Africa - Afrikan Heroes

Kenyan Startup Ilara Health Raises $735k Seed Funding Round To Grow Business

August 8, 2019

2019 has proven a good year for health and ride-sharing startups in Africa. More funding is coming than ever before. Kenyan startup Ilara Health, which is bringing affordable diagnostics services to doctors, has just joined the wagon. The startup has raised a US$735,000 seed funding round to grow its offering in the East African country and ultimately beyond.

Here Is The Deal

The US$735,000 seed funding for the startup came from investment firms ShakaVC, Chandaria Capital, and Villgro Kenya, with the round also including angel investors such as Esther Dyson, Nijhad Jamal, Aadil Mamujee, Selma Ribica, and Shakir Merali. Several of the new investors will become strategic advisors to the business.

“Seventy per cent of patients need some form of medical test to inform their treatment, but many doctors across Africa have limited ability to perform diagnostics in their clinics. When a patient needs a test, doctors often refer them to a lab. Given the infrastructure challenges across the region — the time, the money it takes to get anywhere — patients frequently fail to attend and care breaks down,” said Emilian Popa, co-founder and chief executive officer (CEO) at Ilara Health.

This round of investment will be used primarily to grow Ilara Health ’s peri-urban medical clinic customers in Kenya, and ultimately beyond. It will also allow the company to build a flexible technology platform to manage and protect valuable patient health and clinic financial data.

A Glance At The Startup

Founded in 2018, Kenyan health startup Ilara Health sources tech-powered diagnostics equipment and makes it accessible to Africans who struggle to afford it, bundling the equipment and integrating the devices via a proprietary technology platform. Doctors pay a deposit to use the equipment and then pay off the remaining cost in installments determined by usage.

What Drew Investors In

Esther Dyson, angel investor and executive founder at Wellville, said she had invested in Ilara because she had watched CEO Popa explore the market to find the perfect, sustainable product-market fit.

“Moreover, the need is great, and the benefits of simple, cost-effective diagnostic tools will extend well beyond the patients and doctors, affecting first Kenya and ultimately the continent at large,” she said.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

How This Company Is Trying To Bridge Funding Gaps For Small Businesses In South Africa

August 7, 2019

Despite the important contribution small-to-medium enterprises (SMEs) make to the economic growth of South Africa, the sector battles to access funding using traditional means.

And even though there are about 2.5 million SMEs in the country, the biggest stumbling blocks they encounter still revolve around the risk barriers and red tape associated with traditional funding products. The underwriting systems and financials required by institutions to finance small business simply do not provide a true reflection of operating conditions.

This has seen the emergence of fintech solutions and alternative funding products that have been steadily gaining momentum.

Yet most local SMEs are unaware of how and where to gain access to funding. For many, the only apparent path is to obtain funding via banks. By the time the business receives the funding (if ever), it is often too late and beyond the point where it can help the company turn things around.

However, funding entails so many different nuances beyond the traditional, and SME owners need to make themselves aware of what is available, and what will suit their specific requirements.

For their part, investors must adapt their digital strategies to engage differently with SMEs. For example, by using mobile as a platform for funding, the investor not only differentiates itself in the market, but the SME gains access to a real-time solution capable of addressing its unique needs.

This cannot happen on its own.

By partnering with a range of fintech organizations, the mobile-driven funding model provides SMEs with real-time, pre-approved offers based on turnover. And thanks to the availability of machine learning and artificial intelligence, these solutions will become more common. However, investors need to be viewed as more than just funders.

They can be true partners in working with SMEs and assisting them in positioning themselves in the market. Of course, the benefit of this is that they become part of a growing enterprise that has a direct impact on the economy of the country.

By incorporating electro-neural networks that enable the use of a sophisticated decision-making methodology requiring no human intervention, funders can more effectively identify where to invest their money. Invariably, the technology has built-in affordability metrics providing the SME with the peace of mind that funding received will not leave them over-indebted.

The graphic below shows the contribution to total turnover by all companies in South Africa in 2015, based on their size (sizes are determined by DTI, cut-offs and adjusted for Stats SA sampling purposes).

Behind-the-scenes, machine-learning algorithms have a deep understanding of business trading patterns and seasonality. This ensures the SME is unable to access more funding than what the business can afford. Such an affordability measurement is a great way to drive financial inclusion, irrespective of physical location, without leaving the SME over-indebted.

