The evolving digital landscape in Africa is creating opportunities for governments to generate revenues for the development of their countries. These changes highlight the commitment of governments to keeping pace with the rapid growth of the digital economy.
On Monday, June 26, President Ruto signed Kenya’s Finance Bill 2023 into law. This new law brings significant changes to the digital economy, affecting digital content creators, crypto traders, and digital lenders. Effective July 1, 2023, the bill introduces new tax implications and regulations.
Digital content creators will now be taxed on their earnings from digital content, with a 1.5% withholding tax applied to their income. This expansion aims to include various forms of electronically offered content, such as advertisements, sponsorships, subscriptions, and merchandise sales, within the scope of taxation.
Crypto traders face the introduction of a digital asset tax (DAT) on earnings obtained from the transfer or trade of digital assets, including cryptocurrencies and Non-Fungible Tokens (NFTs). Platform owners will deduct 3% of the digital asset's value, with non-resident owners required to remit the tax within 24 hours after deduction. The short period for deductions and the taxation of turnover rather than gains may pose challenges for crypto traders.
The bill also broadens the definition of 'fees' to cover charges associated with lending activities by digital lenders. This means that all costs linked to digital lending transactions, including fees charged by digital lending apps, will be subject to excisable duty. Consequently, borrowing from digital lending platforms may become more expensive.
Kenya's Finance Bill 2023 represents the country's adaptation to the evolving digital landscape, aiming to capture revenue and ensure fairness. Industry players must adjust their practices and business models accordingly to comply with the new regulations.
Digital Service Tax (DST) is a tax imposed on income generated from services offered through a digital marketplace (a platform facilitating electronic interactions between buyers and sellers). It was introduced in the Finance Act 2020. The rate of DST is 1.5% of the gross transaction value, which includes payments received for digital services and commissions or fees paid to digital marketplace providers for platform usage.
These changes highlight Kenya's commitment to keeping pace with the rapid growth of the digital economy and aligning its regulatory framework with global trends.
Hikmatu Bilali
To bolster access to financial services in Africa, which remains weak, fintech companies have been developing various solutions that fit the African market, and answer the needs of its people.
Two weeks ago, Syca SAS, an Ivorian tech startup launched in 2015, joined the incubation and acceleration program of Scaleway, a cloud infrastructure services provider. The startup was selected with its first module, SycaPay, which launched in 2016.
"This collaboration provides us with an excellent opportunity to accelerate our development and strengthen our position in the market. We look forward to working closely with the Scaleway team and benefiting from their expertise and resources to continue providing innovative solutions to our customers," Mouhamadou Diop, CEO of SycaPay, said.
SycaPay is a fintech solution developed by the startup. It helps companies receive payments from their customers via mobile money, QR codes, and Visa and MasterCard bank cards. The mobile app is available on both iOS and Android.
After downloading the app, businesses must create an account providing the necessary information. Afterward, they can get payments and track their inflows and outflows from their dashboard.
For e-commerce operations, SycaPay offers an application programming interface (API) integration option. "Integrated into an e-commerce website, SycaPay allows merchants to accept mobile money payments without needing an account with every operator," as stated on the platform.
The Android version of the mobile application has been downloaded over 1,000 times. While currently available only in Ivory Coast and Senegal, the fintech company is working towards covering all UEMOA and CEMAC markets.
Adoni Conrad Quenum
He founded a company that digitizes the transportation sector and connects freight shippers and carriers. Backed by several investors, the company collaborates with major transport companies.
Moustapha Ndoye (see picture) is a Senegalese computer scientist and graduate of the Georgia Institute of Technology. With Alioune Ndoye, he co-founded Chargel, a logistics technology startup created in 2021. The company's mission is to make road transport more efficient, reliable, and transparent.
The startup helps carriers find freight at any time via its platform. This helps the users avoid empty trips while enjoying prompt payments. In addition, it offers value-added services such as the supply of GPS trackers, assistance in purchasing fuel at discounted rates, and support for repairs in case of breakdown.
