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In January this year, Kenya went visa-free for travelers across the world. This past December, Kenyan President William Ruto announced the decision to scrap visas for all tourists at the beginning of 2024.
The historic move to open Kenya’s borders to travelers from around the world could spur the growth of the nation’s tourism industry. Except there is a catch, one big enough to end up hurting the industry and the nation’s economy instead of boosting them.
Inside Kenya’s New Visa-Free Policy
Last year, during the 60th Jamhuri Day Celebrations in Nairobi, President Ruto announced there would be no need to get a visa to enter Kenya. The decision to make Kenya visa-free and open up the borders to the citizens of the world closely followed another one of the president’s proclamations in Congo-Brazzaville in October last year. At that time, he first proposed the need for visa-free travel between African countries. He promised that Kenya would implement visa-free travel for all Africans by the end of the year.
In his speech announcing the latest landmark movement, President Ruto said, “It is with great pleasure, as president of this extraordinary country, to make a historic announcement of the decision of the Government of Kenya. Beginning January 2024, Kenya will be a visa-free country.”
“It shall no longer be necessary for any person from any corner of the globe to carry the burden of applying for a visa to come to Kenya. To echo the call of the Turkana people to the world: ‘Tobong’u Lorre!’ Kenya has a simple message to humanity: Welcome Home!” he added.
That now iconic speech quickly went viral. It seemed that the nation was finally entering an era of globalization with a move that encourages steady socio-economic development.
Kenya’s tourism industry could also use a boost. While many travelers have an African safari at the top of their bucket list, traveling to and through the continent comes with more than a few logistical challenges. A visa just adds to all the costs and paperwork. Netizens praised Kenya’s bold decision.
That is, until everyone started noticing the fine print.
In his speech, President Ruto mentioned that the state had developed a new platform to identify and keep track of travelers coming into the country. While no one needs a visa to enter Kenya anymore, they now need an electronic travel authorization (ETA) from the digital site. An ETA is basically a simplified form of a visa, and it comes with a processing fee.
The ETA is technically for security reasons. It would help maintain a database of those entering and exiting the country. The process of getting the ETA is where it gets complicated enough to make even visas seem more accessible.
With the new ETA system, people from countries who didn’t need a visa previously to enter Kenya are now required to pay between $34 and $52, just like everyone else, to enter the country.
Before the introduction of the policy, individuals of 51 different nationalities did not need visas. Now, they need to go through a tedious process that involves submitting flight details, proof of hotel booking, etc., before traveling. Then, they need to wait 72 hours to get electronic authorization to travel the country.
For all this to work, people need to know their arrival and departure dates way in advance to apply for the permit. The current system can create issues when people may need to travel in an emergency.
People from the East African Community (EAC) are exempt from the rules and don’t need to go through the lengthy process of getting the ETA before entering Kenya. The new policy also benefits those who needed to pay more for visas before this.
Those who already have e-visas for East Africa travel do not need to apply for the ETA either. But nearly everyone else needs to bear the brunt of the blow. Even children under 16, who previously needed no visa to enter the country before, must pay to get an ETA.
The implications of this move may not just be limited to added paperwork and fresh costs, deterring travelers from visiting the country in the near future. There is a chance that the 51 nations who didn’t need visas before — and others who got the short end of the stick in this deal — might retaliate.
After all, Kenyans need to travel, too. The countries for whom traveling to Kenya just got way more difficult than it was before might ensure that Kenyans struggle while entering their states as well.
This article was produced by Media Decision and syndicated by Wealth of Geeks.
Source: Africanews
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Human capital management (HCM) refers to a set of business processes that empower workers, connect workflows, and streamline daily operations within an organization. Human capital management encompasses employee productivity strategies, and the technology HCM teams use to organize data.
An HCM team or manager can benefit an organization in several ways, including:
- Increasing productivity among employees
- Retaining employees and keeping them engaged
- Managing employee data
- Enabling business growth
Human capital management is becoming increasingly important, especially as work evolves relative to COVID-19. With more employees working remotely and increased demand for specialized skills and workforce data, HCM teams and managers can offer comprehensive support across an organization and bring out the best in everyone.
HCM vs. HRM
While researching human capital management, you may have come across similar terms like human resource management. Some organizations may use these terms interchangeably, given that there is some overlap between them. Keep these important similarities and differences in mind as you consider career options:
| Human capital management | Human resource management |
| Includes traditional HR functions, as well as workforce rewards, training, engagement, handling conflict, and retention. | Includes traditional HR functions such as hiring, compliance, reporting, and payroll. |
| Invests in employees’ professional development to ensure they provide economic value to the company. | Implements learning management systems to track employee training and results. |
Source: Coursera
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The Association of Ghana Industries (AGI) has urged the government to discuss with industry players to help implement progressive and fair tax regimes that encourage growth and investment.
