East African Business Notifier

Earlier this month, Google suffered a  major blow  that could pave the way for a wave of antitrust cases against Big Tech firms.  In the first of the two lawsuits filed by the US Department of Justice (DOJ) against the company, District Judge Amit Mehta  ruled  that Google violated antitrust law by maintaining an illegal monopoly in the online search and search-advertising markets. This raises the question of what remedies Google will face, with the DOJ  reportedly  considering a breakup of the company. But the more important question is whether the case will catalyze the reforms needed to foster competition in today’s monopolized tech industry or ultimately be remembered as a missed opportunity. As a former antitrust enforcer who spent years investigating and litigating against Google, I believe Mehta’s well-reasoned decision has an excellent chance of surviving on appeal.  While simply holding a monopoly is not inherently illegal, wielding that ...

As global economic growth slows, many hope technological innovation is a potential solution.  The International Monetary Fund’s latest  World Economic Outlook , for example, highlighted the potential of artificial intelligence to boost productivity and GDP. But the report also warns that given the uncertainties surrounding the extent of AI’s impact, such forecasts should be approached with a dose of caution. While AI could usher in an era of prosperity, this outcome depends on how these emerging technologies evolve. The current wave of techno-optimism, along with anxiety about emerging technologies’ potential implications for labor markets, can be attributed to the notion that AI is what economists call a “general-purpose technology.” Such innovations permeate the entire economy rather than being confined to a single sector. General-purpose technologies can be divided into two broad categories: those that revolutionized energy, such as the steam engine and electricity, and tho...

 BY JOWERIA NABAKKA, CUSTOMER EXPERIENCE DIRECTOR, AIRTEL UGANDA In the heart of East Africa, Uganda stands at the forefront of a financial revolution. As we embrace the digital age, the shift towards cashless transactions is reshaping our economic landscape, with mobile money leading the charge. Mobile Money is placed in your hands and with it the need to keep yourself first, and everyone safe and secure. Uganda has made remarkable strides in adopting mobile money services. By the end of 2023, mobile money subscriptions reached 33 million (UCC), with transaction values surpassing 113 trillion Ugandan Shillings. This growth signifies our nation's readiness for a cashless future. That future will require players to concertedly grow public awareness about personal financial security. Mobile money has become a lifeline for millions, especially in rural areas where traditional banking is scarce. It's not just about convenience; it's a catalyst for financial inclusion and econom...

Dangote refinery on track to begin gasoline production in September, industry monitor IIR Energy says The $20 billion refinery, owned by Africa's richest man, Aliko Dangote, has been undergoing test runs for gasoline production. While initial plans targeted July for gasoline deliveries, the project has experienced delays and the timeline has now shifted to mid-September. The massive 650,000-barrel-per-day refinery, located on the outskirts of Lagos, commenced operations in January after years of delays. It has been producing diesel and other distillate fuels, but gasoline production is set to mark a significant milestone. Once fully operational, the Dangote refinery is poised to disrupt the existing fuel trade between Europe and Africa, reducing Nigeria's dependence on imported refined products. This is expected to have a significant impact on the country's energy security and economy.

The East African Community (EAC) has adjusted its timeline for achieving a single currency, now targeting 2031 instead of the previously planned 2024. This update was shared by EAC Secretary General Veronica Mueni Nduva during a recent roundtable with the East African Business Council.  "The Monetary Union was expected to be established in 2024 as per the Monetary Union Roadmap. However, it was not been realized and the timeline was therefore revised to 2031," she was quoted as saying. Despite delays, progress has been made in several areas, including the development of legal frameworks and the establishment of the East African Payments System, which facilitates currency convertibility across the region. However, some challenges remain, such as consensus on hosting the East African Monetary Institute and meeting key macroeconomic criteria, including inflation and fiscal deficit targets.

By Andrew Kabeera The future of financial inclusion in this country and across the world will depend squarely on how the financial industry can collect data from the millions of people who need financial services efficiently and effectively. In the last year, we at PostBank have had the honor of supporting the government disburse money for the Parish Development Model (PDM), and we have disbursed about Ushs 600 billion via our Wendi mobile wallet platform, and we are on track to disburse one trillion shillings by the end of the financial year. That is all very well, and these monies have assisted thousands of families and enterprises around the country, but even more important are the learnings we have gained from the experience.  These have brought new revelations and concretized ours, and the industry’s thinking, about the future of financial inclusion and how Artificial Intelligence (AI) and machine learning will be key in this endeavor going forward. For any country, ...