With his startup, Moustapha Ndoye, its CEO, hopes to build the largest network of road freight transport in French-speaking West Africa. This will facilitate shippers' access to thousands of trucks at the best prices.
In April 2023, the company successfully raised $2.5 million to expand its operations in Senegal and neighboring countries such as Mali, Guinea, and Mauritania. Chargel has recently been selected for the Google for Startups Black Founders Fund and was ranked among the top 20 African startups to watch in 2023 by Jeune Afrique magazine.
Since its launch, Chargel has entered partnerships with several global giants, including Maersk and Grimaldi. In 2022, the company recorded a gross merchandise volume of $1.2 million.
Before starting Chargel, Moustapha Ndoye was the CEO of Xtreme Design and Engineering - an iOS mobile application development company, from 2009 to 2018. In 2013, he co-founded Teranga Solutions, a company that provides an outstanding hotel experience by leveraging mobile and cloud technologies.
After serving as CEO of Teranga Solutions, he became the Chief Operating Officer of HotelOnline in 2018. In 2020, he joined Wave Mobile Money as Director of Products until the launch of Chargel the following year.
Melchior Koba
African governments are embracing technology to revolutionize healthcare and enhance living standards.
Fujifilm South Africa and Uni Medical Supplies are collaborating to enhance healthcare in Namibia through the implementation of Fujifilm's advanced Synapse Radiology Information System (RIS) and Picture Archiving and Communication System (PACS) platforms. This deployment is the country's largest and has transformative potential for healthcare services.
The project, launched Tuesday, June 27 connects geographically distant hospitals, including Katutura State, Onandjokwe State, Oshakati State, Rundu Intermediate, and Windhoek Central Hospitals, through the innovative Synapse RIS/PACS system.
Taro Kawano, Managing Director of Fujifilm South Africa, expressed optimism about the platform's impact on Namibian citizens' health. “We thank the Namibian Ministry of Health and Social Services for seeing the value of this platform and the benefits it holds for the country’s healthcare system,” he said.
The Synapse RIS/PACS system efficiently manages radiological information, streamlining appointment scheduling and reporting. Doctors can remotely access and diagnose patients using digital storage of imagery, such as CT scans and X-rays, on the PACS system. Additionally, four out of five hospitals have implemented Fujifilm's cutting-edge REiLI artificial intelligence (AI) platform, which provides advanced detection capabilities for breast and chest abnormalities, assisting radiologists in conducting further examinations.
The immediate availability of data and imagery enables accurate and timely diagnoses, eliminating distance barriers for healthcare services in remote areas. Fujifilm's Synapse RIS and PACS platforms have a successful track record globally.
In that light, Namibia's healthcare system is set to undergo a remarkable transformation with this project. The collaboration between Fujifilm South Africa and Uni Medical Supplies promises improved healthcare services, enhanced patient care, and a more connected healthcare network throughout the country.
Uni Medical Supplies, a Namibian-owned company, delivers affordable, high-quality medical products directly to customers while prioritizing customer satisfaction and ethical business practices. Meanwhile, FUJIFILM South Africa (Pty) Ltd, a subsidiary of FUJIFILM Holdings Corporation, serves the Sub-Saharan region with a diverse range of award-winning products, including Photographic Film and Paper, Film and Digital Cameras, Photofinishing Products, Healthcare Systems, Graphic Systems, and Data Management Systems.
Hikmatu Bilali
The rapid advancements in technology, surging data consumption, and the deployment of 4G and 5G networks in Africa intensify the need for telecom infrastructures. In response, the government and international partners are working diligently to address these needs within the digital transformation landscape.
The International Finance Corporation (IFC) loaned $60 million to telecom tower manager Eastcastle Infrastructure. This was made public in a press release issued on Monday, June 26. The funds will be used to enhance digital connectivity in the Democratic Republic of Congo (DRC), one of the least connected countries in Sub-Saharan Africa.
