RegionWeek 7th Edition

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N° 007 JUNE, BURUNDI AND EAST AFIRCA W EEK LY2019B RRegionWeek I E F I N G1

JUNE 1ST 2019

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ECONOMY Burundi to increase annual spending by 8%, Finance Minister says.

SPECIALREPORT MSD Burundi issues a chilling statement of ‘mistrust in UN Security Council’

TECHNEWS Facebook to launch its own cryptocurrency in 2020

COVER STORY

Burundi loses its bid to join SADC: Reasons.

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The local Namibian newspaper, New Era Live reports that President Hage Geingob on Sunday revealed that the Southern Africa Development Community (SADC), of which he is chairman, has rejected the latest application by Burundi to become part of the regional bloc.

Burundi has lost its bid to join SADC(Southern African Development Community) even if it has applied for membership.

This was said by Namibian president, currently the SADC Chairman, Hage Geingob.

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Uganda and Rwanda in talks to defuse tensions.

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Alibaba to introduce the Class 7 of the eFounders Fellowship for African entrepreneurs

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Safaricom and Vodacom to buy Vodafone’s MPesa rights for $13 million

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SPECIALREPORT

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RegionWeek

Burundi loses its bid to join SADC: Reasons.

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The local Namibian newspaper, New Era Live reports that President Hage Geingob on Sunday revealed that the Southern Africa Development Community (SADC), of which he is chairman, has rejected the latest application by Burundi to become part of the regional bloc.

Burundi has lost its bid to join SADC(Southern African Development Community) even if it has applied for membership. This was said by Namibian president, currently the SADC Chairman, Hage Geingob.

The local Namibian newspaper, New Era Live reports that President Hage Geingob on Sunday revealed that the Southern Africa Development Community (SADC), of which he is chairman, has rejected the latest application by Burundi to become part of the regional bloc.

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THE BIG PICTURE: To put all in a nutshell, Burundi has been told again by SADC first ‘to clean its house in order to invite inside new neighbors’, by rephrasing SADC Chairman, Hage Geingob.

Burundi has made an application in April this year for SADC membership. Ezechiel Nibigira, Burundi Foreign Minister, had championed so much for Burundi’s approval to join SADC.

Hage Geingob stated some reasons for Burundi’s bid to join SADC rejections are related to internal affairs of Burundi and its northern neighbor, Rwanda.

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The local magazine reports that it was assessed that ‘Burundi first needed to resolve the internal political instability that was sparked in 2015’.

Incoming Chair of #SADC President @ MagufuliJP arrives in Namibia for a twoday State Visit. The bilateral relations between Tanzania and Namibia remain excellent and date back to the days of the liberation struggle.

While briefing Tanzania’s president John Pombe Magufuli who was visiting Namibia on Sunday, Geingob said Burundi did not pass the SADC admission requirement after the latest assessment.

Related: Burundi seeks Zimbabwe support in a bid to join SADC.

“The SADC assessment mission has been sent to Burundi, but recommended thus far that it is not yet propitious for Burundi to be admitted into Sadc,” said the Namibian Head of State.

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“This is due to the unresolved democratic process in that country,” Hage Geingob added.

‘Burundi’s frosty ties with Rwanda behind the rejection’.

According to Namibian Head of State, political reasons and Burundi frosty ties with its northern neighbor, Rwanda, have led to Burundi’s rejection to join SADC. “We are also concerned about the accusations and counter-accusations between Burundi and Rwanda, about interference in each other’s internal affairs.

I will be delighted if Your Excellency [Magufuli] can shed any light on the current situation in Burundi and the security situation between Burundi and Rwanda.”, Namibian president told Magufuli.

SADC is seen as one of the most stable and attractive regional economic communities in Africa.

WHY IT MATTERS: Burundi’s internal affairs are still being a stumbling block when it comes to interacting with regional bodies.

Burundi lost the bid to host the COMESA summit due to political reasons. Burundi did not approve of COMESA’s move.

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Uganda and Rwanda in talks to defuse tensions.

ECONOMY

Following the last weekend incident of shootings that came to add fuel to the fire between Kampala and Kigali relations, Uganda and Rwanda are in talks in order to defuse tensions between them.

Burundi to increase annual spending by 8%, Finance Minister says.

Burundi has decreed that the annual spending will be raised up to 8% in the next fiscal year(2019-2020), this was said by Finance Minister, Domitien Ndihokubwayo.