Using this sophisticated technology also enables funding to be done faster and more conveniently than before. Eliminating reams of paperwork and manual-intensive application process enable the owner to keep their focus on driving business growth.

And thanks to the ubiquity of mobile, SMEs can apply for funding irrespective of the time of day, using an environment that they are comfortable in. Funding requires no collateral, or security, and is completely unrestricted.

Depending on the funder, it is possible for SMEs to access funding with same-day pay-outs. However, for it to be truly inclusive, such a solution must be available to formal and informal businesses.

For our part, Retail Capital is driving this mobile focus very strongly to be the first to market with a platform that does exactly all of this. It is about delivering SMEs with an enabling environment to get funding using more innovative methods as quickly and effectively as possible. In fact, this smarter funding approach has resulted in mobile now representing more than 20% of the funding taken up at the organization.

Irrespective of the platform used, funding is the lifeblood of an SME. In these challenging market conditions, a multi-product approach that highlights how digital is changing access to working capital is necessary.

This creates a powerful platform for growth and the betterment of the economy, entrepreneurs and the country’s SME sector.

Miguel Da Silva is the Managing Director of Funding at Retail Capital.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Towards an AfroChampions fund to finance the African Continental Free Trade Area (AfCFTA)

On the occasion of a high-level meeting convened in partnership with His Excellency Dr. Mahamudu Bawumia, Vice-President of the Republic of Ghana, and bringing together investors, financing institutions and sovereign and private funds, the AfroChampion Initiative has formally launched a private sector investment framework to secure financing for the African Continental Free Trade Area (AfCFTA).

The objective is to mobilize the private sector, in Africa and beyond, through a dedicated blended-finance vehicle to accelerate the continent’s economic integration, by rapidly deploying those infrastructure projects which are critical to successfully delivering the AfCFTA and making it a positive transformation for Africans.

The proposed framework is forward-looking and includes many proposals from the AfroChampions Boma on Infrastructure Financing and Delivery organized last April in Nairobi with the African Union’s High Representative for Infrastructure His Excellency Mr. Raila Odinga.

Considering that key enablers of the AfCFTA are the removal of non-tariff barriers, the deployment of transport and connectivity networks, access to cheap energy, and African economies’ upscaling towards more value-added products, the framework defines a range of priority opportunities as well as structuring projects to be financed, under certain conditions, by the fund set up for that purpose.

Most importantly, the AfroChampions Initiative also provides for an annual benchmarking process to follow up on this program as well as on national reforms transcribing the AfCFTA to improve African states’ cross-border business-readiness.

“With the AfroChampions Initiative, we have found partners committed to our vision of a prosperous and integrated Africa and working to implement practical solutions.

The AfCFTA Private Sector Investment and Financing framework is a very thorough approach: monitoring the AfCFTA agreement’s legal implementation, defining certification criteria qualifying projects eligible for funding, mobilizing the private sector in Africa, and a process to coordinate with the public authorities ” said H.E.M. Albert Muchanga, African Union’s Commissioner for Trade and Industry.

“The African Union’s Summit in Niamey gave us a great opportunity to raise awareness among Heads of State and we hope to be able to move quickly on this ambitious roadmap.”

“To address reluctance and concerns about the AfCFTA, we must demonstrate that it is a major and tangible opportunity for all stakeholders, whether states or companies regardless of size, civil society or individual citizens of the African continent. And this AfCFTA Private Sector Investment and Financing Framework is the best tool for realizing that goal,” said Ali Mufuruki, Vice-President of the AfroChampions Club for the East Africa Region.

“We need to work better together across borders and focus on high-impact regional or pan-African projects – because they are the most likely to attract the volume of funds that we need. This is our main challenge today”.

The participants in the Accra session defined at the end of their workshop a detailed roadmap, including various milestones over the next 18 months. Among the key dates is the presentation of the dedicated fund, scheduled for the 4th quarter of 2019 for the next AfroChampions Boma, the first benchmark and a follow-up report on the AfCFTA implementation and the organization of an exhibition on ‘made in Africa’ early 2020.

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.

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Nana Araba Abban Appointed Group Consumer Banking Head at Ecobank Transnational

Ecobank Transnational Incorporated, ETI, the Lomé-based parent company of the Ecobank Group, announce the appointment of Nana Araba Abban as Group Consumer Banking Head with immediate effect. Nana will be a member of the Group Executive Committee and report directly to the Group Chief Executive Officer.

