Here are three big stories from Africa’s business and policy landscape you (probably) didn’t miss but should keep in mind this week:

Vodacom fined R1 million for violating Consumer Protection Act

Vodacom, a South African mobile operator, has been fined R1 million ($52,761.40) by the National Consumer Tribunal for breaking some rules of the Consumer Protection Act (CPA). The Tribunal found that Vodacom did not cancel customers’ contracts properly and charged them a 75% cancellation fee. Vodacom also kept billing customers after they tried to end their contracts and threatened them with debt collectors, legal action, and credit bureau blacklisting. The Tribunal said that Vodacom’s actions were unconscionable and violated Section 14 of the CPA. The Tribunal also said that Vodacom misled customers by advertising a data bundle package that was not available and violated Sections 41 and 29 of the CPA. The Tribunal’s decision came after the National Consumer Commission (NCC) investigated about 700 complaints against Vodacom between 2020 and 2022. The NCC selected 27 cases for the investigation.

VPN without permits now illegal in Tanzania

The use of VPNs without permits, is now illegal in Tanzania, according to the Tanzania Communications Regulatory Authority. The regulator has cracked down on unlawful content on local networks and invoked Regulation 16 (2) of the Electronic and Postal Communications (Online Content) Regulations of 2020 to justify the ban. Anyone who violates this rule faces a year in jail or a fine of TSh 5 million. To continue using VPNs, individuals and businesses in Tanzania must fill out a form on the TCRA website by October 30, 2023. The form requires them to disclose their IP address and VPN details.

However, this regulation has raised alarm among digital rights activists in Tanzania. The TCRC, a coalition that advocates for digital rights, has expressed its worries about how the ban could affect Tanzanians’ rights to free speech, privacy, and information access. It calls on the government to engage in constructive dialogue. Tanzania is the second East African country to ban the use of VPNs. In 2018, Uganda banned VPNs and imposed a Social Media Tax to prevent people from using VPNs to evade taxes.

Nigeria’s debt service to revenue tops 183% 

Data from the Budget Office shows that Nigeria spent more on debt service than it earned in revenue in the first quarter of 2023. The debt service to revenue ratio was 183%, meaning the government had to borrow more than it made. The government spent more than it earned on debt service in Q1 2023, data shows. The debt service to revenue ratio was 183%. The revenue was N1.21 trillion, lower than the projected N2.16 trillion and the previous year’s N1.48 trillion. The debt service was N2.2 trillion, higher than the budgeted N1.6 trillion. It included N912 billion for Ways and Means, an overdraft from the central bank.

In 2022, the debt service was N5.65 trillion, almost equal to the revenue of N5.8 trillion. The revenue was down from N6.7 trillion in 2021. The fiscal deficit was N7.5 trillion or 129% of revenue in 2022. The situation worsened in 2023, as the government failed to meet its revenue and expenditure targets. The expenditure (excluding GOEs) was N3.4 trillion, higher than the budgeted N3.3 trillion. The recurrent non-debt expenditure was only N1.2 trillion, lower than the budgeted N1.63 trillion. The main factor driving the deficits is the rising debt service obligations. The government also raised only N2 trillion from domestic debts, lower than the target of N2.695 trillion. The net deficit (excluding GEOs budget and project-tied loans) was N2.3 trillion in Q1 2023.

ICYMI: Market roundup

• Nigeria’s equities market moved downwards over a 5-day trading week, with the NGX All-Share Index depreciating by 0.42% to close at 66,915.41 points. The top gainers were Thomas Wyatt Plc. (29.64%), Daar Communications plc. (9.52%), Julius Berger Plc (9.09%), United Bank for Africa Plc (8.26%), and Learn Africa Plc (6.45%). The top decliners were Sovereign Trust Insurance plc (-17.50%), Cadbury plc (-16.00%), Stanbic IBTC Holdings plc (-13.06%), Floor Mills plc (-11.88%), and Okomu Oil palm Plc (-9.96%).
• The naira closed the week at ₦ 772.98/$1 on Friday at the investor’s and Exporters’ window.
• Brent crude closed the week at $92.91 while US West Texas Intermediate (WTI) crude closed at $88.08.
• The global cryptocurrency market cap stood at $ 1.17 trillion, as of 8 a.m. Monday, the 24th of September. Bitcoin stood at $30,541.65, a 9.64%, increase over the week, Ethereum also increased by 6.08% to trade at $1,676.31. And Binance coin increased by 3.10% over the week, to trade at $219.75  
• Crafty Workshop, an Egyptian edtech startup successfully secured a seed funding round of $400 K led by Ed Ventures.  
• Outsized, one of the leading platforms for top-tier independent talent in Asia-Pacific, Africa, and the Middle East announced the successful completion of its Series A funding round.