Opinion: OTT and Social Media Tax is failing as anticipated!

The Over The Top Services Tax and Social Media Tax can only be said as utter embarrassment by the National Resistance Movement (NRM). There are enough things to know this would happen, as the plan was for getting the revenue, but not thinking the consequences of the taxes. That is why, today’s revelations about the levied taxes isn’t that surprising.

Without due-diligence, it is hard to know the effects and the means for why it is put. It seems like the President and the NRM had a dream of cash-flowing into the Consolidation Fund without any consequences, but apparently it does. And when you add taxes on things, people either use less or plan more effortlessly to circumvent this added cost on their daily lives.

Daily Monitor Reports: “Government collected Shs20.5b from social media in the last quarter ended September, according to data obtained from Uganda Revenue Authority. The tax, which was implemented in July, was however, less than the Shs24.9b target that URA had hoped to collect in the period. URA has a monthly target of Shs8.3b. The tax was introduced in the Excise Duty amendments of financial year 2018/19 requiring all social media users to pay Shs200 per day, before accessing certain platforms such as Facebook, Whatsapp and Twitter, among others. Government intends to collect about Shs100b before the end of the 2018/19 financial year” (Christine Kasemiire – ‘OTT raises Shs20b in first quarter, URA fails on targets’ 07.11.2018).

While it is a few days ago, that the MTN Uganda promised the 24 hours since paying tax, that the tax would last from the time of payment of the tax until the time is spent. Instead of how it has been, until the new day coming. Meaning, that often you would only get half-a-day with the Social Media, as the taxation would start again, when the clock turns 00:01.

That is why this was news to: “Airtel Uganda and other telecom service providers have announced a fundamental change in the Over the Top excise duty imposed on social media following a directive from Uganda Communications Commission, the telecommunications regulatory body in Uganda. Since its introduction in July 2018, the tax commonly known as OTT or social media tax, was only valid up to midnight of the payment date for daily users. With the recent changes, daily subscribers can now enjoy internet services for a complete 24 hours – right up to the time that they subscribed 24 hours earlier. This also applies to the weekly and monthly users who can also enjoy services until the time that they subscribed” Brian Emorut – ‘Social Media tax validity to now last 24 hours’ 06.11.2018 – Guide 2 Uganda).

So now, Airtel and MTN has changed their pattern of getting the OTT tax. While URA is struggling to met the supposed the quota. This shows that the state had not considered all implications to the levied taxes. The NRM clearly didn’t envision, either the use of VPN and also that people cannot afford it. Because it is barrier to be even using the social media after the taxes.

Surely, the 24 hours usage and the lack of collection. That the Telecoms and the Mobile Money outlets has been pushed and lost revenue is certain. As the data-bundles and Air-Time had to be corrected from July on and also now the barrier for OTTs are changing again. This is surely showing that the Telecoms and the Republic wasn’t prepared for this, but doing it on orders from the President. Peace.

The West is a bit late: Kicking and Screaming about President Magufuli’s actions!

I wish there was more worried voices, when the President John Pombe Magufuli censored radio stations. When he used time and efforts to silence journalists and newspapers. I wish there was more voices when he got bloggers and social media personalities to stop and pay higher taxes. I wish there was more worried voices when the opposition and activists was behind bars. These has all happen within a year time. Still, that haven’t catched much flack or buzz. Nearly nothing has scratched the surface.

This proves the government and the totalitarian ways of Magufuli and the Chama Cha Mapinduzi. Magufuli (CCM) wants all the love and no criticism. That is just the way that man is, he is certainly not getting a big enough boost at home, so he has to build his confidence at the public office. That seems to be the thing.

You know that this government is going overboard, when big-stars and musicians are getting their songs blocked from being played on the radio. One celebrity was unlucky and got her sex-tape leaked. In other countries that would have been PR Boast and ratings special, but in Tanzania. She got a meeting with the law. Therefore, this state is already unfair. As the person was a victim of a personal files and tapes being leaked. Not that she was starting a personal porn-hub.