Nana Araba Abban is a Chartered Accountant (FCCA) with over 25 years’ experience in the Financial Services industry. During her career at Ecobank, Nana Araba Abban has held several senior positions including Group Head of Direct Banking, Head of Client Engagement and Senior Group Manager for Personal Banking.

Commenting on Nana’s appointment, Ade Ayeyemi said- “We are happy to confirm Nana as Group Head, Consumer Banking. She has extensive experience in the consumer banking space in various areas.

Nana, who has been a senior member of the Consumer Banking team in the Group for some time will further grow our consumer business in line with our digital transformation agenda building on the successes we have had in the past. I convey hearty congratulations to Nana on this appointment.’

Mr. Ayeyemi continued: “We are particularly pleased with the effectiveness of our succession planning as we have been able to fill vacancies from within the Bank. We will continue to grow our talent pool.”

Before joining Ecobank, Nana Araba Abban held several senior positions with Standard Chartered Bank, Royal Bank of Scotland and other institutions in Product Portfolio Management, Product Accounting and Banking Operations.

Nana Araba Abban holds an MBA, in Business in Emerging Markets from the University of Liverpool and Bachelor of Science in Mathematics & Statistics from Queen Mary & Westfield College, University of London, UK.

She is also a Fellow of the Association of Chartered Certified Accountants Nana Araba Abban, the new Group Consumer Banking Head had been acting in that capacity prior to now, alongside her previous role of Group Head, Direct Banking.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Hard Times For Businesses In Zimbabwe Where A quarter of The Population Has Emigrated

For those doing business in Zimbabwe, this is a crucial time to tighten belts. The whole of the country is living daily without electricity for more than 18 hours and there are shortages of everything from bread to motor fuel.

To make it worse, Zimbabweans are now receiving food aid in cities for the first time and drought has necessitated the import of hundreds of thousands of tons of corn.

Here Is All You Need To Know

When Robert Mugabe was ousted after four decades in power in late 2017 his replacement, Emmerson Mnangagwa, promised economic regeneration and declared that Zimbabwe is “open for business.”

Things have however gone from bad to worse with the effects of rapidly expanding money supply through the sale of Treasury bills under Mugabe’s rule coming home to roost and this year’s outlawing of the US dollar in favor of a local quasi currency that can’t be traded outside the country causing panic.

“Zimbabwe is at a tipping point and if it falls over the edge it’s going to be quite a long way in coming back,” said Derek Matyszak, a Zimbabwe-based research consultant for South Africa’s Institute for Security Studies.

“The wheels are falling off. There is no way out of a Ponzi scheme other than a massive infusion of cash to pay off your creditors.”

The country with the world’s highest inflation rate after Venezuela also suspended annual consumer-price data for the next six months. The authorities need to collect comparable data since the introduction of the new currency in February.
That marked a return to 2009 when the country abandoned the Zimbabwe dollar in favor of the US dollar and other currencies after inflation surged to an estimated 500 billion percent.
If the more commonly used black-market exchange rate is used, Zimbabwe’s annual inflation is currently 558%, about three times the official rate, while Venezuela’s is 35,004%, according to Steve H. Hanke, a professor of applied economics at the John Hopkins University in Baltimore.

Scrapping the official annual rate is “no real loss from an analytical perspective,” said Jee-A van der Linde, an economist at NKC African Economics in Paarl, South Africa

“These elevated inflation readings did little more than create panic and damage what little confidence was left.”

‘‘A quarter of the population has already emigrated, more may follow’’

A de-linking of the country’s quasi-currencies from parity with the US dollar in February and the re-imposition of the Zimbabwe dollar overnight in June has fueled depreciation with the currency officially trading at 9.28 to the dollar on Aug. 2.

The black-market rate was 10.8, according to Marketwatch.co.zw, a website run by analysts. While the government has argued that in the face of foreign-currency shortages it has no choice but to reintroduce its own currency, Hanke disagrees.

“The Achilles heel is the introduction of the new currency to the exclusion of the dollar,” he said.

“They have decided to go in the completely opposite direction and claimed it’s the best thing since sliced bread and it’s going to be an absolute disaster.”

While the cost of basic services has climbed 400% this year, pay rises have been around 10%, said Japhet Moyo, secretary-general of the Zimbabwe Congress of Trade Unions, which has 130,000 members.

“People are very angry” and even though a quarter of the population has already emigrated, more may follow, said Matyszak.

