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Huawei’s Android restriction: How it affects the African market

New versions of its smartphones outside China will lose access to popular Google applications and services

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Huawei's Android restriction: How it affects the African market

As the U.S/China trade war heats up, Huawei smartphone users were caught in one of its outcomes, following a recent announcement to suspend the company’s access to Google Android updates.

The announcement would see Google products like Google Play, Gmail and Google Maps become unavailable on new Huawei products, while older phones would lose access to new versions of Android.

Huawei in a statement had responded by saying

“We have made substantial contributions to the development and growth of Android around the world. As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefitted both users and the industry. Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products covering those that have been sold or still in stock globally. We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally”.

The U.S government appears to have paid attention, as Huawei got some breathing space with a 90 -day scale back on the restrictions when the Bureau of Industry and Security of the U.S Department of Commerce announced that it would issue a ‘Temporary General Licence” ( TGL) amending the current order that bans American companies from supplying technologies to Huawei.

In an ensuing update, Google says it was complying with an executive order issued by the U.S government and was reviewing the “implications”, later adding that Google Play, through which Google allows users to download apps and the security features of its antivirus software, Google Play Protect will continue on existing Huawei devices.

New versions of its smartphones outside China will lose access to popular applications and services including Google Play, Google Maps, and the Gmail app.

Concerns for Africa?

So how does this all affect Huawei’s Africa market? Huawei has grown its reach in Africa, Europe and parts of Asia where it pitches cheaper products compared to Apple.

It is currently testing the new generation Internet connectivity known as 5G, which could run future tech products such as self-driven cars and traffic control solutions.

No African country has raised an issue with Huawei being a threat to national security. A spokesman for South Africa’s department of Trade and Industry, Sidwell Medupe, says that the South African government does not intend to alter its behaviour towards Huawei.

Huawei has been growing at a fast rate globally over the last year. In the first quarter of 2019 it shipped 59.9 million smartphones, according to analysis firm, IDC– selling an average of more than 660,000 phones every day.

This represents year-on-year growth of more than 50%, and gave the company a real chance of overtaking Samsung as the world’s biggest cellphone company.

Huawei South Africa could not release local sales figures, but if its South Africa market share tracks its global position, it would have sold 2.5 million smartphones locally in 2018.

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South Africa’s Foschini to halt Kenya, Ghana operations

South African retailers have recorded poor performance in the last year, due to slow economic growth and currency devaluations

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South Africa's Foschini to halt Kenya, Ghana operations
(File photo)

South African fashion retailer, the Foschini Group is considering shutting down its Kenya and Ghana businesses.

The firm’s Chief Executive Officer, Anthony Thunstrom, affirms that at least, six stores will be affected in both countries.

South African retailers have recorded poor performance in the last year, due to slow economic growth and currency devaluations that had hit sales.

In July, department store chain, Woolworths pulled out from West Africa for a second time.

The Foschini Group will review economic growth, legislature and lease negotiations in Kenya and Ghana before making its decision.

Come September, in its home market, Thunstrom says The Foschini Group will launch a smaller format Sportscene store that will enjoy entertainment features such as a basketball court and a DJ booth, in an effort to lure millennials into its stores and away from online players such as Naspers’ majority-owned Superbalist.

The store will be launched in September in Johannesburg’s upscale Sandton shopping and financial district.

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Total Mozambique gas project will go on despite insurgency

Total will also acquire US energy giant Anadarko’s assets in Algeria, Ghana, Mozambique and South Africa

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Energy major Total on Friday said it remained committed to a Mozambique liquefied natural gas project on the country’s northern coast despite deadly Islamist insurgent attacks.

Total will become the operator of the $25 billion Rovuma LNG Project whose construction began on August 5 in the Afungi Peninsula.

The company is also set to acquire US energy giant Anadarko’s assets in Algeria, Ghana, Mozambique and South Africa, strengthening Total’s position in Africa.

But the area where the project is located has been targeted by jihadists since October 2017, claiming more than 300 lives.

Attackers in February launched an assault on a convoy of vehicles from an Anadarko contractor, killing one worker and injuring others. 

This led to the suspension of operations for a few months, with activities only resuming after the government announced the deployment of armed forces.

Several hundred suspected attackers have been arrested, according to authorities, but sporadic assaults continue.

On Friday Total’s CEO Patrick Pouyanne reaffirmed Total’s commitment to the LNG project saying it “is a unique asset which perfectly fits our strategy and our skills.

“Please be assured of the commitment of Total to bring the best of our human, technical and financial capacities to further strengthen the project execution … in the interests of all those involved, including the government and people of Mozambique,” he said in a statement.

The project is expected to be transformational for Mozambique, creating an estimated 5,000 direct jobs and 45,000 indirect jobs.

The country’s gas deposits are estimated at 5,000 billion cubic metres and would make Mozambique a major exporter of liquefied natural gas.

The use of natural gas is on the rise globally as countries struggle to meet energy demands and shift away from using coal.

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Kenya plans to tax OTT services like Youtube, Netflix

The over-the-top services (OTT) will soon be required to declare the incomes they derive from Kenyan consumers

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Kenya plans to tax OTT services like Youtube, Netflix

Kenya’s Information Communication and Technology (ICT) ministry is working on completing a new tax scheme.

This framework, reports say, will be used to tax foreign online streaming media services such as YouTube and Netflix.

The over-the-top services (OTT) will soon be required to declare the incomes they derive from Kenyan consumers.

OTT services include all applications that offer voice, video and messaging services over the internet.

Communications Authority Director-General, Francis Wangusi says online content providers exploit the Kenyan industry. Yet, neither the government nor artistes benefit from them.

According to Wangusi, “many countries have policies that guide these services and that is where we are heading as a country”.

He adds that technologies that will facilitate taxation of OTT services are available.

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