AFRICA BULLETINJUNE 2021

EAST/SOUTHERN AFRICA

Eight COMESA Countries Sign Air Transport Market Agreement

Eight COMESA countries have so far signed the Solemn Commitment for the establishment of the Single African Air Transport Market

(SAATM). These are the Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Rwanda, Eswatini, Zambia and Zimbabwe. This initiative

is led by the African Union through the African Civil Aviation Commission.

The goal of SAATM is to fully implement the 1999 Yamoussoukro Declaration (YD), which allows all participating countries to lift

market access restrictions for airlines, remove restriction on ownership, grant each other extended air traffic rights and liberalise flight

frequency and capacity limits. According to the COMESA Ministers in charge of infrastructure (transport, energy and ICT), Member

States should grant Fifth Freedom Rights as a major step towards full liberalisation of the air transport market. The Fifth Freedom is

the right for an airline to stop in a country other than its own and pick up passengers. The COMESA region has been implementing the

air transport liberalisation programme and has signed a Memorandum of Cooperation on the establishment of the SAATM with the AU.

SIGNIFICANCEAccording to the COMESA Ministers, air transport liberalisation, with respect to improved air transport services and

lower fares has brought forth immense economic and financial benefits, noted the Ministers. A study by the International

Air Transport Association in 2014 on 12 sample African countries identified fare savings, greater connectivity, time

savings, greater convenience, and the positive impact on other sectors of the economy once the liberalisation programme

is implemented.

AFRICA BULLETINJUNE 2021

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TABLE OF CONTENTS

KENYA 3

Land Value Index Plan Set to Tame Speculators

MALAWI 3

Malawi Passes AfCFTA Tariffs to Facilitate

Grater Integration

MAURITIUS 4

Mauritius Makes Progress to exit FATF List

MOZAMBIQUE 4

Mozambique Starts Construction on First Solar

Energy Storage IPP

NIGERIA 5

NEXIM Rolls Out USD 1.2 Billion for Non-Oil

Export

RWANDA 5

Rwanda ICT Chamber and French Financier

Sign Pact to Boost Access to Capital

TANZANIA 6

Tanzania Issues Beneficial Ownership

Regulations

UGANDA 6

IMF, Uganda Reach Staff-Level Agreement on a

Three-Year USD 1 Billion Financing Package

ZAMBIA/ZIMBABWE 7

Zambia, Zimbabwe Develop Plans for Joint

Industrialisation Programme

EAST AFRICA 7

Region Sets Plans Post-COVID 2021/22

Recovery Budgets

AFRICA 8

Boost for Digital Transformation as Huawei

Pens Deal with African Telecommunications

Union

ALN VIRTUAL EVENTS 9

Tanzania: Take-Two Through the Eyes of the

Government

The Data Protection Webinar: Interpreting

Kenya’s Data Protection Act 2019

Africa Singapore Business Forum 2021

Free Movement of People: The African

Continental Free Trade Area

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AFRICA BULLETINJUNE 2021

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KENYA

Land Value Index Plan Set to Tame Speculators

The State is set to roll out a value index to make Kenya’s land market transparent and cut wasteful public project spending due to

speculative activity that drives up costs. Kenya currently lacks standardised land value information—a loophole that has been exploited

by cartels over the years to entrench fraud and exploitation in property prices. The government is expected to submit to Parliament a

raft of subsidiary legislation on land valuation and compensation to pave way for the implementation of the index.

The Land Valuation Amendment Act 2019 provides for the development of a land value index for all 47 counties. However, the lack of

updated, relevant regulations despite the passing of the Act is impeding the roll-out of the land value index across counties. To date, land

value indices have been completed in only six of 47 counties, none of which have yet received the Members of Parliament’s approval.

Further, the Rating Act and Rating Valuation Act, which provides the legal basis for counties to determine ratings for land valuation, is

outdated.

SIGNIFICANCE

The index is expected to boost own-source revenue collection by counties from land property. The development of a valuation index

which is reviewed regularly will inform the valid market price when the government acquires land for its development projects. It will

also mitigate the risk of local communities been exploited, as it allows communities to know the value of their properties, a strongly pro-

poor measure.

