👨🏿‍🚀TechCabal Daily – Kenya’s content creator tax

KENYA TO TAX CONTENT CREATORS

Sorrows and prayers to all Kenyan content creators, Ruto is coming after you. 

Over the weekend, the Kenyan government proposed multiple amendments to the Finance Bill 2023, one of which includes a 15% withholding tax on all payments made to digital creators.

Mo’ money, mo’ problems: Like many African countries, the Kenyan content creator space has boomed in the last few years. Last year, YouTube revealed that Kenya was the fastest-growing space for African content creators, with about 400 channels having at least 100,000 subscribers, and a 60% YoY increase in creators earning about Ksh1 million ($7,300) monthly.

There’s also been a steady growth in users across other platforms. 

From sponsorship to sales: The 15% withholding tax will cover several sectors of content creation from subscription and membership fees content creators collect to merch sales and crowdfunding raises as well. The proposed tax is also noticeably higher than the 5% withholding tax presently being levied against professional services.

GHANA WARNS CITIZENS AGAINST PHISHING SCAMS

Contrary to popular belief, there isn’t a hottie less than five kilometres away waiting to meet you, nor is there a million-dollar inheritance waiting for you somewhere. 🤷🏾‍♂️

The Ghanaian government knows these scams, and it wants its citizens to be aware too.

Yesterday, the Cyber Security Authority of Ghana released a circular warning its citizens against Google scams that have begun popping up on the internet.

A warning for everyone: Ghana might be taking the extra step to warn its citizens, but it’s actually a notice for everyone. 

Over the past couple of weeks, Google has warned billions of Gmail users over dangerous new phishing scams. According to the platform, users are now receiving notifications that they have won prizes from scammers impersonating brands. Some have the subject line “Online Reward Program” informing people they have won prizes for having the 10th million search.

Per its statement, “Google does not offer spontaneous prizes in this format and you will not win a prize by completing the survey or entering your personal information.”

What you can do: It’s the same rules for all phishing attacks. Double-check the sender, and don’t share personal information if it’s ever requested. Google also recommends never to click on links in suspicious-looking emails that promise rewards. And, most importantly, take it slow. Scammers are likely to move at a fast pace, and they’ll create a sense of urgency or fear, so take your time, the same way you do when you have critical tasks at work.

P.S. TechCabal realises how ironic this message sounds given that we’re offering a $50 gift card to one random user who fills our survey. But we promise, we won’t sell your data…unless it’s the only way to save the world. 👌🏾

SA PLANS FOR BETTER FINANCIAL REGULATIONS

In February, Paris-based Financial Action Task Force (FATF) put South Africa on the grey list for financial crime because it seemed like they weren’t doing enough to stop illicit financial flows and terrorism financing. It sounds pretty concerning, but according to Fundi Tshazibana, a deputy central bank governor, it might not be as bad as it seems for the country’s credit ratings—at least not right away. Especially since the country is working on getting on the good books of FATF.

Sidebar: Per Bloomberg, the FATF is also responding to a period of serious corruption in South Africa under the rule of former president, Jacob Zuma. His successor, Cyril Ramaphosa, says that R500 billion (that’s a whopping $27 billion) of taxpayer funds were stolen. Back in October 2021, the country was put on a one-year observation period by the FATF, giving them time to address 67 recommended actions following an evaluation. 

But fast-forward to January 2023, and South Africa has managed to whittle those 67 recommended actions down to just eight strategic deficiencies. Not too shabby, right?

But before the country could breathe a sigh of relief, the FATF decided to greylist South Africa until those remaining deficiencies were addressed. But there’s a deadline for them to shape up: January 31, 2025.

How can SA get off the grey list? South Africa is set to adopt a bunch of legislative changes over the next three to five years to make sure they’re aligned with international standards. The country’s national treasury is working on a Conduct of Financial Institutions Bill that will streamline the licensing of financial institutions and increase transparency in their business practices. 

The Financial Markets Act is getting a revamp, too. By enhancing controls over short selling and securities financing transactions, and adding more disclosure requirements for pre- and post-trading data, South Africa is set to really up its market surveillance game. If things go well, SA will get off the naughty list.

Even though South Africa’s deputy central bank governor says the country’s credit rating will be fine, it is worth noting that the country’s credit ratings are reportedly at their lowest point since 1994 when the country first obtained credit ratings.

EXITS MENA GETS LICENSE FROM EGYPTIAN FRA

Egyptian investment platform Exits MENA has hit some major milestones.

Like its name implies, Exits MENA aims to support the startup ecosystem in the MENA region and achieve successful exits. It is a marketplace where businesses can buy and sell startups and traditional businesses. Last September, Exits MENA secured a whopping $1 million in pre-seed funding, which is pretty impressive. And now, they’ve gone one step further by securing a key license that allows them to offer their services in a regulated environment. Per DisruptAfrica, Exits MENA has obtained the final securities promotion and underwriting license from the Egyptian Financial Regulatory Authority (FRA). 

What new services? They can now help companies get listed on the Egyptian Stock Exchange (EGX) and the SME platform, Nile Stock Exchange (NILEX)! But that’s not all. They can also help startups and companies go public and access the capital markets, giving them the liquidity, transparency, and fair value assessments they need. It’s like having a trusty navigator guide you through the tricky process of reaching your financial goals. 

THE WORLD WIDE WEB3

Bitcoin	$27,597	– 2.11%
Ether	$1,839	– 1.31%
BNB	$314	– 1.14%
Cardano	$0.36	– 1.42%
Name of the coin Price of the coin 24-hour percentage change		Source: CoinMarketCap

* Data as of 06:10 AM WAT, May 9, 2023.

Kenya is proposing yet another crypto tax. A few weeks ago, we reported that the Kenyan government had proposed a 1.5% duty tax on crypto. Per Business Daily, crypto platforms operating in Kenya could see themselves paying 1.5% duty on every transaction they make, with the Value Added Tax (Electronic, Internet and Digital Marketplace Supply) Regulations 2023.

Now, new amendments to the Finance Bill of 2023 also propose a 3% Digital Asset Tax (DAT) on digital assets including crypto, NFTs and any digital tokens. The tax is to be deducted from the gross fair market value received or expected to be received at the point of transfer or exchange. The deduction must be remitted within 24 hours.

Triple taxing? Last year, Kenya also announced an amendment to its Capital Markets Bill to introduce a 20% excise tax on every crypto transaction fee charged in the country. Another 1.5% duty tax and a 3% Digital Access Tax would mean more charges for crypto exchange platforms and higher fees for crypto traders who are turning to crypto to avoid currency devaluation. It could also mean Kenya could lose its position as the world’s fastest-growing market for peer-to-peer crypto trading.

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OPPORTUNITIES

• The SaaS Accelerator Program: Africa 2023 has opened applications for its accelerator programme to enable early startups in Africa to receive funding. Selected startups will receive up to $70,000 in funding. Apply by September 7.

• Young Impact Associate (YIA) fellowship which is funded and implemented in partnership with the Mastercard Foundation is open for applications. Apply by May 15.

• Innovation for Ecosystem Restoration, an accelerator for entrepreneurs championing ecosystem restoration throughout sub-Saharan Africa, is open for applications. Apply by May 14.

• Wise Guys SaaS Accelerator Program is looking to help SaaS startups level up through tailored guidance and support from world-class mentors and experts. Apply before September 7.

• The Africa Business Heroes (ABH) Prize Competition, a philanthropic initiative sponsored by the Jack Ma Foundation and Alibaba Philanthropy, is calling for participation from Africa’s entrepreneurial talent. Apply by May 12.

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