Africa Law & Tech Review Vol. 12

Welcome to the Africa Law & Tech Review, a publication, by Lawyers Hub, that delves into the intersections of law, technology, business, digital rights, and features policy advancements across Africa and beyond. The Lawyers Hub is an organization based in Kenya working at the confluence of Law, Policy, and Technology. Learn more about who we are and what we do.

Recap of the Previous Week at Lawyers Hub:

Webinar on Gender Perspectives on AI and the Rule of Law in Africa: In partnership with UNESCO , we hosted a webinar discussing the challenges and opportunities of promoting gender equality in AI development. Experts (including Teki Akuetteh (Ms.) , Neema Jaji (Adv) , Lilian Olivia Jorge Andrés Clarke De la Cerda & Sharmaine Koh ) explored strategies for upholding the rule of law while advancing inclusivity in this rapidly evolving field. You can recap the recording of this session here

Policy Discussion on AI Policy Developments in Africa: We held a policy discussion highlighting AI policy developments in Africa for the first quarter of 2024. The event provided a platform for stakeholders and experts (including Olamide Goriola , Raymond Amumpaire , Victor Famubode , Kingsley Owadara & Susan Otieno ) to share insights and experiences, contributing to the advancement of AI policy in the region. You can recap the recording of this session here.

We are also thrilled to announce that our CEO and Founder, Linda Bonyo , was appointed as a member of the working group for the DPI Safeguards Initiative - Office of the Secretary-General’s Envoy on Technology. Linda’s expertise and unwavering commitment will undoubtedly play a significant role in promoting digital rights worldwide. We take immense pride in her achievements and eagerly anticipate the influence she will exert in this crucial role. Congratulations, Linda Bonyo .

Kenya’s ICT Ministry Mandates Quarterly Compliance Reports from TikTok in Regulatory Move

TikTok is required to publish compliance reports every three months in Kenya, detailing content removals, as part of the country's regulation efforts. The ICT ministry prefers regulation over banning, citing negative impacts on Kenyan youths and entrepreneurs who rely on TikTok. This move is part of a broader plan to regulate social media platforms in response to various concerns.

During a parliamentary hearing, John Tanui, the ICT principal secretary, argued against banning TikTok due to risks like splinter nets, competition inhibition, and freedom of expression limitations. Banning the app could also impact telcos' data revenues. The ministry recommended partial regulation in consultation with ByteDance to address concerns within Kenyan laws, proposing the Communication Authority of Kenya (CAK) oversee new media platforms.

With an estimated 10.6 million users in Kenya, some using TikTok for income, the app is widely used, ranking Kenya top in TikTok usage according to a 2023 Reuters Institute report. Tanui believes regulating TikTok instead of banning is a win-win, maintaining access to global social media platforms for free flow of information and enhancing competitiveness in the global digital landscape.

Tanui stated, "TikTok serves as a diverse platform for expression, encompassing creativity, political commentary, and cultural representation. Banning TikTok limits the channels through which individuals express themselves, potentially stifling a range of perspectives and creative voices."

Criminalizing Fibre Damage: Nigeria's Response to Telecom Vandalism

Nigeria's works ministry is finalising a regulation to criminalise fibre damage, responding to cable cuts that caused ?27 billion in losses to MTN and Airtel. The regulation will impose stiffer penalties and target underground network cables.

Vandalism in Nigeria has long been a problem, causing billions in damage. For the telecom sector, which is among Nigeria's most productive, vandalism leads to hours of outages and significant losses. MTN, Nigeria's largest telco, faced over 6,000 cuts on its fibre network last year, resulting in hours of outages. The company spent ?11 billion relocating 2,500 kilometres of vulnerable cables between 2022 and 2023, prompting complaints to the government.

The new regulation will also address construction companies, often responsible for damaging underground cables. In February, MTN customers endured over five hours of outages due to fibre damage caused by a road construction firm, an oil serving company, and a fire.

Nigeria's telecom industry has faced mounting operating costs due to Naira devaluations and increased electricity and fuel prices. Airtel's profits plummeted by 99% last year after currency devaluation, while MTN reported its first loss in three years in 2023, with a ?137.0 billion loss compared to ?348.7 billion profit in 2022.

Ghana Revenue Agency Targets Foreign Income of Content Creators and Remote Workers

The Ghana Revenue Agency (GRA) plans to tax Ghanaians earning foreign income, including content creators, influencers, and remote workers using platforms like YouTube, TikTok, Fiverr, and Upwork, if they reside in Ghana for at least 183 days a year.