MALAWI

Malawi Passes AfCFTA Tariffs to Facilitate Grater Integration

With the passing of the 2021/22 national budget, Malawi has approved tariffs which will mark the beginning of the African Continental

Free Trade Area (AfCFTA) from 1 July 2021. The country has placed three categories, including the non-sensitive category which will

realise a 50 percent drop-in industry rates; the sensitive category which will benefit from reduced duty after some time; and the third

category which unless otherwise, will not see reduced or removed duty. According to the Ministry of Trade, non-sensitive are products

which the country does not manufacture while sensitive products comprise those which the country manufactures but not in huge

capacity. The third category will consist of products that the country manufactures, therefore imports are not needed.

Different countries started trading under the pact in January this year, but Malawi waited for the passing of the national budget to

actualise AfCFTA tariffs in line with the laws.

SIGNIFICANCE

Malawi’s tariff book has 7,800 products out of which 90 percent are non-sensitive therefore their tariffs have dropped by 50 percent.

Economists note that it is, however, not surprising that 90 percent of the tariff book is non sensitive because Malawi is a country whose

manufacturing sector remains in its infant stage. The passing of the AfCFTA tariffs comes at a time when Malawi has unveiled plans to

roll out tax measures that will facilitate greater regional integration and boost trade and economic growth. Among these, is a duty-free

week for imports not exceeding USD 3,000.

AFRICA BULLETINJUNE 2021

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MAURITIUS

Mauritius Makes Progress to exit FATF List

The Financial Action Task Force (FATF) has endorsed the substantial progress made by Mauritius in implementing the FATF Action Plan to

consolidate the jurisdiction’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime, despite the challenges

posed by the global pandemic. This is a determining step towards exiting the FATF List of “Jurisdictions Under Increased Monitoring”.

Mauritius has been commended by the FATF for the progress achieved in addressing the strategic deficiencies especially under difficult

circumstances caused by the COVID-19 pandemic. In February 2020, the FATF decided that Mauritius should be monitored under the

formal FATF International Cooperation Review Group process because of strategic deficiencies identified, by the FATF, in its AML/CFT

system. The FATF, accordingly, placed Mauritius on its public document of jurisdictions under increased monitoring, externally referred

to as the Grey List.

SIGNIFICANCE

Mauritius has so far taken measures to demonstrate the underlying unflinching commitment of the Government of Mauritius to ensure

the sustainability and effectiveness of their efforts to combat money laundering, terrorism financing and proliferation financing in the

future. Implementing the FATF Action Plan will enable Mauritius, to amongst other measures, , apply timely access to accurate basic

and beneficial ownership information by competent authorities, provide training for the law enforcement agencies to conduct parallel

financial investigations, and supervise the NPO sector and adequate implementation of targeted financial sanctions through outreach

and supervision.

MOZAMBIQUE

Mozambique Starts Construction on First Solar Energy Storage IPP

Globeleq, Source Energia and Electricidade de Moçambique (EDM) have started construction on the first IPP in Mozambique to integrate

utility-scale energy storage with a solar PV plant. The 19MWp solar PV plant and 2MW energy storage system will be located in the

Tetereane District of the city of Cuamba in the Niassa province, about 550kms west of the coastal town of Nacala. Electricity will be sold

through a 25-year power purchase agreement with EDM. The USD 32 million project will contribute to the Mozambique government’s

‘Energy for All’ strategy, aiming to have universal energy access by 2030. The project is expected to receive USD 19 million of debt

funding from the Emerging Africa Infrastructure Fund, which is a member of the Private Infrastructure Development Group (PIDG). The

project will also receive USD 7 million in grant funding from the PIDG’s Viability Gap Funding grant facility and USD 1 million from CDC

Plus to enable an affordable tariff and the energy storage system.

SIGNIFICANCE

It is expected the project would need about 100 workers during construction, many of whom will be hired from the local community,

thus creating job opportunities. The project is expected to support Mozambique’s demand for new renewable energy supply across the

country. The project is also expected to work towards a significant milestone in Mozambique by developing projects which are in line

with the country’s energy goals for universal access. Lastly, this project is expected to contribute to the long-term energy security and

development of the country on a low carbon pathway.

