Sierra Leone’s mobile money providers Orange and Africell, have begun implementation of the Goods and Services Tax (GST) on all their financial services.
The implementation took effect today October 15, 2023, in line with the recently introduced Finance Act of 2023.
For consumers, the introduction of GST means it will now cost more money to use mobile money services.
🔵 Clarification on Africell Cash Out Charges with GST🔵
❕For 100: Old Charge: 3.05, New Charge with 15% GST: 3.51
❕For 500: Old Charge: 11, New Charge with 15% GST: 12.65
❕For 1000: Old Charge: 20, New Charge with 15% GST: 23
❕For 2000: Old Charge: 35, New Charge with 15% GST: 40.25
🟠 Clarification on Orange Cash Out Charges with GST 🟠
❕For 100: Old Charge: 3.05, New Charge with 15% GST: 3.51
❕For 500: Old Charge: 11.5, New Charge with 15% GST: 13.23
❕For 1000: Old Charge: 26.1, New Charge with 15% GST: 30.02
❕For 2000: Old Charge: 43.5, New Charge with 15% GST: 50.03
Kindly note that the 15% GST is applied on the transaction fees, NOT on the cashout amount.
African Global Logistics (AGL), the new owners of Freetown Terminal Limited, have announced a groundbreaking addition to their port operations by acquiring two state-of-the-art Gaussin Electric Terminal Tractors and a multi-charge station in Sierra Leone.
The APM75T HE Tractor is the result of a collaborative effort that brings together Gaussin’s expertise in handling vehicle production, Blue Solutions’ excellence in electric battery technology, and the vision of African Global Logistics. This 100% electric model is set to revolutionize port logistics, offering substantial energy savings while championing a carbon-free approach.
Moreover, it is expected to reduce maintenance costs, boost productivity, enhance safety standards, and provide unmatched driving comfort.
The introduction of this cutting-edge equipment aligns seamlessly with the Green Terminal labeling process initiated in June 2021 by the former owners, Bollore Transport and Logistics. This eco-conscious initiative aims to gradually reduce carbon emissions associated with container and vehicle transportation within port terminals.
This environmental commitment is comprehensive and grounded in an eight-pillar methodology, covering all aspects of sustainability in port operations. Importantly, the entire process, from project definition to rigorous auditing, has received validation from Bureau Veritas, a globally recognized leader in testing, inspection, and certification services.
The Gaussin Electric Terminal Tractors are designed to deliver annual fuel savings of up to 90%, streamlining operations with reduced maintenance requirements. Furthermore, they promise a rapid return on investment (ROI) when compared to traditional diesel tractors. Their construction is tailored to meet the exacting demands of port operations, ensuring seamless integration and exceptional performance.
AGL’s investment in these electric tractors underscores their commitment to sustainable and eco-friendly port logistics. It positions Freetown Terminal as a leader in green initiatives, contributing to Sierra Leone’s environmental conservation efforts and promoting a cleaner, more efficient future for port operations in the country.
Leading mobile money providers in Sierra Leone, Orange and Africell, have announced a new date for the implementation of the Goods and Services Tax (GST) on all their financial services.
Set to begin on October 15, 2023, this move is in direct response to the recently introduced Finance Act of 2023.
Africell relayed the forthcoming changes through an announcement which stated, “As of 15th October they will be updating all Mobile Money Fees to reflect GST. This adjustment will take effect on the 15th of October 2023 and this is in accordance with the Finance Act of 2023…”
Orange also shared a message to its customers saying: “Dear Customer, Please note that in compliance with the new Finance Act, all our Orange Money fees will be updated to reflect GST. This will come into effect on 15th October 2023.”
With the integration of GST, users who frequently use mobile money for their financial dealings can expect changes in the overall fee structure. All charges and fees will now be inclusive of the newly imposed GST.
Despite the impending fee alterations, Orange Money expressed its gratitude to its vast customer base for their unwavering support. They also emphasized their commitment to delivering high-caliber services. This GST incorporation is seen as a strategic alignment with the nation’s evolving financial and tax regulations, cementing Orange Money’s position as a compliant and reliable mobile money service provider.
For consumers, the bottom line is clear: the introduction of GST means it will now cost you more money to use mobile money services.
The National Revenue Authority (NRA) has rolled out a substantial three-month initiative for monitoring Electronic Cash Registers (ECRs) in GST registered businesses within Freetown.