According to a local magazine, the permanent secretary of Uganda foreign affairs said that the two governments are in diplomatic talks to avert the escalation of the situation.

“Yes, we are engaging them in diplomacy. That’s why we wrote the protest letter. We don’t think the incident can escalate. We are engaging them so that we get a peaceful solution,” the secretary told Monitor.

After the last weekend incident, Uganda protested what it called ‘illegal incursion on

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Uganda soil by Rwanda army’, Rwanda responded a bit harshly, saying that Uganda lied about the incident.

Related: Breaking: Two people shot dead by the Rwandan army inside Uganda territory.

Uganda has said that Rwanda army made an unauthorized entry inside Uganda and killed one Rwanda national and Ugandan national on Uganda soil, whereas Rwanda brushed aside these assertions, saying, through the Foreign Ministry, that the incident of shooting two people happened on Rwanda soil.

“The suspect resisted and turned violent, and was joined by others who attacked the officers with machetes, while attempting to flee back to Uganda. The officers shot dead two people, one Rwandan who died instantly and one Ugandan who later died. Once the gang had crossed back over the border to Uganda, no further action was taken by the patrol,” Rwandan police said in a statement.

The foreign Ministry secretary of Uganda says not to be tiring in engaging in the diplomatic course to defuse the tensions between Kampala and Kigali.

It should be noted that Museveni and Kagame met in South Africa on the sideline of the president of South Africa, Cyril Ramaphosa, inauguration.

According to reports, the two leaders currently at loggerheads found themselves seated together intentionally

by the South African protocol group. They were spotted exchanging talks.

Reports say that the two leaders discussed ways to reduce friction between them over border closure.

One Uganda media cites ‘leaked information from the entourage escorting the two presidents, saying that Museveni and Kagame discussed mostly the possibility of peace prevailing without armed confrontation and Rwanda opening her border’.

Domicien Ndihokubwayo told parliament that 88% of the budget will be funded from internal revenues, without giving further details on how the remainder would be raised.

The budget revision announces more than 80 billion to be recommended as an addition to the state budget, the fiscal year 2019-2020.

The proposed budget was approved by parliament.

During the analysis of the national budget exercise 2019-2020, the Minister of Finance revealed that the government of Burundi has planned a budget of more than 1500 billion Burundian francs, a budget that will cover the period from July 2019 to in June the year 2020.

The budget forecast for this year has been increased by more than 88 billion Burundian francs compared to last year’s budget.

For Minister Domitien Ndihokubwayo, the agricultural sector has been highlighted as one of the priorities of the country as retained in the national development plan.

Minister Domitien Ndihokubwayo told the deputies that the government of Burundi intends to draw more than 84 percent of the budget in the collection of taxes. Rigorous measures will be adopted, as Minister Domitien Ndihokubwayo pointed out in the Kigobe Chamber.

For Ndihokubwayo, this should enable the country to strengthen its economic independence. As a reminder, Burundi’s budget for the 2018-2019 financial year amounted to more than 1400 billion Burundian francs.

WHY IT MATTERS: Burundi’s annual spending has been shored up by population taxes after the European Union and some of the Western donors withdraws their aid which was covering more than 50% of the country’s annual spendings.

Burundi now relies most on taxpaying with Burundi revenue Authority body working around the clock to sensitize Burundians on the benefits of contributing to their country, not only ‘relying on external aid’.

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SPECIALREPORT

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MSD Burundi issues a chilling statement of ‘mistrust in UN Security Council’

Ahead of the United Nations Security Council sitting on Burundi case which is slated for tomorrow on May 28, 2019, one Burundi opposition party, MSD has manifested its dissatisfaction in this UN Body when it comes to handling Burundi affairs.

THE BIG PICTURE: The MSD party, which is led by Alexis Sinduhije, a most Burundi governement critic, has been at loggerheads with Burundi administration over the ruling party’s management of Burundi country since its taking of the helm in 2005.

The issued communiqué p\of MSD party( National Solidarity Movement) is somehow chilling as it states that the UN security council has manifested its ‘incapacity in solving Burundi crisis which kickstarted in April 2015.

MSD Burundi brings up the promise of the UN Security Council in 2013 ‘of fair and peaceful elections’ in 2015, but it turned out to be a source of ‘disheartenment to Burundi people, as MSD communique says.

