Feature/OPED
COVID-19: The Truth Inside Malta, Zanzibar and Madagascar
By Kester Kenn Klomegah
Ocean islands are, undoubtedly, favourite destinations for foreign investors and tourists primarily due to the diverse marine resources.
These islands have geopolitical strategic relationship with the world. Amid the global spread of the coronavirus, it has become important to look at and analyse the extent of the disease and its impact, particularly, on the economy of the Republics of Malta, Zanzibar and Madagascar.
The theories and narratives are that islands may have few cases. Some other narratives that the islands may have huge numbers due to foreign visitors from infected countries and regions.
It, therefore, becomes an important research focus to know the trends and to establish the possible effects on the economies and sociocultural lives of the population.
Part of this study is presented here as follows:
- The Islands and Coronavirus: An Overview
- (ii) Geographical location and Appearance of Coronavirus
- (iii) Economic Impact of Coronavirus on these Islands and
- (iv) Current Lessons and Directions for the Future.
Overview of Coronavirus:
The coronavirus disease appeared first in 2019 in Wuhan city in China. The disease was, first identified in Wuhan and Hubei, both in China early December 2019.
The original cause still unknown, it remains a puzzle and an enigma for the world scientific community. The disease symptoms include high body temperature with persistent dry cough and acute respiratory syndrome. Some medical researchers say it is a pneumonia-related disease.
Late December 2019, Chinese officials notified the World Health Organization (WHO) about the outbreak of the disease in the city of Wuhan, China.
Since then, cases of the novel coronavirus – named COVID-19 by the WHO – have spread around the world. WHO declared the outbreak only on January 30, and then recognized it as “pandemic” on March 11, 2020.
Scientists and health experts have outlined various theories of its transmission. The basic transmission mechanisms of the coronavirus are the same worldwide.
But the speed and pattern of spread definitely varies from country to country, urban to rural and place to place. Much also depends on cultural practices, traditional customs and social lifestyles.
A densely populated township can have a different trajectory to a middle-class suburb or a village. The epidemic can spread differently among people on islands.
Geographical location and Appearance of Coronavirus:
The geographical location influence and spread of the coronavirus. During the 2019-20 coronavirus pandemic, the first COVID-19 case in Malta was an Italian 12-year-old girl on March 7, 2020.
The girl and her family were in isolation, as required by those following the Maltese health authority’s guidelines who were in Italy or other highly infected countries.
Later, both her parents were found positive as well. As of April 30, Malta reported 444 confirmed cases, 165 recoveries and 3 deaths.
The small Mediterranean island, first, imposed restrictions on travel from Italy, Germany, France, Spain and Switzerland to try to prevent the spread of the coronavirus.
Later, it closed completely air and sea entry points (except for cargo), and as of March 13, mandatory quarantine was extended to travellers returning from any country. This was also published on the Malta Tourism Authority’s and Air Malta’s websites. Malta then lockdown the island.
“The decision has been taken on the advice of the medical authorities because of the sharp increase in the spread of the virus.
“Some cases are local transmission, with the majority being foreigners and some linked to previous cluster and expected spread among immigrants living in crowded conditions,” Prime Minister Robert Abela told a press conference on March 11.
Zanzibar, approximately 50 kilometers off Tanzania, is located in the Indian Ocean. It consists of many small islands and two large ones: Unguja and Pemba Island. The total population is 1.4 million.
Zanzibar is a paradise for tourists with sandy beaches and clear Indian Ocean water, as well as coral and limestone scarps, which allow for significant amounts of diving and snorkeling.
Considerable disparities exist in the standard of living for inhabitants of Pemba and Unguja, as well as the disparity between urban and rural populations.
The average annual income is $250. More than half the population lives below the poverty line despite its vast marine resources.
The Union Republic has shut its borders, both the mainland of Tanzania and the island of Zanzibar have banned all tourist flights as a precautionary measure against the deadly COVID-19.
According the Ministry of Health, the Zanzibar had 105 coronavirus, while Tanzania reported 284 confirmed cases of COVID-19 as of April 30, 2020.