This extensive effort is geared towards improving compliance and precision in ECR receipt issuance, thereby enhancing the accuracy of GST returns.
The key objectives of this monitoring initiative encompass:
Identifying businesses that may not be complying with ECR machine usage.
Estimating the average number of periodic receipts issued by GST-registered businesses.
Observing voluntary ECR receipt issuance to customers by businesses.
Verifying the presence and operational status of ECR machines in various business premises.
Addressing challenges associated with ECR machine use from a business perspective.
In pursuit of these goals, the NRA will deploy its personnel to all GST registered businesses within the Municipality. Their primary task will be to gather data on the effective utilization of electronic cash registers by local businesses. The NRA extends an invitation to all business entities to collaborate and facilitate this critical endeavor by welcoming NRA staff during this period.
This comprehensive monitoring initiative highlights the NRA’s dedication to bolstering tax compliance and promoting precise financial reporting within Freetown’s business community.
Employees of Standard Chartered Bank gathered outside the bank’s headquarters on Thursday in Freetown, Sierra Leone to stage a protest, demanding their long-awaited terminal benefits.
This protest comes in the wake of a recent court ruling that ordered the bank to pay a substantial sum of $5.5 million (NLE 124,018,730.55) to its former employees.
On October 6th, 2023, the High Court of Sierra Leone, with Mrs. Justice Hannah Bonnie presiding, issued an order mandating Standard Chartered Bank to disburse the substantial sum within a seven-day timeframe. The court’s decision was met with a mixture of relief and jubilation by the bank’s former employees, who had been waiting for their terminal benefits for a considerable period.
However, Standard Chartered Bank is not taking the court’s ruling lightly. In response, the bank has sought leave to appeal the order, with their case being heard by Justice Jamesina King. The matter has been adjourned to Wednesday, October 18th, for further proceedings, leaving both the bank and its former employees in a state of uncertainty.
This legal battle has captured the attention of many, not only within the financial sector but also in Sierra Leone as a whole. The outcome of the appeal will have significant implications for the bank’s former employees, as well as set a precedent for similar cases in the country.
As the legal saga continues, employees remain determined in their quest for the much-needed terminal benefits, while Standard Chartered Bank’s legal team strategizes its appeal, ensuring that this case remains a focal point of discussion in Sierra Leone’s financial and legal circles.
In a grand display of customer appreciation during Customer Service Week, Guaranty Trust Bank (GT Bank) Sierra Leone distributed a variety of gifts to its patrons at the main headquarters in Freetown on Tuesday, October 11th. The celebratory atmosphere extended from the Wilberforce headquarters to its 14 branches across the nation.
Speaking on the rationale behind the GT Bank Customer Service Week, Head of Cooperate Affairs, Arthur Kallon revealed that Customers Service Week which normally occurs in the first week of October is an international celebration that cooperate institutions use to appreciate their customers.
Kallon extolled the longstanding harmonious relationship between GT Bank and its customers, highlighting the customer-centric nature of the bank’s products and services, informed primarily by customer feedback.
He described their celebration of the week as a gesture to appreciate GT Bank customers for their loyalty to the brand. He confirmed that the celebration can’t be completed if they only targeted customers without taking the staff into consideration, so they are celebrating a staff customer’s service week. He justified that it’s a win situation where in the bilateral relationship between the staff and the customers is being expressed in celebratory mood.
Describing GTBank line of activities with customers and staff during the 5 days celebration, Kallon said, “We stay consistent to what others are doing across all subsidiaries, across GTCO, Africa and the United Kingdom. There are some areas we go overboard; there are some areas we stay within the limit. What we are doing here we dedicated the five working days to different activities from Monday to Friday. If you check out our branches in Freetown and all 14 branches you will notice that there are different types of celebrations. The attire that staffs are using throughout this week is remarkable, and beautiful. The official colours of GT Bank which Orange and white is being expressed in the way we dress throughout the cause of this week. We have raffle draws that staff are winning Top up Cards, Teacups, Keys or Key Holders, Pens, diaries and refreshments that ranges from sweets biscuits to create a relaxing mood.”
As the culmination of the week, staff will dress in the attire of various professions they serve, including the police, teachers, journalists, and pilots, symbolizing the deep connection between the bank and its diverse clientele.
The distributions of gifts to customers, were done by staffs with great delight, as the team distributed hundreds of assorted items to most of their customers in the banking hall.
