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We are in the market for a couple of new roles. First, we’ve got openings for senior business and technology analysts who will help us demystify Africa’s tech ecosystem.
We are also in the market for a new Sales Manager. If you or anyone you know can open doors and close deals faster than you can read this newsletter, then apply for the role and help us grow our revenue streams.
Economy
Ethiopia gets $3.4 Billion bailout from IMF
Ethiopia finally gets some respite.
The country has struggled with double-digit inflation and has struggled to pay back debts worth $28.4 billion since 2021. Recently, it defaulted on the interest payment for a $1 billion Eurobond that matures later this year. But what do you do to the old and frail? You help them. And who better to help Ethiopia than the International Monetary Fund (IMF)?
Ethiopia began discussing a $10.5 billion aid package with the IMF and World Bank in early July to boost its ailing economy. To attract support from the IMF, the country also devalued its currency by allowing market forces to determine its exchange rate freely.
The IMF will lend the country $3.4 billion over four years, starting with a disbursement of $1 billion. The loan will allow Ethiopia some respite as the funds will stabilise the economy and support local spending.
Read Moniepoint’s 2024 Informal Economy Report
Did you know that only 2.8% of informal businesses are started out of passion? Click here to find out the motivation of businesses in Nigeria’s informal economy.
Regulation
Lagos wants to raise $121 million from taxing remote workers
Nigeria’s commercial capital, Lagos, will start taxing remote workers and digital influencers as part of a plan to raise ₦5 trillion ($3.04 billion) in internally generated revenue (IGR) under the current administration—668% more than it generated in 2022.
Lagos wants to tap into the growing remote work and digital economy sector to raise ₦200 billion ($121.8 million) annually in taxes—contributing about ₦600 billion ($365.3 million) to this administration’s IGR target.
The big question here is how the government plans to identify taxpayers in this new bracket and implement the taxes, given there’s no centralised system.
South Africa has a system that works fairly well, and remote workers must declare their income at the end of every financial year. Last year, its government started trying to cast an even wider net on remote employees by requiring employers of South Africa-based remote workers to deduct pay-as-you-earn (PAYE) tax. This could be
As part of its own plans to increase IGR, Lagos will also introduce new tax structures for the property sector, informal, and circular economies. If this is successful, it could serve as a model for other Nigerian states and developing economies looking to expand their tax base.
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Regulations
Nigeria wants to digitise government offices with new bill
In 2015, we reported a critical move: Nigeria’s Corporate Affairs Commission (CAC) launched an online company registration portal. A user aptly commented, “It appears the CAC has finally joined us in the 21st century,” highlighting the long-awaited digitisation of a process already standard in other regions.
The same sentiment faced the lauded Nigeria Startup Act, signed into law two years ago but yet to be fully adopted by more than half of the country’s states. Since it was passed in 2022—exactly one year after it was drafted—very few provisions of the NSA have been implemented.
And now, the government is introducing yet another tech bill, to digitise public institutions across the country.
The proposed National Digital Economy and E-Governance Bill, which has passed a first reading, will require all public institutions to conduct activities and functions electronically, including accepting document filings, and information processing. There are also penalties of up to ₦10 million ($6,000) for corporations who fail to comply with the frameworks of the bill.
While the new bill will help increase Nigeria’s digital literacy rate by equipping Nigerian civil servants, estimated at 720,000, with digital skills, it remains an uphill climb. Presently, only a few Nigerian parastatals and agencies have a substantial online presence with functional websites and advanced digital systems. Most government agencies have basic websites with limited online services or minimal or no online presence at all.
The country’s judicial system, for example, just started an e-affidavit process this month. Critics argue that the new bill might meet the same standstill as it lacks a clear implementation roadmap. Aside from its implementation plan, analysts claim that some provisions of the bill may have already been addressed by existing policies like NITDA’s Government Digital (GDS) Service Framework.
While the cost plan for the bill is unknown, Nigeria, in 2022, spent ₦152 billion ($92.5 million) on digitisation projects for a few agencies. With 80% of its public institutions in tow, the budget for the implementation will cost way more.
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Crypto Tracker
The World Wide Web3
Source:
|
Coin Name |
Current Value |
Day |
Month |
|---|---|---|---|
 Bitcoin |
$65,984 |
– 1.90% |
+ 6.83% |
| Ether |
$3,277 |
– 2.20% |
– 3.98% |
 Neiro Ethereum |
$0.052 |
+ 100.86% |
+ 100.86% |
| Solana |
$179.10 |
– 2.31% |
+ 23.75% |
* Data as of 23:20 PM WAT, July 30, 2024.
Events
- You can still get an early bird ticket to the second edition of TechCabal’sMoonshot Conference! From October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria, you can join Africa’s biggest thinkers and players like Iyin Aboyeji, Wiza Jalakasi, June Angelides, Kola Aina on a global launchpad for change. If you want to join these stakeholders in Africa’s tech ecosystem for three days of insightful conversations, then get an early-bird ticket to Moonshot 2024 at 20% off.
- Join the 24 Fintech Africa Roadshow Webinar! We’re excited to invite you to our upcoming webinar on Monday, July 29th at 3:00 PM WAT. Discover opportunities for African technology companies at the 24 Fintech Summit, happening from September 3 – 5, 2024, in Saudi Arabia. Speakers include leaders from the fintech industry, providing insights on global fintech trends and opportunities. Don’t miss out on this chance to connect and learn. Register Now.
- Join Career Brunch 2024 on August 17, 2024, in CcHUB with successful professionals from diverse fields and beyond for an exclusive (physical) career hangout for all professionals. Whether you’re a 9-5er, entrepreneur, founder, or young and upcoming professional looking to climb the career ladder, scale your business or transition, Career Brunch has something for you. This is your golden ticket to connect with industry leaders and professionals from MTN, CcHUB, McKinsey, Spotify etc., gain invaluable insights, and supercharge your career trajectory. Get your ticket at www.tix.africa/thebrunch.
You should definitely read these 👇🏾
Written by: Emmanuel Nwosu & Faith Omoniyi
Edited by: Muyiwa Olowogboyega & Timi Odueso
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