AFRICA BULLETINJUNE 2021

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NIGERIA

NEXIM Rolls Out USD 1.2 Billion for Non-Oil Export

The Nigerian Import-Export Bank (NEXIM) is implementing a NGN 500 billion (approx. USD 1.2 billion) Non-oil Export Stimulation

Facility and a NGN100 billion (approx. USD 243.3 million) Export Development Fund at a single digit interest rate to support the

production and export of goods and services. The facility, which is being implemented in collaboration Central Bank of Nigeria (CBN),

is aimed at diversifying the economy from crude oil, which currently accounts for less than 10 percent of Nigeria’s GDP. The NEXIM

Managing Director also disclosed that the Bank was partnering with Afreximbank to establish a Project Preparation Fund (PPF) through

which both institutions have agreed to raise an initial amount of USD 50 million to support the pre-investment phase in a project

preparation circle. Economic diversification is the process of shifting an economy away from a single income source toward multiple

sources from a growing range of sectors and markets. Traditionally, it has been applied as a strategy to encourage positive economic

growth and development.

SIGNIFICANCE

Diversification helps to manage volatility and provide a more stable path for equitable growth and development. Successful diversification

is all the more important now in the wake of slowing global growth and the imperative in many developing countries to increase the

number and quality of jobs.

RWANDA

Rwanda ICT Chamber and French Financier Sign Pact to Boost Access to Capital

Bpifrance and Rwanda ICT Chamber have signed an agreement to accelerate the connection between innovative Rwandan companies

and the French and European investors and businesses, through the EuroQuity digital platform. Bpifrance serves to avail finance for

companies - at every stage of their development - with credit, guarantees and equity. Bpifrance supports them in their innovation and

international projects. This cooperation agreement was signed by Pascal Lagarde, Executive Director in charge of International Affairs,

Strategy, Development and Research at Bpifrance and Alex Ntale, Chief Executive Officer of Rwanda ICT Chamber on the sidelines

of a visit by a French delegation in the country. Bpifrance and Rwanda ICT Chamber agreed to initiate their collaboration through a

program of joint activities including the creation of a Rwanda ICT Chamber community to bring together the Rwandan ecosystem -

entrepreneurs, investors, corporates, accelerators, incubators - and enhance the link between international investors and companies to

foster access funding and business opportunities.

SIGNIFICANCE

The partnership seeks to facilitate the development of labels to promote Rwanda ICT Chamber’s acceleration programs and partners.

Companies and partners’ companies will benefit from labels that will help them gain exposure among investors and future partners on

the platform. The pact also provides for synergies with third party African and European projects will be explored to unlock the full

potential of this collaboration and best leverage investment and business opportunities.

AFRICA BULLETINJUNE 2021

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TANZANIA

Tanzania Issues Beneficial Ownership Regulations

Tanzania recently issued regulations relating to the beneficial ownership information disclosure requirements which were incorporated

into the Companies Act. The Companies (Beneficial Ownership) Regulations, 2021 apply to both private and public companies (including

listed public companies) incorporated in Tanzania with no exemptions. In addition, the Regulations do not put in place any quantifiable

thresholds which would trigger beneficial owner filings. As such, any shareholding or voting control, no matter the percentage of shares

held, or voting control enjoyed, whether in a public or private company, is reportable. Furthermore, beneficial ownership reporting is

not limited only to a shareholding interest or voting control. Any natural person who enjoys ‘substantial control’ or has a ‘substantial

interest’ or ‘substantial economic interest or benefit’ is recognised by the Regulations as a disclosable beneficial owner. Therefore, a

natural person who enjoys rights to substantial dividend income declared or paid, or who enjoys other control rights like, for example,

over financial policies, may potentially be reportable.

SIGNIFICANCE

Given the complex nature of certain ownership structures and the fact that control can be exercised in many ways, determining the

beneficial ownership and control of a company’s shares can be a complex process which must be carefully undertaken on a case-by-

case basis to ensure full compliance with the law. The disclosure of beneficial ownership information is expected to promote greater

transparency within corporate organisations in Tanzania, by illuminating on the true ownership structures within companies.

