BUSINESS - The African Mirror

Apr

20

2023

West Africa edges East Africa as mobile money hotspot

BUSINESS

EAST Africa has lost its mantle as the engine of growth for Africa's dynamic mobile money sector to West Africa, according to GSMA State of the Industry Report (SOTIR) 2023. East Africa - where the continent's mobile money behemoth, M-PESA, is domiciled - boasted the highest activity rate in the region as recently as 2020 but it has since declined for two consecutive years. In contrast, West Africa's activity rates have risen consistently since 2018 and active mobile money accounts grew by 25% between 2021 and 2022. "Not only are more people registering for mobile money accounts, but many who…

Apr

04

2023

By CONRAD ONYANGO, BIRD STORY AGENCY

Open banking explained: What is it, and why is it important?

BUSINESS

BACKGROUND Banks have existed, in one form or another, for thousands of years, storing money safely and lending to individuals, institutions and businesses who needed to borrow money and whom the bank believed would repay them - usually, with interest. In their modern form, in which they have offered many more services, including mortgage lending and insurance, they owe much of their success to conservative, risk-averse business practices. With traditional banking, clients who opened accounts would trust the bank with their personal information, including names, account types, currency and transaction history. In terms of the banking regulations in most countries,…

Mar

26

2023

By AHMED ELJECHTIMI

Morocco restricts tomato exports over high domestic prices

BUSINESS

MOROCCO has restricted tomato exports since late February with a total ban in place from last week until Thursday to lower domestic prices, the head of the country's main fruit and vegetable exporters' group said on Friday. Lahoucine Aderdour, head of the Federation of Moroccan Exporters of Fruits and Vegetables (FIFEL), told Reuters the Agriculture Ministry had agreed on a daily quota of tomato exports last month before stopping all exports from March 18 to 22, with a lower quota of 700 tonnes a day from Thursday. On Friday, exporters were given a quota of 1000 tonnes but that was…

Mar

31

2023

By TANNUR ANDERS and PROMIT MUKHERJEE

South African catastrophes, power woes signal end of cheap insurance

BUSINESS

THREE major jolts in as many years coupled with the once unthinkable possibility of a power grid collapse have spooked reinsurers in South Africa, spelling an end to cheap coverage in the continent's most developed insurance market. Insurance premiums are climbing worldwide on the back of rising inflation and interest rate hikes. But reinsurance rates in South Africa are outstripping the global trend - in some cases tripling - as insurers grapple with an unprecedented claims load, six industry executives told Reuters. That's largely down to heavy payouts for business interruption claims in the first year of the pandemic, damage…

Mar

30

2023

By SETH ONYANGO, BIRD STORY AGENCY

Breaking the mould: Africa’s non-traditional wealth hubs spring up

BUSINESS

SMALLER African nations are giving rise to a new generation of millionaires, challenging the 'big five" wealth markets on the continent – South Africa, Egypt, Nigeria, Kenya, and Morocco - some of which have experienced millionaire "flight" over the past decade. According to the latest Africa Wealth Report published by Henley & Partners and New World Wealth, the growth of high-net-worth individuals in traditional powerhouse economies like South Africa, Egypt, and Nigeria is cooling off. In contrast, emerging markets such as Rwanda, Cote d'Ivoire, and Zambia are experiencing a surge in their millionaire populations, indicating a shift in wealth generation…

Mar

29

2023

By The African Mirror

Ghana’s e-levy is unfair to the poor and misses its revenue target: a lesson in mobile money tax design

BUSINESS

MIKE ROGAN, MAX GALLIEN, NANA AKUA ANYIDOHO and VANESSA VAN DEN BOOGAARD IN May 2022, the government in Ghana introduced a deeply unpopular tax on mobile money transactions, known as the e-levy. When it was introduced, the levy was structured as a 1.5% charge on all electronic and mobile money transactions over 100 cedis per day. The e-levy was designed to raise more money for the government by extracting larger tax contributions from Ghana’s informal sector. About 90% of total employment in Ghana is informal and politicians have explicitly stated that the e-levy is targeted at the informal sector. In…

Mar

18

2023

By The African Mirror

Nigeria’s central bank made critical mistakes that doomed the country’s currency redesign

BUSINESS

NIGERIA has successfully introduced new banknotes on about 10 occasions since its independence in 1960. So why has the latest attempt been so controversial and traumatic? And what measures need to be taken to avoid a future debacle? Nigeria’s central bank announced the introduction of new banknotes last November, with the changeover to new notes scheduled for mid-December. The rollout of the policy disintegrated into chaos, amid mounting anger among ordinary Nigerians. The rollout of the currency change was disastrous. The fallout included: Severe shortages of the new banknotes. Precipitous declines in business transactions (especially in the informal sector). Long…

Mar

28

2023

By The African Mirror

Ivory Coast eyes startups growth with new legislation to support the sector

BUSINESS

BIRD STORY AGENCY IVORY Coast is positioning itself as a significant player in Africa's startup ecosystem with the introduction of a new legislative framework designed to support the country's entrepreneurs. The Ivorian Council of Ministers recently gave the nod to the Startup Act, a framework awaiting parliamentary approval. The proposed bill promises to revolutionise the digital startup landscape by providing crucial financing and support terms to bolster vulnerable enterprises' resilience. Other benefits the Act guarantees include a Startup Act award providing grants. Startups will also benefit from training, promotion, and access to public contracts and international markets. According to Florence…

Mar

04

2023

By The African Mirror

Mozambique ordered to open files in Credit Suisse, Privinvest ‘tuna bond’ case

BUSINESS

KIRSTIN RIDLEY and RACHEL SAVAGE A London judge ordered Mozambique to allow access to documents held in state offices or risk derailing a blockbuster London lawsuit against Credit Suisse, shipbuilder Privinvest and others over the $2 billion "tuna bond" case. The tuna bond or "hidden debt" scandal, one of Africa's most high-profile corruption cases of recent years, has triggered a spate of litigation from Maputo to Washington. But the London case could establish whether one of the world's poorest countries can secure compensation and restitution. Judge Robin Knowles, however, told the High Court in London that Mozambique had failed in…

Mar

03

2023

By The African Mirror

Morgan Stanley turns ‘bullish’ on Nigeria bonds after election

BUSINESS

MORGAN Stanley said it had turned "bullish" on Nigeria's government bonds on hopes the declared victor in the country's presidential elections, Bola Tinubu, will soon press on with key fiscal and financial market improvements. "In the short-to-medium term we think that there are potential positive triggers," the Wall Street bank's main analyst for the country, Neville Mandimika, wrote in a note, entitled, "As the dust settles, we turn bullish." Tinubu, whose victory in Saturday's election with 37% of the vote is being challenged by rivals in court, made a number of pledges on reforms during his election campaign. Morgan Stanley said positive…