Connect with us

VenturesNow

Kenya to increase borrowing as budget gap grows

Published

on

Kenya is likely to borrow another Sh600 billion this financial year after revenue shortfalls, pushing the country deeper into the debt trap.

It had earlier been forecast that borrowing would be capped at Sh558.9 billion.

Despite a pinching tax on fuel, the gap between spending and revenues has continued to increase, prompting the Treasury to revise targets for the Kenya Revenue Authority (KRA).

The budget deficit has grown to Sh600 billion, with tax revenues expected to drop to Sh1.8 trillion, down from Sh1.9 trillion projected in the 2018/19 Budget.

Finance Principal Secretary Kamau Thugge said the dismal results from the taxman made the Government to revise its expectations.

Read also: UK gives Ghana £20m grant

“We had made projections based on what we expected KRA would collect but performance was bad, especially the last three months and so we had to adjust,” Dr Thugge said.

This means that Kenya’s targeted fiscal deficit will rise to six per cent, from a targeted 5.7 per cent, which was still seen as high by the International Monetary Fund (IMF) and formed its basis to push for debt management.

Kenya’s financing deficit over the past few years has been oscillating between 8.4 per cent in 2014 to 7.4 per cent in 2015, then 8.8 per cent in 2016 and last year, it stood at 6.9 per cent. The plan was to cut it to 5.7 per cent this year and then 4.3 per cent next year.

VenturesNow

South Africa’s FM, Naledi Pandor, wants quick solution to Ghana, MTN tax dispute

Published

on

South Africa’s foreign minister Naledi Pandor wants the tax dispute between the tech company and the Ghanaian tax authorities solved.

The minister on Friday called MTN Group, which has a presence in 19 countries in Africa and the Middle East, and the Ghana Revenue Authority to find a solution to a $773 million tax dispute.

South Africa’s Department Of International Relations and Cooperation said in a statement, Minister Pandor was briefed on the issue this week and called “on the parties involved to do everything possible to find an amicable solution.”

Two weeks ago, the South African mobile operator giant revealed that its Ghanaian subsidiary has received a bill for back taxes of around $773 million. The billing came after the tax authority audited MTN for the years 2014 to 2018 and inferring that it had under-declared its revenue by about 30% during the period.

MTN said it disputes the “accuracy and basis” of the assessment and that it would fight it.

MTN Ghana is the largest company in Ghana by market capitalization as the annual data revenue of MTN Ghana (Scancom PLC) amounted to over 2.7 billion Ghanaian cedis (GHS) in 2021.

Continue Reading

VenturesNow

Ivory Coast to increase cocoa processing capacity with new plants

Published

on

Ivory Coast, the largest cocoa-producing country in the world, has hinted that it will increase the amount of cocoa it processes domestically to 49%.

According to the head of the sector, the regulator said on Friday, the increase is projected to begin in production starting from October with the addition of several new plants.

The new plants will allow the country to process more than 1 million tonnes of cocoa annually, making it the world’s leading cocoa grinder,

Ivory Coast boasts of annual production of about 2.2 million tonnes with 35-40% processed in the country and the rest exported, but the government has a goal of increasing that to at least 50%.

The country recently signed a deal with the United Arab Emirates for the construction of a new plant in San Pedro with a grinding capacity of 120,000 tonnes, said Yves Brahima Kone, director general of the Coffee and Cocoa Council (CCC), who was in Abu Dhabi this month to open a new CCC office.

“This permanent representation (in Abu Dhabi) is the fruit of our new vision for Ivorian cocoa that we want to export all over the world. This office will allow us to explore markets in Asia, the Middle East, and North Africa,” he told journalists

Ivory Coast also expects two new factories financed by China to enter into production in October, with a production capacity of 50,000 tonnes each, Kone said.

In November, the two biggest cocoa producers, Ivory Coast and West African neighbour, Ghana pushed for higher prices for their farm products under the Living Income Differential (LID) and vowed to charge a premium of $400 per tonne on all cocoa sales, starting with the 2020/21 harvest.

The lack of technology and industries to process its produce has fanned discussions about Africa being a raw material economy and extractive centers for industrial western countries that are advanced, able processed and positioned to maximize the resources.

Continue Reading

EDITOR’S PICK

Musings From Abroad15 hours ago

Italian firm, Eni signs $8 billion Libya gas deal as PM Meloni visits Tripoli

With the aim of boosting energy supplies and other markets, Libya’s National Oil Corporation (NOC) signed an $8 billion gas...

Sports17 hours ago

Female Kenyan world marathon champion banned for five years over doping

A female Kenyan marathon world champion, Betty Wilson Lempus, has been handed a five year ban after she was found...

VenturesNow17 hours ago

South Africa’s FM, Naledi Pandor, wants quick solution to Ghana, MTN tax dispute

South Africa’s foreign minister Naledi Pandor wants the tax dispute between the tech company and the Ghanaian tax authorities solved....

Tech18 hours ago

Angola inaugurates new satellite control centre for ANGOSAT-2

Angola has inaugurated its first satellite control centre with the main task of monitoring the activity of the country’s satellite,...

Metro18 hours ago

M23 rebels take control of Kitshanga in eastern DR Congo

The M23 rebels have announced that its fighters have seized control of the strategic town of Kitshanga, in the Eastern...

Metro19 hours ago

237 African migrants rescued off Libyan coast

Not less than 237 African migrants were on Friday, rescued after their makeshift boat capsized off the Libyan coast while...

Politics19 hours ago

Kenyan opposition leader, Raila Odinga plans protest rallies, questions recruiting at IEBC

As part of the fallout from the 2022 presidential elections in Kenya, the opposition under Azimio La Umoja One Kenya...

Strictly Personal19 hours ago

Umeme, grain and coffee: Why Kenya should fear Uganda’s economic gamble, By Charles Onyango-Obbo

Uganda, the 1990s shining Africa poster boy for privatisation, is engaging in what could be East Africa’s biggest economic liberalisation...

Culture20 hours ago

Nigerian singer, Mr. Eazi, expands business empire, buys shares in South African basketball team

Nigerian singer, Mr. Eazi, has expanded his fledgling business empire after he announced that he is now a shareholder in...

VenturesNow2 days ago

Ivory Coast to increase cocoa processing capacity with new plants

Ivory Coast, the largest cocoa-producing country in the world, has hinted that it will increase the amount of cocoa it...

Trending