African press review 23 February 2012

In South Africa, yesterday's budget speech by the finance minister dominates most front pages.

According to BusinessDay, the budget has silenced the sceptics.

The Treasury, reports the Johannesburg-based financial daily, has managed to slash the deficit while also funding the most ambitious infrastructure and social programmes in the history of South Africa.

Finance Minister Pravin Gordhan believes that South Africa’s finances are in good health, and the figures he announced on Wednesday should, says BusinessDay, reduce the chances of a downgrade in the country’s sovereign credit rating.

Taxpayers will be pleased by the rebates to both individuals and companies, although the rich will be paying more in capital gains tax.

The budget deficit for 2011-12 is projected at 4.8 per cent of gross domestic product, down from the 5.5 per cent forecast in the October 2011 medium-term budget policy statement. It is now expected to fall to 3.0 per cent by 2014-2015.

Standard Chartered’s regional research head for Africa, Razia Khan, described the projections as "spectacular", compared to what financial markets had expected.

The Sowetan looks at the street-level impact of yesterday's proposals, noting that smokers will have to fork out more for a packet of 20 cigarettes and that drink prices will also be increased.

But the rich will suffer too, says The Sowetan. From October the tax on small aeroplanes and helicopters weighing less than 5,000 kilogrammes will be seven per cent, while a 10 per cent tax will apply to motorboats and yachts.

In Kenya, the front page of The Daily Nation is dominated by today's London conference on Somalia.

The Nation says the conference comes at a time when the international community is optimistic that Somalia is slowly regaining stability following the success of the African Union Mission and the Kenya Defence Forces initiative against the al Shebab militia.

President Mwai Kibaki, who is leading the Kenyan delegation, is among world leaders, including UN Secretary General Ban Ki-Moon, Uganda’s President Yoweri Museveni and Ethiopian Prime Minister Meles Zenawi, attending the meeting hosted by UK Prime Minister David Cameron.

The Daily Monitor in Uganda reports that just one day after selling 67 per cent of its oil shares, Tullow Oil is contesting the Uganda Revenue Authority’s calculation of the tax due from the transaction.

The authority has assessed a capital gains tax of 430 million euros on Tullow’s sale to Total and the Chinese National Offshore Oil Company.

While Tullow agrees with the principle that the transaction attracts capital gains tax, it is expected to claim exemptions on one block and the recalculation of its tax obligations on two others.

A company official said yesterday that the firm has paid 110 million euros of the 430 million assessed and will now challenge the tax bill in the courts.

The Monitor also reports a call by the opposition group, Activist for Change, urging Ugandans to buy whistles to blow Museveni out of power.

Forum for Democratic Change leader Kizza Besigye, who has recovered from leg injuries he sustained in struggles with police at Katwe on Tuesday, urged supporters to use people power to fight the thieves in government.

Internal Affairs State Minister James Baba has meanwhile justified the manner in which police dispersed the Katwe rally on Tuesday that left several A4C activists injured, saying the meeting was not authorised.

“Uganda, in common with states throughout the world, requires such public assemblies to be authorised by police to ensure the safety and security of both those involved in the gathering and others. No such authorisation had been granted for an assembly in Katwe," according to the junior minister.