UGANDA

IMF, Uganda Reach Staff-Level Agreement on a Three-Year USD 1 Billion Financing Package

The IMF and the Ugandan authorities have agreed on a medium-term program that could be supported by IMF resources of approximately

USD 1 billion under the Extended Credit Facility (ECF). The staff-level agreement is subject to IMF management approval and Executive

Board consideration, which is expected in the coming weeks. Uganda’s economy has been hit hard by the COVID-19 pandemic that

eroded people’s livelihoods. Growth has halved compared to pre-crisis levels and poverty has increased, reversing decade-long gains in

wealth creation and inclusion despite the support measures introduced by the authorities. The fiscal deficit has widened considerably,

pushing public debt to close to 50 percent of GDP by June 2021 and increasing financing costs. Emergency financial assistance from the

IMF and the World Bank helped close financing gaps and supported mitigation measures, but important fiscal and external financing

needs remain over the next few years.

SIGNIFICANCE

The IMF-supported program seeks to support the next phase of the COVID-19 response and strengthens the fundamentals of a more

inclusive private sector-led growth. Building upon agreed reforms detailed in the authorities’ National Development Plan, including

the strengthening of the monetary policy framework and the recent improvements in the financial sector resolution framework, the

successful consolidation effort will place the public debt ratio on a declining path. These efforts along with improved pro-growth spending

composition will help create space for private sector credit and boost human capital, setting the stage for a durable and inclusive growth.

AFRICA BULLETINJUNE 2021

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ZAMBIA/ZIMBABWE

Zambia, Zimbabwe Develop Plans for Joint Industrialisation Programme

The Zambia-Zimbabwe Technical Working Group (TWG) on the Joint Industrialisation programme has agreed on an action matrix

to guide the implementation of the programme and provide a timeframe for achieving the set targets. The programme is intended to

promote industrial cooperation and increase competitiveness of goods produced within the two countries. The TWG has also agreed

to immediately establish committees from the ministries of industry, commerce, trade and agriculture to work jointly to advance the

different pillars agreed in the Memorandum of Understanding. The implementation of the Joint Industrialisation Programme is in line

with the Zimbabwe National Development Strategy and the Vision 2030.

SIGNIFICANCE

The government of Zambia has placed industrial development at the core of its development agenda in its 10- year National Industrial

Policy. According to the Ministry of Commerce, Trade and Industry, the additional policy and strategic measures will create an enabling

environment to enhance inclusive and sustainable industrial development. The timing of the programme could be seen as appropriate

as it coincides with the commencement of the implementation of the African Continental Free Trade Area, which promises a greater

opportunity for Zambia and Zimbabwe to widen access to global supply chains and export higher value goods and services. Increasing

African intra-trade between the two countries through Regional Value Chains is poised to provide African manufacturing firms

economies of scale and linkages to value chains connected to the global market.

EAST AFRICA

Region Sets Plans Post-COVID 2021/22 Recovery Budgets

East Africa’s Finance ministers presented their spending plans for the 2021/2022 fiscal year with a key focus on rebuilding economies

ravaged by the COVID-19 pandemic, protecting local industries, keeping jobs and up-scaling investment in infrastructure projects critical

to the faltering intra-regional trade. The Treasury chiefs, who tabled the budgets against a backdrop of weakening macroeconomic

environment, declining domestic revenue collections and mounting public debt, spelt out temporary taxation measures to protect local

industries from cheap imports ahead of the conclusion of the review of the regional Common External Tariff (CET). They also increased

budgetary allocations to key growth sectors such as manufacturing, health, tourism, agriculture and transport infrastructure to enhance

domestic and regional connectivity. Kenya, Uganda and Tanzania however revealed economic recovery plans hinged on borrowing at

least USD 15.88 billion to fund the ambitious projects such as ports, railways, roads, and oil pipelines.

SIGNIFICANCE

Tanzania, with a USD 15.61 billion budget, is looking to continue its infrastructure modernisation drive that includes standard gauge

railways, the oil pipeline from Uganda, and USD 1.28 billion in gas projects. Kenya still has the highest budget in the region, at USD

34 billion, which the government has prioritised the implementation of the Big Four agenda projects and the COVID-19 economic

stimulus programme. Uganda’s USD 381.57 million budget is also geared towards the economic recovery from the COVID-19 pandemic,

including recovery by boosting business activity through financing private sector growth as well as investment promotion, promoting

agro-industrialisation and establishment of infrastructure for economic growth and development, including transport and power

infrastructure and Digital transformation.

