Fiscal Policy
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The IMF has unlocked $2.3 billion for Egypt after key reviews, praising sharp inflation declines and a stabilizing economy—but urging faster progress on privatization and structural reforms to secure lasting growth.
South Africa’s 2026 budget scraps a proposed VAT hike, targets sustained primary surpluses and debt stabilisation, while expanding savings incentives and infrastructure spending.
Leveraging the 75% anticipated revenue uplift from the cashless mandate, which digitises gates, parks, lounges, and fees, post-implementation IGR could reach $271.6 million (₦364 billion) annually, assuming seamless rollout.
This will be Godongwana’s second budget under the Government of National Unity (GNU) and comes at a delicate political moment. With 2026 shaping up as a year of heightened electoral sensitivity.
The funding forms part of the lender’s Country Strategy Paper for 2024–2028, a framework designed to support Kenya’s medium-term development priorities by directing capital toward high-impact sectors.
The DMO report shows that domestic loans now account for ₦81.82 trillion ($55.48 billion), or 53.37% of Nigeria’s total debt stock, slightly outpacing external obligations of ₦71.48 trillion ($48.46 billion) or 46.63%.
After the fourth review of Burkina Faso’s Extended Credit Facility (ECF) Arrangement, IMF made a disbursement of about US$33 million. Approved (RSF) arrangement of about US$124.3 million.
African governments are borrowing to drive growth, but rising debt costs and weak revenues are forcing tougher fiscal rules and sharper trade-offs between stability and development.
Nigeria’s 2026 fiscal strategy hinges on tighter cash control, selective divestments and PPPs. Global precedents offer hope, but execution risks could test credibility and growth.
For businesses and households, the shift means higher tax burdens as policymakers return to a more aggressive revenue mobilisation push.
Local media reports confirm a 5% levy on all mobile airtime and data purchases effective February 8 2026, with proceeds channelled into the state’s national disaster response fund.
Nigeria’s new tax reform redraws how companies structure themselves, by widening the tax net while scaling back the myriad of overlapping levies previously imposed on large businesses.
Nigeria’s tax reforms are pushing compliance into the payments layer. Bujeti is responding by embedding tax logic, controls, and governance directly into business finance workflows.
The exemptions and reliefs—announced by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, on Monday—represent one of Nigeria’s most comprehensive efforts to simplify taxation, promote equity, and encourage compliance.
Nigeria’s subnationals are learning to earn, not just receive. They’re digitising taxes, reforming budgets, and using infrastructure policy to build fiscal resilience beyond Federal allocations.
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.