The Association said the burden of high taxes fell disproportionately on businesses in certain sectors, leading to an imbalance in the economy.
Mr. Kwasi Nyamekye, AGI Chairman for Ashanti, Bono and Bono-East Regions, cited that the manufacturing and agricultural sectors, which had the potential to drive economic growth and reduce dependence on imports were heavily burdened with high taxes.
This has created a disincentive for investment and hindered the development of these sectors, preventing Ghana from realizing its full potential.
He was addressing members of the Association at the first General Meeting of the year, in Kumasi.
The meeting was on the theme: “IMF Conditionality’s – Effects on Industries”.
The Chairman indicated that the portion of the conditionality, which sought to raise internal funds had brought an increased tax burden on industry, especially the removal of incentives on the importation of raw materials.
“As an advocacy organization and a strong stakeholder in the growth of Ghana businesses, we strongly believe that the current tax burden has reached an unsustainable level, hindering the growth and development of enterprises in Ghana.
If we do not take steps to address it now, taxes could cause collapse of our businesses or completely render us less competitive on the continent as we try to trade under the African Continental Free Trade Area, (AfCFTA).”
According to Mr. Nyamekye, the Association was also pleading with the government to reduce the overall import charges on the importation of raw materials for manufacturing as well as to simplify the tax system and provide clearer guidelines to ensure transparency and ease of compliance for businesses, especially small and medium-scale enterprises (SMEs).
Again, the AGI was encouraging sector-specific tax incentives to promote investment and growth in key industries, such as manufacturing, agriculture, and technology.
He noted that, there must be a fair and non-discriminately Value Added Tax (VAT) regime
The AGI further urged the government to do regular consultations, engage with business owners and industry associations to gain a better understanding of their challenges and incorporate their feedback in tax policy decisions.
The meeting, among other issues, was used to seek some explanations from officials of the Ghana Revenue Authority (GRA) on tax challenges, especially the recent ones, and to proffer some suggestions and possible ways to make tax payment in the country less burdensome to industry.
GHANA BUSINESS NEWS
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- Growth Investment Partners (GIP) Ghana is a first-of-its-kind company that will provide patient, flexible local currency financing to SMEs.
- It is supported with an anchor capital commitment of up to US$50 million from BII.
- GIP aims to establish itself as a new alternative investment option for long-term capital from local institutional investors in Ghana.
- GIP will help to address a critical gap in accessing finance for SMEs who are the lifeblood of the Ghanaian economy.
British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, today announced the launch of Growth Investment Partners (GIP) Ghana. The new platform, which will be supported with a commitment of up to US$50 million from BII (formerly known as CDC Group plc), will provide long-term flexible capital, primarily in local currency, to small and medium-sized enterprises (SMEs) in the West African country. The announcement comes during the Foreign Secretary’s visit to Ghana as part of a four-day visit across the continent to reinforce the UK’s commitment to boost long-term economic growth in Africa.
SMEs occupy a critical role in the Ghanaian economy, accounting for over 90 per cent of business enterprises, 60 per cent of the country’s GDP and 80 per cent of all employment. Despite their importance to the Ghanaian economy, the SME financing gap is estimated at US$4.8 billion, one of the largest in Africa.
SMEs face many challenges with accessing growth capital through traditional funding sources including high interest rates, short-term loans, high collateral requirements and currency mismatches. Compounded by a challenging macroeconomic environment, influenced by the global pandemic and geopolitical conflicts, SMEs in Ghana need access to long-term growth capital and business support designed to boost their growth, create jobs and deepen their contributions to the Ghanaian economy.
BII has created GIP as a unique and lasting solution that is not limited by typical fund investment horizons, which will enable the company to become a true long-term partner for Ghanaian businesses to fuel their growth. Furthermore, it is designed for investments from local institutional investors, contributing to the expansion of the capital market in Ghana and scaling GIP’s impact.
GIP will provide capital to SMEs of US$500k – US$5m, equivalent in local currency, through flexible financing options that meet the needs of local businesses and are otherwise not available in the market. The company will support up to 150 Ghanaian SMEs within the next 15 years.
The company, complemented by BII’s new technical assistance facility, Ghana Investment Support Programme, will also look to add value beyond capital by providing business support services and capacity building in areas of financial management, corporate governance and environmental and social practices, enabling the SME sector to grow in a productive, sustainable and inclusive way.
