Kenya

How IMF predicted public rage over Kenya tax hikes

The International Monetary Fund (IMF) foresaw the emergence of street protests resisting controversial tax proposals, which it backed, with the demos ending with withdrawal of the Finance Bill 2024.

The IMF has asked the government to stand firm on new revenue raising measures despite the protests.

The multilateral lender’s assessment of the risk of pushback has escalated as street protests, led largely by youth, turned deadly forcing President William Ruto to refer the Bill to Parliament with a recommendation to drop all clauses on Wednesday.

(Business Daily)

Tanzania

IMF: Tanzania economy to rebound to 6.5pc

International Monetary Fund (IMF) has said Tanzania’s economy is projected to rebound to about 6.5 per cent over medium-term, assuming successful implementation of the authorities’ reform agenda.

The growth is projected to pick up to 5.4 and 6.0 per cent in 2024 and 2025, respectively, supported by improvements in the business environment and subsiding global commodity prices.

The IMF latest report stated that the economic recovery is expected to strengthen and the medium-term outlook is positive contingent on the implementation of the authorities’ reform agenda.

Inflation is expected to remain below the BoT’s 5 per cent target and enhanced revenue mobilisation efforts are expected to improve the fiscal outlook.

(Daily News)

Uganda

Jubilee Life unveils new product, urges Ugandans to save more for the future

Raising awareness and educating the public about available savings options is crucial for fostering a savings culture in the country, according to Kumar Sumit Gaurav, the Chief Executive Officer of Jubilee Life. Gaurav made these remarks during the launch of the company’s Smart Save Plan, a savings product with numerous built-in benefits, in Kampala on June 26.

Gaurav emphasized that while the reasons for saving for the future are well documented and demonstrated by various cautionary tales, there is still a need to address them regularly.

Reports from March 2024 by the Bank of Uganda and the Uganda Retirement Benefits Regulatory Authority (URBRA) indicate that only about 3-5% of Uganda’s approximately 18 million workers save monthly, compared to saving rates of 23% in Kenya, 18% in Rwanda, and 13% in Tanzania.

(The Independent)

Rwanda

African Group to table plans to revamp WTO rules for green industrialization

Last week, the African Group at the World Trade Organization (WTO) again asked for changes to the WTO’s rules, saying they want the rules to be fairer for developing countries, especially when it comes to things like government support for green businesses (like solar or wind power) and attracting investments in clean technologies.

They believe the current WTO rules make it harder for the developing countries, especially those in Africa to grow their economies in an environmentally friendly way.

The group made the call at the June 19, meeting of the WTO Committee on Trade and Environment in Geneva where the trade rules body has its headquarters, according to a Geneva-based trade official.

Ethiopia

Ethiopia Developing African Continental Free Trade Area Implementation Strategy

In an attempt to capitalize on the enormous potential benefits of trade on the continent, Ethiopia is now creating its National African Continental Free Trade Area (AfCFTA) Implementation Strategy. 

The AfCFTA, adopted in 2018, represents a historic effort to unite 55 African Union member states with a combined GDP of nearly 3 trillion USD.

This Agreement establishes a legal framework for comprehensive economic integration, aimed at creating a unified African market that fosters the free movement of goods and services, and investment facilitation ultimately strengthening Africa’s trading capacity on a global scale at the time of digital age.