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The MSD Burundi communiqué says that the United Nations Security Council has been ‘incapable of solving Burundi crisis’.

“The UN Security Council which is to take place tomorrow has no immediate outcome as it has been incapable to show its willingness to solve Burundi crisis,….thus addressing the challenges that sap Burundi’s peace and security”, MSD statement says.

MSD Burundi statement adds that the UNSC meeting does not address the question of thousands of Burundian refugees who fled the country since 2015 and that it ‘does not solve the problem of liberating imprisoned Burundians inside their country’.

MSD Burundi states that, despite UNSC pledges to credible and fair 2015 elections, ‘Burundians paid dearly for it’, having been abandoned by the UNSC which would advance free and credible elections, and which did not take place’, as the MSD Communique says.

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OPPORTUNITY

Alibaba to introduce the Class 7 of the eFounders Fellowship for African entrepreneurs Alibaba Business School and the United Nations Conference on Trade and Development are introducing Class 7 of the eFounders Fellowship program, which will be open to founders/co-founders of digital ventures from Algeria, Ethiopia, Ghana, Morocco, Nigeria, Senegal, or Tunisia. The program will be held at Alibaba’s headquarters in Hangzhou, China from August 18th – 28th, 2019.

The eFounders Fellowship program provides first-hand exposure to ecommerce and digital innovations, access to business leaders across Alibaba and China, as well as an opportunity to connect with likeminded, leading entrepreneurs in your region.

The fellowship is a community of passionate and successful “Champions for the New Economy” looking to inspire and create a more inclusive development model for all.

business license when requested during the application process.

Entrepreneurs below 35 years old, female entrepreneurs, and target country locals are strongly encouraged to apply.

Qualities you must have Class 7 welcomes entrepreneurs who are authentic, open-minded and altruistic leaders of the ‘new economy’, building enterprises for long-term success, not for short-term profit. They must have the mission-driven and have a strong sense of purpose, integrity, vision, and drive and willing to learn and share their experiences and ideas.

Benefits Participants will have to learn the key factors in Alibaba’s long-term success; the defining moments and failures that have Costs shaped Alibaba’s journey (including the early stages of development) and an under- The cost related to the following items will be covered: Hotel accommodation standing of Alibaba’s ecosystem. (shared room); small daily living allowance of 30 RMB/day; Field trip and site Eligibility visit transportation costs. However, parTo be selected for the Class 7, you must ticipants will be responsible for air tickets be a founder or co-founder of an officially and transportation/pick-up services to registered digital venture that has been in from Hangzhou, China; single hotel operation for at least 2 years. Your venture and room and Additional food or permust be headquartered, located in or oper- sonal requests expenses. ates in one of the following countries: Algeria, Ethiopia, Ghana, Morocco, Nigeria, Sen- The deadline for applications is June 9th, egal, or Tunisia. You must provide at least 1 referral in your application (referrals from 2019. a partner/organizer/eFounders Fellow are preferred). You must provide your official

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RegionWeek

TECHNEWS Arrest warrant issued to Ugandan ambassador Facebook to launch its own cryptocurrency to Burundi. in 2020

After relentless efforts by the court of Uganda to summon in court the Ugandan ambassador to Burundi, General Matayo Kyaligonza, the court has issued an arrest warrant on him for failing to appear in court.

Facebook is expected to launch its cryptocurrency namely GlobalCoin “in about a dozen countries” in 2020.

Kyaligonza and his bodyguards are accused of assaulting a female police officer earlier this year in Kampala, Uganda(above).

As Daily Monitor reported , Mukono Chief Magistrate Juliet Hantanga issued the warrants for retired former General Matayo Kyaligonza and his bodyguards, Corporal Peter Busindiche and Private John Okurut on Monday after they repeatedly failed to show up in court to face earlier summons.

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Failure to respond to the criminal summons is a sign of disrespect to the court which requires a warrant of arrest”, Juliet Hantanga said.

Traffic female police officer Esther, Namaganda, was assaulted by the men on a highway leading to the capital Kampala in February when she stopped them after they did an illegal U-turn on the road.

Related: Ugandan ambassador to Burundi recalled from Bujumbura, urged to resign.

The assault was caught on video and circulated on social media leading to angry activists demanding that Kyaligonza be fired from his diplomatic position.

Since then, Matayo Kyaligonza has appeared to be shunning the Court’s call to appear in order to be questioned for the February incident.

