E-Business
Jumia Seeks Business Friendly Policies for a Digital Economy
Jumia Group has urged African governments to implement the right policies that will support the realization of a digital economy.
At the Group’s 2020 closing remarks, Juliet Anammah, Chairwoman, Jumia Nigeria and Head Institutional Affairs Jumia Group, identified areas governments’ could consider reeling out business friendly policies to support digital services.
According to her, “there should be reduction in minimum taxes that small and medium enterprise (SMEs) should pay; Removal of all roadblocks to access foreign capital as well as not placing new responsibilities on SMEs as they provide jobs in the economy”.
She advocated for the use of fiscal measures to incentivize African Trade and MSME trade in particular to shift from largely offline/ cash based informal economy to formal and traceable digital platforms.
“Traceability drives better planning, attracts capital and drives growth. A good example is rebates or reduced VAT / Sales tax for digital transactions made via mobile money or card payments. Such a shift also expands the taxable base in Africa.”
Digital business models such as eCommerce she said: “have long lead times to break-even (circa +10 years) and till eCommerce fully matures in Africa (attains up to 15-20% of total Retail on the continent), policies can support by ensuring there are no roadblocks such as -additional taxation that applies to eCommerce only and not other channels of commerce.
– Direct / indirect foreign equity caps that impede the ability of resident eCommerce platforms to attract long term equity to grow.
– Since a smart phone is part of digital infrastructure that enables digital business models, African countries can remove tariffs on low end smart phones till countries attain desirable levels of smart phone penetration. The target penetration level could be set at 70%.
“African media needs to support the digital economy and companies operating in that space in order to see successful outcomes and achieve the development needed. This can come in the right narratives that will encourage investment into the sector,” she noted.
She explained that, Africa is also experiencing rapid urbanization with rural dwellers moving to the few megacities and placing enormous pressure on the physical, political, economic and societal infrastructure of these cities.
“Africa thus needs millions of jobs that will provide meaningful work, livelihoods and provide people with a pathway out of poverty. Due to the impact of CoVID, GDP is expected to contract to -2.5% in 2020 from 3.4% in 2019, the first recession in 25 years.
“Jobs in Africa today come from MSMEs. Of the 418 million people employed on the continent, 83% are employed by MSMEs. Africa has 85 – 95 million MSMEs and of these 96% are micro enterprises and half of them are engaged in Trade. 87% of African MSMEs are in 10 countries with 77% of the total African GDP – Nigeria, Kenya, Tanzania, Egypt, Morocco, South Africa, Ethiopia, Algeria, Ghana and Angola,” she said.
Africa has an advanced digital infrastructure
Average Internet penetration in Africa is 39.5%, 525 million people have access to the internet. In 6 countries, Kenya, Libya, Seychelles, Morocco, Mauritius and Tunisia, mobile internet penetration is above 65%. 80% of Africans have mobile subscriptions. Smartphone adoption is 40% and projected to be 67% by 2025. This digital infrastructure is an asset which Africa can leverage to leapfrog development, create jobs and accelerate economic recovery post-CoVID.
The Senate has passed a bill, seeking to repeal and re-enact the National Identity Management Commission (NIMC) Act.
This followed adoption of report of Committee on National Identity Card and Population at plenary on Wednesday.
The report was presented by Senator Victor Umeh (LP-Anambra), chairman of the committee.
Senator Umeh in his presentation said the bill sought to provide for the establishment of a national identity database and the National Identity Management Commission.
According to him,the agency will be charged with responsibilities for maintenance of national database, the registration of individuals and the issuance of identity credentials.
He said the bill would lead to the creation of national identity database to source business biometric and empower NIMC to issue regulations and guidelines for implementation of the act and other related matters.
He said the bill sought to strengthen the legal framework of national and digital identity, hereby creating an optimal foundational identification ecosystem that fosters inclusion, universal coverage, and accessibility.
Senator Umeh said the act would establish a harmonious foundational identity system that is governed by a less restrictive, less cumbersome, non-discriminatory, non-punitive data protection, cost-effective, and compliance with global borders.
Senator Umeh said the bill, when passed into law, would address the challenges and limitations of national Identity management commission Act 2007, repeal it, and then close the gap of incomplete and inaccurate national identity database, provide efficient governance and service delivery.
He said the bill received overwhelming support from stakeholders at the public hearing due to the need to implement the long-awaited database system.
The World Bank has expressed concern over Nigeria’s poor statistical performance, noting that the country lags behind its aspirational peers such as Mexico, Colombia, South Africa and Brazil.
Mrs. Julie Osagie-Jacobs, director, Information and Public Relations, Ministry of Budget and Economic Planning, stated this in a statement after a courtesy visit to Senator Abubakar Bagudu, minister of Budget and Economic Planning, by a delegation from the World Bank led by Ndiame Diop, country director; and Mr Johan Mistiaen, practice mfor West and Central Africa, on Wednesday.
In his presentation titled “Next Level Statistics to Support Nigeria’s Reform and Growth Agenda,” Mistiaen stated that Nigeria’s statistical system was not on par with those of its developmental counterparts.
He advised that an annual investment of between $10m and $15m in the country’s statistical infrastructure would significantly improve performance and align Nigeria with its peers.
The statement read in part, “Earlier, Mr. Johan Mistiaen in his presentation on the next level statistics to support Nigeria’s reform and growth agenda, observed that the country’s statistical performance was not at par with its aspirational peers as Mexico, Colombia, South Africa and Brazil.
“He suggested that investing about $10-15m annually into the country’s statistical system can raise performance to that of its aspirational peers.”
Responding, Bagudu assured that the Federal Government would continue to guarantee the independence of the National Bureau of Statistics.
He commended the Bureau for consistently releasing credible and methodical data that have been relied upon by reputable international organisations.
The minister stressed that there would be no government interference in the operations of the NBS.
Federal government has disclosed that efforts are ongoing to link the National Social Register (NSR) to the National Identity Numbers (NIN).
Prof. Nentawe Yilwatda, minister of Humanitarian Affairs and Poverty Reduction, explained that the linked data would assist the country to anticipate crises, mobilize resources faster, and ensure aid reaches those who need it the most.
He said harnessing data would save the country and relevant stakeholders the stress and bottlenecks of outdated processes.
He also identified bureaucratic crisis as the biggest crisis in the humanitarian space which stalls responses to humanitarian issues.
Speaking in Abuja on Tuesday at the National Humanitarian Roundtable programme, the minister said: “People are traumatized by climate change, security threats and economic shock across the country and in the midst of these, we have limited funding.
“The biggest crisis we have is not just the people being killed, the crisis we have is a bureaucratic crisis that does not respond to a humanitarian crisis. Every delay in decision making, every inefficiency in coordination, every shortfall in funding, costs the life of people.
“They say knowledge is power, but knowledge can be destructive too. It can only be power if we use it effectively. By leveraging data and technology, we can anticipate crises; we can mobilize resources faster and ensure aid reaches those who are in need the most and without the bottleneck of outdated processes.
“We are linking the social register to national identity numbers and geotagging all homes of those who are vulnerable across the country so that if there’s any crisis, we don’t need to begin to walk around communities and taking names and asking the States Emergency Management Agency and the National Emergency Management Agency (NEMA) for data.
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