October 9, 2020 - 5 minutes read

9th October 2020 Trade & Financial Services Round Up

By The Vellum Team
KENYA

Coca-Cola, Absa Bank ink SMEs credit score deal

Soft drinks manufacturer Coca- Cola has opened its trading partners’ transactional financial data for use by listed lender Absa Bank Kenya in disbursement of business continuity loans.

Under the campaign ‘Open Like Never Before’, Coca-Cola said this will be on top of a Sh 125 million kitty to be spent on enhancing hygienic standards, training staff and equipping 18,000 eateries with the required masks and face shields, hand-washing jerry cans and sanitizers.

Business Daily

Highlights of the Cabinet Meeting held at State House, Nairobi on 8 October 2020.

The president chaired the Cabinet meeting that was held on Thursday 8th October 2020. 

The establishment and operationalization of a Multi-Agency Team on Public Order

In the meeting, the Cabinet considered the prescriptions and directives issued by the National Security Advisory Committee (NSAC) regarding the Preservation of Public Order and Security in the Conduct of Public Gatherings and Processions, Media Reporting and Responsible Conduct of Persons using Social Media.

The Cabinet unanimously endorsed and ratified the prescriptions and directives as issued by the National Security Advisory Committee (NSAC) as National Security Advisory, whose effect would commence immediately. To institutionalize the prescriptions and directives issued by the NSAC, the Cabinet approved the establishment and immediate operationalization of a Multi-Agency Team on Public Order comprising of representatives from the following state and public offices: 

Convener 

  1. Ministry of Interior and Government of National Government Members
  2. Office of the Attorney-General and Department of Justice;
  3. Ministry of ICT, Innovation & Youth Affairs; 
  4. National Intelligence Services; 
  5. National Police Service, comprising of one representative of Kenya Police Service, Administration Police Service and Directorate of Criminal Investigations; 
  6. National Cohesion and Integration Commission; 
  7. ICT Authority; and 
  8. Communication Authority of Kenya.

Secretariat: National Security Advisory Committee (NSAC)

The primary term of reference for the Multi-Agency Team on Public Order is to monitor, document and enforce compliance with the prescriptions and directives with respect to the conduct of all public   meetings   and   processions; the   permitted processes   for   media broadcasting, publishing and reporting; and the responsible conduct of persons using social media in Kenya.

The approval of the 2020 Budget Review and Outlook Paper for the Financial Year 2021/2022’s Medium Term Budget.

The Cabinet also considered and approved the 2020 Budget Review and Outlook Paper for the Financial Year 2021/2022’s Medium Term Budget. The proposals by the National Treasury anchor the framework upon which the Government’s efforts to stimulate and sustain economic   activities through the Economic Stimulus Programme and the Post Covid-19 Economic Recovery Strategy. The proposals also set out targeted state expenditures that focus on the priority programmes and initiatives that will bring the most gains to Kenyans within the shortest time possible. In accordance with the Public Finance Management Act, the Cabinet sanctioned the transmittal of the 2020 Budget Review and Outlook Paper for the FY 2021/22Medium Term Budget to the National Assembly.

Kenya and Foreign Direct Investment (FDI)

To secure Kenya’s overall competiveness and attract Foreign Direct Investment (FDI), the Cabinet considered and approved the following:

  1. The Avoidance of Double Taxation Agreement between the Government of the Republic of Kenya and the Government of Singapore
  2. The Memorandum of Understanding on Cooperation between the Kenya Ports Authority and the Mauritius Ports Authority
  3. The Memorandum of Understanding on the Establishment, Implementation and Management of the East African Community (EAC) Seamless Upper Airspace
  4. The Memorandum of Understanding between the Republic of Kenya and the International Centre for Advanced Mediterranean Agronomic Studies – (CIHEAM   BARI, ITALY) for Cooperation in the Agriculture and Fisheries Sector.
UGANDA

Uganda has warned of new measures to curb the spread of COVID-19 in the east African country amid widespread community infections, Information minister said. Judith Nabakooba, Uganda’s minister for Information, Communications and Technology and National Guidance in a statement said the Ministry of Health will issue a series of new measures. “Uganda has transitioned into a phase of widespread community infections. This phase means that the virus is spreading widely and almost impossible to trace the source of new infections,” said Nabakooba. She said Uganda had almost seven months of strong preventive and awareness measures delaying the transition into the current widespread community infections phase.

Source: Xinhua

Uganda’s pension firm, National Social Security Fund (NSSF), will pay low interest rates on contributor’s savings due to the impact of the COVID-19 pandemic. NSSF managing director, Richard Byarugaba, flanked by his deputy, Patrick Ayota, said on 24 September during a virtual press briefing, that the economic downturn in Uganda and the East African region as a result of the pandemic fallout hurt the Fund’s operations in the last two quarters of Financial Year 2019/2020.