News Release 📢 Trigon Granted Permits to Highly Prospective High-Grade Silver Lead Ground in Morocco – Addana Project
— Trigon Metals (@trigonmetals) June 28, 2023
View it here: https://t.co/pxDYTjCtHz
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Expressing his satisfaction with the IFC's investment, Peter Lewis, Co-founder and Director of Eastcastle Infrastructure Ltd., said: "We are delighted that following their equity investment in Eastcastle, the IFC has made $60 million in long-term financing available to our operations in the DRC. Together with the $34 million from Standard Bank of South Africa, this will enable us to surpass 1,000 towers in the DRC."
According to the release, the funding includes $30 million from IFC and an additional $30 million mobilized from the Emerging Africa Infrastructure Fund (EAIF). This is in line with Eastcastle's strategy to construct a maximum number of shared towers in the DRC. The main goal is to promote the digital economy in the region.
Back in 2021, the IFC had provided financing to support Eastcastle’s growth plans in Sub-Saharan Africa. Now with the new financing, the company will be able to lease its new towers to mobile network operators and other digital service providers in the DRC, thus helping expand their coverage, reduce operating costs, and minimize energy consumption through infrastructure sharing.
It is worth noting that the DRC has 48.4 million mobile phone subscribers. According to the latest data from the Regulatory Authority for Post and Telecommunications of Congo (ARPTC), the rate of penetration is 50.9%. However, the number of mobile internet users stands at 22.6 million, with a penetration rate of 23.8%. The expansion of Eastcastle's telecom towers network will improve the quality and coverage of telecom services in the country.
Samira Njoya
Kenya has introduced its digital sex offender registry as part of ongoing digitization efforts across all sectors, including the justice system. By doing so, the government aims to significantly reduce sexual assaults on women and children and facilitate the identification of perpetrators.
On Monday 26, Martha Koome, the Chief Justice of Kenya, unveiled the country's first digital sex offender registry at the Kibera Law Courts. The registry comprises a comprehensive database containing crucial information about convicted sex offenders.
11. The Register, established under the Sexual Offences Act, serves as a crucial database, holding the records of all convicted offenders. By automating this Register, we will ensure easy access to information on convicted sex offenders, facilitating expedited justice. pic.twitter.com/OW7FArbZvC
— Hon. Justice Martha K. Koome, EGH (@CJMarthaKoome) June 26, 2023
During this ceremony, she stated: "The implementation of the automated registry is a vital tool for protecting the public from sex offenders. By providing accessible information, we empower individuals to take necessary precautions and create an environment that discourages such offenses."
In recent years, Kenya faced an upsurge in sexual offenses. This created so many challenges to the safety and well-being of its citizens. The digital registry will bolster government efforts against this menace.
Before this action, the government took some measures to fight sexual offenses in Kenya. In 2008 for example, Legal Notice No. 133, supplementing the Sexual Offenses Act, mandated the director of the Criminal Investigations Department to establish a DNA database of dangerous sex offenders.
This digital tool will be useful for key stakeholders in Kenya's justice system in tracking and monitoring sex offenders after their release from prison. It will also help the public to access information about sex offenders residing in their neighborhoods. Thus, they can take precautionary measures to protect themselves and their children.
Through this, Kenya joins other countries that have implemented sex offender registries. In 2007, South Africa established a similar registry. Unfortunately, it is kept confidential and not open to the public.
Samira Njoya
He is a tech entrepreneur with two successful companies in Liberia. Thanks to his solution My Watchman, he was celebrated at the Global Startup Awards as West Africa's Founder of the Year 2023.
Oliver Wleh Klark (photo) is a Liberian entrepreneur who graduated from Hamline University School of Business in 2012 with a Master's in International Conflict Management. Recently, at the Global Startup Awards, he received the 2023 West Africa Founder of the Year award for his tech solution My Watchman.
“This award is a win for Liberia because it gives the country the platform to showcase innovations and different technologies, developed locally, which can be scaled across the continent. So, we are proud to have won this, but more importantly for us, we think this is a big win for all Liberians,” he said after receiving the award.
The solution that earned him the award is a full-service emergency app, with an around-the-clock emergency response network and an emergency dispatch command center. It's a smarter, safer way to protect family and property, with access to help anywhere, anytime. As the winner of this award in the West African zone, My Watchman and Oliver Wleh Klark will represent the whole zone at the grand final where the continental founder of the year will be named.
