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Bill Gates visits Ethiopia to strengthen partnerships and address development challenges

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Bill Gates, co-chair of the Bill & Melinda Gates Foundation, has arrived in Ethiopia for a visit aimed at reconnecting with partners and grantees working to tackle pressing health challenges and create economic opportunities for the Ethiopian people. This marks Gates’ first trip to Ethiopia since the pandemic, and he is eager to discuss strategies for sustainable development in the country.

In an exclusive interview with Capital, Gates emphasized the foundation’s long-standing commitment to Ethiopia, which has been a key focus of their efforts for over two decades. “Our mission is to help ensure that every person has the opportunity to lead a healthy, productive life by ending preventable disease, poverty, and inequality,” Gates stated. He highlighted the foundation’s establishment of a permanent office in Ethiopia in 2012, which has facilitated strong partnerships with local communities and both the private and public sectors.

Gates acknowledged the significant challenges Ethiopia has faced in recent years, including the impacts of COVID-19, conflict, drought, locust invasions, and flooding. “These shocks have disrupted Ethiopia’s progress,” he noted, stressing the importance of assessing how to move forward and accelerate advancements in health, agriculture, and financial inclusion.

Despite the setbacks, Gates remains optimistic about Ethiopia’s potential for recovery and growth. He pointed out that the country has previously made remarkable strides in improving health outcomes and increasing incomes. “Getting back on track won’t be easy, but there’s an abundance of talent here,” he said, emphasizing the need for resilience and creativity.

The Gates Foundation is committed to supporting Ethiopian leaders and innovators in addressing the needs of the most vulnerable populations, including women and children. Gates also highlighted the importance of international funding for global health initiatives, expressing concern over the decline in overseas development assistance (ODA) as many countries reduce their contributions. He urged the global community to allocate sufficient resources to support health efforts in Ethiopia.

Climate change is another pressing issue for Ethiopia, particularly in relation to agricultural adaptation. Gates praised the country’s Green Legacy initiative and its reliance on renewable energy, stating, “Ethiopia’s commitment to sustainable development and environmental stewardship is commendable.” He noted the foundation’s investment in climate-smart agricultural solutions, such as drought-resistant seed varieties, to help farmers adapt to the changing climate.

As the foundation expands its presence in Africa with new offices in Kenya and Senegal, Gates reaffirmed the organization’s dedication to deepening its engagement with local communities. He acknowledged the impact of Melinda Gates’ departure from the foundation but assured that the commitment to gender equality and women’s empowerment would remain a priority.

Gates expressed hope for Ethiopia’s future, emphasizing the foundation’s focus on measuring impact through lives saved and opportunities created. “With sustained investment in the right areas and dedicated partners, Ethiopia can and will forge a healthier, more prosperous future,” he concluded.

New VAT on insurance premiums sparks concerns among stakeholders

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Ethiopia is set to implement a new decree requiring the application of value-added tax (VAT) on general insurance contracts offered by insurance companies, a move that has sparked widespread complaints from industry stakeholders. The new tax, which is expected to increase insurance premiums by 15%, raises concerns about its potential impact on the number of people eligible for insurance coverage and the overall revenue of insurance companies.

The Minister of Finance has outlined that the premiums paid for insurance will be treated as the price of the service, thus making them subject to VAT. This directive comes as part of the government’s broader strategy to increase domestic revenue amid fiscal challenges, including agreements with the International Monetary Fund (IMF) and the World Bank.

However, industry experts warn that the imposition of VAT on insurance premiums could lead to a decrease in the number of insured individuals, as higher costs may deter people from purchasing insurance. “Although VAT was applied to insured people, there is concern that it could further destabilize the sector that had not been previously focused,” said an anonymous source from the insurance sector.