Source: The Independent

Uganda to help build roads inside Congo, citing trade goals

Uganda’s government said it would help finance projects to surface over 200 kilometres (124 miles) of road inside neighbouring Congo as part of plans to boost trade between the countries. Uganda will contribute about 20% of the project value while the rest will be met by Congo’s government in an envisaged public-private partnership, Ugandan Works and Transport Minister Gen. Katumba Wamala told The Associated Press. Such an arrangement is unheard of in a region where governments struggle to expand road networks within their borders. “There is always a first time for everything,” Wamala said. “This is a joint project between the two countries and there is a very good reason for that.” The office of the Ugandan government spokesman in a statement said a meeting of Cabinet had authorised the surfacing or upgrading of the road from the border to Congo’s town of Beni as well as the road from the border post of Bunagana to the city of Goma. The projects will boost investment and improve security in eastern Congo, the statement said.

Source: Daily Mail

SOUTH SUDAN

South Sudan sets USD10,000 ceiling for outbound travellers to minimise cash outflows

In a bid to minimise cash outflows, South Sudan on Tuesday, 29 September said the maximum amount that could be allowed for travellers abroad is only USD10,000 in cash, as the country continues to work towards stabilising its weak economy following years of conflict. Michael Makuei Lueth, minister of Information and Broadcasting, said the cabinet recommended this new measure following findings by the economic cluster committee which was set up by President Salva Kiir to investigate mismanagement of non-oil revenue collection. Since the revitalised peace deal to end over six years of conflict was signed in 2018, the South Sudanese Pound increasingly depreciate against the United States Dollar as the country’s economy struggles with hyperinflation. In addition, revenue from crude oil which is the country’s major source of income, has reduced because oil-producing countries have had to cut production due to a drop in global prices caused by the COVID-19 pandemic.

Source: News Central

TANZANIA
  • Vodacom Tanzania is in initial discussions with Tanzania Communications Regulatory on the possibility of investing in 5G technology.
  • Airtel in collaboration with WorldRemit, the global payments company has come together to enable Airtel Money customers to send and receive money directly into their mobile money wallets from abroad.
  • NMB Bank has launched three innovative and transformative digital customer experience tools, aimed at simplifying interactions between it and its customers.
RWANDA
  • Rwanda has signed a new environmental conservation contract with African Parks to ensure the sustainable management of Nyungwe National Park, the country’s largest national park expanse of forest.
  • President Paul Kagame joined Presidents João Lourenço of Angola and Yoweri Museveni of Uganda for the Regional Leaders Summit of Heads of State held via video-conference which was hosted by President Félix Tshisekedi of the Democratic Republic of Congo where the Head of State called for increased cooperation between countries to ensure peace and stability.
ETHIOPIA
  • Ethiopian Diaspora Agency has planned to raise ETB 50 million (approx. USD 1.3 million) from the Diaspora community this year as part of the Dine for Nation initiative.
  • Foreign Affairs State Minister Tsion Teklu called on Indian investors to intensify economic engagements in Ethiopia during a co-organized a webinar meeting to deepen trade and investment relations between the two countries.
EAST AFRICA

EAC seeks integration of financial services

The East African Community (EAC) has approved several draft policies aimed at integrating the financial services among the partner states. The integration will be realised through fast-tracking of the implementation of payment and settlement systems in the region, among others. The EAC Banking Certification Policy and its implementation strategy and roadmap is among the key document endorsed. Also approved are the draft EAC Microfinance Service Policy and the draft EAC Insurance Bill. This was announced during the tabling of the USD97.6-million EAC budget for 2020/21 financial year before the East African Legislative Assembly. Each of the six partner states will contribute about USD9.1-million. Some USD41.9-million will be raised by donors. Also considered and approved are principles required in extending pension coverage to the informal sector in the EAC bloc. Professor Nshuti Manasseh, Rwanda state minister for EAC Affairs, said requisite institutions to drive the East African Monetary Union would be established.

Source: The Citizen

NIGERIA

‘Digital assets classification will protect investors’

The Securities and Exchange Commission (SEC) has said recent guidelines on Digital Assets, Classification and Treatment is aimed at boosting investors’ protection in the capital market. Head, Registration, Exchanges, Market Infrastructure and Innovation, Emomotimi Agama, while speaking on the guidelines in an interview, said: “The first thing the SEC bothers about is investor protection. “This is no different from what we have been doing. We are looking at investor protection, integrity, transparency and of course we want to make sure the market is safe and everyone is comfortable with what is going on in the investment climate.” Agama noted that the Commission launched the Fintech roadmap last year, after which it set up the blockchain virtual financial assets committees. “These committees are both market-wide and principally set up to engage the market, to be able to have discussions with the market and get their buy-in into what we are doing.

Source: The Guardian

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