Economy

Ethiopia finally gets some respite. 

The country has struggled with double-digit inflation and has struggled to pay back debts worth $28.4 billion since 2021. Recently, it defaulted on the interest payment for a $1 billion Eurobond that matures later this year. But what do you do to the old and frail? You help them. And who better to help Ethiopia than the International Monetary Fund (IMF)?

Ethiopia began discussing a $10.5 billion aid package with the IMF and World Bank in early July to boost its ailing economy. To attract support from the IMF, the country also devalued its currency by allowing market forces to determine its exchange rate freely.

The IMF will lend the country $3.4 billion over four years, starting with a disbursement of $1 billion. The loan will allow Ethiopia some respite as the funds will stabilise the economy and support local spending.

Did you know that only 2.8% of informal businesses are started out of passion? Click here to find out the motivation of businesses in Nigeria’s informal economy.

Regulation

Nigeria’s commercial capital, Lagos, will start taxing remote workers and digital influencers as part of a plan to raise ₦5 trillion ($3.04 billion) in internally generated revenue (IGR) under the current administration—668% more than it generated in 2022.

Lagos wants to tap into the growing remote work and digital economy sector to raise ₦200 billion ($121.8 million) annually in taxes—contributing about ₦600 billion ($365.3 million) to this administration’s IGR target.

The big question here is how the government plans to identify taxpayers in this new bracket and implement the taxes, given there’s no centralised system. 

South Africa has a system that works fairly well, and remote workers must declare their income at the end of every financial year. Last year, its government started trying to cast an even wider net on remote employees by requiring employers of South Africa-based remote workers to deduct pay-as-you-earn (PAYE) tax. This could be

As part of its own plans to increase IGR, Lagos will also introduce new tax structures for the property sector, informal, and circular economies. If this is successful, it could serve as a model for other Nigerian states and developing economies looking to expand their tax base.

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Events

• You can still get an early bird ticket to the second edition of TechCabal’sMoonshot Conference!  From October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria, you can join Africa’s biggest thinkers and players like Iyin Aboyeji, Wiza Jalakasi, June Angelides, Kola Aina on a global launchpad for change. If you want to join these stakeholders in Africa’s tech ecosystem for three days of insightful conversations, then get an early-bird ticket to Moonshot 2024 at 20% off. 
• Join the 24 Fintech Africa Roadshow Webinar! We’re excited to invite you to our upcoming webinar on Monday, July 29th at 3:00 PM WAT. Discover opportunities for African technology companies at the 24 Fintech Summit, happening from September 3 – 5, 2024, in Saudi Arabia. Speakers include leaders from the fintech industry, providing insights on global fintech trends and opportunities. Don’t miss out on this chance to connect and learn. Register Now.
• Join Career Brunch 2024 on August 17, 2024, in CcHUB with successful professionals from diverse fields and beyond for an exclusive (physical) career hangout for all professionals. Whether you’re a 9-5er, entrepreneur, founder, or young and upcoming professional looking to climb the career ladder, scale your business or transition, Career Brunch has something for you. This is your golden ticket to connect with industry leaders and professionals from MTN, CcHUB, McKinsey, Spotify etc., gain invaluable insights, and supercharge your career trajectory. Get your ticket at www.tix.africa/thebrunch.

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