13th January Trade and Financial Services Round Up

  • 13 Jan 2023
  • 3 Mins Read
  • 〜 by The Vellum Team


State bursts recurrent budget forecast by Sh81.7bn

President William Ruto’s administration projects expenditure for the day-to-day running of the government is Sh81.7 billion more than what the previous regime budgeted, pointing to piling spending pressures, including salaries and wages.

The Treasury has forecast recurrent budget for the financial year ending June to top Sh2.35 trillion, a 2.35 percent rise over Sh2.27 trillion estimates by his predecessor’s administration that handed over power last September.

The projected extra budget will largely go to recurrent expenditure labelled “others” as well as salaries and wages.

The recurrent expenses under “others” are expected to increase by Sh69.8 billion to Sh364.5 billion, while the public wage bill for the executive is seen rising Sh23.5 billion to Sh560.7 billion, the projections in the Budget Review and Outlook Paper show.

The forecast rise in expenses for running the government is higher than the 2.35 percent, or Sh50.3 billion, projected growth in ordinary revenue — taxes, levies, rent of buildings, fines and forfeitures— to Sh2.19 trillion.

(Source: Business Daily)


Yetu Microfinance chief reacts to BoT suspension

The founder and chief executive officer of Yetu Microfinance Bank, which was recently put under the administration of the central bank, described the move as a surprise to the financial institution which was in the helm of sourcing more financing to improve capital. Mr Altemius Millinga, who is also one of the depositors in the bank, said the bank was in different stages of raising funds from other partners to beef up their capital, adding that the regulatory control of the bank had stopped everything so far.

Mr Millinga said he was suspended from the bank, along other four senior staff, since September and the bank remained under a central bank official until December 12, 2022 when the statutory administration was announced.

(Source: The Citizen)


MTN begins transformation towards 5G technology

MTN has announced a five-year strategic partnership in which it will seek to transform its system towards a 5G-capable core network.

The transformation, which MTN said yesterday will be done in partnership with Huawei Technologies, will see the telecom’s network evolve into an all-cloud core network. In July 2021, MTN said it had started a process in which it would automate its network in preparation for 5G technology. The telecom, noted it has already entered a partnership with members under the Telecom Infra Project.

In a statement yesterday, Ms Sylvia Mulinge, the MTN chief executive officer, said the initiative will allow the telecom to have a future-oriented network with greater service agility, innovation for both consumer and industrial verticals, differentiation, improved operation efficiency and better customer experiences.

(Source: Monitor)


Business owners welcome President Kagame’s call on easing taxes

The private sector has welcomed President Paul Kagame’s appeal for easing taxes in the country.

President Kagame on Monday, January 9, tasked relevant authorities to review taxes so that ordinary people and businesses are not overstrained.

“I don’t see any reason why this issue [high taxes] cannot be examined,” Kagame said, adding that high taxes do not necessarily imply more tax revenue. The President tasked the entities responsible for taxation policy and legislation to consider all possible ways that can immediately address the problem.

Business owners including Divine Munyana, a clothes shop owner in Gasabo District, welcomed the fact that the President acknowledged that there is a problem as high taxes are negatively impacting private businesses’ growth. According to Munyana, high tax rates affect the whole business process.

(Source: NewTimes)


Ethio Telecom Transacts 166bn Birr Via telebirr over Past Six Months

Ethio Telecom disclosed that it has transacted a total of 166.1 billion Birr in the economy over the past six months of the current Ethiopian fiscal year through its digital financial service, telebirr.

Ethio Telecom CEO, Frehiwot Tamiru briefed the media today about the six month performance of her company.

She said telebirr, which was launched to satisfy the need for digital financial services and ensure financial inclusion, has acquired more than 27.2 million customers.

The platform has also transacted a total of 166.1 billion Birr in the economy in six months, generating an income of 82.5 million Birr, she said.

The CEO stated that Ethio Telecom has generated more than 33.8 billion Birr revenue during the current Ethiopian fiscal year which covers from 01 July, 2022, to 31 December, 2022.

The revenue shows a 5.6 billion Birr increment compared to same period last year. The company has also earned 8.1 billion Birr net profit during the six months of the fiscal year. She added.

(Source: ENA)