, through sustainability programs. Under the Plan, Nestlé teaches coffee farmers how to grow coffee in a way that protects the environment. Nestlé has also reached over 13,000 farmers across the region, through Agripreneurship programs.
In addition to the earnings farmers make for their produce, they receive premium payments from Nestlé. Speaking on this initiative, Head of Agricultural Services, Nestlé Central and West Africa, Fatih Ermis highlights how impactful this is to farmers, “This premium allows farmers to have better livelihoods by earning additional income. Last year, Nestlé paid more than $865,000 in premiums to coffee farmers across the region. We are continuing in this vein this year, with a little over $841,000 paid to our coffee farmers, from January 2019 to date.” The company also said that because of the business relationship it has developed with the farmers, the NESCAFÉ consumed in Central and West Africa region is indigenous to the region as it sources over 15,000MT of coffee from Cote d’Ivoire.
Moreso, the company has launched a project that is committed to creating jobs and enabling entrepreneurship. Under the initiative named “My Own Business” (MyOwBu), Nestlé teaches young people how to manage their own micro-enterprise. The company also gives them training on sales, management, hygiene, safety and quality standards. This has a domino effect because these youth, now equipped with skills are encouraged to and often employ up to 10 other street vendors.
The Business Executive Officer of Nestlé Professional, an out-of-home service of Nestlé said that over 4,000 youth across the region have benefitted from this entrepreneurial opportunity. With this financial empowerment, they are on the right path to financial independence. “My proudest moments on the job are when I see how the lives of these vendors are transformed for the better” she said.
Critics however scoff at the above claims not because they are false but because the company is giving back just a very infinitesimal part of its profits from same farmers back in the name of community social responsibility. They opine that the best thing for Africa is to develop processing capabilities within the continent so that Africans can make real gain from their sweats instead of continuing enriching European transnationals who give crumbs in the name of ploughing back profits.
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.
Solomon Serwanjja, the Ugandan investigative journalist who won this year’s BBC World News Komla Dumor Award has credited his success to inspiration from the work ethics of the late Komla Dumor. Serwanjja had last week beat other nominees from across Africa to clinch the prestigious Komla Dumor Award instituted in honour of one of Africa’s finest journalist, a presenter for BBC World News died suddenly at the age of 41 in 2014.
Solomon Serwanjja
Serwanjaa, an investigative journalist and news anchor and a presenter at Uganda’s NBS TV,where he hosts one of the channel’s prime-time shows.
Speaking on what inspired him to win the prestigious award; Mr. Serwanjja said that Komla Dumor’s work ethics and what he brought into journalism was it for him. Speaking further he narrated how Komla brought so much to the African narrative– “his perspective was a breath of fresh air, as he believed Africa was rising and that
the world required to envision the continent from a different angle”.
He added that Komla’s reports always struck a chord with him, and that he feels the same passion for the continent that he demonstrated.
“I wish to continue his legacy by telling stories that forged a spotlight not just on the vital challenges we have a tendency to face in Africa, but also the progress and successes that have been made”.
Serwanjja was a well-known journalist and his passion for fact-finding journalism highlighted his desire to make positive amendment in his native country of Uganda.
Serwanjja impressed judges not only with his eloquence and passion for telling African stories, but as well with his commitment and bravery in uncovering what’s in the public interest. He has also produced award-winning reports, including one for BBC’s Africa Eye Programme about the illegal sale of prescription drugs. Serwanjja is the fifth winner of the award, following in the footsteps of Waihiga Mwaura, Amina Yuguda, Didi Akinyelure and fellow Ugandan Nancy Kacungira.
The Award entails Serwanjja spending three months at the BBC’s London office where he will report on a story. Speaking on the Award, the Director of BBC World Service Group Jamie Angus said that to recognize and empower some of Africa’s leading talent in journalism in honour of Komla is really important to the BBC. The organization he said will be happy to have Mr.Serwanjja at its London office to harness Komla’s commitment to telling Africa’s stories. It could be recalled that Komla Dumor joined the BBC African Service in London as host of the radio programme Network Africa.
From 2008 to 2012 he presented the world today on the BBC World Service.
In 2011 Dumor began presenting the world News and Africa Business Report on BBC World News and early mornings on BBC One and also the BBC News Channel.
When the latter was relaunched in 2013, fellow BBC correspondent Lerato Mbele was chosen as host. Peter Horrocks, the BBC’s Global News Director described him as a leading light of African journalism, committed to telling the story of Africa as it really is.
At the time of his death, Dumor was the sole West African newscaster on BBC World News.
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.
SportPesa, Kenya’s leading online sports betting has folded up. This is the second and possibly the last sign that it has been incapacitated by the new tax regime introduced by the Kenyan government against gambling firms. The first was when it pulled sponsorship from the country’s sports teams after the government in Nairobi hiked gambling tax rates from 7.5 to 35 percent.