That is why I am bit mad today. I have a deja vu’. Had the same feeling when the Anti-Gay Bill was ushered in Uganda a few years back. Instead of looking at the systemic reasons for the default law, the oppression and the acts of impunity against the public from the NRM. The public outcry and from foreign donors was against that one simple bill. Even if the bill is spiteful and morally bankrupt. The ones crying out loud, should enforce their vision to whole society and the whole system built around the President. Instead of looking at one minority, they should wonder and look at all the people looked up for their political activism. However, that train has never arrived and still isn’t.

That is why I know today’s plea, is a fart in the wind. But let’s be clear. The Anti Gay Monitoring Unit of Tanzania isn’t a policy. It is a bad idea, but so is everything else I have mentioned. It is only a fresh day or two, since the ACT Wazalendo Chairman Zitto Kabwe was freed from prison. Another political suspect and been detained a lot lately has been Tindu Lissu. So, it is not like there is free space and freedom in the first place.

Even on the 26th April 2018, on the Union Day, as the Opposition planned rallies. The cities and towns was under a military siege. As the President didn’t want anyone to be dissidents. However, the rallies didn’t happen and was more of ghost-towns. Therefore, the President didn’t get any rallies against him, but neither get a noble celebration of the Union of the Republic.

That the EU and USA are reviewing their relationship with Tanzania now is a bit bitter to me. Why didn’t it matter, that opposition and MPs got into trouble with the law? Why didn’t it matter that the media houses was closed and lost license for while? Why didn’t the rights matter, when bloggers and social media personalities lost their freedom and space?

But now the LGBT is in trouble, then your start screaming and shouting. You see how dumb it looks? You didn’t even flinch when the same government suspended girls who got pregnant, therefore, all girls are getting twice a year checked by the school. To ensure that they are not. Therefore, teenage girls are in trouble if they are pregnant before their ending schooling.

That is why I have trouble with the scrutiny today. Not that is deserved, as the supposed crackdown on the LGBT community in Tanzania is bad, but you should have seen it coming with all the other measures done by the Magufuli regime and his ways. Where he is acting as the lovely kingpin, who can even tell how woman are supposed to dress. That is why this was coming to you, but you didn’t mind the other things he did. But you start bitching when he goes after the LGBT.

You should have cared much sooner, now your late. These reforms was a slow-train coming. It was bound to happen. He gotten away with much bad in the past and now took it to another level. You accepted the others. But didn’t review it over the suspensions and closing of media houses. Off arresting MPs and Opposition leaders, you didn’t stop him from enforcing strict laws and levying high taxes on publications, social media and such. No, just let him be, without fearing his actions. However, now that he went for a group of this stature. Your reacting!

Sorry, but your late. Time to take actions for all, not just the LGBT. That is if, if you care about the human rights. Because you didn’t care, when one fell, but now they fall. You are kicking and screaming. Peace.

Opinion: China is starting to squeeze the Kenyan Economy!

If you were ever thinking that Beijing would loan and build without consequence. Those days should long be gone. The Chinese are planning to earn money on their investments, they don’t care about the Republic’s they are investing in, as long as they are profits on their investments. They want earn on these loans and since the rate of loans are so high. They are now starting to pick collateral for their infrastructure loans, especially the draining of loans to the Standard Gauge Railway (SGR).

While acknowledging China’s leading role in the Kenyan economy as a trading partner, the President called for increased Chinese investments in the country. “China now ranks as the number one trading partner with Kenya accounting for 17.2% of Kenya’s total trade with the World,” he said. “Kenya is open and safe for business. Kenya has one of the most conducive business environments in Africa,” the President added” (President.Go.Ke – ‘President Kenyatta Asks China To Give Preferential Treatment For African Goods’ 02.11.2018).

