Fiscal Policy
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The capital injection comes as fiscal uncertainty deepens over Ethiopia’s stalled Eurobond restructuring, which analysts say could complicate access to external funding.
Under the new export framework, companies that fail to meet allocation targets, breach environmental or tax rules, or transfer allocations to third parties will have their quotas revoked.
The move marks a shift from over a decade of debt-driven infrastructure expansion that has left the country with one of Africa’s highest debt service burdens.
While attention has centred on the newly gazetted rules in recent weeks, less focus has been given to the taxes that have been erased.
According to the Finance Ministry document the Islamic bonds will carry a seven-year maturity and pay a fixed annual return of 6% to investors as rental income, in line with Sharia principles.
Following news of the talks, the bond rose by as much as 2.6 cents to trade at 94.88 cents on the dollar, according to Tradeweb data, reflecting investor optimism that a deal may be within reach.
Analysts say the outcome of the new rule will test whether Kenya can strengthen its tax base without discouraging investment from some of the world’s largest digital players.
From Nigeria to Kenya, sweeping tax reforms are rewriting the rules for business and investment in Africa. Join us Sept 30 for the big picture.
Nigeria’s newly gazetted tax laws—set to take effect on January 1, 2026—have triggered intense public debate, much of it driven by misconceptions about key provisions.
Authorities are turning to a fresh vehicle following years of draining the nation’s diamond-backed reserves to plug budget shortfalls.
Under the Nigeria Tax Administration Act (NTAA), the use of a Tax Identification Number (Tax ID) will be mandatory for a range of activities, from banking to business registration, beginning January 1, 2026.
The advance payment requirement comes alongside sweeping reforms to Ethiopia’s tax framework, following the passing of the Income Tax (Amendment) Proclamation on July 17, 2025.
On August 5, 2025, President Bola Tinubu signed the Nigerian Insurance Industry Reform Bill into law, marking a significant overhaul of the sector in more than two decades.
The signing ends a protracted standoff between policymakers—one not only jeopardised a critical fiscal support package but opened a $734 million hole in the 2024/25 budget.
Zambian authorities say the extension will help entrench macroeconomic stability and support the continuation of economic reforms into 2026.
This comes as the West African nation repays a $700 million Eurobound debt as part of a sweeping debt restructuring programme that has helped cut the country’s public debt ratio to Gross Domestic Product to 43.8%
The IMF, which expanded Egypt’s original loan package to $8 billion last year, has made it clear that raising more revenue is a key priority.
Despite growing concerns around Senegal’s debt burden, the latest issuance was oversubscribed by over 21%, with the finance ministry attributing the interest to renewed investor confidence in the country’s economic trajectory.
The downgrade marks the lowest rating assigned to the western African nation since the agency began assessing the country in 2000 and the second downgrade in five months.
The debt projection shows a sharp increase from the $98 billion reported at the end of March by the Debt Management Office and highlights the mounting fiscal risks from underperforming oil revenue.