Sabaidee,
Victoria from Techpoint right here,
Right here”s what I’ve bought for you in the present day:
- Financial institution of Tanzania cracks down on unlicensed digital lenders
- A have a look at earned wage entry in Nigeria
- Kenya proposes a 1.5% digital tax on native platforms
- East Africa suffers from new subsea Web cable cuts
Financial institution of Tanzania cracks down on unlicensed digital lenders
Tanzania’s central financial institution, the Financial institution of Tanzania, is cracking down on unlicensed digital lenders, placing the kibosh on their operations. They’re telling of us to be good and examine for legitimate licences earlier than borrowing cash from mortgage corporations.
Why the sudden change? Nicely, it seems that these digital lenders have been performing some questionable issues, resembling shaming individuals who can’t repay their loans and charging sky-high rates of interest.
This new rule goes to hit laborious. There are over 100 of those unregistered mortgage apps on the market, serving about 30% of cell phone customers who do not have regular incomes or relationships with conventional banks.
Tanzania’s central financial institution is dropping the hammer, reminding everybody that it is unlawful to lend cash with out the right paperwork. And that features these digital mortgage platforms.
Nevertheless it’s not all dangerous information. The licenced lenders must step up their recreation too. They will want to begin giving out correct mortgage agreements, spelling out all of the phrases and circumstances, like charges, rates of interest, and what occurs for those who’re late with funds. Proper now, it is all too straightforward to get a mortgage with only a faucet in your cellphone.
So, for those who’re considering of borrowing some money, be sure to learn the advantageous print and examine that the lender has the stamp of approval from the Financial institution of Tanzania.
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And it seems like Tanzania is not the one one tightening the screws. Kenya’s been cracking down on unlicensed digital lenders too, trimming their numbers down to simply 50 authorised mortgage apps.
A have a look at earned wage entry in Nigeria
So, keep in mind final Friday after I was ranting about payments virtually choking me? Nicely, now my wage’s within the crimson and it is solely the second week. How am I going to make it to a different payday? Loans? Nah, not my factor. Possibly earned wage entry? Maybe, however let’s chat about that as an alternative.
So, earned wage entry, also referred to as on-demand pay, is sort of a lifeline for workers who want some money earlier than payday. For example you’re employed at a digital advertising and marketing company and often get your paycheck on the finish of the month. With earned wage entry, you may dip into your earnings mid-month, say on the fifteenth, and seize some money to tide you over.
Now, not like payday loans or advances, earned wage entry does not get you cash you have not earned but. It is extra like a sneak peek at what’s coming your means. Corporations staff up with employers or different suppliers to make this occur, so you will get your hard-earned money proper if you want it.
This idea is not model new, nevertheless it’s beginning to catch fireplace in Nigeria, particularly after the chaos of the COVID-19 pandemic. Corporations are realising it is an effective way to maintain their workers joyful and sticking round. However that is not the one cause for its reputation.
A survey from December 2022 confirmed {that a} whopping 63% of Nigerians do not carry house sufficient bacon to cowl all their wants, not to mention help their households. And issues have solely gone downhill since then. Nigeria’s inflation price hit a loopy 33.3% in March 2024, up from 22.04% only a yr earlier than.
So, it is no surprise of us are clamouring for extra versatile cost choices. Wish to study extra? Learn Chimgozirim’s newest insights right here.
Kenya proposes a 1.5% digital tax on native platforms
Kenya’s nationwide treasury is eyeing a brand new tax scheme. They wish to slap a 1.5% digital tax on native platforms providing on-line providers like jobs, leases, meals supply, and ride-hailing.
If Parliament provides the nod, international corporations working in Kenya can even should fork out a Digital Service Tax.
However wait, there’s extra. Large digital gamers like Amazon, Alibaba, and Netflix, which do not have a bodily presence in Kenya, may have to cough up 20% of their whole earnings because the Financial Important Presence Tax.
And that is not all. The federal government desires to up the ante on cellular airtime and knowledge charges, jacking up the tax from 15% to twenty%. Plus, they’re eyeing an analogous hike within the excise obligation on cellular cash transfers and financial institution transactions.
Telcos may hike their switch and withdrawal charges to deal with the additional tax load, which might push of us again to utilizing money as an alternative of digital transactions, regardless of forecasts of a booming digital banking market.
However hey, not everybody’s feeling the pinch. Kenyans working on-line platforms for purchasing and promoting stuff are off the hook from the digital tax, as they’re already paying a hefty 30% company earnings tax.
This digital tax journey in Kenya began in 2021, overlaying issues like e-books, music, and video games. The Kenya Income Authority hoped to rake in about $106 million from it inside three years.
In the meantime, the tax discuss is not simply taking place in Kenya. Ghana and Nigeria are additionally shaking up their tax recreation within the digital sector, with plans to tax international incomes and reintroduce telecom taxes, respectively.
East Africa suffers from new subsea Web cable cuts
There’s some hassle brewing within the digital seas between South Africa and Kenya. Two submarine Web cables, Eassy and Seacom, stopped working since Sunday, resulting in Web service disruptions in East African international locations like Kenya and Tanzania.
Reviews say the outage prompted Web chaos in Kenya and Tanzania, with of us struggling to get on-line.
Tanzania’s Minister of Info, Communication, and Info Expertise, Nape Nnauye, spilled the beans, saying telecom giants had flagged the problem, however fixing it will take a while. Translation: brace yourselves for sluggish Web and wonky worldwide calls.
Locals weren’t joyful campers both. Individuals in Kenya and Tanzania had been grumbling about their Web being MIA, and a few even went so far as calling it a blackout on social media.
However wait, there’s extra drama. Tanzania and the French Island of Mayotte bought hit laborious by the outage, whereas Malawi and Mozambique bought off comparatively straightforward.
Over in Kenya, subscribers to large networks like Safaricom and Telkom had been airing their grievances on social media. Safaricom tried to calm the storm, assuring clients they had been on it and had backup plans to maintain issues working as easily as attainable.
Fortunately, South Africa dodged this digital bullet, primarily as a result of they route most of their Web visitors by means of different cables alongside Africa’s west coast, like Equiano and Wacs.
However this outage is not the primary in latest reminiscence. Just some months in the past, a slew of different undersea cables close to the Ivory Coast had been severed, inflicting related chaos.
And keep in mind the Pink Sea incident, the place rebels reduce three different cables connecting Africa and Southeast Asia to Europe.
It is just like the Web’s taking part in a recreation of dominoes, and Africa retains getting hit. This is hoping they’ll make things better quickly and get everybody again on-line with none additional surprises!
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Alternatives
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- Apply for Visa All over the place Initiative (VEI) by Could 6, 2024, right here.
- Discover this web site to seek out a number of job alternatives in Information that align along with your preferences.
- If you’re a software program engineer, artistic designer, product supervisor, design researcher, or a techie in search of an internship function, please, examine out this web site.
Have an excellent Tuesday!
Victoria Fakiya for Techpoint Africa.