This tax decision will have a damaging impact on both customers and treasury,” the company stated in its reply. “Further compounded by the currently in-effect 20% Withholding Tax on Winnings, the economic incentive to place bets will be completely removed as the taxes will deprive consumers of their total winnings. This will have severe consequences for licensed betting companies, which dutifully pay their taxes and ultimately will lead to a decline in government tax revenue to near zero and will halt all investments in sports in Kenya.
Here Is All You Need To Know
SportPesa and other sports betting entities have faced significant government opposition in Kenya.
Last month, Uhuru Kenyatta, the country’s president, called on lawmakers to ban gambling. His call came after the country’s Betting Control and Licensing Board ordered telecommunications companies to suspend the shortcodes and paybill numbers the sportsbooks used to exchange funds with their customers.
Part of the backlash from legislators stemmed from social concerns. One lawmaker noted a rise in suicides from young men who took up betting on sports through their mobile devices.
Kenyan officials also expelled nearly 20 foreign business leaders who were working for sportsbooks in the East African nation.
SportPesa and Betin then joined forces to file a lawsuit against the government, but that the country’s Supreme Court dismissed the legal challenge. In doing so, Justice John Mativo noted SportPesa’s license had expired, which meant the company could no longer operate legally until it reapplied for one.
Major Sponsor in Soccer
Even with its troubles in its native country, SportPesa still enjoys a relatively high profile in Kenya’s sports betting industry. This is thanks in part to the sponsorships it holds with soccer teams and leagues across the world. That includes Everton, in England’s Premier League, and Hull City, which plays in England’s second-tier Championship league.
However, even British lawmakers have begun to question whether its professional soccer teams should enter into partnerships with sports betting operations.
SportPesa also serves as the official African betting partner for LaLiga, which runs the top soccer leagues in Spain. It also sponsors Italian club Torino FC.
“If local communities enjoy it, we know that our involvement can be an extremely positive influence for all concerned,” SportPesa says on its partnerships page. “While we offer valuable financial support, we also go much further: helping clubs build capacity and join corporate social responsibility initiatives to create value for players, teams, communities, and businesses.”
Mass layoff
The move comes after another firm, Betin, sent home all its employees saying they have run out of finances.
According to the firm’s management, efforts to hammer a deal with the government which could have seen it resume operation have failed, forcing the firm to send home employees.
“Management has had several extensive meetings with the government entities regarding the company’s licence without much success,” read an internal memo signed by the managing director.
“Given all these, we have had financial constraint as you might all expect. As a result of the deterioration of the profitability, the management has had to rethink its operating model and to proceed with the exercise of termination on account of redundancy.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
The Aga KHAN Architecture award has been won by Alioune Diop University in Bambey, Senegal for producing five Laureates of the 2019 awards from its teaching and research department and setting a new standard of excellence in architecture. The University had as presentation, a design of the architecture of a building with bioclimatic design, due to the unique environmental resources. A large double-roofed canopy and a mesh have been installed to prevent direct sunlight and allow air to circulate through it. The judges noted that this was highly innovative in line with what the Award hopes to achieve by getting students and faculties to think outside the box.
New lecture room block at the university comprises a 500-seat amphitheatre, classrooms for 50 or 100 students, laboratories and technology rooms, and offices for lecturers in the faculty of applied sciences and ICT. The building is a simple construction of concrete blocks cast on site, covered with mortar and steel latticework. It has a large double roof and a great lattice covering the south facade, which avoids direct solar radiation but remains permeable to air. To solve the lack of sewers and water supply issues, the architects incorporated infiltration rafts with vegetation that collect rainwater, and waste water is purified through an ecologically-sound system that uses activated sludge.
Speaking on the Award, the Director of Environment and Security at Alione Diop University Sidy Camara said that they looked at an intelligent building that allows them to be self-sufficient in energy, which is a good thing in the countries due to the high cost of energy. Continuing, he said that water and acidity management was very important in the design that was why the building was designed such that the water from the building is recovered in the filtered basins, which makes it possible to water the plants, while even the water from the air conditioning is recovered in the basins, which is a major innovation.
The university which was founded in 2007, was part of the Senegalese government’s efforts to decentralize education and encourage young people to stay in rural areas, the university opened its doors in 2012 growing in staff and adapting to the climate change in Bambey. In addition to its unprecedented structural aspect, its research helps to slow migration to urban areas. The Director of the University Alione Diop speaking about the innovations the university adopted in constructing its buildings said that “most students often complete their studies in Dakar, but now they have the opportunity to do so locally, as you said, in a building that has temperature control”.
According to the Chief of Cabinet at the Senegalese Ministry of Education, Ibrahim Wone “this victory can have a great impact in Senegal and Africa because the building was created by the environment – by taking the temperature of certain local realities, etc. – it is a great one that can have a great impact on Senegal and Africa and can be replicated everywhere”, adding that this victory can have a great impact in Senegal.
The prestigious Agha Khan Award for Architecture award is given once every three years and it comes with a prize of one million US dollars.
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.
