Olá,
Victoria from Techpoint here,
Here's what I've for you today:
- Kenya to tax content creators
- Cash boost for drivers? Yango’s got your back!
- SA’s regulator approves 173 new crypto licence applications
Kenya to tax content creators
President William Ruto has announced plans to tax Kenyan content creators, especially those earning from monetisation opportunities introduced earlier this year.
Speaking at the KEPSA 20th Anniversary in Nairobi, he emphasised the need for fairness in taxation, noting that while some creators earn as much as KSh 1 million, many others earning less still pay taxes. "If you earn KSh 1 million, isn’t it fair to contribute to the tax kitty, especially when we’ve enabled you to reach that level?" Ruto said.
The proposed Tax Laws (Amendment) Bill, 2024, aims to bring online income earners and digital operators into the tax bracket. This follows earlier deals Kenya struck with platforms like Google, Meta, and TikTok, enabling content creators to monetise their work.
Ruto highlighted the diverse talents of Kenyan youth in areas like music, fashion, and digital animation. However, the bill also proposes a 15% excise duty on social media and internet services, which could raise costs for millions of users, including creators and small businesses.
Treasury Cabinet Secretary John Mbadi, who introduced the bill, said it’s part of efforts to widen Kenya’s tax base after the Finance Bill 2024 faced backlash earlier this year.
Reactions to the proposal have been mixed — some support the government’s push for fair taxation, while critics argue it could stifle innovation and slow down growth in Kenya’s vibrant digital economy.
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The debate around taxing the digital space is heating up, with potential implications for creators and businesses alike. Whether this will balance revenue generation with fostering a thriving creative economy remains to be seen.
Cash boost for drivers? Yango’s got your back
Yango, a Russian ride-hailing app, just dropped a game-changer for gig drivers in Côte d’Ivoire. They’ve teamed up with COFINA, a microfinance powerhouse, and Yabx, a smart fintech platform, to bring in-app loans to their drivers.
Dubbed Driver Cash Advance, the service gives drivers quick access to up to 300,000 CFA (roughly $500) with flexible repayment plans ranging from 2 to 8 weeks. Think of it as a financial boost to handle cash flow or invest in their hustle.
Why’s this cool? Gig workers in Africa often get the short end of the stick with banks, who see them as too risky for loans. But Yabx’s tech uses AI to check creditworthiness through drivers’ digital activity, so even those without a credit history can qualify.
Kadotien Soro, Yango’s Côte d’Ivoire Country Manager, says this move is all about empowering their community, helping drivers reach their goals without the usual financial headaches.
It’s a smart nod to Moove’s 2022 playbook, where they introduced loans tailored to gig workers’ earnings data.
SA’s regulator approves 173 new crypto licence applications
The Financial Sector Conduct Authority (FSCA) in South Africa is stepping up its efforts to regulate crypto asset service providers (CASPs). Out of 420 licence applications received, 248 have been approved so far, a massive increase from the 75 licences granted earlier this year in April.
Of the remaining applications, nine were rejected, 106 were voluntarily withdrawn after discussions with the FSCA, and 56 are still under review.
The FSCA explained that some rejections were due to applicants not meeting the "fit and proper" requirements under the Financial Advisory and Intermediary Services (FAIS) Act. Many failed to provide solid business plans or lacked sufficient knowledge and experience in crypto assets.
While companies that were declined can reapply once they meet the criteria, operating without a licence could result in serious regulatory action. However, companies that submitted applications by November 30, 2023, and are awaiting decisions are temporarily allowed to continue operations.
Additionally, the FSCA has extended a compliance deadline for regulatory exams from November 2024 to June 2025. Missing this new deadline could result in suspensions or licence withdrawals.
In a related development, the Financial Intelligence Centre (FIC) has introduced the "travel rule," which will take effect in April 2025. This rule requires CASPs to document the parties involved in all crypto transactions.
For transactions above R5,000, even more detailed information, such as IDs and wallet addresses, will need to be collected. These rules are part of South Africa’s effort to improve financial oversight and combat money laundering and terrorism financing, which could help the country get off the FATF greylist.
Overall, the FSCA is laying down stricter rules to bring stability and accountability to the crypto space while aligning South Africa with international financial standards. For crypto providers, this means both opportunities and challenges — depending on their readiness to comply.
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Have a fun weekend!
Victoria Fakiya for Techpoint Africa.