Madagascar, located in southern Africa, belongs to the group of least developed countries, according to the United Nations. It is a member of the Southern African Development Community (SADC) and African Union (AU).
In 2018, the population of Madagascar estimated at 26 million. Madagascar’s natural resources include a variety of agricultural and mineral products. Its major health infrastructure, in poor conditions, is similar to many African countries.
Many of its medical centres, dispensaries and hospitals are found throughout the island, although they are concentrated in urban areas and particularly in Antananarivo.
Access to medical care remains beyond the reach of many Malagasy, especially in the rural areas, and many recourse to traditional healers. This poses a challenge to contain the COVID-19.
As at April 30, Madagascar recorded 249 coronavirus cases since the epidemic began, according to the World Health Organization (WHO).
Nevertheless, it did not report any coronavirus deaths. In addition, Comoros and Lesotho remain the only two African countries yet to record infections.
In a summarised report, Dr Antipas Massawe, a former lecturer from the Department of Chemical and Mining Engineering, University of Dar-es-Salaam in Tanzania, East Africa, acknowledged the narratives that these ocean islands are closely involved in international tourism and trading, and consequently could easily be exposed to the global pandemic.
“Malta, as an island situated naturally between Europe and North Africa, would be the most vulnerable because it is surrounded by heavily COVID-19 infected Italy, Spain, Turkey, Iran and others,” Massawe noted in his report that offered a fledgling narrative and further highlights the islands vulnerability.
Economic and Social Impact:
All the three islands of Malta, Zanzibar and Madagascar depend mostly on travel industry. Malta is the most highly-developed among them. Malta and Zanzibar are stable politically while Madagascar is an unstable southern African country.
Ocean islands face an unprecedented crisis like any other country in the world. Governments and their central banks have put together mega-bailout packages.
These ocean island governments around the world have also taken strict measures and adopted a range of tracking technologies to control the spread of the virus, as recommended by World Health Organization (WHO).
Malta, Zanzibar and Madagascar have made strides toward addressing the impact but only in the short term. What is important is to design post-pandemic policies that would reduce disparities and inequalities in the economy and society.
With 105 coronavirus leading to lockdown of tourism sector, Zanzibar’s economy has been hard hit by tourists’ fears about the pandemic, with reports of hotel cancellations after the government suspended direct flights from Italy and other destinations.
At least 80% of Zanzibar’s annual foreign income comes from tourism but the government is looking at boosting investment in other sectors, such as fishing and agriculture, to mitigate the economic blow.
Zanzibar’s scenery and rich historical culture bring close to 500,000 tourists to the island every year. With 105 coronavirus leading to lockdown of tourism sector, Zanzibar’s economy has been hard hit by tourists’ fears about the pandemic, with reports of hotel cancellations after the government suspended direct flights from Italy and other destinations.
Financing for at least 60% of the island’s budget comes from the tourism sector. “It’s going to affect us a lot because we really rely on tourism. The Italian market is a big market but in general, tourism is the backbone of Zanzibar, so we are going to lose a lot,” according to the words of Zanzibar’s Health Minister Hamad Rashid.
“We have to improve our agriculture system now using beautiful rains that we have, we have to improve our fishing industry so that we don’t depend on tourism anymore because of this risk which may happen anytime again,” added Hamad Rashid.
The ministry has put in place measures to help prevent a coronavirus outbreak. Zanzibar has 192 primary health centres with staff trained to look for symptoms. The health centres do screening and track business people who travel broad, especially to China. It’s a small area, so it’s very easy to control.
With its proximity to Europe, Malta is hit by the coronavirus. Malta is a popular tourist destination with its warm climate, numerous recreational areas, and architectural and historical monuments.
Numerous bays along the indented coastline of the islands provide good harbours. The landscape consists of low hills with terraced fields.
According to Eurostat, Malta is composed of two larger urban zones nominally referred to as Valletta (the main island of Malta) and Gozo.
Malta is classified as an advanced economy together with 32 other countries according to the International Monetary Fund (IMF).
Until 1800, Malta depended on cotton, tobacco and its shipyards for exports. Malta’s major resources are limestone, a favourable geographic location and a productive labour force.