The solution is a registered trademark of technology company Advanced Converged Technologies LLC, founded and currently headed by Oliver Wleh Klark. The entrepreneur is also the CEO and one of the co-founders of RoviaGate Technology, a Liberia-based information and communication technology (ICT) company offering integrated smart data-centric solutions.
Melchior Koba
Africa's youth-dominated population presents a prime opportunity for the continent to emerge as a digital hub. Governments are actively tapping into this valuable resource to drive progress and foster economic development.
Nigeria's Vice President, Kashim Shettima, unveiled on Monday June 26, a plan to generate one million digital jobs for the youth. During talks with a Korean delegation led by Special Envoy Jang Sungmin (photo), he stressed the importance of strategic collaborations to achieve this objective.
Reaffirming Nigeria's commitment to bolstering ties with Korea, Shettima highlighted the potential for learning from Korea's successes in manufacturing and agriculture. The Vice President also pointed out that with 75% of Nigerians under the age of 35, Nigeria sees an opportunity to address global talent deficits, while also emphasizing the need for Korea's assistance in digital skills training and technology support. “We need the skills set, we need the technology to drive the process and yours is a technology that we can embrace,” he said.
The Nigerian government, focusing on security and economic development, expressed its commitment to supporting Korean businesses operating in the country and creating a favorable business environment for foreign investors.
The partnership between Nigeria and Korea in skills training and technology support is expected to play a crucial role in achieving the government's target of one million digital jobs. This collaboration opens doors not only to addressing talent shortages but also to Nigeria's integration into the global digital landscape.
According to the "Africa's Development Dynamics 2022: Regional Value Chains for a Sustainable Recovery" report by the Organization for Economic Cooperation and Development, “Africa's thriving digital sector presents an opportunity for governments to drive post-COVID-19 growth. By promoting the adoption of digital technologies, and data sharing [… ], African countries can expedite economic transformation and generate productive employment, aligning with the African Union Agenda 2063 aspirations.”
Hikmatu Bilali
In May, Algeria inaugurated six digital platforms to enhance the skills of students and teachers, as well as digitize university services. In the same vein, 11 platforms have just been launched.
Last Saturday, Algeria inaugurated eleven new digital platforms dedicated to teaching, research, and university services. This brings the number of digital platforms dedicated to the higher education sector to 46.
According to Minister of Higher Education Kamel Baddari who inaugurated the eleven platforms, the platforms will be developed based on identified needs. In early May, he launched six platforms. One platform is an electronic one-stop-shop, another for documentation, while others are created to authenticate graduates’ documents, public medical research, and manage university incubators.
They are launched in line with the main digital plan for the scientific research sector under the 42+4 electronic platforms program. This program involves the launch of 42 platforms for teaching and research, and 4 others for the management of university services such as transport, accommodation, and catering.
For Minister Kamel Baddari, the sectoral plan aimed at addressing 12 challenges has seven strategic programs, which are 80% completed. The program runs from November 2022 to December 2024.
Samira Njoya
CAYSTI teaches coding, robotics, and the fundamentals of artificial intelligence to children. It guides them in the creation and launch of professional digital projects, ensuring their long-term viability.
The Cameroon Youth School Tech Incubator (CAYSTI) is a center for technological innovation and the promotion of Cameroonian technological entrepreneurship. Founded in 2018 by computer scientist Arielle Kitio, who is also its CEO, it aims to develop the technological skills of children aged 6 to 15. Doing will help them become tech innovators and entrepreneurs.
The center designs turnkey educational programs in national languages for schools and governments. The programs teach creative development, tech or scientific innovation, and renewable energies as well as introduce children to coding, robotics, 3D, artificial intelligence, and renewable energies.
It provides auditing and support services for national education systems to better prepare the next generation for the digital revolution by combining cultural identity, problem-solving, project-based approaches, and gamification.
CAYSTI also designs and popularizes smart, collaborative, and intuitive digital tools to facilitate egalitarian access to quality and creative STEM content.
