Reverses

In a move that surprised many, Finance Minister Enoch Godongwana has officially abandoned plans for a 0.5% increase in Value Added Tax (VAT), a change that would have taken effect on May 1. The VAT rate will remain at 15%, offering a momentary sigh of relief for consumers and businesses alike. This decision did not occur in isolation; it stemmed from thorough discussions with various political factions and a meticulous evaluation of recommendations put forth by parliamentary committees. It appears the government is keenly…

The Djiboutian government has backpedaled on its original proposition to grant Ethiopia full oversight of a significant port, a gesture initially aimed at alleviating regional frictions following the ongoing wrangles between Somalia and Ethiopia over access to the Red Sea. Now, Djibouti is entertaining the idea of collaborative management. The adjustment in stance suggests Ethiopia will receive partial control of the Tadjourah Port, while Djibouti continues to maintain operational supervision. This shift is an attempt to…