Ghanaian-based content creators and influencers earning money on international platforms like YouTube, X platform, and TikTok, as well as remote workers using platforms like Fiverr and Upwork, will now be required to pay taxes. This move is part of the GRA's efforts to expand tax collection, as reflected in the increased social media traffic and internet usage in Ghana over recent years, with YouTube holding 31.66% and X platform 9.74% of Ghana's social media traffic from March 2023 to March 2024. As of January 2024, Ghana had 7.4 million social media users, an increase from 6.6 million in the preceding year, reflecting the country's growing digital presence.

This tax is an expansion and enforcement of the existing tax regime, confirmed by Commissioner General Julie Essiam, with implementation underway, including mobilising and drafting letters to individual account holders, expected to be sent before May 2, 2024. The measure includes a voluntary disclosure aspect where interest on disclosed accounts will be waived if individuals come forward within three months.

The government's attempt to implement a value-added tax (VAT) on electricity sparked public outcry, leading to the abandonment of the initiative and a revenue gap of approximately GHC 1.8 billion ($134 million). This VAT on electricity was part of Ghana's agreement with the International Monetary Fund.

Africa’s push to regulate Artificial Intelligence

Seven countries in Africa have already established AI Policy Strategies, while others are currently crafting their own. Notably, Kenya, Botswana, Nigeria, and South Africa are among these nations. The African Union is also working on a continental AI strategy to integrate AI across industries, addressing job losses and creating new opportunities. However, this strategy is not expected to be endorsed by African heads of government until February 2025. Countries without existing AI policies would use this framework to develop their own, while those with existing policies would be encouraged to review and align them with the AU’s strategy. Debates on when AI regulation is necessary and concerns about stifling innovation could pose challenges, along with a lack of AI infrastructure hindering adoption.

The African Union Development Agency published a policy draft on February 29, laying out a blueprint of AI regulations for African nations. This draft includes recommendations for industry-specific codes and practices, standards and certification bodies to assess AI systems, regulatory sandboxes for safe testing, and the establishment of national AI councils to oversee responsible AI deployment.

African Union Hosts Multi-stakeholder Consultations on Continental AI Strategy

The African Union has launched a series of Multi Stakeholder Consultative Sessions to develop a Continental Strategy on Artificial Intelligence (AI). These consultations, scheduled for April 2024 aim to engage a wide range of stakeholders and gather input for the draft AU AI Strategy.

The consultations will be conducted online and will focus on several key objectives, including facilitating input into the draft strategy, identifying strategic elements, broadening understanding of African AI needs, and raising awareness of AI risks.

Organised around four major themes, the consultations will delve into seizing AI opportunities for social, economic, and cultural development; addressing and mitigating AI risks; creating foundations and capabilities for AI use; and fostering intra-Africa coordination and shaping international cooperation.

While these topics are interrelated, the focus on benefits, risks, capabilities, and cooperation is expected to attract input from stakeholders interested in various aspects of AI. The open multi stakeholder consultations are scheduled to take place from 19 to 24 April 2024.

The AU's initiative to develop a Continental AI Strategy underscores the growing importance of AI in Africa's development agenda. By engaging stakeholders from diverse backgrounds, the AU aims to create a comprehensive and inclusive strategy that harnesses the potential of AI while mitigating its risks for the continent's sustainable growth and development.

AI Regulation in Africa: Challenges and Hurdles in Data Protection and Enforcement

AI regulation in Africa faces several challenges, including countries lacking specific data protection laws or having under-resourced enforcement authorities, leaving individuals vulnerable. Outdated laws are ineffective against AI's unique challenges, often due to a lack of political will for amendment.

There's a tendency toward rigid, rule-based regulations over flexible, principle-based approaches. Regulatory efforts sometimes overlook broader issues like competition, energy sustainability, local content, and environmental impacts.

Weak institutional frameworks, including limited judicial capacity and fragmented laws, contribute to poor enforcement and operational inefficiencies. The absence of specialised laws and the inadequacy of existing ones to address ethical concerns such as algorithmic bias.

The Economic Prospects of Africa through Artificial Intelligence

Artificial Intelligence is poised to contribute significantly to global GDP, with an expected $15 trillion boost by 2030, fueling countries' growth by 25%. Of this, $6.6 trillion is likely to come from increased productivity and $9.1 trillion is likely to come from consumption-side effects.

Research by Access Partnership indicates that Sub-Saharan Africa could reap up to $136 billion in economic benefits. Statista projects Africa's AI market to reach US$6.90 billion in 2024, with an annual growth rate of 17.68%, reaching US$18.33 billion by 2030.

Other studies suggest that AI could contribute $1.2 trillion to Africa's economy, representing a 5.6% increase in GDP by 2030. Analysts predict that by capturing just 10% of the rapidly growing global AI market, Africa could see AI contribute a staggering $1.5 trillion to its economy by 2030, accounting for 50% of its current GDP.