While Kenyatta are acting as it all positive, the reality is that the state are having giant issues with their “investments” and loans there. But Kenyatta wants to make it sound positive, when it really isn’t, just the rate of the loans have grown and the consequences of the relationship with China is now starting to cost. It is the Kenyans that has to pay these loans down and with every way possible. As the Chinese has leverage over the Kenyan government. Take a look at these quotes from media recently!

Loan Rate in Kenya:

Kenya’s current public debt stands at approximately 4.884 trillion Kenyan shillings (USD$49 billion) or 56.4% of the country’s gross domestic product.. This is up from 42.8% in 2008. In other words, the country owes more than half the value of its economic output (GDP)” (…) “China is Kenya’s largest creditor, holding about 72% of the country’s bilateral debt as of March 2017. Studies show that Kenya’s Chinese debt poses a threat because the loan agreements are not transparent, projects are not well prioritised, accounting procedures are weak and it’s not clear what projects are costing” (Odongo Kodongo – ‘Kenya’s public debt is rising to dangerous levels’ 05.08.2018).

Selling State Owned Enterprises:

The Privatisation Commission has approved sale of 26 state-owned corporations to raise funds to support the budget. The commission, under the Privatisation Act, 2005, was mandated to sell 26 poorly performing state corporations to cut down government spending. Those approved for sale are National Bank of Kenya, Consolidated Bank of Kenya, Kenya Meat Commission, Development Bank of Kenya, East African Portland Cement, Kengen, Kenya Pipeline Corporation, Kenya Ports Authority, and five sugar millers — Chemilil, Sony, Nzoia, Miwani and Muhoroni. Others are Agrochemical and Food Corporation, New Kenya Co-operative Creameries, Numerical Machining Complex and Isolated Power stations, hotels (Kabarnet Hotel, Mt Elgon Lodge Ltd, Golf Hotel Ltd, Sunset Hotel Ltd and Kenya Safari Lodges and Hotels Ltd). Also targetted are Kenya Tourism Development Corporation-associated companies, which include International Hotels Kenya Ltd, Kenya Hotels Properties Ltd, Mountain Lodge Ltd and Ark Ltd” (Cynthia Ilako – ‘State to sell 26 companies to finance current budget’ 03.11.2018, The Star Kenya).

China Selling Infrastructure Loans to Investors:

The plan will see Hong Kong mortgage insurer Hong Kong Mortgage Corporation (HKMC) buy a diverse basket of infrastructure loans next year and explore the idea of “securitising” or repackaging them into securities for sale to investors, allowing it extra liquidity that it can loan out to finance more infrastructure projects. “This initiative we believe will help ‘recycle’ commercial banks’ capital to be redeployed into other greenfield infrastructure projects, besides enabling wider capital markets participation in infrastructure development under the Road and Belt initiative,” said HKMC Greater China chief executive Helen Wong” (Allan Olingo – ‘China plans to sell off its African infrastructure debt to investors’ 05.11.2018).

We are seeing the growth of loans, that is up 42,8% and the debt level of the 56,4% of the GDP. Because of that, the state are now selling of their State Owned Enterprises. Most likely to Chinese holding companies and investors, who are expecting to gets points on their dollars. As well, as securing their future on the investment. They are selling the central institutions and businesses, which was state controlled, but they will now become para-stalls of the Chinese.

But selling the institutions are not enough for the Chinese. They are planning to take it further. Planning to rehash the loans as sub-prime loans for investors, meaning they are taking the risk instead of the Export-Import Bank of China, where the loans are usually collected and distributed from. Therefore, the loans are another target of more profits as they want to earn on them as well into the Capital Market. Just like the US Banks did with House Loans and mortgages in the past.

While all that is happening and with the knowledge of this, the President is still keeping it cool. Kenyatta is still not saying the brazen truth, that they are a debt-slave to China. Are in such big trouble, that the investment of the SGR are killing the economy and they have to trade-off their assets to keep up with their payments. That is what is happening and this is not really developing, but hurting the economy even more. As this institutions and businesses has been controlling their markets. Now, they will have masters from outside, which are not there to secure the market, but make a direct profit. Therefore, the citizens are not only paying their loans for the railroads, but for destroying their economy. Peace.