Getachew Beshahwred, a seasoned consultant in the insurance industry, expressed his apprehension about the new tax, stating, “While many countries impose taxes on insurance premiums, the introduction of VAT on damage is unusual and could have negative consequences for the market.” He noted that in countries like the UK, general insurance is taxed at different rates, but the introduction of VAT in Ethiopia represents a significant shift.

The new tax is expected to exacerbate the already high cost of living for many Ethiopians, as insurance premiums rise. Getachew emphasized that the additional financial burden could lead to a decline in insurance coverage, particularly for those who are not VAT registered. “If the insurance premium increases by 15 percent, especially for individuals who do not register for VAT, the amount of compensation they receive may also decrease,” he explained.

In addition to the VAT on insurance, the Ministry of Finance has announced plans to implement a consumption-based VAT on essential services such as water and electricity, which have been exempt from VAT for the past 22 years. This move aims to alleviate the fiscal deficit but has raised concerns about its impact on low-income households.

As the government prepares to roll out these new tax measures, stakeholders in the insurance industry are calling for a reconsideration of the VAT policy to ensure that it does not undermine the sector’s stability or accessibility for the Ethiopian public. The guidelines for implementing the new tax are expected to be released in the coming days, and the industry is closely monitoring developments as they unfold.

LG Electronics South Africa launches online store, ushering in a new era of convenient shopping

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LG Electronics South Africa (www.LG.com/global/) recently took a giant leap into the future of shopping with their online store which will forever change how South Africans buy their favourite tech. This is not just another e-commerce site—it is a bold move, changing the digital landscape and marking a new chapter in LG’s South African journey, says Mr Jinkook Kang, Subsidiary President at LG Electronics South Africa.

“Now live at LG.com/za, our online store brings LG’s innovative gadgets straight to your fingertips, showcasing our unwavering commitment to putting customers first in ways never before seen in the local market.”

As only the third market in the Middle East and Africa region to launch a brand-specific online store, LG South Africa is pioneering a new era of digital retail excellence. This achievement not only shows LG’s status as a technology leader but also shows its commitment to meeting the changing needs of South African consumers.

Mr Kang shared his excitement about the launch: “We did not just open an online store; we are unlocking a portal to the future of retail in South Africa. This platform represents a fusion of LG’s pioneering technology with the vibrant spirit of South African consumers. It’s more than a shopping destination—it’s a digital playground where innovation meets aspiration, where every click brings you closer to experiencing the extraordinary.”

The new e-commerce hub is a treasure trove of LG’s most sought-after products, from breathtaking OLED and QNED televisions that redefine visual experiences to futuristic home appliances that transform everyday tasks into moments of joy. Tech enthusiasts can explore an array of state-of-the-art monitors, while eco-conscious shoppers will delight in the energy-efficient air conditioning units.

To celebrate this digital milestone, LG is rolling out the red carpet with an irresistible offer which is music to every shopper’s ears. From August 27 to September 30, 2024, if you make an online purchase of R7,000 or more, LG will give you a free LG XBOOM XG2T speaker (http://apo-opa.co/4g5wpAv), valued at R1,199. This limited-time offer is exclusively available through the online store, giving customers more reason to explore LG’s digital shop.

But the excitement does not stop there. The company’s renowned Premium Service is available for select items bought through the online store. This white-glove treatment includes complimentary delivery, expert installation, and dedicated ongoing support, ensuring that every LG product becomes an integral part of your lifestyle with ease.

LG has created a variety of payment options to meet the different needs of South African consumers. From interest-free instalments to credit alternatives, LG is making premium technology more accessible than ever before.

“We’re not just selling products; we’re crafting experiences that resonate with the South African spirit,” says Mr. Kang. “Our online store is a digital embodiment of our ‘Life’s Good’ philosophy—a place where technology enhances life, where innovation meets inspiration, and where every purchase is a step towards a brighter, more connected future.”

As LG Electronics South Africa starts a new digital journey, the company remains committed to its core values of innovation, quality, and customer satisfaction. The online store is more than just a way to sell things. It shows that LG cares about making life better for every South African through easy-to-use, innovative technology.