“The Zimbabwe I once loved has become a cemetery for my son’s future” said Ashley Randen, an unemployed single mother of a 12-year-old boy in Harare.

For Deep Insights on Zimbabwe’s migration click here

The Rate of Inflation Is So Bad That There Would Be No Statistics On Inflation In Zimbabwe Going Forward

Zimbabwe’s finance minister responded to the country’s worsening economic crisis last week by blacking out inflation statistics for the next six months, boosting the price of the little power that’s available five-fold and admitting what the International Monetary Fund told him in April: the economy will contract for the first time since 2008.

At the same time, he spoke of fiscal surpluses and relaxation in local ownership requirements for the key platinum industry.

Still, the decision evokes other countries in crisis. Venezuela halted publication of inflation data and while it periodically releases figures, it isn’t operating on a regular schedule. In 2013, Argentina was censured by the IMF for tampering with its data.

Finance Minister Mthuli Ncube tried to highlight the country’s first positive current-account balance in a decade as a sign of progress. Since his appointment last year, the government has sold only marginal amounts of Treasury bills.

And earlier this year, the Cambridge University-trained economics professor forecast that month-on-month inflation, which surged to 39.3% in June, would be close to zero by year-end.

The fundamental problem is that the government has failed to attract significant investment and hasn’t substantially changed the policies of the Mugabe era, said John Robertson, an independent economist in Harare, the capital.

Bloomberg

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Next Einstein Forum announces new cohort of 25 Fellows, Africa’s top young Scientists

August 6, 2019

The Next Einstein Forum (NEF) today announced its third Class of NEF Fellows, 25 strong scientists, all under 42 years, whose research and innovations are contributing to solve Africa’s and the world’s most pressing challenges.

“I am excited to announce the 3rd class of NEF Fellows for two reasons. The first is that we are almost at parity, with 11 women in the class. The second is the variety of fields and countries from where the Fellows come from. The selected Fellows are doing cutting-edge research in renewable energy, nanomaterials, and nanotechnology, food security, precision medicine, health systems, climate science, and urban planning.

Also a first for the Fellows cohort is the two social scientists selected in this class. We strongly believe their current and future discoveries will solve global challenges and we are excited to introduce you to them,” said Thierry Zomahoun, Founder and Chair of the Next Einstein Forum and President and CEO of the African Institute for Mathematical Sciences (AIMS).

An initiative of the African Institute for Mathematical Sciences (AIMS), the NEF will award the NEF Fellows at its NEF Global Gathering 2020 in Nairobi, Kenya on 10 March 2020, under the patronage of President Uhuru Kenyatta. The NEF Fellows will continue the tradition of presenting their groundbreaking research at the global gathering.

NEF Fellows are selected by an International Scientific Program Committee, using a rigorous process that comprises academic and scientific merit, a strong publication record, patents, awards and a track record of funds independently raised for research. Fellows are also required to demonstrate the relevance of their research or innovations to humanity’s grand challenges, as well as a passion for raising Africa’s scientific profile and inspiring the next generation of scientific leaders.

“We are tremendously pleased to welcome the new class to the growing NEF Community of Scientists, and the thirty-five Fellows that preceded this cohort. This Class was selected in record timing because of the quality of their profiles and we look forward to their contributions to our foresight work and public engagement programs like Africa Science Week,” said Dr. Youssef Travaly, Vice President of Science, Innovation, and Partnerships.

The second class has been at the forefront of groundbreaking research in Blockchain for micro-credits, bioinformatics for improving agricultural outputs, non-invasive malaria detection among other innovations. Several Fellows received million-dollar awards for their research. NEF Fellows lead the editing of the NEF’s Scientific African journal which is on its fourth volume since March 2018. In recognition of their achievements and scientific excellence, three fellows have joined the NEF’s International Scientific Programme Committee.

Meet the 2019-2021 NEF Fellows

Dr. Badre Abdselam (Morocco) seeks to contribute to the design and implementation of regional policies on young scientists’ intentional mobility within Africa to optimize brain circulation.

Dr. Ademola Adenle (Nigeria) is leading research in science and technology policy in addressing sustainable development challenges such as climate change, food insecurity, energy and health innovation in Africa.

Dr. Fanelwa Ajayi (South Africa) seeks to develop various nanoparticles particularly with the use of edible substances, such as fruits and vegetables and finding additional applications for them.