SafeBoda launches electric motorcycles for a greener Uganda

SafeBoda in Uganda has introduced Electric Boda, a new electric motorcycle option. However, the country lacks a widespread network of charging stations for electric vehicles, posing a challenge for keeping the bikes powered. Moreover, finding trained mechanics and spare parts for these new bikes might be initially challenging.

Starlink announces service disruption for unauthorised users

Starlink has informed roaming customers that they can only access the service in authorised countries. This means individuals and businesses in Ghana, South Africa, Botswana, and Zimbabwe who rely on Starlink kits imported from neighbouring countries will be disconnected by the end of April 2024. Starlink clarifies that its roaming plans were intended for temporary use while travelling, not for permanent residence in unauthorised areas, and emphasises that using the service in unapproved locations violates its Terms & Conditions.

Global News

TikTok Lite’s Task & Rewards Feature Under Scrutiny by European Commission

TikTok Lite has launched in France and Spain, offering a slimmed-down version of the platform with a Task & Rewards feature that pays users for engaging with content. The European Commission has requested TikTok to respond within 24 hours regarding a risk assessment conducted before launching this feature. The Commission's concerns include the impact on children, mental health, and addiction. They are seeking information on measures TikTok has implemented to mitigate these risks, setting a deadline of 26 April for a response.

New Bill Introduced in the USA to Regulate Generative AI Technologies

Rep. Adam Schiff has introduced the Generative AI Copyright Disclosure Act, aiming to enhance transparency and accountability in the development and deployment of generative AI technologies, especially concerning their use of copyrighted content. The bill mandates developers to disclose the use of copyrighted materials in AI training datasets to the Copyright Office.

Concerns Over the Dominance of Large Tech Companies in the AI Industry

Big tech firms wield significant computing power and access to skilled employees, enabling them to influence market access through apps and platforms. This could greatly affect fair competition, potentially harming businesses and consumers by limiting choice, lowering quality, and raising prices. It could also impede the flow of innovation and broader economic benefits from AI. The key challenge is to leverage this exciting technology for everyone's benefit while guarding against the misuse of market power and unintended consequences.

Opportunities

The 5th Edition of the Africa Startup Law Accelerator 2024 is open for applications.

The Africa Startup Accelerator 2024 program, a two-month initiative by The Lawyers Hub and Laws.Africa , is now accepting applications.. Running from May 5th to June 20th, 2024, the program is designed to spur innovation in the legal tech sector across Africa. It is open to startups working in the Artificial Intelligence and Legal data space, aiming to support early-stage startups developing solutions involving AI and legal data. Participants will have access to resources, guidance on data use, and a curated set of court judgments. They will also benefit from a series of virtual workshops covering essential training modules. Apply now

Final call for Lawyers Hub's Certified Information Privacy Professional Training (CIPP/E)

The three day Virtual training is designed for professionals seeking to deepen their understanding of data protection and obtain certification (CIPP/E). Training is on 23rd - 26th April 2024. It is particularly suitable for those who handle, process, and maintain personal data in compliance with the GDPR, including Data Protection Officers, Information Officers, Compliance Officers, and Human Resource Officers.

The course covers the basics of European data protection, including the essential elements of the GDPR and the roles of major regulatory bodies and supervisory authorities. Participants will benefit from instructor-led live training over four days, an electronic copy of the IAPP course textbook, comprehensive course notes and handouts, sample exam questions and answers, and a 12-month IAPP membership. Additionally, attendees will receive CIPP/E Exam Study Resources to prepare for the certification exam. Use this link to register for Lawyers Hub's Certified Information Privacy Professional Training (CIPP/E).

The Lawyers Hub is an organization based in Kenya working at the confluence of Law, Policy, and Technology. We run capacity-building initiatives on data protection, AI policy and regulation, justice innovation, and the impacts of tech regulation on the African continent, all under the Africa Digital Policy Institute umbrella. We also offer technical legal support to innovators and startups through the Africa Startup Law Accelerator. Additionally, we convene weekly policy discussions and bring together digital policy and technology actors annually at the Africa Law Tech Festival in July. Every December we convene judicial actors during the Africa Legal Innovation Week. The Lawyers Hub is also the publisher of the Africa Journal on Law & Tech. Our thematic focus areas include AI and Data Governance, Digital Platforms and Infrastructure Regulation, Intellectual Property, Internet Governance, Justice-Tech, and Digital Democracy.Learn more about who we are and what we do.

www.lawyershub.org

Subscribe to our email newsletter to receive the inside scoop on Law & Tech!