16th September 2022 Trade and Financial Services Round Up

  • 16 Sep 2022
  • 4 Mins Read
  • 〜 by The Vellum Team

State saves Sh9.4 billion from scrapped fuel subsidy

The Treasury will save an estimated Sh9.49 billion from the partial withdrawal of fuel subsidies that sent diesel and petrol prices to a historic high.

The energy regulator scrapped the subsidy on petrol a day after the new President, William Ruto, said subsidies were unsustainable, in a move that could add to upward pressure on inflation.

It for the first time in a year fully withdrew a Sh20.5 a litre subsidy on petrol and halved the reliefs on kerosene and diesel to Sh26.25 and Sh20.82 respectively.

This has reduced the burden of the subsidy from Sh14.5 billion to Sh5 billion as the new administration works on withdrawing State-backed discounts on petroleum products.

Petrol rose 13 percent to Sh179.30 in Nairobi, diesel 18 percent to Sh165 and kerosene 16 percent to Sh147.94 from a month earlier.

(Source: Business Daily)


Optimism as government meets with mobile operators over levies

The Ministry of Finance and Planning has reiterated that it was working on finding a better way of ensuring every Tanzanian contributed to the country’s development, as public outcry over electronic transfer levies continues.

This, the ministry said, was implementation of directives given by President Samia Suluhu Hassan who noted that the imposed levies did not end up being a burden to Tanzanians. It was on this basis that the Ministry of Finance and Planning met with members of the Tanzania Mobile Network Operators Association (Tamnoa) in Dodoma yesterday.

“We have agreed to review the charges and make sure they remain friendly to Tanzanians,’’ said Mr Mafuru.

According to him, the telecom service providers serve up to 40 million customers who make electronic transactions via their mobile phones. The meeting brought together: Airtel, TTCL, Vodacom, Tigo and Halotel.

(Source: The Citizen)


Redesign your business model – Central Bank tells banks

Central Bank has cautioned banks that increased competition requires a redesign of business models, in a manner that puts agility and flexibility in response to customer expectations and emerging risks from technology and climate change.

The Bank of Uganda explains that Supervised Financial Institutions (SFIs) will need to create sustainable improvements within their operations, to not only ensure profitability and the associated organic capital growth, but also future viability.

Addressing bankers during a dinner for the Uganda Bankers’ Association in Kampala Hotel on September 2, 2022, the deputy governor Bank of Uganda, Dr Michael Atingi-Ego said: “The key risk here is existential, and it is about whether or not SFIs shall continue to exist and function in a future riddled with emerging developments like open banking, Artificial Intelligence, robotics, big data, secure but real-time and anywhere access to services, and ESG standards among others.” 

(Source: The Monitor)


Rwanda’s economy grew by 7.5% in second quarter of 2022

Rwanda’s economy grew 7.5 per cent in the second quarter of 2022, thanks in large part to the services and industry sectors.

The outlook is contained in the latest gross domestic product (GDP) update released Thursday by the Ministry of Finance and Economic Planning.

From April to June, the monetary value of all finished goods and services produced in Rwanda was estimated at Rwf3,279 billion, up from Rwf3,025 billion in the previous quarter, it says.

According to the official figures, services related to hospitality registered high growth; notably meetings, conferences, and other events.

Hotels and restaurants grew by 193 per cent, transport activities by 27 per cent, and education by 14 per cent.

Financial services grew by 10 per cent, with Information and Communication growing 8 per cent. Meanwhile, agriculture grew by only 2 per cent while industry grew by 6 per cent.

(Source: The New Times)


Ethiopia: Safaricom Signs an MoU with IPDC

Industrial Parks Development Corporation announced that it inked a memorandum of understanding with Safaricom Ethiopia to work together across industrial parks. Based on the agreement, the telecommunications company will lease 10 square meters of land in the Ethiopian Information Communication Technology (ICT) Park and invest USD 60 million. Safaricom will build a data center in the park and create jobs for 56 individuals.

The data center will mainly give services to Safaricom. Sandukan Abebe, CEO of IPDC, related that the agreement will contribute to Ethiopia’s digitalization plan.

The agreement also enables Safaricom to provide telecom services in the industrial parks by utilizing their data centers. Moreover, the company will work together with IPDC on cyber security and training and consultation services.

(Source: 2merkato.com)


Strikes over exorbitant tax increments and economic struggles in Sudan

Workers and traders went on strike in various parts of Sudan in the past few days to protest increased taxes and high fines. Workers also protested over unpaid salaries and the failure to implement the promised 2022 salary structure. Some strikes and protests took place around political disagreements as well.

Sudan’s economy is in peril, and poverty rates are likely to be even higher than reported. With rising inflation and low wages, most Sudanese are struggling to afford their basic needs.

(Source: Radio Dabanga)


Regional administrations ask the DF to release money from the UAE

Aid officials in the regional administrations have called on the central government of the federal government of Somalia to release grants for dealing with the drought.

After a three-day meeting of the Ministers of Humanities ministries in Baidhaba city, they requested the federal government to release an amount of $9.6 million dollars donated by the United Arab Emirates government to deal with the drought.

The government of Somalia did not immediately respond to the call made by the humanitarian aid ministers of the regional governments. On the other hand, aid officials at the regional administration level said that the humanitarian situation in the country is getting worse every day.

(Source: Radio Dalsan)