Dr. Daniel Akinyele (Nigeria) is immersed in unveiling deeper insights into planning, developing and managing new electrification systems for energy-poor communities using the social-technical-economic-environmental-policy, or STEEP.

Dr. Zaheer Allam (Mauritius) investigates the dynamics shaping urban life in the Anthropocene to better build policies enhancing both livability and economic levels in future cities, set to host the majority of humans on earth.

Dr. Ibrahim Cissé (Niger) is interested in developing high-resolution methods of microscopy that go directly inside living cells, and single bio-molecules which could decode human genome from DNA into RNA.

Dr. Menattallah Elserafy (Egypt) studies DNA repair mechanisms, working to understand cellular processes which deciphered will change diagnostics and pave roads for personalized therapies.

Dr. Obidimma Ezezika (Nigeria) is studying processes that help contribute to developing new industrial models for effectively taking health interventions to scale in sub-Saharan Africa.

Dr. Jesse Gitaka (Kenya) works on malaria elimination, prompt diagnosis, and management of sub-clinical maternal bacterial infections that eliminate stillbirths, prematurity, maternal and newborn sepsis, and mortality.

Dr. Alpha Keita (Guinea) hopes to develop, together with his team in the Guinea and France, the reservoirs of viruses to better understand the natural history of Ebola virus spread.

Dr. Agnes Kiragga (Uganda) hopes to merge data science and machine learning methods to available “large data” and existing health records to predict and prevent HIV among high-risk groups in Africa.

Dr. Eric Lontchi (Cameroon) investigates ways of combating the burgeoning epidemic of obesity and diabetes, hoping to uncover new insights into the pathogenesis of and potential treatments for diabetes.

Dr. Salome Maswime (South Africa) leads a research initiative to scale up the implementation of the perinatal problem identification program model to four other healthcare systems in Africa.

Dr. Blesssing Mbabie (Nigeria) seeks to cover the real-time status of antimicrobial resistance and social factors that drive it, discovering natural drugs with high potential inhibitors of an antimicrobial resistance mechanism.

Dr. Ebele Mogo (Nigeria) is involved in research that aims to transform societal systems that recognize African contextual realities when designing healthy communities and preventing non-communicable diseases.

Dr. Vidushi Neergheen-Bhujun (Mauritius) is determined to connect the dots between the role of functional food and cancer prevention.

Dr. Marian Nkansah (Ghana) focuses on developing public knowledge on toxic chemicals from unusual places, and the associated risk on local communities, strengthening the intersection of scientific evidence and policy.

Dr. Eucharia Nwaichi (Nigeria) leads to research projects that aim to find sustainable and safe sanitation strategies for the remediation of petroleum-impacted environments in the Niger Delta.

Dr. Cecil Ouma (Kenya) leverages current research on energy materials and associated technologies, with hope to innovate cheap and small-scale off-grid technologies for rural and peri-urban settlements in Africa.

Dr. Dyllon Randall (South Africa) hopes to change our modern sanitation systems to focus on resource recovery rather than mere treatment, moving communities to rethink “waste” as valuable resources.

Dr. Samson Rwahwire (Uganda) is using his knowledge of material science and nanotechnology to modify bitumen for road construction utilizing green nanoscience as a crosslinker for plastic waste.

Dr. Cheikh Sarr (Senegal) is interested in developing a prototype of a self-driven vehicle, equipped by a lot of sensors networks in order to facilitate the mobility of people with disabilities.

Dr. Geoffrey Siwo (Kenya) hopes to combine artificial intelligence with genetic data and scientific knowledge as a means of accelerating the discovery of fundamental principles that could enable equitable development of precision medicine.

Dr. Sara Suliman (Sudan), co-inventor of a four-gene biomarker, investigates why genes involved in electrolyte regulation across mammalian cell membranes might confer susceptibility to the world’s deadliest pathogen: Mycobacterium tuberculosis.

Dr. Jessica Thorn (Namibia) uses social-ecological system modeling and participatory scenario planning to investigate and measure the impact of development corridors in land use, livelihoods, ecosystem, and social coherence.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

From January 2020, Businesses in Zambia Will Start Paying Sales Tax On Goods And Services

Effective from January 2020, businesses in Zambia would no longer pay tax on goods and services supplied or imported into the country under the old Value Added Tax Act, but will now do so under the new Sales Tax. And this will come at an extra cost.