Kallon called on customers and staff to enjoy the week and trust the GT Banking Process. He acknowledged that there are some challenges even outside the industry, but they will continue to work on them.
A beneficiary driver at the GT Bank Headquarters, Alusine said, ‘I am very happy with what you people are doing. This afternoon I didn’t even know I was going to get a special gift. I am surprised.”
Similarly, Isatu Mansaray thanked GT Bank for the donated items. She added that this is the first time she has received such a gift from a Banking institution in Sierra Leone.
GT Bank has consistently built its reputation on exceptional customer service and anticipating their needs, standing out for its commitment to delivering quality banking experiences.
In a significant stride towards advancing economic inclusivity and prosperity, UNDP Sierra Leone has unveiled a strategic alliance with Apex Bank and LAPO Microfinance for their joint informal economy initiative.
Under this cooperative endeavor, UNDP Sierra Leone, Apex Bank, and LAPO Microfinance will collaborate closely to craft, test, and extend financial products and services customized explicitly for the informal enterprises and entrepreneurs in Sierra Leone. This pioneering venture is an integral component of the expansive Informal Economy project, generously underwritten by the European Union in Sierra Leone.
This partnership materialized following the initiation of an innovation challenge by UNDP Sierra Leone, wherein Apex Bank and LAPO Microfinance distinguished themselves as the victors.
Consequently, both financial institutions have been awarded grants of $150,000 each to innovate financial solutions finely tuned to meet the distinct requirements of informal enterprises in the nation.
The core objective of this initiative is to unlock the latent potential of Sierra Leone’s informal economy. By facilitating access to financial services and advocating for formalization, the project aspires to nurture inclusive economic growth, catalyze economic transformation, and enhance the livelihoods of individuals involved in the informal sector.
This ambitious undertaking will be jointly executed by UNDP Sierra Leone and the International Labour Organization, reinforcing the dedication of these entities to catalyzing positive transformations and sustainable development in Sierra Leone.
The partnership uniting UNDP Sierra Leone, ApexBank, and LAPO Microfinance signifies a pivotal stride towards harnessing the economic prowess of the informal sector, ushering in a path towards heightened prosperity and progress within the nation.
In a recent interview on the popular “Good Morning Sierra Leone” program on Radio Democracy 98.1, the Central Bank Governor of Sierra Leone, Prof. Keifala Kallon addressed the redenomination of the Leone, clarifying key points and provided insights into the rationale behind the currency reset.
Prof. Kallon started by denying claims that he had promised the redenomination would raise the exchange value of the Leone. He likened the process to resetting a virus-infected phone, where it starts anew but retains the same value. According to the governor, the redenomination was primarily done to reset the monetary system of the country, rather than to boost the exchange rate.
The governor acknowledged that the redenomination process faced political opposition from the start. He expressed his belief that some individuals worked against its success due to concerns that the government would benefit from it at their expense. He argued that redenomination is a technique used in various countries, particularly during hyperinflation, to encourage responsible spending by reducing the number of currency units.
Prof. Kallon pointed out that some factors, beyond their control, played a significant role in the post-redenomination dynamics of Leones’ exchange rate. He mentioned the U.S. central bank’s monetary policy, which led to an increased demand for the U.S. dollar, causing the dollar to appreciate against the Leone. This, he emphasized, was a key issue that occurred after the redenomination.
The governor explained that the initial plan was to have both the new and old currency coexist for some time before phasing out the old Leone notes. However, the volume of unused old Leone notes returned to the bank exceeded expectations, leading to an extension of the dual currency system. Prof. Kallon argued that the extension was necessary to prevent a crisis similar to the one experienced in Nigeria.
When questioned about the timing of printing new currency, Prof. Kallon admitted that the timing was not ideal. He attributed the decision to print new Leone notes to hoarding of the old currency, which exceeded their estimates. The government resorted to printing new currency due to the overwhelming amount of old Leone notes in circulation.
In response to whether the redenomination strategy had failed, the governor disagreed. He questioned the assertion that redenomination had caused exchange rate depreciation, pointing out that even countries that did not undergo redenomination faced economic challenges. Prof. Kallon emphasized the fundamental economic principle that everything comes at a cost and that various factors influence exchange rates.
In a strategic move to bring maximum fulfillment to its customers during Customer Service week, NP Sierra Leone Limited has distributed assorted items to its various customers on Friday 6th October 2023 at various fuel stations in Freetown.
