The economic news of recent times has been marked by negotiations between the government and the political parties of the opposition on economic measures aimed at increasing the tax revenues of the State. For the opposition, the government wants to plug the holes it has created and must explain itself. In addition to this aspect, the National Anti-Corruption Network (REN-LAC) published its report on the state of corruption in Burkina in 2018, in which customs dethroned the municipal police in first place. In Bobo, SAP Olympic obtained a promise from traders for the removal of 71% of its unsold stock. In the African business world, Apple is giving way to Chinese brands like Tecno or Xiaomi. A look back at some of the economic news of the past few days.

In Burkina Faso, Prime Minister Christophe Dabiré announced on September 28, 2019, that from January 2020, the Single Tax on Salaries and Wages (IUTS) will extend to bonuses and allowances for civil servants. Following this announcement, the opposition declared, during its weekly press conference, that the affair of the IUTS deserves more light from the Prime Minister, because, it believes, it is an attempt, like many other measures, to lower the salaries of civil servants. And she wants proof of this in the tax on motor vehicles, the arrival of new license plates and the soaring prices of consumer products.

For her, this decision concerning the IUTS aims in fact to reduce the salaries of civil servants to "plug holes". However, denounces the opposition, the MPP has granted tax exemptions of up to 200 billion to its friends in the mining sector. The Prime Minister must therefore "clarify", cries the opposition. Does this decision mean that there will be a “lifting of the exemption on allowances and bonuses for civil servants? Will this tax affect the common fund which is also a premium? And how much will this measure bring to the State? asked the speakers.

In Bobo-Dioulasso, the Union of cycle and moped spare parts sellers (UVPD2C) made a commitment, on Monday, September 30, 2019, to remove 71% of the stock of products from the African Tire Company (SAP Olympic) . An initiative that is part of the policy of promoting "Made in Burkina" products undertaken by the Ministry of Trade, Industry and Handicrafts.

SAP Olympic has faced widespread slump for some time and the stock in store is around 1,200,000,000 CFA francs. Following this delicate situation for the company, the Ministry of Commerce began negotiations with traders, which resulted in the latter's undertaking to consume 71% of the announced stock, i.e. a total of products approaching a value of 990,997,500 CFA francs including tax.

"If the situation were to continue, we fear that we will be forced to resort to resizing or stopping work", worried the general manager of the company. Taking such measures, he says, will cause job losses in this industry. From three teams of 600 workers, it has already grown to a team of 200 people. The company had also undertaken to substantially lower its selling prices by around 86 million CFA francs on the basis of removing products to the tune of 600 million CFA francs.

In an open letter to the CEO of Coris Bank International (CBI), Idrissa Nassa, a Burkinabè student in Tunis, named Ismaël Sawadogo, accused the businessman of wanting to put a spoke in the wheels of trading companies, particularly GLOBUMI. Let us first note that a trader is someone who buys, for example, the dollar (or other foreign currency) with the CFA franc, at a time when the value of the dollar has fallen, with a view to reselling it when its value will increase to make a profit. And this happens on the Internet which has platforms that indicate the course of currencies daily and through financial institutions.

According to Ismaël Sawadogo, since 2016, the first independent traders decided to organize themselves into a company with the name GLOBUMI and relations with banks worked well from 2016 to 2017. It was from 2018 that the relationship deteriorated and he accuses the CEO of Coris bank international of being at the origin of this situation because he saw his proposal to be the majority shareholder of the trading companies refused. It links the creation of Coris Bourse to this desire to act as a barrier to traders.

Following this letter, Coris bank international (CBI) and its CEO felt aggrieved. Thus, the Chairman and CEO of Coris Bank International, in a press release, denied any involvement in this difficult situation for trading companies. "Against a backdrop of purely false and incoherent allegations, these publications bring serious accusations against our Institution and its President which call for observations on our part", declared Coris Bank International. The company denies any involvement of itself or its president in the situation experienced by so-called trading companies in Burkina Faso and adds that none of these companies has its account blocked in its network.

READ: Difficult situation of "trading" companies: Idrissa Nassa, CEO of Coris Bank International, denies any involvement

It further states that "for clarification, the management and intermediation company Coris Bourse has been approved by the supervisory authority, the Regional Council for Public Savings and Financial Markets (CREPMF) under the number SGI /2010-02 and began its activities in October 2010 and not in the context mentioned by the authors, proof of an innocent or intentional amalgam whose objective is to undermine the honor of the Coris Group”. Coris Bank International believes that these defamations have the sole objective of tarnishing the image of the institution which is the pride of an entire country both nationally and internationally.

It refutes the idea of any interest of Coris Bank International and Idrissa Nassa for the acquisition or the acquisition of stakes in any trading company. "These assertions are purely false and misleading," she said, and reserves the right to seize the competent judicial authorities in accordance with the laws in force in the country, as to the follow-up to be given to this case. Case to follow.

On Monday, September 30, 2019, the National Anti-Corruption Network (REN-LAC) presented its 2018 report on the state of corruption in Burkina. The customs and the municipal police respectively occupy the first and second places, and the exemplarity of the State is not perceptible. It was about the frequency of corruption that REN-LAC highlighted in its report and which establishes customs as the service that registers the most corrupt practices.

It is followed, in order, by the Police, the General Directorate of Land and Maritime Transport (DGTTM), the National Gendarmerie, the National Police, secondary education and justice. Customs thus moved from second in 2017 to first on the list of the most corrupt services in 2018 and the municipal police from first to second. The report does not explicitly compare the state of corruption in 2018 with 2017 for a better assessment of its level of deterioration. On the other hand, he indicated that corruption remains a frequent phenomenon in Burkina Faso.

Seven out of ten respondents believe that corruption is frequent, even very frequent, in Burkina Faso. REN-LAC indicates that the determination of the President of Faso and his government to fight against corruption has not been very perceptible and calls for more political will and example at the top of the State. The survey took place from November 8 to 20, 2018 and surveyed 2,016 people.

Within WAEMU, the Central Bank of West African States (BCEAO) announced four next steps for its financial services interoperability project on Monday, September 30, 2019. An initiative that aims to modernize and to harmonize the financial system but also to strengthen financial inclusion within the WAEMU zone by creating a true digital payment ecosystem. These four announced steps are the acquisition and implementation of the new solution, the adoption of the appropriate regulatory framework, the organization of the communication campaign and finally the preparation and launch of the platform. The BCEAO intends to make digital finance a springboard for further financial inclusion in order to effectively combat the lack of financing means for economic entities.

Disappeared from the top 5 of the largest smartphone shippers on the continent, Apple is giving way to Chinese brands like Tecno or Xiaomi, which are also benefiting from an (African) market with annual growth of 6% and are catching up with the leader Samsung, writes Jeune Afrique, in an issue published on September 27, 2019.

The newspaper adds that South Korean quality continues to seduce Africans, making Samsung the continental smartphone leader since the end of 2017. The manufacturer of Galaxy models, great rivals of Apple's iPhone, according to Jeune Afrique, captures 28% market share in Africa, ahead of the Chinese giant Huawei (10%) and its compatriot Transsion Holding which, with its brands Tecno (9%), itel (6%) and Infinix (4%), totals 19% of deliveries in the continent, according to market estimates for the second quarter of 2019 published by research firm Counterpoint.

>