Here Is What You Need To Know About The New Sales Act

The Sales Tax will replace the current Value Added Tax (VAT) Act.
The Sales Tax Act will apply to the taxable supplies of good and services. Sales Tax will also apply to the taxable importation of goods and services into Zambia.
The rate of tax is 9% for locally supplied goods and services and 16% for imported goods and services. The Minister is empowered to reduce the rate applicable to a taxable supply by Statutory Instrument.
The Act retains most of the principles that applied under the VAT Act with respect to definitions of supplies, goods, and services. It also largely retains the definitions of time of supply and place of supply. As with the current VAT Act, the return filing deadline remains the 18th of each month.

Exemption

Under the Act, the following goods and services are exempted from sales tax:

Capital goods
Inputs
Designated basic and essential goods or services
Designated suppliers to privileged persons
Exports

The Act also empowers the Minister to provide exemptions to Sales Tax by means of Statutory Instrument.

The Significance of The New Sales Tax To Zambian Businesses

This new Act is so significant for Zambian businesses because, under the old VAT system, consumers used to pay 16% regardless of the value chain. Under the Sales tax regime, the longer the value chain, the higher the tax paid.

Here Is An Example

Under the new sales tax regime, if a Zambian manufacturer imports raw materials from South Africa, for instance, he will pay 16% because from the new law, 16% is payable as sales tax on all goods imported into Zambia. However, when he/she sells to a wholesaler, 9% local sales tax will be levied on that sale. Again, when the wholesaler sells to a retailer, 9% will also be levied. Should the retailer also sell to the final consumer, 9% will also be charged as sales tax?

The implication of this is that Zambia’s final consumers — the farmer, villagers, informal sector worker — will be paying 41% tax instead of 16 % VAT previously the case. In the case of certain Zambian workers who are paying under Pay and As You Earn (PAYE) at the top rate of 35%, the total effective tax on their income would now be 76% without taking into account other levies.

The new sales tax has been criticized as being against the social, economic and political good of Zambians.

Zambian government desires to switch over to the new Sales Tax Act because according to the Finance Minister’s budget speech:

“VAT works better when you have an economy that has a strong manufacturing base. But we don’t have it! We are in constant refund and it cannot work now. We have to grow the manufacturing base because that is the sector that needs that support of a VAT refund. Right now, VAT is a subsidy and we are in austerity — we can’t afford subsidies. It is as simple as that.

The VAT system was introduced 23 years ago in 1995 to replace Sales Tax.

For Foreign Investors and Businesses

When the new Zambian Sales Tax Act comes into force in 2020, Zambia will be the only country in Southern African Development Community and possibly in the Common Market for Eastern and Southern Africa region to have a sales tax system and this may influence foreign investors in their decision to locate their companies. The country may likely be less competitive a destination for foreign investors compared to its neighbours.

Why 2020 Is The New Date And The Implication of This For Businesses

The new date for the Sales Tax Act, according to Zambia’s Finance Minister Bwalya Ng’andu is to allow for further refinement of the law.

Addressing parliament, Ng’andu said he was withdrawing the draft law and would re-introduce it in the next session in September, the ministry of finance said in a statement.

“This will allow for sufficient time to address the concerns in the Sales Tax Bill that stakeholders raised,” Ng’andu said.

Since being appointed last month, Ng’andu has sought to mend fences with the miners, with relations deteriorating following tax changes and an ownership dispute over Konkola Copper Mines.

Zambia’s mining industry fiercely opposes the tax.

Zambia is Africa’s second-largest copper producer.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Ghana Now Has A New Companies Act, 56 Years After The Old Law

August 5, 2019

Businesses in Ghana would now have to face a new legal structure. Ghana’s President Nana Addo Dankwa Akufo-Addo has just given his assent for Ghana ’s new Companies Act to replace the 1963 version. This was after the new Act was brought to him from Parliament on Friday, 2nd August after it was passed by Parliament in May this year.

Here Is All You Need To Know About The New Law

The law, which has 428 pages and 369 clauses, has created a new office to perform functions relating to incorporated partnerships and registered business names.
This new office will be responsible for the appointment of inspectors and will assume the functions of the Official Liquidator under the Bodies Corporate (Official Liquidations) Act 1963.
The office will have financial autonomy and be funded from income sources such as sums of money approved by parliament, fees and charges, proceeds from the sale of the Companies Bulletin, donations, grants, and investment income.
The law also gives room for dissenting minority shareholders to have rights to compel their companies to buy out their shares. Such shareholders will now be entitled to request the company to purchase their share at a fair value.