As part of his visit to three African countries including Ghana, the Foreign Secretary, James Cleverly said: “I want the UK to be increasingly driving future-focussed, mutually beneficial partnerships with African countries operating in the world’s largest free trade area. From investments in clean energy, to companies turning waste products into fashion items, there is so much potential for economic growth across Africa. With the UK-African Investment Summit to be hosted in London in April next year, we are looking to strengthen our business links and grow our economies together. By investing in companies in Ghana today, we are investing in jobs and growth for the future.”
British High Commissioner to Ghana, Harriet Thompson added: “Ghana’s long-term economic success matters to the UK, that is why together with the BII we are supporting the SME businesses that are vital to the country’s sustainable economic reform. GIP will bridge the critical gap between these businesses and access to finance. This new platform, a global first for BII, will directly meet the needs of Ghana’s economy, increasing the opportunities needed to create jobs and support inclusive growth across the country.”
Commenting on the launch of Growth Investment Partners (GIP) Ghana, Chris Chijiutomi, MD and Head of Africa, BII said: “BII has been a strategic partner to Ghanaian businesses for 64 years. We are thrilled to bring GIP, a unique and first-of-its-kind platform, to Ghana and we are confident that it will become a valuable and long-term partner to the country’s SMEs. Our ambition is to scale GIP across other countries in the continent where there is a need to provide long-term flexible growth capital to African SMEs.”
Kwabena Asante-Poku, Coverage Director for Ghana, BII, noted: “We are excited to support the growth ambitions of investment-ready SMEs in Ghana. The launch of GIP in Accra is a testament both to our long-term commitment to the country and our conviction that supporting talented Ghanaian entrepreneurs is the most effective way to deliver transformative impact at scale.”
GIP will be run by experienced Ghanaian investment professionals with a strong track record in Africa. Jacob Kholi, Chief Executive and Investment Officer, GIP Ghana, said: “Enabling financial inclusion for Ghanaian SMEs is critical to drive economic growth across the country. With BII’s support, we hope to deliver on this ambition to unlock potential. We believe GIP will be transformative in responding to Ghanaian SMEs’ financing needs, and we look forward to supporting their ambitions to expand, innovate, and drive a sustainable, inclusive economic growth that benefits people in Ghana.”
The investment contributes to the United Nations’ Sustainable Development Goal 8 (SDG 8) – Decent Work & Economic Growth.
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The Bank of Ghana (BoG) has encouraged both financial and non-financial enterprises to make Enterprise-Wide Risk Assessment (EWRS) a critical part of daily operations.
This would enable prompt detection and implementation of controls to mitigate risks that often lead to the loss of substantial sums of money.
Enterprise-Wide Risk Assessment is a comprehensive evaluation of dangers that affect the value chain of a business, including money laundering, fraud, bribery and corruption, and illicit financial flows.
Speaking in an interview with the Ghana News Agency on the sidelines of a workshop for some banking sector players in Accra Dr Joseph France, Director, Financial Stability Department, BoG, urged all businesses to conduct vigorous periodic enterprise-wide risk assessment to help improve business resilience.
He pointed out that the prompt address of feedback from such assessment would prevent businesses from falling prey to fraudsters and losing funds.
“Risk is dynamic; we need to be innovative to tackle the basis head-on, but it’s good for us to advance as technology abounds to have the requisite technology and modules to deal with risks, especially in the financial sector,” he said.
The BoG’s banking sector report for 2022 found that the number of attempted fraud cases increased to 2,998 from the 2,347 cases in 2021, leading to a loss of some GH¢56 million.
The report also disclosed that GH¢27 million was lost through Mobile Money fraud compared to GH¢14.2m loss in 2021, representing a 47 per cent increase.
Some recoveries were however made, reducing the actual loss to GH¢26m.
To address the situation, the Central Bank, Dr France said, would intensify its education and sensitisation programmes, and “continually sanction banks for infractions of regulations, risks and directives.”
He said Ghana remained committed to strengthening its anti-money laundering and terrorism financing regimes, to aid the global fight against cross-border financial crime.
“Accordingly, relevant national authorities continue to create the requisite environment that reinforces sound management of financial crime risk by financial intermediaries,” he said.
Madam Ophelia Attobrah, Chief Banking Officer, GHIB, said the three-day workshop was to enable participants to identify and address EWRA deficiencies. and upscale to.
The workshop was organised by the Ghana International Bank (GHIB). Participants were drawn from Ghana, Liberia, and the Gambia.
“This training is to give the participants the necessary skills to enable them to understand how best to assess their enterprises, including their products, customers, operational environment and meet global financial crime regulations,” she said.
Madam Attobrah urged banks and other non-financial enterprises to build stronger systems to detect and control risks to protect their business resources.
Source: GNA