10th February 2023 Trade and Financial Services Round Up

February 10, 2023 - Reading Time: 3 minutes - By Brian Otieno

Kenya

KRA set to tax hedging profits under new rules

Kenyans engaging in transactions with foreigners to cushion them from volatility in financial markets will now be required to account for any profit realised by non-resident parties and remit tax on the same to the Kenya Revenue Authority (KRA).

This follows the gazettement of the Income Tax (Financial Derivatives) Regulations of 2023 on January 27, effectively bringing to life amendments to the Income Tax Act, which were initiated by the Finance Act 2022.

This development now places under KRA’s radar entities such as national flag carrier, Kenya Airways, which engages in hedging to cushion itself against volatility in the price of fuel as well as commercial banks that have engaged in long-term foreign currency-denominated borrowing which requires them to hedge against interest rate risk.

(Source: Business Daily)

Tanzania

Major fish processing plant to stimulate blue economy

The Deep-Sea Fishing Authority (DSFA) in collaboration with a Spain deep Sea Fishing Company expects to build a large fish processing factory in the country in order to promote the development of the blue economy. Speaking to journalists in Dodoma on Thursday, DSFA Managing Director, Dr Emmanuel Sweke said the factory is expected to be built in Tanga at approximately 10 million US dollars, equivalent to 3.4bn/-.

He said that once the factory will be completed, approximately 100 to 200 tonnes of fish will be processed per day and provide employment to about 100 Tanzanians to begin with.

Uganda

Fintech firms grow to 24

By the end of 2022, fintechs in Uganda had grown to 24, according to Bank of Uganda (BoU).  The Bank of Uganda has said that all financial services provided by fintech companies are safe and efficient because they have been tested, approved and licensed to conduct various payment services.

(Source: The Daily Monitor)

Rwanda

Starlink internet is fast and affordable, ICT minister says

Satellite-based internet provided by Starlink, is about three times faster than the available products on the Rwandan market at almost the same price, which make it relatively affordable, according to the Minister of ICT and Innovation, Paula Ingabire.

The Minister made the remarks while responding to a question from MP Frank Habineza on whether the Starlink internet will be affordable, during the plenary session of the Chamber of Deputies in which she was providing answers to issues affecting the ICT sector.

(Source: The New Times)

Ethiopia

Eight companies to start work in Bulbula integrated agro industrial park with 1.7bn Birr combined capital

Some eight local and foreign companies with a combined capital of 1.7 billion Birr have signed agreement with Oromia Industrial Park Development Corporation (OIPDC) to invest in Bulbula Integrated Agro Industrial Park.

In addition, two other investors, who are interested to invest in the industrial park, have also signed Memorandum of Understanding (MoU) with the corporation.

The agreement signing ceremony took place on Thursday in the presence of government officials and investors in Addis Ababa.

(Source: ENA)

 

Sudan

Sudan economic situation ‘remains poor’, 2023 budget ‘vague’

Sudan’s macroeconomic situation remained poor in January, FEWS NET reported on Wednesday. Economists criticise the national budget for this year for its lack of clarity.

“The national budget for the year 2023 that was approved on February 1 does not reach the level of a budget,” economist Hasan Bashir says.   “It is more a financial plan based on revenues and expenditures to run the wheel in the state,” he told Radio Dabanga. “In light of the governmental and political vacuum in the country, it is of course not possible to approve a comprehensive national budget.”

Bashir explained that the data related to education, health, and other sectors are very vague. “In addition, the approved budget does not contain any real indicators of resources in the country, which is worrying, especially in light of the economic recession that seriously affects the country.

(Source: Radio Dabanga Sudan)

Africa

Africa: Kenya, South Sudan border dispute sparks diplomatic row

South Sudan has accused Kenya of stealing its land, setting the stage for a border dispute that may stymie trade between the two countries, reports Business Daily. The South Sudanese government then summoned Kenya’s envoy to Juba, Samwel Nandwa, to protest the alleged infringement on its territory. According to South Sudan’s Ministry of Foreign Affairs and International Cooperation, Juba prefers a diplomatic solution but requests that the two nations resolve a boundary dispute.

“The Minister of Foreign Affairs and International Cooperation, Mayiik Ayii Deng, met with the Kenyan Ambassador to South Sudan, Samuel Nandwa, to discuss areas of mutual concern. Issues concerning our mutual border were raised. The minister, on behalf of the government of South Sudan, would like to assure all South Sudanese citizens that the highest levels of government are aware of the sensitivities at the border and are working in cooperation with our neighbours to ensure peace, prosperity and maintenance of border integrity,” the statement read.

(Source: All Africa)

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