AFRICA BULLETINJUNE 2021

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AFRICA

Boost for Digital Transformation as Huawei Pens Deal with African Telecommunications Union

The African Telecommunications Union (ATU) has recently signed a Memorandum of Understanding (MoU) with tech giant Huawei that

will see African countries and organisations build capacity for ICT transformation. Under the agreement, Huawei will provide training

on skills development, including reskilling and upskilling for ATU members. The MoU will also see the two organisations collaborate

to support local innovation, share information on latest trends, challenges and solutions in Africa and globally, and expand the digital

economy as well as rural connectivity, in the continent, through furthering research. The ATU is playing a critical role in the region

supporting member countries with their policies and strategies, sharing best practices, building capacity and driving innovation.

Hundreds of millions of Africans have been connected to secure, high-speed broadband and cloud solutions in the last two decades and

the ATU has earned the trust and support of customers and regulators.

SIGNIFICANCE

The Huawei-ATU partnership will support African countries, regulators, and citizens benefit from the transition to a digital economy,

adopt new technologies, promote secure and resilient networks, and gain the digital skills necessary to drive their economies forward.

According to the MoU, the partners will also start offering trainings to ATU members, access to global experts to discuss the latest

technologies and trends, and collaboration on research to help progress the continent’s digitisation.

AFRICA BULLETINJUNE 2021

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ALN VIRTUAL EVENTS

Tanzania: Take-Two Through the Eyes of the Government

ALN Tanzania and Bankable Tanzania will be hosting the highly

anticipated Tanzania: Take-Two, Through the Eyes of the

Government webinar. The webinar will focus on unpacking the

evolving business and investment landscape in Tanzania and

guiding investors on key issues relevant to their businesses.

Honorable Professor Kitila Mkumbo, Minister of Industry and

Trade, will be the event’s keynote speaker.

DATE: Thursday, 15 July 2021

TIME: 2:00 PM - 3:30 PM (EAT)

ORGANISER: ALN Tanzania and Bankable

REGISTER HERE

The Data Protection Webinar: Interpreting Kenya’s Data Protection Act 2019

The Data protection Act, 2019 (the DPA) has far-reaching

implications on the way personal data is required to be handled.

Given its wide applicability, the DPA is set to affect operations

across all sectors of commerce where personal data is handled

and imposes civil and criminal sanctions for non-compliance with

its provisions.

DATE: Tuesday, 27 July 2021

TIME: 11:00 AM to 12:30 PM (EAT)

ORGANISER: ALN Kenya, French Chamber of Commerce

REGISTER HERE

Africa Singapore Business Forum 2021

ALN Kenya is delighted to co-sponsor and partner with Enterprise

Singapore for this forum that has brought together over 2,000

business and government leaders from 30 countries to explore

partnerships and growth opportunities between these two

dynamic regions. This year’s edition will address critical issues

and identify opportunities in key sectors and areas including

digital technology, financing, innovation, manufacturing,

sustainability and urban solutions.

DATE: 23 – 24 August 2021

TIME: 11:00 AM to 12:30 PM (EAT)

ORGANISER: Enterprise Singapore

REGISTER HERE

Free Movement of People: The African Continental Free Trade Area

The African Continental Free Trade Area (AfCFTA), having

commenced on 1 January 2021, has created the largest free

trade area in the world with the intention to boost intraregional

trade, manufacturing, and the free movement of labour. This

webinar will analyse how each jurisdiction is preparing itself

for the challenges posed by the AfCFTA and how each country

will implement the free movement of people as the immediate

implication of the agreement in the labour market.

DATE: 20 July 2021

TIME: 2:00 PM (GMT)

ORGANISER: Employment Law Alliance

REGISTER HERE

AFRICA BULLETINJUNE 2021

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The information contained in this Bulletin is accredited to the named sources and does not necessarily represent the views of ALN. ALN

accepts no responsibility whatsoever for any loss, direct, indirect or consequential, arising from information made available and actions

resulting therefrom.

SOURCES

https://esi-africa.com

https://economicconfidential.com

https://www.newtimes.co.rw

https://www.imf.org

https://www.businessdailyafrica.com

https://www.africalegalnetwork.com/tanzania

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