Climate-policy debates tend to focus on reducing greenhouse-gas emissions. This makes sense, given that GHGs are the primary cause of climate change. But global warming is expected to continue even under the most optimistic scenarios, implying an urgent need for comprehensive strategies to minimize the economic costs, public-safety risks, and health threats associated with the escalating climate crisis. While some experts argue that full adaptation is impossible, owing to the significant risks posed by global warming, this view is misleading.  Admittedly, adaptation alone cannot offset the worst effects of climate change, and current efforts to reduce global GHG emissions must be ramped up. But overlooking the need to develop, implement, and invest in strategies aimed at protecting businesses, households, and communities from the inevitable consequences of a warming planet would be profoundly irresponsible. Flood protection is a prime example. As inundations become more frequent an...

  BY PAUL TENTENA LIVINGSTONE, ZAMBIA - The COMESA  Competition Commission (CCC) in recognition of the increasing complexity and harm to consumers on the online platform has proposed amendments to prohibit dark patterns or scams and harmful digital content. According to Dr. Willard Mwemba, the COMESA Competition Commission Director and Chief Executive Officer, d ark patterns or scams are the supreme evil of consumer welfare violations, as they are done deliberately to harm consumers. “ The C OMESA Competition Commission has noted a rise in harm to children on digital platforms and has proposed provisions to protect them from behaviour such as lewd or lascivious and creating an avenue for intervention in these matters through development of guidelines to address such concerns ,” said Mwemba while addressing Journalists in a press conference in Livingstone, Zambia. Dark patterns are tricks used on consumers when they are actively engaged on electronic devices . Co...

The recent  protests  in Kenya reflect the frustrated  aspirations  of young people for higher-quality social services and better economic opportunities.  It also highlights the difficulty – in Kenya, and across the developing world – of achieving macroeconomic stability at a time of considerable global uncertainty. How can Kenya and other developing economies overcome the  challenges  they face? The effects of recent contractionary  monetary policy  in the United States are still playing out. It has often been said that when the US sneezes, the world catches a cold. In fact, the advanced economies more broadly can spread economic “pathogens” easily, especially to small, open developing economies. But the maladies they cause vary, and so do the necessary remedies. In recent years, Kenyan President  William Ruto ’s government has been attempting to service large foreign loans – taken out largely to finance infrastructure construction – am...

Burundi’s largest electricity substation, a 160 megavolts facility in Rubirizi, financed by the African Development Bank Group  and the European Union, will increase the country’s electricity-connected population by 7 percent when completed. A delegation from the government of Burundi and the African Development Bank visited the site on 9 August 2024, as part of a tour of electrification projects funded or co-funded by the Bank Group in Rubirizi and Kabezi, in Bujumbura Rural Province. The delegation included the Burundian Minister of Finance, Budget and Economic Planning, Audace Niyonzima, the Minister of Water, Energy and Mines, Ibrahim Uwizeye, Director General of the state-owned water and electricity production and distribution company, Lieutenant Colonel Jean Albert Manigomba, alongside the Bank’s Country Manager for Burundi, Pascal Yembiline, Raymond Kitandala Luhana, a consultant on the Bank’s energy projects in Burundi, and the project coordinator, Ezechiel Bagayayutunze. T...

  The US Constitution directs the federal government to perform a few crucial functions, including providing for “the common defense.” According to the Federal Trade Commission, that now includes protecting the American people from designer handbags. Under the Biden administration, the FTC has discarded decades of antitrust law and instead cooked up a stew of simmering grievances against successful companies, including luxury handbag makers.  But this aggressive approach will likely achieve little beyond stifling innovation and exalting mercurial bureaucrats. For 50 years, antitrust authorities placed consumer welfare above all else. Lower prices were deemed a good thing, and a big company was not a  bad  company unless it hiked prices for consumers who had no choice but to pay them. Today’s FTC would do well to remember that being big does not preclude a company from being outflanked by new competitors. There is a long history of upstarts dethroning giants: Barnes ...