Andrew Stegmann

ECOWAS Earmarks $46,000 for Proposed Single Currency

The Economic Community of West African States (ECOWAS) Commission will commit $46,000 to launch a competition to determine a suitable name and logo for the proposed single currency for the region.

The quest is open to all citizens of ECOWAS member state regardless of their residence as well as legal persons established in an ECOWAS member state in line with its laws.

According to a circular from ECOWAS to this effect, three best proposals will each be selected for the name and logo.

All entries/ proposal are to be submitted by November 20.

Accordingly, all proposals for currency name shall not be based on the name of a person, ethnic group or contain expressions directly linked with a religion, country or national institution among others.

On the other hand, the logo shall among other things, symbolise unity and shared cultural and historical values of ECOWAS.

The first prize for all categories includes $10,000 and $8,000 for the second prize, as well as $5,000 for the third prize.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Africa’s Dominant Mobile Money Service is Going Global

Kenya’s biggest mobile money service M-Pesa is going global in a deal with Western Union that would allow users to send money all over the world.

M-Pesa’s over 23 million active subscribers in Kenya will also be able to send and receive money through their phones and be connected to WU’s 500,000 global agents. Safaricom, which runs M-Pesa, said transfers through bank accounts to Germany, the United Arab Emirates, and the United Kingdom will also be available, with services to bank accounts in other countries being rolled out in the coming weeks.

Started 11 years ago as a platform for texting small payments between users, M-Pesa has grown into a service with subscribers in 10 nations across Africa, Europe, and Asia. In Kenya alone, it has 160,000 agents and did over 580 million transactions in the three months ending June 2018, according to the Communications Authority of Kenya.

Its growth has had wider implications for financial inclusion and digital banking, showing banks that mobile money presents an opportunity to increase payments income as well as earn interest on increased deposits. M-Pesa grew so big and so fast that regulators once mulled over splitting it from its parent company—but later backtracked on that proposal.

But as the service grew in numbers, Safaricom’s CEO Bob Collymore in 2016 called M-Pesa a “clumsy” product that was “far from elegant” when stacked up against other tech products. And so began a process of innovation, one that could stave off competition, help Safaricom diversify its products, widen its mobile and fintech network, and put M-Pesa into the hands of many more users.

In the last few years, the company launched the ride-hailing service Little, an e-commerce platform Masoko, and a music streaming service Songa, which all allowed users to pay for services via M-Pesa. Last October, the operator also launched M-Pesa 1Tap, which used a card, phone sticker or wristband device to allow for secure and faster payments. In February, Google enabled M-Pesa payments on its app store, making the US tech giant one of the first among global digital distribution sites to adapt to mobile money.

In April, Safaricom partnered with PayPal to allow e-commerce businesses to seamlessly transfer money between the two services and into their mobile wallets. The company launched Bonga chat service which let M-Pesa users talk while sending and receiving money. And in a bid to boost its numbers, Safaricom is reportedly taking M-Pesa to Ethiopia, a market of over 100 million that is slowly opening up to investors.

The deal to take M-Pesa global also boosts Western Union which has faced tough competition from fintech startups like TransferWise and WorldRemit that offer cheaper and faster online transfers—forcing the company to cut prices and shift to a digital strategy.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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Kenya, South Africa to Launch Long-term Multiple Travel Visas

Long-term visas will become available for South Africans wanting to travel to Kenya and Kenyans wanting to visit South Africa as of December 1.

The announcement was made by Home Affairs Minister Malusi Gigaba and his Kenyan counterpart Interior Minister Fred Matiang’i on Monday after the two held bilateral talks and took a tour of Lindela Repatriation Centre in Krugersdorp.

In September Gigaba announced that South Africa would be easing some immigration rules including agreeing to visa waiver agreements with more countries in an effort to boost investment and tourism as part of a broader economic turnaround programme announced by President Cyril Ramaphosa.

The two leaders said both countries would continue working on ways to maximise their cooperation and allowing for passport holders to have long-term multiple entry visa arrangements for business people, academics and frequent travellers between the two countries.

“It’s a historic achievement, we made tremendous progress,” said Matiang’i.

He said as of the arrangement would benefit both countries tremendously.

“This is intended to improve trade between the two countries, interaction between the two countries and to support the people between the two nations engaging in various economic activities of mutual benefit,” said Matiang’i.

He told journalists at the briefing that the east African country viewed its relationship with South Africa as critical and that the presidents of both countries – Ramaphosa and Uhuru Kenyatta – had instructed both ministers to work towards removing barriers and impediments to the growing relationship.

“And today we made a huge achievement in removing those barriers, whatever is left, we will be able to sort out in the next three months,” said Matiang’i.

Praise for Lindela

The Kenyan minister said he believed relaxing visa requirements would lead to the most “seamless interaction between South Africa and Kenya in history.”

Matiang’i also praised the repatriation centre, which he said was a “luxury” for deportees waiting to be processed and taken back to their respective countries.

“The minister has taken me through this facility, I am basically floored, shocked that South Africa actually makes this kind of investment to address the needs of deportees,” said Matiang’i.

South Africa’s home affairs minister, in turn, thanked Kenya for its efforts in preventing illegal immigrants from making their way to the country.

“I thanked the minister for the work they continue to do to repel a lot of illegal immigrants destined for South Africa, on a daily basis hundreds of people are being stopped in Kenya who are destined for South Africa,” said Gigaba.

He added that Kenya contributed to keeping the country safe.