From NP SL Motorway in the East to the NP Aberdeen filling station, the focus of the distribution exercise was to appreciate customers for using NP SL products and services.
Speaking on the rationale behind NP Customer Service Week, NP SL Acting Sales Manager John Conteh revealed that Customers Service Week which normally occurs in the first week in October is an international celebration that cooperate institutions use to appreciate their customers. He described their celebration of the week as a gesture to appreciate NP customers for their loyalty to the brand.
Describing NP’s relationship with their customers, the Acting Manager states “As our mantra says, we are first for customer care,. We always try to exhibit our value added products which are the various ways we treat our customers. The quality service and products we are providing for our customers make it difficult for them to leave us for our competitors because what we are providing for customers, our Competitors cannot”.
Highlighting Some of the facilities NP SL is providing for customers which makes the company outstanding from others, he stated that they provide tanks, dispensers for their customers, expertise knowledge on how to run the fuel stations, training of staff and many more. He further pointed out that the Company even gives out generators to customers because most time people build fuel stations without the financial strength to buy generator, tank and dispensers to run the business.
Responding to concerns that some customers are now shifting from the use of fossil Fuel to electric or clean Energy, NP SL Communications Manager, Dr. Williette James affirmed that it is a good thing that the world is now moving to renewable energy. She pointed out that as a responsible company they are also venturing into that aspect. She emphasized that in the area of renewable energy they have started with the solar lights. However, she revealed that Sierra Leone still has a long way to fully transform from using fossil fuel to renewable energy completely.
The distribution of gifts to customers, which was led by the Communications Manager, followed by her communications team and other staff, was done with great delight, as the team distributed hundreds of assorted items to most of the drivers at various NP SL Fuel Station.
A beneficiary driver at the NP SL Siaka Steven Street Fuel Station, Alusuine said,´I am very happy with what you people are doing. This afternoon I didn’t even know I was going to get a special gift. I am surprised.”
Fatmata Kalokoh thanked NP SL for the donated items. She added that this is the first time she has received such a gift from a Petroleum company in Sierra Leone.
NP SL is an indigenous business that is built on customers ‘service and anticipate their needs. The Company is well known for its provision of quality petroleum products, sells them at a fair price, delivers them as scheduled, and follows up, as necessary, to satisfy customers. This commitment of service has led to customers being loyal to the NP brand.
Due to the recent hike in the prices of petroleum products, electricity tariffs, and the foreign exchange rate in the country, the telecommunication sector is expected to normalize its tariff soon.
It is without gainsaying that all other sectors have adjusted their charges as a result of the factors listed above but it is only the telecommunication sector that has been left unattended.
We are of the view that if nothing is done to protect the sector from facing economic insolvent it will be counterproductive to the state in terms of revenue generation, youth employment, and providing financial and moral support to national activities. This sector which has been ostensibly neglected is currently one of the highest taxpayers in the country that has the highest rates of youth employment.
With no iota of doubt, if the tariff normalization does not take effect soon, there is a tendency for over 50% of staff within the sector to lose their jobs and there is also a proclivity for the sector to scale down or short down some sites in remote areas where they are spending millions of leones to provide connectivity. This itself will be a burden on the people and government of Sierra Leone which is more the reason that the tariff adjustment is needed now to prevent such shortfall in the sector.
Other areas, like the media, sport, entertainment, tourism, education, child welfare, civil society, and other sectors that are currently benefitting hugely from the magnanimity provided by the telecommunication sector will be left to suffer; particularly the media fraternity to which we belong.
A seasoned economist, Mr. Dennis Sankoh has argued that when the cost of producing goods or services is higher than the profit margin, it will lead to a shutdown of operation. Therefore, he has urged the government of Sierra Leone to intervene by factoring a new tariff adjustment to protect the telecommunication industry from falling or find a win-win situation that will lead to economic equilibrium in the sector.
“If the telecommunications sector continues to face serious economic challenges or crisis it will hurt the economy in terms of services, trade, Corporate Social Responsibility, and employment,” he warned, adding by applauding the telecom sector for still being committed to driving investment in the sector.
However, the economic expert is of the view that the constant rise in input costs whilst the tariffs are stagnated at a rate that had been fixed since January 2023, it difficult for the sector to make more gains in terms of investment and creation of jobs in the country. He added that the situation will be further exacerbated by the devaluation of the Leone as against the dollar.