Malta produces only about 20 percent of its food needs, has limited freshwater supplies because of the drought in the summer and has no domestic energy sources, aside from the potential for solar energy from its plentiful sunlight.
The economy is dependent on foreign trade (serving as a freight trans-shipment point), manufacturing (especially electronics and textiles) and tourism.
Ecotourism and agriculture, key sectors of Madagascar, have suffered due to coronavirus. Agriculture employs more than 60% of the population.
Madagascar is home to various unexploited plants found nowhere else on earth. Many native plant species are used as herbal remedies for a variety of afflictions.
As an innovative strategy to address the negative impact brought by the global pandemic, Madagascan President Andry Rajoelina gave the official launch to a Covid-Organics that could prevent and cure coronavirus local.
He went further to brand Covid-Organics as export product, state orders to purchase the herbal medicine came from more than 10 African countries.
The drink, Covid-Organics, is derived from artemisia – a plant with proven efficacy in malaria treatment – and other indigenous herbs, according to the Malagasy Institute of Applied Research (IMRA).
Its safety and effectiveness have not been assessed internationally, nor has any data from trials been published in peer-reviewed studies. Mainstream scientists have warned of the potential risk from untested herbal brews.
The United States’ Centers for Disease Control (CDC), referring to claims for herbal or tea remedies, says: “There is no scientific evidence that any of these alternative remedies can prevent or cure the illness caused by COVID-19. In fact, some of them may not be safe to consume.”
Current Lessons and Directions for the Future:
As the global economy struggles towards stabilizing, it further present new platforms for complete reviews and development strategies.
Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana and Co-chair of the UN Secretary-General’s Eminent Group of Advocates for the SDGs and Erna Solberg, Prime Minister of Norway and Co-chair of the UN Secretary-General’s Eminent Group of Advocates for the SDGs wrote an article about Sustainable Development Goals during the pandemic under the title Amid the coronavirus pandemic, SDGs more relevant today than ever published in April.
In their joint article, they raised many important viewpoints. But for the propose of this discussion, three of them are indicated here:
*This pandemic has manifestly exposed the crisis in global health systems. And while it is severely undermining prospects for achieving global health by 2030, critically it is having direct far-reaching effects on all the other SDGs.
*As our world strives to deal with the challenges posed by the pandemic, we ultimately must seek to turn the crisis into an opportunity and ramp up actions necessary to achieve the SDGs. The spirit of solidarity, quick and robust action to defeat the virus that we are witnessing must be brought to bear on the implementation of the Goals. The quantum of stimulus and pecuniary compensation packages that is being made available to deal with the pandemic make it clear that, when it truly matters, the world has the resources to deal with pressing and existential challenges. The SDGs are one such challenge.
*But what we cannot afford to do even at these crucial times is to shift resources away from priority SDGs actions. The response to the pandemic cannot be de-linked from actions on the SDGs. Indeed, achieving the SDGs will put us on a solid foundation and a firm path to dealing with global health risks and emerging infectious diseases. Achieving SDGs Goal 3 will mean strengthening the capacity of countries for early warning, risk reduction and management of national and global health risks.
Meanwhile, it would be necessary to concentrate, in the short-term, on specific steps to curb the pandemic and its spread and reduce the damage to a minimum, primarily the health and lives of people on these islands and importantly for Africa. It is necessary to analyse the lessons and forge long-term development plans.
“Given the raging coronavirus pandemic,” said Deputy Foreign Minister Sergey Ryabkov’s interview with the International Life magazine, April 17, “One of the lessons to be learnt from the current events will be a shift in the elites’ stances in many countries which will prompt them to cut wasteful expenditure.
“It is significant to boost local healthcare systems and create reserves. We can hope that following the pandemic a well-known rule saying that lightning does not hit the same place twice will prove quite true.
“However, the sheer scale of the current disaster will apparently make a drastic effect on governments’ political compass.”
Kester Kenn Klomegah writes frequently about Russia, Africa and the BRICS.
Feature/OPED
The Future of Payments: Key Trends to Watch in 2025
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
Feature/OPED
Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
Feature/OPED
The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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