Gigaba said the partnership would contribute to tourism in the two countries and support the visions shared by both Ramaphosa and Kenyatta for free movement of people between the countries.

He said academics and business people would be able to get ten-year visas, while frequent travellers would be able to apply for three-year multiple entry visas, a feat Gigaba said would also alleviate administrative pressure on their respective departments.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

British High Commissioner Visits Police Station Six Times a Year due to SA’s Visa Rules for Children

The British High Commissioner to South Africa visits a police station at least six times a year – all because of SA’s rigorous travelling with children paperwork requirements.

“From a personal experience, it’s off-putting,” says British High Commissioner to South Africa Nigel Casey, having just had to do so recently when his children went back home.

The High Commissioner was speaking to Traveller24 at the British Airways launch event of the Durban Direct to London flight route, on Tuesday, 30 October.

While he is very excited about the new direct route calling it a “fantastic enabler” of tourism and business, he says South Africa must sort out this confusion around the travelling with minors regulation.

Typically it takes two weeks to get hold of the long form birth certificate for Brits. There is also an affidavit requirement when both parents are not travelling with the children and this needs to be signed or witnessed by a police officer or lawyer.

This all adds to the hassle and cost, says Casey, and “basically takes South Africa out of the market for short notice, quick decision last minute travel”.

As a result, UK citizens are opting to visit Thailand instead, simply because it’s easier.

In fact he says it “breaks his heart” that South Africa is pushing itself out of the last-minute holiday market – because people in the United Kingdom really want to come here, with an estimated 450k British visiting South Africa annually.

“As I said to the Home Minister and Tourism Minister last week at the investment summit, I know that there is so much more potential because a million Brits go to Thailand every year and as a direct competitor for winter breaks from the UK, South Africa has plenty of advantages.

“South Africa is in the same time zone, it has a lot to offer, and is very popular for the Brits who get here. If you wake up on a Monday morning and it’s raining in London and you decide you want to fly to South Africa with your kids on Friday, you’ve got a problem.

“I’m waiting eagerly to see what the details are when it is gazetted, I hope they’ll be very clear because the worst outcome would be ambiguous new regulations saying, well you don’t have to have these but we strongly advise you to have them.

British Airways confirmed it does not allow customers to travel to South Africa without these travel documents. If there is one thing the High Commissioner would like clarity it is this regulation going forward. “There are many people who make decisions about their holidays quite late on, and this will open up a whole new market.”

Hamish Erskine from Dube Trade Port in fact confirmed the new direct Durban route leveraged on analysis showing an average 100k British-based travellers made their way to SA and travelled through Durban annually, with clarity on the regulation for minors, certainly able to boost these figures.

Hamish Erskine from Dube TradePort confirmed new route leveraged on analysis showing average 100k British-based travellers making their way to SA and travelling through Durban.

Direct commercial gains

Overall the head of the British High commission – of which British Airways is one of its largest investors – is optimistic about the direct commercial gains via the cargo opportunities with this direct route.

“The link is going to really open up a lot of potential and possibilities and expansion for our existing relationship and I’m absolutely thrilled that it’s happening.”

Casey says it bodes well for business travel with a number of big British companies headquartered Durban – Unilever, Ilovo sugar (a big employer here and elsewhere in the region) Smith and Nephew, a pharmaceutical company. Also, a number of big British Companies which have headquarters elsewhere have subsidiaries here like Turner and Townsend being key examples.

Business and tourism enabler

“KwaZulu-Natal has a fantastic tourism offer, parts of it are known to people in the UK who have come to South Africa before. But there is an important job to be done in selling the KZN offer and marketing it quite aggressively in the UK because really you have everything South Africa offers in one place.

“Beaches, diving, game parks, hiking in the Drakensberg, you’ve got history of the battle fields and it’s all in one place. The fact that people can now fly here rather than have to fly into Joburg, fly or drive down, saves a lot of time and a significant chunk to any ones holiday. It is going to be huge selling point for the city.”

But if anything British Airways has shown its commitment to the South African market as a whole.

The airline flies a twice-daily service from Heathrow to Johannesburg and daily to Cape Town year-round, having recently increasing its service between London and Johannesburg to 18 flights a week. It also doubles the Cape Town schedule during the South African summer season and also adds three weekly flights from Gatwick.

Paolo de Renzis, Commercial Manager for Europe, Corporate Sales and Africa, Levant at British Airways & Iberia says there is also the possibility to expand the direct Durban offering going forward. Surprisingly, De Renzis does not foresee any negative impact for the Comair operated British Airways domestic route from Joburg to Durban, which would usually be the connector for travellers from the UK.

BA’s new direct flight to Durban set to grow business and leisure travel. Paolo de Renzis, British Airways & Iberia commercial manager for Africa says he does not foresee it impacting domestic Comair – Joburg to Durban capacity.

Sihle Zikalala, Minister for the Department of Economic Development, Tourism and Environmental Affairs says, “Having direct flights between Durban and London will undoubtedly spur growth in both tourism and trade for both destinations. We are certain that South Africans will embrace the opportunities offered by the direct flights from Durban ensuring that we fully benefit from these new connections.

General Manager of King Shaka International Terence Delomeny confirmed Durban is poised to exceed the 6 million international mark and show a significant 8% annual growth in passenger numbers.

British Airways is offering a launch special from Durban with discounts of to 11% on return fares. World Traveller launch fares start from R7 740.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Blake Guidry [1], [2].