MTN Uganda: Daily OTT tax now valid for 24 hours (01.11.2018)

South Sudan: SPLM/A-IO letter to Maj. Gen. Matata Frank Alikana – “Subject: Suspension from your duties as Governor of Yei River State and constitution of an Investigation Commitee to investigate your involvement in an alleged illegal act” (21.10.2018)

South Sudan: SPLM/A-IO – Dr. Riek Machar Statement on the Occasion of Peace Celebration in Juba (31.10.2018)

South Sudan: CTSAMVM Technical Committee Third Meeting, Khartoum, Sudan (24.10.2018)

South Sudan Civil Society Forum statement on the October 31 celebration, regional protection force & more (29.10.2018)

Uganda: Judiciary reaction to Land Inquiry Commission Press Release (29.10.2018)

OPM-UNHCR: Verification Exercise since March 2018 proves there is 1m refugees in Uganda!

Since February 2018, the Office of the Prime Minister (OPM) Dr. Ruhukana Rugunda has been under fire for faking the numbers of refugees in the settlements and camps within the Republic of Uganda. Where they we’re doubling and tripling the numbers of refugees in Kampala and West Nile. These figures and set-backs have clearly sent out a memo to the United Nations Organizations. As they have been active since March 2018.

On the 20th October 2018 this has been done by United Nations Refugee Agency (UNHCR) and the OPM are now verifying the amounts of refugees. This is significant, since this will establish the real numbers and how many who is really there. The individuals and their fate is more important, than their numbers, but when they have cheated on it to get more donor funding. These numbers become more vital. So, that the donations and the grants to help out these individuals come to the right ones and not being eaten by government officials.

The numbers dropped on the 20th October 2018 are after a verification exercise done in Adjumani District, this being in Bidibidi settlement on the 16th October 2018. They we’re able to target what they estimate 85% of the population there. In Bidibidi verified a total of 203,392. That is not all, but shows to what extent the refugee crisis is.

While in Kampala: “the daily turnout continues to be very low despite additional efforts on mobilization. The verification site remained open on Saturday to allow students and others to be verified over the weekend. However, over the period of six days, only 1,583 individuals were verified, majority being Congolese. In light of the low attendance, the verification team has operated at reduced capacity and the final day has been agreed by OPM-UNHCR as Wednesday 24th October” (OPM-UNHCR VERIFICATION EXERCISE: Update, 20.10.2018).

Therefore, the total estimate with all this exercises since March 2018 to 20th October 2018. Which states: “The ongoing verification of refugees in Uganda that started on 1st March 2018, verified a total of 17,428 individuals last week bringing the total as of 20th October 2018 to 1,088,415” (OPM-UNHCR VERIFICATION EXERCISE: Update, 20.10.2018).

So the are margins of error are still there. But the real crunched numbers are there. As the UNCHR wants the truth, as they are trying to collect funding for the operations of the settlements. Since the Ugandan government also wants to secure the donations too. This is all part of that and validate the need for the refugees. The scandal could block the support and trust in the agencies and the rampant forgery of numbers earlier in the year. This exercise was needed to build trust. Now the accuracy is more likely there. They might still try to find a way to inflate it, but it will be harder. Because the base-numbers through the verification makes it harder.

This was needed because of the lie, the lie of the numbers. These are now shattered. Now, the reality is there. It is still a million refugees and they need help. Both in the present, but also for building their future. That perspective is needed. This is people who fled burning villages, militias and armies fighting each other. They need space and trust to grow and rebuild. These people are trying to build a home. That is what should be focus and giving them hope in a dire situation. They are not just numbers.

Even if this story has been about the baseline numbers of refugees in the republic. That is because of the OPM inflated numbers to cheat donors funds. To earn money on their tragedy. That shall not be forgotten. But in the same manner. We need to discuss, how we can give this people hope for a better tomorrow. Peace.