To this end, it has developed projects such as abcCode, a playful and intuitive coding environment that develops creativity and easily introduces children to creative programming. It also developed CAYSTI Edu Kit, a stand-alone 4-in-1 kit that enables learners to intuitively master project design and computer coding without the need for an Internet connection.
Also, with its partners Orange, IBM, Developers Institute, and the Ministry of Posts and Telecommunications, among others, it has launched tailor-made courses and developed international hackathons to expand and consolidate a worldwide community of creative minds.
It also organizes bootcamps, such as the CAYSTI Champion Camp, which rewarded three young champions from 3rd to 4th grade in 2020. The center has already trained and empowered over 28,000 children, 60% being girls. It has also trained over 500 teachers and signed partnerships with more than 24 schools.
Melchior Koba
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In recent years, healthtech startups have revolutionized the way Africans access healthcare. They are democratizing access to care by offering tailor-made services, and boosting tech adoption while at the same time keeping populations healthy.
HealthTag is a healthtech solution developed by Egyptian startup Bypa-ss. It enables access to digitized medical records via a mobile app and a QR-code-embedded card. Bypa-ss was founded in 2019 by Andrew Saad. Since its launch, it has raised $1.15 million to, among other things, develop its technology and support its growth in the country.
“HealthTag (a mobile app and a physical card) aggregates and gives patients ownership of their health records, while giving doctors and healthcare providers visibility on the patient’s full history allowing people-centric digital health information exchange as 1st of its kind in Egypt and north Africa,” the startup wrote in a statement.
The HealthTag mobile app is accessible on iOS and Android. Through it, users can register for their accounts and provide their health details to allow quick access in case of emergency. Thanks to HealthTag, patients can also pay for their medical services online, receive prescriptions and laboratory analyses, and benefit from a 70% discount with healthcare providers in Egypt when doing out-of-pocket payments.
To take advantage of these various services, a subscription is required. While the free package allows users to digitize their medical history and health record, individual packages of 100 Egyptian pounds (approx. $3.24) and 150 Egyptian pounds give several other benefits. The start-up also offers family packages at 250 Egyptian pounds and 350 Egyptian pounds for 5 people.
HealthTag has over 3,000 laboratories, pharmacies, and scanning centers in its medical network. It claims more than 250,000 subscribers, and its Android app has been downloaded more than 50,000 times, according to PlayStore data.
Adoni Conrad Quenum
Senegal is working hard to fully digitize its healthcare system. To achieve its objectives quickly, the government has turned to the World Bank for financial support.
The Senegalese government has allocated CFAF30 billion ($49.8 million) of World Bank financing to its national health digitization system PDSS. The information was disclosed by Dr. Ibrahima Khaliloulah Dia, coordinator of the Health and Welfare Map and Digital Health Unit CSSDOS, at a recent information workshop in Thiès.
The digital system is a user-focused platform. “...it will host your online medical data, scans, MRIs (magnetic resonance imaging), and check-ups. So it's an important tool. These data can be stored on secure servers to help patients coordinate their care. A patient can have their medical file following them, which circulates securely in a national database and this is a great added value for the patient because there will be savings, such as x-rays that need not be repeated but also, it will have better support,” said Dr. Dia.
Since 2017, Senegal has been digitizing its healthcare system. Several actions have been taken to completely transform the sector. Recently, a draft orientation law on digital health was finalized and sent to the government's general secretariat for implementation. Among other things, the bill covers telemedicine, patient records, data hosting, and management.
The CFAF30 billion dedicated will be used to build, equip, connect, and interconnect the country's hospitals. According to Dr. Ibrahima Khaliloulah Dia, the funding will only cover part of the vast project. Senegal has 1,500 health posts, 110 health centers, and 40 hospitals that will have to be digitized. In its initial phase, 20 health centers will be involved, and 1.5 million patients, 50% of them women, will benefit from the shared patient record (DPP).
The PDSS is part of the Senegal Digital Economy Acceleration Project (PAENS) financed by the World Bank to the tune of $150 million.
