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Pan-African economy in brief : Friday, September 14, 2018

GHANA:

The government is using McKinsey & Company to improve the mobilization of its tax revenues: "In Ghana, the government has decided to use the services of the renowned American consulting firm McKinsey & Company to boost its tax revenues," said Emmanuel Kofi Nti, Commissioner General of the Ghana Revenue Authority (GRA) this week.  According to the official relayed by Bloomberg, this decision was motivated by the recent recording of a gap of approximately $367 million between the Tax Revenue Mobilization Objectives and the achievements made in the first eight months of the year.  While President Akufo-Addo announced last July, the increase in taxes on high-income people, the State wants to do everything in its power to reduce its budget deficit by relying on better tax collection...".

NIGERIA :

The 2018/2019 main cocoa season threatened by floods: "In Nigeria, the main cocoa season is threatened by heavy rains. This was announced by Sayina Riman, president of the Nigerian Cocoa Association during a telephone interview with Bloomberg.  "Since the end of July, it has been raining heavily and continuously almost every day[...]. At the same time that floods threaten the survival of the Plants, excessive rains facilitate the spread of the pod borer's disease," Mr. Riman said. According to him, this disease, which affects plants and rots cocoa shells, could lead to a loss of 40% of its estimated 72,000 tonnes of production capacity in the Southeast (affected rainfall area)..."

IVORY COAST:

Heavy rains could reduce the yield of cocoa plantations:  "While Ivorian cocoa producers were expecting an abundant harvest from October 2018 to March 2019, heavy rainfall in the producing regions could change the situation. According to details relayed by Reuters, the Producers say they are satisfied with the number of pods on the trees, but fear that the rains will cause the pods to rot brown and prevent the first cocoa beans from drying out completely.  "Many farmers are expected to start harvesting next week but we are concerned that the shoots will dry up because the area is very wet. We have seen brown rot on some trees, but nothing serious so far," says Sébastien Dechi, a producer in the Agboville region of southern France..."

MOZAMBIC:

The government's 2019 budget shows a deficit of $1.3 billion: "The Mozambican government has prepared a budget for 2019 that forecasts a deficit of $1.3 billion between revenues and expenditures," said a statement by the Council of Ministers, published on Tuesday. According to information provided by Macauhub, the new budget would include Expenditures of $5.3 billion, with revenues estimated at $4 billion. Among the New Expenditures provided for in the Finance Act to be submitted to Parliament is the organization of the upcoming general elections, the total cost of which is estimated at approximately $97 million..."

BURKINA FASO :

Burkina Faso is launching a project for 2000 ecovillages worth more than CFAF 1 billion: "From an estimated cost of more than CFAF 1 billion, the 2000 ecovillage project is part of the National Economic and Social Development Plan (PNDES).  The village of Betta, located in the Commune of Ziniaré, about thirty kilometres away, is the very first pilot eco-village to be included in the 2000 eco-villages project. The Betta phase marks the effective start of investments in the 13 pilot ecovillages. The rest of the process will be devoted to the identification of the 1987 complementary villages, and the implementation of the identified Activities. The pilot ecovillage of Betta, already has a solar-pumped water tower, a solar mill, the upcoming installation of solar streetlights and electrification Basic social services such as the CSPS and the primary school with the support of the Commune of Ziniaré..."

MALAWI :

Escom will borrow $41 million from commercial banks to pay its outstanding debts: "In Malawi, Escom, the national electricity supply company, has announced that it wants to contract a debt of 30 billion kwacha (more than $41 million) with commercial banks to pay its outstanding debts.  This decision comes after the Government refused to bail out the company. "We are continuing discussions with National Bank, Standard Bank, Ecobank, NBS and other financial institutions to secure this loan at the rate they will offer us."  said Alexion Chiwaya, the company's Executive Director..."