Ghana Parliament supports women empowerment, as people power forces further change in Kenya

Welcome back to the Vault. Here’s our bulletin on recent policy developments.

• Parliament empowers Ghanaian women with Affirmative Action Bill
• Budget cuts in Kenya highlight President Ruto’s policy priorities; and incremental budgeting system to end
• South Africa seeks public comments on three key bills for tax reform.
• Ethiopia and Nigeria become the latest with national AI strategies
• Data Vault: AI Preparedness Index 2023

In other news:

• Central Bank of Kenya makes first interest rate cut since 2020
• Kenya parliament considers bill for essential commodities’ price control
• Ethiopia moves against traders to manage inflation
• Ghana opens its first commercial gold refinery with 20% government stake

Feel free to share your thoughts with us. We would also be pleased if you would visit our website for the latest policy briefs, and policy documents (e.g. laws, regulations, standards, guidelines, circulars, etc.). If you need insight into any key legislation, please tell us.

Parliament empowers Ghanaian women with Affirmative Action Bill

After over a decade of legislative activity, the Ghanaian parliament has passed an Affirmative Action Bill that promotes gender equality and women empowerment.

The bill’s primary objective is to address systemic barriers that have hindered women in Ghanaian society, as well as achieve gender equality in political, social, economic, educational, and cultural spheres. Key provisions include:

• specific targets for women representation – 30% by 2026, 35% by 2028, and 50% by 2030. These quotas apply to appointments in public offices, governance positions, decision-making roles, and leadership positions across various sectors, including ministerial roles, the Council of State, independent constitutional bodies, and the public service. Presently, less than 15% of Ghana’s 275-member parliament are women – below the 30% target set out by the United Nations for all countries. Ghana was ranked 119th in a June report on the global gender gap on political empowerment;
• a requirement for government to promote policies and programs that facilitate the full integration of women into both public and private development sectors;
• mandatory adoption of gender-responsive budgeting across all government sectors, ensuring that budgets are planned and assessed based on their impact on gender equality;
• obligation on political parties to support gender equality measures in candidate nominations and party leadership appointments;
• a requirement to produce gender equality reports and comply with the provisions, offering incentives for those that meet gender equality targets;
• mandatory data collection to monitor progress, ensuring transparency and accountability; and
• a structured grievance resolution procedure, as well as establishment of a Gender Equality Committee to ensure the implementation of the law.

Overall, the bill represents a significant effort to create a more inclusive and equitable society in Ghana by addressing gender imbalances and promoting gender equality across various sectors.

Budget cuts in Kenya highlight President Ruto’s policy priorities

Following successive losses in the court of public opinion and two law courts, as well as vigorous protests that forced cabinet dissolution and other changes, President Ruto has again signaled his administration’s readiness to calm the waters by signing a Supplementary Appropriations Bill into law to address concerns about government expenditure.

The Act slashed recurrent and development expenditure for the three arms of government, constitutional commissions and independent offices, and prioritized healthcare and education reforms. It also promotes the welfare of security personnel, following recommendations by the National Taskforce on Police Reforms. Key allocations include:

• Sh20 billion to support farmers and enhance agricultural productivity
• Sh120.7 billion for education reforms, including confirmation of all Junior Secondary School teachers, and Sh31.3 billion for the Higher Education Loans Board.
• Sh16.2 billion for health sector reforms and promotion of Universal Health Coverage.

A statement from the presidency indicates that total reduction for the National Government stands at KSh145.7 billion, consisting of KSh40 billion cut in recurrent expenditure and KSh105 billion in development expenditure. Of the KSh145.7 billion, budget for the executive arm was cut by KSh139.81 billion. Parliament’s budget suffered a cut of KSh3.7 billion, with KSh2.1 billion also coming out of the judiciary’s books.

The budget cuts are a win for citizens that protested over the past weeks, with their agitations leading to better spending prioritization by government and (potential) reduction in overall cost of governance.

Kenya to move away from incremental budgeting system

President William Ruto has also announced that Kenya will adopt zero-based budgeting in the 2025/26 financial year, instead of the current incremental system. Each year’s budget will now start from zero and all expenses and revenue lines need to be justified instead of using the previous year’s allocation as a platform. Kenya attempted same move in 2018 /19 but it was jettisoned months after.

This move is also consistent with the IMF’s recommendations that developing countries should adopt the zero-based budgeting system to stem dependency on debt.

Ethiopia and Nigeria become the latest with national AI strategies

Ethiopia and Nigeria have recently unveiled their National AI Strategies, marking significant steps toward leveraging artificial intelligence for national development. Both countries aim to apply AI to address critical challenges and drive progress across various sectors.

Ethiopia’s strategy, developed with support from the Tony Blair Institute and AI for Good Foundation, focuses on using AI to improve healthcare through telemedicine, personalize education through digitally tailored learning, and enhance agricultural productivity through precision automation. The strategy also envisions AI’s role in manufacturing, tourism, and the startup sector. Ethiopia faces challenges such as infrastructure bottlenecks, including limited broadband access, and the need to attract substantial private investment and skilled professionals to establish itself as an AI innovator.

Nigeria’s National Artificial Intelligence Strategy (NAIS) 2024, which was developed with global and local experts, outlines a vision to boost economic growth, social development, and technological advancement through emphasis on five strategic pillars:

• building AI infrastructure
• sustaining an AI ecosystem
• accelerating adoption
• ensuring responsible development
• creating a governance framework.