Ghana’s economic profile; Source: Belt and Road

Under the New Law, The New Age To Legally Own A Business Has Changed

The new law states that an individual can register or start a business at the age of 18, revised downwards from 21 years. One person is enough to form an incorporated company in Ghana as the one or more persons may form an incorporated company by complying with this Act.

No More Ultra Vires Objects

With this new law, the application of ultra vires doctrine to companies in Ghana has been completely abolished. From the provisions of the Companies Act, companies will have the option to state the nature of their businesses or their objects.

The implication is that companies that will state their objects will be restricted to operate within the scope of their objects but those who opt not to state their object will have no restrictions and can do any legitimate business.

Improve Ease of Doing Business?

Ghana ‘s President Akufo-Addo was confident that this new Companies Act will improve significantly the ease of doing business in Ghana, enhance the corporate regulatory and governance framework, and reduce the cost of ensuring compliance for businesses.

“I invite the business community in Ghana, and those from outside our shores, to take advantage of the growing business-friendly environment being created in Ghana, and invest in our country. Let me reiterate that Ghana continues to be a haven of peace, security and stability, indeed, the safest country in West Africa, and legitimate investments are protected,” the President noted.

President Akufo-Addo added that more needs to be done to complete the country’s business reform agenda, and the Corporate Restructuring and Insolvency Bill, which is currently before Parliament, will, amongst others, provide the avenue to help resuscitate distressed, but viable business entities and establishments from liquidation and their ramifications.

To download Ghana’s new Companies’ Act, click here

With the coming into effect of the African Continental Free Trade Area (AfCFTA), and with Ghana playing host to the secretariat, the President indicated that the country is going to be the hub for African trade and investment, bringing in its wake more jobs, expanded conferencing and hospitality services, enhanced aviation and other transportation services, and related allied businesses.

“Consequently, the timing of our business law reforms could not have been more propitious,” he added.

President Akufo-Addo also launched the GARIA Trust Fund, which is designed to be the principal financing vehicle for GARIA and will be managed by an independent Board of Trustees.

“I am going to ask the Ministries of Finance, Trade and Industry, and Business Development to see to what extent they can properly assist the Fund. In the meanwhile, I am personally donating GH¢50,000 as my modest contribution to the Fund,” he added.

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.

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Takunda Chitaka wins 2019 Excellence in Academia PETCO Award

A South African Ph.D. student Takunda Chitaka has received the 2019 Excellence in Academia PETCO Award for her engineering approach towards tackling plastic marine pollution. This recognition highlights the need for peer-reviewed research that supports strategic interventions in the areas of recycling, waste minimization, and sustainability.

The PET Recycling Company (PETCO) annual awards are given to people and organizations making strides in sustainability at the grassroots level across South Africa. The company states that in 2018, 98,649 tonnes of PET plastic bottles were recycled through their collective dedication and efforts, enabling PETCO to expand its collection network, build relationships with recyclers, and seek new opportunities to develop and support entrepreneurs.

PETCO chief executive officer Cheri Scholtz said the organization’s greatest asset was “the remarkable network of partners we work with every day.”

“We are therefore delighted to be able to recognize and celebrate the significant efforts made by our 14 worthy Winners towards the recycling of post-consumer PET in South Africa.”

One of the 2019 recipients is a Ph.D. student at the University of Cape Town (UCT) Department of Chemical Engineering. Takunda Chitaka received the Excellence in Academia PETCO Award for her engineering approach towards tackling plastic marine pollution.

According to UCT’s Faculty of Engineering and The Built Environment website, Chitaka has analyzed empirical evidence since 2016 based on beaches in Cape Town to estimate the litter flows into the marine environment.

“On day one, you clean the beach of all the litter. The next day you return and pick up all the litter again, which gives you 24 hours of litter that has washed up onto the beach. Academically this is generally acknowledged to be a good proxy of what is flowing into the ocean,” Chitaka explained.

She analyzed five beaches and found one beach had approx. 36 items per 100 meter per day, where the other beach had 3000 items. She also noticed how the composition of the litter has changed.

“Ten years ago, everyone was concerned about plastic bags,” she said. “In my litter collection, I found very few plastic bags across all the beaches. Lots of polystyrene packaging, snack packets and straws were found. A mitigation approach focused on items associated with food consumed on the go may address a third to a half of marine litter sources in Cape Town.”

