Kenya’s Ruto wins with US trip & policies to expect in Nigeria

Welcome back to the Vault.

This week we are discussing:

  • Ruto’s US state visit wins investors for Kenya
  • One year of Tinubu’s presidency in Nigeria: A snapshot of policy actions to expect
  • South Africa amends work visa policy
  • Economic outlook and policy priorities for sub-Saharan Africa

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Kenya

Ruto’s US state visit wins investors for Kenya

Kenya President William Ruto was hosted by the White House last week in a ceremonious official US state visit, making him the first African president to receive such an honour in over 15 years.

For the White House, this event is part of a broader strategy by the Biden Administration to redefine and strengthen relations with Africa. In recent years, US influence in the region appears to have waned. China has become a major player in debt financing and extractive industries across several countries, while Russia is gaining sway through military actions and alliances with ruling juntas in West and Central Africa.

For President Ruto, the trip was a strategic move to attract US investors to Kenya. Significant developments include:

  • Microsoft partnership with UAE’s G42 for building of a $1 billion geothermal data center in Kenya.
  • Securing funding for construction of a new expressway linking Nairobi and Mombasa.
  • Commitment of $250 million in new investments in Kenya, including $180 million for an affordable housing project
  • Virunga Power’s $100 million commitment to finance clean energy projects in Kenya over the next 5 years.
  • Potential additional investment by Coca-Cola in Kenya – up to $175 million over the next five years.

Importantly, the visit highlights Kenya’s policy stance towards the US and American investment, particularly on critical areas such as climate, energy, and infrastructure financing, where US support is essential.

Nigeria

One year of Tinubu’s presidency in Nigeria: A snapshot of policy actions to expect

As President Bola Ahmed Tinubu’s administration clocks one year in office, and the country comes to terms with significant policy actions implemented so far, we have devoted some time to review relevant activities of the ministries, departments and agencies of government, to bring you news of potential policy developments.

Emergency Economic Bill to be presented to National Assembly

According to Nigeria’s finance minister, Wale Edun, an Emergency Economic Bill will be sent to the National Assembly for consideration in due course.

This bill is expected to revise several tax policies in the country, expand Nigeria’s tax base, improve compliance, automate excise tax, review tax exemptions and duty waivers, and generally increase the revenue that the government gets from the non-oil sector.

The Presidential Committee on Fiscal Policy and Tax Reforms, led by tax expert, Taiwo Oyedele, is already conducting public consultation events to amplify objectives of the proposed Tax Policy and receive feedback.

Federal Transport Ministry to establish National Land Transport Policy

The Federal Minister of Transportation, Senator Said Alkali, confirmed in March 2024, that the Ministry of Transportation is finalising a draft National Land Transport Policy to be delivered to the federal cabinet (the Federal Executive Council) for consideration and adoption. Amongst its objectives, the policy is aimed at reducing congestion, improving connectivity in both urban and rural areas and fostering a sustainable and inclusive transport system.

The Ministry disclosed that the policy will present a “broad overview of the existing situation of land transportation – rail, road, pipeline and its intermodal connectivity to inland waterways, seaports, and airports in Nigeria.” The policy is also said to respond to issues such as climate change, capacity building and knowledge generation, inclusive transportation as well as the designed implementation strategies that recognise interactions between the various transport modes. The draft policy has not been released for public review.

Lagos State: On a related note, the Lagos State Government has launched its Land Transport Policy, with the desire to make transportation “accessible, safe and available to residents”. Speaking at the launch event on 28th May 2024, the Lagos State Governor, Mr Babajide Sanwo-Olu, described the state’s transport policy as a comprehensive framework to guide the continued development and regulation of the transportation sector in the state.

The policy encompasses the Integrated Multi-Modal Transport Systems that ensure seamless connectivity between road, rail, and water transport modes and is expected by the Lagos State Government to also encourage sustainable practices by promoting environmentally friendly transportation options to reduce carbon footprint.

Federal Government to finalise National Intellectual Property Policy

The Director-General of the Nigerian Copyright Commission, Dr John Asein, has confirmed that the Federal Government is finalising its National Intellectual Property (IP) Policy and Strategy for the country. Upon adoption, it is hoped that the new policy will serve as blueprint for a more efficient modern and responsive legal and administrative intellectual property framework for the country.

National Tourism & Hospitality Policy / Master Plan to be revised

Nigeria’s Tourism Minister, Lola Ade-John, has set up a committee to review the National Tourism and Hospitality Policy and the Nigerian Tourism Development Master Plan. Both policy documents have not been reviewed since 2015.

The committee, which comprises representatives from some ministries, private sector experts and the Nigerian Economic Summit Group, has been tasked with review of the existing National Tourism and Hospitality Policy, “to ensure relevance in today’s dynamic landscape”. Further, it will “evaluate and update the Nigerian Tourism Development Master Plan to provide a strategic roadmap for sectoral growth and development”.

