6th November 2020 Trade & Financial Services Round Up

November 6, 2020 - Reading Time: 5 minutes - By The Vellum Team

Petrol, electricity prices to rise on new levy plan

Consumer prices of petroleum and electricity are set to climb if Parliament approves a new taxation formula aimed at boosting the finances of the Energy Petroleum Regulatory Authority (EPRA). The formula proposed by the Energy ministry will see the regulatory levy on petroleum charged at up to 1% of the combination of the landing, transport and storage costs of fuels instead of the current fixed charge. The ministry is also recommending a new levy of up to 1% on the consumption charge for electricity under the proposals already endorsed by the Energy committee of the National Assembly. Currently, EPRA calculates the two levies in shillings per litre for fuel and shillings per kilowatt-hour for electricity. If the proposals are passed by Parliament, EPRA levies will fluctuate from time to time depending on the landed cost of petroleum products and the changes in the energy charge for electricity consumers. Energy principal secretary, Joseph Njoroge said that the proposed formula would boost collections by EPRA to fund its operations. “It (regulatory levy) is a percentage of energy charge for electricity and a percentage of cost of fuel without the tax elements. We made the proposal because EPRA is expected to play bigger roles in regulating the upstream and midstream oil sectors hence their budget will change going forward.”

Source: Business Daily

Taxman eyes Sh5bn from digital businesses in six months

The Kenya Revenue Authority (KRA) is eyeing to collect at least Sh5 billion through the new on online transactions in the six months to June next year.

Commissioner-General Githii Mburu said taxes would be collected from all local and foreign businesses that sale and supply a range of digital services and goods in the country.

The firms will pay a flat tax of 1.5 per cent on the value of goods supplied and sold online or services offered through digital platforms under the Income Tax (Digital Service Tax), 2020 that takes effect from January 1.

Source: Business Daily

KCB upbeat National Bank to yield billions by December

KCB Group Loading… expects its newly acquired subsidiary National Bank of Kenya to turn a corner and deliver a billion shillings in profits by the end of the year.

Chief executive Joshua Oigara said the lender had won back old corporate and government accounts as a result of market confidence and business reorganization and recovered the market share they had lost.

Source: Business Daily


African Development Bank, partners, announce new Women in Ethics and Compliance in Africa initiative

The Women in Ethics and Compliance in Africa network (WECA), a new initiative creating a membership group for women executives and management leading the fight against corruption and non-compliance in business, made its debut at an online webinar co-hosted by the African Development Bank (AfDB) on 22 October 2020. Its organisers, leaders from the AfDB, the Coalition for Ethical Operations (CEO) and the United Nations Global Compact, announced the formation of the unique support organisation for female leaders and executives working to curb unethical business practices in Africa. “The formation of this network reiterates the Bank’s commitment to ensuring that sustainable development is hinged on bridging the gender gap, with emphasis on key areas such as ethics and compliance. We are inviting women from all across the private and public sectors on the continent to join in and help in achieving the objectives of this network,” said the Bank’s director for Gender, Women and Civil Society, Vanessa Moungar. The WECA network founding members said they plan to address the lack of avenues and support for ethical leadership. The network also aims to bridge the gap in human resources for ethics and compliance across the continent, through mentoring and coaching young women professionals for career progression.

Source: AfDB

USTDA launches call for initial proposals to expand Africa initiatives

The U.S. Trade and Development Agency (USTDA) issued a call for initial proposals to expand its grant-based support for feasibility studies, technical assistance and pilot projects that advance the United States (US) government’s Prosper Africa and Power Africa initiatives, as well as USTDA’s Access Africa initiative. USTDA accepts proposals to advance infrastructure projects in developing and middle-income countries throughout sub-Saharan Africa, with a priority emphasis on agribusiness, energy, healthcare, information and communications technology (ICT) and transportation. Grant funding from USTDA can be used for feasibility studies, technical assistance or pilot projects to structure sustainable infrastructure projects. USTDA is an implementing agency of Power Africa, a US government-led partnership to increase access to electrical power and support private sector investments in African energy infrastructure. USTDA is also an implementing agency of Prosper Africa, a US government initiative to substantially increase two-way trade and investment between the US and Africa. Through its Access Africa initiative, USTDA is supporting quality ICT infrastructure across Africa. USTDA will accept initial proposals through 7 December 2020. Initial proposal requirements can be found the USTDA website.

Source: USTDA


Nation finalising 20 years mining, petroleum policy

The Ministry of Mines and Petroleum said it has been finalising the national mining and petroleum policy that will be implemented over the next 20 years. Despite Ethiopia’s huge untapped resources of the mining sector, it has no policy to help effectively exploit the sector, minister of Mines and Petroleum, Takele Uma Banti told journalists after a half-day forum. Noting that the absence of a policy framework has been affecting the development of the sector, he pointed out that the new mining and petroleum policy will provide Ethiopia with a clear roadmap to fully and effectively exploit the resources to expedite the national economy. This policy framework will also create sustainable communication systems between key stakeholders that are pertinent to the development of the sector including federal and regional governments, he added. It also allows the private sector to import mine testing and filtering machines and equipment that are vital for the development of the sector. The policy is also believed to attract foreign investors to engage in Ethiopia to develop the sector, the minister said.

Source: ENA


Rwanda accelerates nuclear energy efforts

As Rwanda advances plans to establish a centre for nuclear science and technology, it has now started working on its nuclear stronghold by joining the international treaty that provides assistance in case of nuclear and radiological accidents. Recently the cabinet approved the draft law approving the accession of Rwanda to the convention on assistance in the case of nuclear accident or radiological emergency. The convention is a multilateral treaty of the International Atomic Energy Agency (IAEA) of which Rwanda is a member state. After the bill approving the convention is passed by Parliament, “Rwanda will be able to request assistance from any other state party directly or through IAEA in case a nuclear emergency event occurs and it may also be able to provide the same assistance if requested,” minister Claver Gatete told The New Times. In June, the Rwandan Parliament approved the agreement between the government and a Russian state corporation known as Rosatom to set up the nuclear centre by 2024. The centre would enable Rwanda to develop nuclear solutions that would advance several sectors of the country’s economy especially agriculture, health education, sciences and industry.

Source: The New Times

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