Samira Njoya
Amidst surging crime rates, the Ugandan government is leveraging technology to bolster security and safeguard its citizens. However, these efforts encounter significant obstacles that must be addressed. Striking a balance between public safety and stakeholder concerns is now a pressing task for the government.
The Ugandan government is planning to introduce digital number plates, starting on July 1, 2023, and car owners will be required to pay shs735,000 ($199.6) for each plate.
A digital number plate is a type of number plate that uses RFID (radio frequency identification) tagging. They feature a chip that stores vehicle-specific information such as insurance, tax, and journey records serving as a means of instant identification, tracking, and monitoring.
The decision comes in response to the increasing crime rate in the country. To address the issue, President Museveni discussed the potential of improving security measures by equipping boda bodas (motorcycle taxis commonly found in East Africa) and other vehicles with GPS tracking devices. He mentioned this during his address to the parliament on the state of security in the country, in June 2018.
The government's decision has, however, faced criticism from many citizens including the Kampala City Traders Association (KACITA), who deem it rushed and highlight the lack of sufficient stakeholder engagement. Established and registered in 2001, KACITA is a business support association in Uganda with a mandate that encompasses the entire country.
KACITA chairman, Musoke Thadeus Nagenda (photo), expressed his concerns about the decision. While addressing journalists on Wednesday, Nagenda stated, "Having thoroughly analyzed and studied what the new registration process entails, the consumers of the service, and all the players in the chain, we think this is rushed. There hasn't been any form of sensitization of consumers and stakeholders. We realized that there were no stakeholder engagements at most levels. The implication of this is that the July 1, 2023 implementation date is too soon, and if implemented, this will cause a lot of business stampede as well as public outcry."
The Kampala City Traders Association also mentioned the high cost and unfair payment structure of the number plates compared to cheaper plates in Kenya with similar security features, citing the price as exorbitant and unreasonable.
KACITA then raised issues related to administrative procedures, practicality, data protection, and security risks associated with live location tracking, recommending a phased implementation starting with government vehicles, the establishment of fitment centers nationwide, and training for local players involved in plate installation and maintenance.
The association also advises against rushing the project and proposes an additional year for piloting and phased implementation to address concerns, ensure public sensitization, and protect privacy rights and small-scale businesses. “Comprehensive planning, stakeholder involvement, and transparency are crucial for a successful rollout of the digital number plate system. The government must address these concerns for an inclusive implementation benefiting all stakeholders,” it adds.
Hikmatu Bilali
Gabon's digital transformation policy provides for the construction and creation of several digital entities and infrastructures. The plan has attracted several players that are already making proposals to support the country in its implementation.
On Thursday, June 22, Gabon's digital minister Jean Pierre Doukaga Kassa granted an audience to representatives of Chinese company China Investment Holding. The team, led by Donghu Liu, the company's General Manager for Africa, expressed interest in working with the Gabonese government on a number of digital projects.
The Chinese business leader offered his company’s support in segments like "smart forest management (reforestation, remote sensing, and satellite management), the creation of an intelligent forest industry park (digital management)," the ministry in charge of the digital economy reported on social networks.
The group also expressed its interest in establishing a win-win partnership for the launch of a satellite and the construction of a precise proprietary-based ground station that would be so precise that the whole territory will be covered with radio, television, Internet, and electronic communications networks.
The Chinese company's interest comes in the wake of Gabonese President Ali Bongo Ondimba's visit to China, during which he called on members of the government to strengthen business relations between Libreville and Beijing. It also comes at a time when Gabon is working to further develop its digital sector to greatly facilitate the transformation of its economy. Since 2009, through the Plan Stratégique Gabon Emergent (PSGE), the government is working to make Gabon a reference in the African digital sector by 2025.
Responding to requests from his visitors, the Minister for the Digital Economy announced that the "smart forest" projects are already being carried out by Gabon’s space agency AGEOS. He then instructed officials to pursue technical exchanges with the partner.
China Investment Holding is active in two main digital fields: satellite communications and drone analytics solutions for natural resource management.
Samira Njoya