It includes creating an ecosystem map, performing SWOT analyses, and managing AI-related trade-offs. Effective risk management and stakeholder collaboration are critical for the strategy’s success.

Both strategies share common goals – improvements in healthcare and agriculture, overcoming infrastructure challenges, and requirement of significant investment and expertise. They also emphasize the importance of stakeholder engagement and risk management to ensure successful AI integration and implementation.

Nigerian President approves National Policy on Health Workforce Migration

President Bola Tinubu has approved a National Policy on Health Workforce Migration, which seeks to “manage, harness, and reverse health worker migration”.

In his announcement, the coordinating minister for Health and Social Welfare, Dr Muhammad Ali Pate, disclosed that, amongst other objectives, the policy:

• serves as a comprehensive strategy that envisions a thriving workforce that is well-supported, adequately rewarded, and optimally utilized to meet the healthcare needs of Nigerians;
• focuses on digital health infrastructure, including Electronic Medical Records (EMR), telehealth, and a comprehensive Health Workforce Registry, to drive a more efficient, data-driven health system; and
• addresses the return and reintegration of Nigerian health professionals from the diaspora. It establishes streamlined registration processes and provides attractive incentives to encourage the return of our talented professionals and reintegrate them into the health system.

Over the past decade, Nigeria has been reeling from severe emigration of doctors, nurses and other medical professionals – adding to the challenge of low physician–population ratio.

South Africa seeks public comment on three key bills for tax reform

Following the signing into law of the two-pot pension reform a few months ago; the National treasury has published three draft tax bills and draft regulations for public input. The draft bills cover tax proposals in the 2024 budget.

1. 2024 Draft Taxation Laws Amendment Bill (TLAB):
   This bill introduces key tax amendments from the 2024 budget review, including measures to curb the abuse of employment tax incentive schemes, refine partnership definitions, and provide investment allowances for electric and hydrogen vehicle production. It also proposes a retrospective reclassification of certain fuel products to align with international standards.
2. 2024 Draft Revenue Laws Amendment Bill (RLAB):
   The 2024 Draft RLAB aims to clarify and simplify the directives system for implementing the ‘two-pot’ retirement reform, ensuring efficient administration by the South African Revenue Service (SARS) and other relevant bodies.
3. 2024 Draft Tax Administration Laws Amendment Bill (TALAB):
   This bill focuses on improving tax administration through technical amendments. Key changes include implementing a Constitutional Court judgment on tax records, addressing the timing of VAT on imported services and overpayments of VAT on importing goods and services and enhancing the efficiency of dispute resolution proceedings.

The agency also published four draft regulations that clarify VAT liabilities for casino games, refine definitions to prevent tax malpractices, and update rules for electronic services and carbon offsets. The carbon offset regulations propose an increase in the threshold for eligible renewable energy projects from 15 megawatts (MW) to 30 megawatts (MW). This adjustment reflects a strategic effort to incentivize large-scale renewable energy projects, potentially leading to more significant carbon offsetting and advancing the country’s climate change mitigation targets.

Data Vault: AI Preparedness Index 2023

Many countries in Africa rank below 0.5 on the AI Preparedness Index due to a lack of necessary infrastructure and a skilled workforce to fully leverage AI’s benefits.

The IMF’s new AI Preparedness Index infographic evaluates African countries based on four key areas: digital infrastructure, human capital and labor market policies, innovation and economic integration, and regulation. According to the data, only Seychelles, Mauritius, and South Africa score above 0.5, indicating they are better equipped for AI adoption compared to other African nations. In contrast, the Central African Republic and Somalia rank the lowest, with scores under 0.2.

Other News 

We’re also tracking some events in the news.

Kenya| Central Bank of Kenya makes first interest rate cut since 2020

Kenya’s central bank surprised markets this week by cutting its benchmark interest rate from 13% to 12.75%, marking the first reduction since early 2020. This decision aims to ease the burden on consumers amid rising living costs.

Kenya| Parliament considers bill to set prices for 8 essential commodities

Last week, the Kenyan Parliament considered a Price Control (Essential Goods) (Amendment) Bill, 2024, which aims to regulate prices of essential commodities such as maize, wheat, and sugar so that they remain affordable for Kenyans. It also proposes the establishment of a Price Control Unit to oversee fair pricing and prevent market manipulation.

Ethiopia| Ethiopia moves against traders to manage inflation

Two weeks after floating the Ethiopian currency, the Ministry of Trade and Regional Integration reported the arrest of 3,512 individuals and the imprisonment of 38 traders for unlawfully raising prices.

This crackdown aims to stabilize prices and curb inflation following the Ethiopian birr’s sharp 77% depreciation. In addition, 2,095 businesses involved in hoarding essential products and 212 businessmen who resisted compliance have been sanctioned. According to the authorities, these efforts have proven effective in reducing prices for essential consumer goods, such as cooking oil, vegetables and fruits in most cities.

Ghana| Ghana opens its first commercial gold refinery with 20% government stake

Ghana has opened its first commercial gold refinery, the Royal Ghana Gold Refinery, in a public-private partnership between Rosy Royal Minerals of India and Ghana’s central bank, which holds a 20% stake. The refinery, with a capacity to process 400 kg of gold per day, aims to add value to Ghana’s gold production, reduce smuggling, and increase national earnings. The facility will source gold from small-scale and artisanal miners and is expected to create up to 620 jobs. The Bank of Ghana is pushing for the refinery to acquire London Bullion Market Association (LBMA) certification to diversify and grow its foreign exchange reserves.

 

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