Communications Commission to review key guidelines on operators’ interconnection.

The Nigerian Communications Commission has disclosed plans to review three regulatory instruments. The affected instruments are the Telecommunications Networks Interconnection Regulations, the Guidelines on procedures for granting approvals to disconnect telecom operators and Guidelines for dispute resolution. The Executive Vice Chairman of the NCC informed the media that a review of the Interconnection Regulations is being conducted so that the instrument keeps pace with technological advancements, fosters competition, protects consumers’ interest, aligns with international standards and improves regulatory efficiency in the industry.

South Africa

South Africa amends work visa policy

South Africa’s Department of Home Affairs has published new regulations on remote work Visas. The new visa is aimed at attracting highly skilled workers to visit South Africa and boost the country’s tourism sector and increase collaboration with local talent, especially in the tech sector.

  • The revised visa policy allows visitors who meet certain criteria (such as receipt of a gross income of at least R1 million per annum) to work remotely for a foreign organization while in South Africa.
  • Visitors will not be required to provide a letter of permission from the Department of Labour as is the case with general work visa
  • The visa is issued for 6 months. For longer stay—more than 6 months within a 36-month period, the visitor must register with the South Africa Revenue Service.

The income requirement of the visa regime targets high-net-worth individuals and skilled workers. This brings several benefits to the South African economy, such as increased tourist spending and enhanced collaboration between skilled workers and local professionals. However, there may also be some short-term impacts on rental properties and housing, potentially raising the cost of living in popular tourist cities.

Sub-Saharan Africa

Commentary: Economic outlook and policy priorities for sub-Saharan Africa

After four years of economic instability, sub-Saharan Africa’s outlook is beginning to show improvement. Inflation has dropped by almost half, public debt ratios have stabilized, and several countries have re-entered the international bond market by issuing Eurobonds. The region’s growth rate is projected to increase from 3.4% in 2023 to 3.8% in 2024, with expectations of reaching 4.0% by 2025, based on the latest IMF projections.

Despite these positive trends, there are still significant challenges. Governments are still contending with funding shortages, high borrowing costs, and looming debt repayments, leading to a funding squeeze. Other risks such as vulnerability to global external shocks, rising political instability, and frequent climate-related events also cloud the economic outlook.

Policy Priorities

To address these challenges and sustain economic recovery, sub-Saharan African countries should focus on:

  • improving public finances without undermining development;
  • monetary policy focused on ensuring price stability; and
  • implementing structural reforms to diversify funding sources and economies.

In addition to these priorities, sub-Saharan African countries require additional support from the international community to build a more inclusive, sustainable, and prosperous future. Multilateral and regional development banks should also provide concessional funding and facilitate necessary economic reforms.

Data Vault: Internally displaced children in Africa

Conflict and insecurity continue to drive the displacement of children across Africa. According to UNICEF, most of these displaced children live in Sub-Saharan Africa. Here are the top 5 countries in the region with the highest numbers of displaced children.

Source: UNICEF, 2023

What we are also following

We’re also tracking some events in the news, and how they may affect the decisions of policymakers.

South Africa | South Africa general election

South Africans are voting today in what promises to be the closest election since the end of apartheid. The main candidates are incumbent Cyril Ramaphosa of the ANC, John Steenhuisen of the DA, and Julius Malema of the EFF. Pre-election polls suggest that the ANC, which has won the majority in all post-apartheid elections, will fail to secure a majority this time. If this happens, South Africa could be headed for its first coalition government since 1994.

Kenya | Kenya plans to implement quality policy to enhance trade and market access

Kenya has introduced a Quality Policy aimed at enhancing the competitiveness of local enterprises in international markets through sustainable quality improvement practices. The policy emphasizes the importance of reliable measurements and standardization to support fair trade, high-quality products, and technological innovations.

Kenya | Kenya secures more funding for its Universal Electricity Connectivity Plan

The Kenyan government has secured KSh27 billion to connect 280,000 households to electricity under the Last Mile Connectivity Project, aiming for universal electricity access by 2030. On Monday, President William Ruto announced that the project will also facilitate universal Internet access by integrating fibre optic cables with power lines. Funded by the European Union, French Development Agency, and European Investment Bank, this initiative complements another KSh22 billion project with the African Development Bank and Saudi Arabia to connect an additional 270,000 customers.

Nigeria | Federal Government pushes for enforcement of registration of IT practitioners

In response to concerns about the practice of some information technology practitioners in the country, Nigeria’s Minister of State for Education, Yusuf Sununu, has asked the Computer Professionals Registration Council of Nigeria, to enforce the requirement for registration, so that only qualified practitioners can practice in the field.

Nigeria | Tinubu sets up a committee on climate action

Last week, President Bola Tinubu set up a Presidential Committee on Climate Action and Green Economic Solutions. The committee’s mandate includes coordinating climate policies and programs, developing non-oil and non-gas initiatives, and ensuring the activities of federal government institutions align with climate and green economic objectives.

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