Chitaka hopes for her research is, “that it helps to inform the way forward for the plastics economy in South Africa.”

In their support of her and other using academic research to identify solutions, the PETCO annual award recognizes the importance of having peer-reviewed research underpinning strategic interventions into the broad areas of recycling, waste minimization, and sustainability.

Another notable award winner is nine-year-old ‘Waste Reduction Youth Warrior’ Rocco Antonio, Da Silva. He started the Future Kids Club in the Western Cape to create awareness and get the youth in his area to commit to participating in monthly beach and community clean-ups. Reports indicate that over the last 14 months, members of his club have collected in excess of 950kg of rubbish off a local 400m stretch of beach.

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.

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Egypt’s MoneyFellows Raises Over $1 Million to Digitize Money Circles (gameya)

Egypt’s MoneyFellows has just joined the list of startup fundraisers in Africa. Currently, it appears Egypt’s startup ecosystem is having a field day. The Cairo-based fintech has raised over $1 million in a bridge round (Pre-Series A).

Here Is All You Need To Know

The investment came from 500 Startups and Dubai Angel Investors, both of which had previously invested in company’s seed round as well, last year, Beirut-based Phoenician Fund, and some individual investors including some of its previous angels.
MoneyFellows plans to use the latest investment for scaling the userbase mainly. The also plans to raise a $3 million Series A by the end of this year.

“With steady growth in our user base, we have been working hard over the past year in order to optimize and perfect our product and are now ready to begin our scaling journey. We will dedicate the money from this bridge round to raise greater awareness for MoneyFellows, in order to allow a much greater number of users to access our application and meet their saving and financial needs,” noted Ahmed.

The startup also has secured corporate deals with different companies in Egypt in order to facilitate the participation of their employees in money circles.
MoneyFellows has also partnered with different financial institutions including Fawry to make it easy for its users to pay their monthly installments and receive the payouts. Its partnership with Fawry allows users of MoneyFellows to pay installments at over 80,000 Fawry Point-of-Sale devices located all across Egypt and receive their payouts at over 200 Fawry Plus stores.

Image result for Egypt's startup ecosystem — Egypt Startups Ecosystem

A Look At MoneyFellows

Founded in late 2016 by Ahmed Wadi, MoneyFellows is digitizing concept of money circles (ROSCAs), commonly known as gam’eya in Egypt and other Arab countries.

The years-old practice that is common across many countries in the world, known as chit funds in India, committee in Pakistan and Tandas in Mexico, allows a group of people (normally friends or coworkers) contributes a fixed installment every month to a pool with one of the members taking whole pool as payout every month. The circle ends when everyone receives their payout and is usually repeated if the participants are interested.

MoneyFellows with its group pooling platform for credit and savings is digitizing the entire process of money circles with a scoring model that compliments current offline model, making it more scalable, safe and efficient.

How The Startup Works

The users set up their profile on MoneyFellows and upload documents to verify their income and personal details. The more information and verification documents they share, the better their score and limit. Depending on MoneyFellows’ credit assessment, a user is then shown different matching circles. The user then selects one of these circles, a preferred (available) slot, and mode of payment and payout.

MoneyFellows makes money by charging a small service fee on monthly installments paid by the members.

“Our business model is currently comprised of collecting service fees from our users depending on their payout position in the money circle — starting with 5% fees for users with early payouts at the beginning of the circle, incrementally decreasing to zero fees for users paid out at the end of the circle. With millions of dollars moving through our accounts MoneyFellows are able to earn a percentage of float interest on our money in circulation. We are also planning to introduce several new options to generate revenue, including allowing our users to utilize MoneyFellows for bill payments, as well as using MoneyFellows in a variety of merchant locations,” explained Ahmed in a conversation with MENAbytes.

Speaking of their expansion plans, Ahmed said that they’re aiming to expand in MENA to different neighboring countries in the region in 2020 after closing their Series A. The startup also plan to expand into some Africa countries in 2021 as there are high prevalence and participation in offline ROSCA schemes, allowing MoneyFellows to access hundreds of millions of potential users in these markets. The startup is currently in advanced discussions with many key financial and telecommunication players in MENA to work on its potential expansion there.

Originally started in the United Kingdom, MoneyFellows moved its headquarters to Egypt later and currently employs a team of over 40 employees, all of whom are based in Cairo.

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.