Connect with us

VenturesNow

UBER ends operations in Tanzania over unfriendly regulations. See implications

Published

on

Ride-hailing company, Uber, has suspended its services in Tanzania as a result of regulations that are not business-friendly which has made its operation in the East African country.

The US-based company, which has operated in the country for six years said operations will resume after arriving at an agreement with the Tanzanian authorities, the company announced in a statement on Thursday.

Uber has become one of the lucrative income sources, as proven by Uber drivers carving their own spot in the gig economy statistics which Africa has benefitted immensely from. It is not yet clear what becomes of the thousands of Uber drivers and riders who rely on the services of the ride-hailing company in Tanzania.

“We have made the difficult decision to suspend our services in Tanzania from Thursday 14 April 2022. The guide fare set by the Land Transport Regulatory Authority (LATRA) has posed significant challenges for systems like Uber to continue to provide services to our customers. It becomes increasingly difficult for us to continue providing services. We will not be able to provide services until the environment becomes friendly for us to continue providing services.” The statement reads.

“Current regulations in the transportation sector have created an environment that is not friendly and has been a challenge in our business,” the firm said.

“This is a difficult time for all of us, but this does not mean that it is the end of everything. We are ready to co-operate with the relevant authorities and reach an agreement that will create a stable environment for our business,” the statement says.

The company, however, said it was ready to key into Tanzania Vision 2025 which it believes is committed to building a strong, diverse, resilient, and competitive economy that is in line with the regional and international market and technological changes. While suggesting that its decision to leave Tanzania could be reversed the environment became better for its businesses

“We hoped that this would include creating an enabling environment for domestic and international trade to thrive in a positive and balanced way, but unfortunately, the situation is contrary to expectations.” The stamen reads further.

Uber has been providing transportation services in Tanzania through UberX, UberX Saver and UberXL services.

VenturesNow

Ghana seeks to hasten debt restructuring talks

Published

on

Barely days after Zambia announced a significant development in resolving its protracted debt restructuring,  Mohammed Amin Adam, Ghana’s Finance Minister, declared on Tuesday that the administration intended to move the debt restructuring talks along quickly.

The West African nation is now in negotiations to restructure bonds worth roughly $13 billion with foreign investors. In December 2022, Ghana defaulted on the majority of its $30 billion in external debt due to escalating debt payments and inflation.

Tradeweb data indicates that the international bonds issued by Ghana experienced the largest increase, with a jump of up to 1.1% on the dollar, to 42.67 cents for the May 2029 maturity.

Ghana, one of the first nations in Africa to default on its foreign debt and a major producer of oil, gold, and cocoa, is experiencing the worst economic collapse in a generation, characterized by double-digit inflation and skyrocketing public debt.

Most indebted African countries have applied for a debt restructuring plan under the G20 framework; although the agreement has not yet been finalized. Ghana, Ethiopia, Chad, and Zambia are some of the countries that formally defaulted on their national debt.

Continue Reading

VenturesNow

Zambia seals $3 billion international bond rework

Published

on

In a significant development that moves the nation closer to exiting its protracted debt restructuring, Zambia has announced that it has achieved an agreement with a consortium of private creditors on the restructuring of $3 billion of its foreign bonds.

According to the most recent agreement, Zambia’s three current instruments would be converted into two amortizing bonds, one of which would have higher repayment rates if the nation’s economic prospects and capacity to manage its debt were better.

“History has been made!” President Hakainde Hichilema said on social media platform X. “We are pleased to announce the agreement with our Eurobond holders.”

With some substantive changes, the nature of Monday’s proposal is similar to a preliminary agreement that was struck late last year but was later abandoned because official creditors, who include nations like China and France, rejected it.

Bondholders’ total claim against the country increased to $3.98 billion as a result of accrued unpaid interest; however, under the terms of the revised agreement, investors will get bonds with a face value of $3.05 billion, down from the $3.135 billion that was initially suggested in October.

Being the first African country to default on its foreign debt following the effect of the Covid-19 pandemic and has been keen on a restructuring of the debt. However, the lengthy delays in the process have hindered much-needed investments, slowed down economic growth, and put pressure on the regional financial markets.

After a proposal to restructure $3 billion in Eurobonds was rejected by its official creditors, Zambia struggled to restart its debt restructuring process. According to international media, China and other creditors did not think the proposed debt relief granted by the government matched that of the bondholders.

A terrible drought that has been labelled a national calamity and is affecting the production of food and hydropower has made the situation worse, although its currency, the Kwacha has been on the rise despite the odds.

Continue Reading

EDITOR’S PICK

Sports16 hours ago

Tragedy as coach killed, players injured in Sierra Leone club bus crash

One of the coaches of Sierra Leonean club, Port Authority FC, Lamine Bangoura, a former international, has been confirmed killed...

Tech16 hours ago

Radisson Group targets 25 hotels in Morocco by 2030

The Radisson Hotel Group says it has set a goal of setting up 25 hotels in Morocco, which will expand...

Culture16 hours ago

Moroccans celebrate ‘special towncrier’ who works only during Ramadan

Moroccans have continued to celebrate a “special towncrier” otherwise known as “Nafar”, who works only during the Ramadan period. The...

Metro18 hours ago

Nigeria to begin seasonal reviews of oil firm’s plans on gas flaring

Nigeria’s Minister of State for Environment, Dr Iziaq Salako, has revealed that the government intends to begin seasonal reviews of...

Metro20 hours ago

US earmarks $10m concessional loan to Zambian enterprises

About 260 Small and Medium Scale enterprises in Zambia will benefit from $10 million concessional loans by the United States...

Strictly Personal22 hours ago

Road deaths are symbolic of our national failure, By Tee Ngugi

“Killer roads claim 25 lives,” screamed the headline of the Daily Nation on March 18. Among this number were 11...

VenturesNow22 hours ago

Ghana seeks to hasten debt restructuring talks

Barely days after Zambia announced a significant development in resolving its protracted debt restructuring,  Mohammed Amin Adam, Ghana’s Finance Minister,...

Politics23 hours ago

South Africa: Opposition Democratic Alliance open to coalition with ruling ANC

The Democratic Alliance (DA), the second-most popular party in South Africa, has revealed that it would not rule out a...

Metro24 hours ago

‘Trust in Tinubu, things will get better soon’, Buhari’s ex-spokesman Adesina tells Nigerians

A former spokesman to ex-President Muhammadu Buhari, Femi Adesina, has joined his voice to those asking Nigerians to be patient...

Tech2 days ago

AgriTech4Egypt Innovation Challenge opens applications for tech-prenuers

The 2024 edition of the AgriTech4Egypt Innovation Challenge has called for applications from tech-prenuers and purpose-driven scientists working on agri-tech...

Trending