“This launch is just the beginning of an exciting new chapter,” Mr. Kang concludes. “We’re not just reimagining retail; we’re redefining the very essence of how South Africans interact with technology. Every click, purchase, and unboxing is a chance to experience something amazing. Welcome to the future of shopping—welcome to the LG online store!”

Visit LG.com/za to explore LG’s new online store and experience the future of electronics shopping.

Distributed by APO Group on behalf of LG Electronics.

Sasai Money Transfer expands free remittances offer to additional African markets in partnership with Airtel Money

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SASAI MONEY TRANSFER (www.MoneyTransfer.Sasai.Global), a business of Cassava Technologies (https://apo-opa.co/4dKI5Hn) and one of the fastest growing international money transfer operators, has partnered with Airtel Money to expand its revolutionary offer of free remittances to more African markets. The Zero Fees initiative, which was first launched in May 2024 by Sasai Money Transfer in partnership with Econet in Zimbabwe, is now being expanded with Airtel Money starting with Uganda, before being extended to other high-traffic remittance Airtel markets such as Ghana, Malawi, Nigeria, Kenya and Zambia.  

This innovative offering eliminates remittance sending fees for users of the Sasai Money Transfer service in the United Kingdom and South Africa sending money to family and friends in Uganda. The partnership with Airtel Money Uganda ensures that the recipient also enjoys similar benefits by cashing out their funds for free from their Airtel Money wallet. Overall, this is an end-to-end customer proposition offering unique benefits of improved access and affordability to both the sender and receiver.  

The current reality in the African context is that informal remittances are still prevalent, by and large exceeding the volume of formal remittances flowing through official channels. This high level of informality presents a challenge for African migrants many of whom end up losing their hard-earned money to unscrupulous intermediaries. In line with the vision of a digitally connected future that leaves no African behind, Sasai is leading the charge of digitizing and formalizing remittances, and making the services more accessible and affordable for all Africans. The goal is to close the gap between formal and informal money transfers, and making sure that no one is excluded from these essential services. 

The Managing Director of Airtel Mobile Commerce Uganda Limited, Mr. Japhet Aritho said, “We have partnered with Sasai Money Transfer on their innovative initiative that aligns with our own agenda of ensuring financial inclusivity for all Ugandans. This offer brings even more value to our customers, coinciding with our big consumer promotion, Vroomula Amajja, which offers customers a chance to win daily cash prizes, weekly Boda-Boda prizes and a Toyota Rav4 Hybrid by simply receiving remittances into their Airtel Money wallet.” 

Sasai Money Transfer’s forerunning partnership on zero fees with EcoCash, Zimbabwe’s largest mobile money operator, has proven to be a resounding success. The zero fees offer has become very popular with senders in the UK and SA offering relief from the often-exorbitant remittances fees seen in the market. Resultantly, the initiative has been described by many as an “indispensable lifeline” for families back home. 

Sasai Fintech (https://apo-opa.co/4e6oW2f) CEO, Mr. Darlington Mandivenga said, “The partnership with Airtel Money Uganda offers an important avenue into one of Africa’s largest remittance markets. As Sasai, this is where we want to be, ensuring we reach as many people as possible and ultimately leave no African behind. We are in a competitively unique position where we have been able to utilize our source market assets, operational efficiencies and group synergies, while collaborating with like-minded partners such as Airtel Money to deliver innovative offerings.” 

The Zero Fees initiative by Sasai marks another first in the remittances industry, where a Money Transfer Operator has been able to effectively collaborate with Mobile Money Operators to focus on a single goal: making money transfer services more affordable. In an industry where fees can be as high as 13%, the zero fees initiative holds enormous long-term potential to contribute to the formalization of international money transfers, the bulk of which still flow through unsafe and unreliable informal channels. 

Distributed by APO Group on behalf of Sasai Money Transfer.