Kyaligonza faces a five-year jail term if convicted for assault occasioning bodily harm according to section 236 of the Penal Code Act. His bodyguards are facing three charges of common assault, obstructing a police officer and assault causing bodily harm, reported IOL.

Both Kyaligonza and his military bodyguards are due to appear again in court on June 10.

It should be remembered that Matayo Kyaligomza was recorded vociferating chilling words threatening and describing them as ‘ stupid ‘ the officers who are behind this case of Kyaligonza assaulting a female police officer.

It is reported that over the last few months, Zuckerberg the founder and chief executive of Facebook met the governor of England Bank, Mark Carney to discuss the company’s cryptocurrency plans.

Zuck also met representatives from Gemini – a firm founded by institutional crypto-bigwigs and his nemeses, the Winklevoss twins – the Financial Times reports.

merchants to accept GlobalCoins as payment, with lower transaction fees as an incentive to use the digital coin.

Facebook has been expected to make a move in financial services for so long, having hired the former PayPal president David Marcus to run its messaging app in 2014. Marcus, a board member of crypto exchange Coinbase, runs Facebook’s blockAccording to BBC, Face- chain initiatives, the book intends to build technology on which up a digital currency cryptocurrencies run. that people without a The company is stated conventional bank acto give more details count can still use. about its plan in sumThe currency, set as mer.

GlobalCoin, would enable Facebook’s 2.4 About billion monthly users cryptocurrency to change dollars and A cryptocurrency is a other international digital asset designed currencies into its digto work as a medium ital coins, which could of exchange that uses then be used to make strong cryptography payments or transfer to secure financial money without needing transactions, control a bank account. the creation of addiThe world giant social tional units, and verify media company wants the transfer of assets. to work with banks and Cryptocurrencies use brokers to let users decentralized control convert fiat currencies as opposed to centralinto its GlobalCoins. ized digital currency and central banking The social media giant systems. is allegedly reported to be also in talks The decentralized conwith money transfer trol of each cryptocurservices like Western rency works through Union to look for cheap distributed ledger ways to send money technology, typically abroad. a blockchain, which serves as a public Facebook is also financial transaction in talks with online database.

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TECHNEWS

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Safaricom and Vodacom to buy Vodafone’s MPesa rights for $13 million Kenya’s telecommunication firm, Safaricom alongside Vodacom are planning to buy permanently UK Vodafone’s mobile money transfer service known as M-Pesa.

Safaricom together with Vodacom, are set to enter into negotiations with the British firm, Vodafone to buy rights to the M-Pesa service in a deal estimated to be worth Sh1.3 billion ($13.4 million).

Safaricom’s CEO, Bob Collymore said that the 12 million euro ($13.4 million) deal will let both purchasers make significant savings in royalties paid to Vodafone and expand the service to new African markets.

“We are taking ownership of M-Pesa, the brand, and intellectual property. Joint ownership between us and Vodacom and we then use that as a platform into running into other markets across the continent,” Collymore told reporters.

“More important than the significant savings is about us determining the future, the roadmap of M-Pesa because at the moment the roadmap is determined by Vodafone,” Collymore added.

“Given that the bulk of the M-Pesa business is in Africa, between Tanzania and Kenya, it is right for us to be determinants.”

Collymore stated that the East African telecommunication Company plans to form a joint venture with Vodacom and acquire the intellectual property rights to M-Pesa as the plan still requires regulatory and shareholder approvals in South Africa and Kenya.

“We are putting everything in place just subject to getting the right approvals,” he said, adding the joint venture should be set up and the deal with Vodafone completed this year.

Vodacom, which is a South African operator owns 35 percent of Safaricom and pays 5 percent in an intellectual property fee to Vodafone from its MPesa business, which is mainly in Tanzania.

Apart from developing new products based on the M-Pesa, Safaricom and Vodacom also plan to launch into other African markets.

The UK telecommunication company widely known as Vodafone is stated to hold a 5% stake in Safaricom.

RegionWEEK is a Weekly News Briefing about Brurundi and East Africa.

Publisher: RegionWeek Ltd Editor in chief: Fabrice Iranzi Head of Africa Bureau: John Nshimirimana 11, Avenue du Gouvernement, Rohero Bujumbura-Burundi Tél: +257 79 43 28 86 P.O Box 6402 Bujumbura