Global Courant
Here are three big stories from the African business and policy landscape that you (probably) didn’t miss, but should keep in mind this week:
Vodacom has been fined R1 million for breaching the Consumer Protection Act
Vodacom, a South African mobile operator, has done just that been was fined R1 million ($52,761.40) by the National Consumer Tribunal for breaching some rules of the Consumer Protection Act (CPA). The Tribunal found that Vodacom failed to properly terminate customers’ contracts and charged them a 75% cancellation fee. Vodacom also continued to bill customers after attempting to terminate their contracts and threatening them with debt collection agencies, legal action and blacklisting from credit bureaus. The Tribunal said Vodacom’s actions were unconscionable and breached Section 14 of the CPA. The Tribunal also said that Vodacom misled customers by advertising a data bundle package that was unavailable and in breach of Articles 41 and 29 of the CPA. The Tribunal’s decision came after the National Consumer Commission (NCC) investigated around 700 complaints against Vodacom between 2020 and 2022. The NCC selected 27 cases for the investigation.
Unlicensed VPN now illegal in Tanzania
Using unlicensed VPNs is now illegal in Tanzania, according to the Tanzanian Communications Regulatory Authority. The regulator has been cracking down on unlawful content on local networks, invoking Regulation 16(2) of the Electronic and Postal Communications (Online Content) Regulations 2020 to justify the ban. Anyone violating this rule faces a year in prison or a fine of TSh5 million. To continue using VPNs, individuals and businesses in Tanzania must complete a form on the TCRA website by October 30, 2023. In the form, they must reveal their IP address and VPN details.
However, these regulations have raised alarms among digital rights activists in Tanzania. The TCRC, a coalition that advocates for digital rights, has raised concerns about how the ban could affect Tanzanians’ rights to freedom of expression, privacy and access to information. It calls on the government to engage in constructive dialogue. Tanzania is the second East African country to ban the use of VPNs. In 2018, Uganda banned VPNs and imposed a tax on social media to prevent people from using VPNs to avoid taxes.
Nigerian Debt Service to Revenue Surpasses 183%
Budget Office data shows that Nigeria spent more on debt service than it earned in revenue in the first quarter of 2023. The debt service to revenue ratio was 183%, meaning the government had to borrow more than it earned. Data shows that the government spent more on debt servicing than it earned in the first quarter of 2023. The debt service to income ratio was 183%. Revenue stood at N1.21 trillion, lower than the expected N2.16 trillion and last year’s N1.48 trillion. Debt service stood at N2.2 trillion, higher than the budgeted N1.6 trillion. It included N912 billion for Ways and Means, a central bank overdraft facility.
In 2022, debt service stood at N5.65 trillion, almost equal to revenues of N5.8 trillion. Revenues declined from N6.7 trillion in 2021. The budget deficit stood at N7.5 trillion or 129% of revenues in 2022. The situation worsened in 2023 as the government failed to meet its revenue and expenditure targets. Expenditure (excluding government agencies) amounted to N3.4 trillion, higher than the budgeted N3.3 trillion. Recurring non-debt expenditure was only N1.2 trillion, lower than the budgeted N1.63 trillion. The main factor behind the deficits is rising debt service obligations. The government also raised only N2 trillion from domestic debt, which is lower than the target of N2.695 trillion. The net deficit (excluding GEO budget and project-related loans) stood at N2.3 trillion in the first quarter of 2023.
ICYMI: Market Overview
The Nigerian stock market fell during a five-day trading week, with the NGX All-Share Index fell by 0.42% and closed at 66,915.41 points. The biggest winners were Thomas Wyatt Plc. (29.64%), Daar Communications plc. (9.52%), Julius Berger Plc (9.09%), United Bank for Africa Plc (8.26%) and Learn Africa Plc (6.45%). The biggest decliners were Sovereign Trust Insurance plc (-17.50%), Cadbury plc (-16.00%), Stanbic IBTC Holdings plc (-13.06%), Floor Mills plc (-11.88%) and Okomu Oil palm Plc (-9.96%). ).
The naira closed the week at ₦772.98/$1 on Friday window of investors and exporters.
Brent crude oil closed the week at $92.91, while the U.S West Texas average (WTI) crude oil closed at $88.08.
The global cryptocurrency market capitalization was $1.17 trillion as of 8 a.m. on Monday, September 24. Bitcoin was at $30,541.65, up 9.64% on the week, Ethereum also rose 6.08% to trade at $1,676.31. And Binance coin rose 3.10% over the week to trade at $219.75
Craft workshopan Egyptian edtech startup has successfully secured a $400,000 seed funding round led by Ed Ventures.
Outsizedone of the leading platforms for top independent talent in Asia Pacific, Africa and the Middle East, has announced the successful completion of its Series A funding round.
