BUSINESS - The African Mirror

Feb

04

2025

Content monetisation to empower women entrepreneurs in Africa

BUSINESS

WOMEN entrepreneurs, who dominate Africa's Small and Medium Enterprise (SME) sector and creator economy, are poised to benefit significantly as digital entertainment platforms and social networks expand to include powerful tools for entrepreneurship and e-commerce. In the last week of January, TikTok, known for its short-form entertainment videos, launched its 'For Business' services in Kenya, its third market in Africa, following South Africa and Nigeria. Previously, YouTube and X were the only platforms sharing advertising revenues with creators in Africa for a long time. However, by the end of 2024, Meta had rolled out features that allow creators in 12…

Feb

01

2025

By ROBERT BOTHA

South Africa’s debt has skyrocketed – new rules are needed to manage it

BUSINESS

SOUTH Africa’s fiscal trajectory paints a concerning picture. Public expenditure exceeds revenue. As a result, sovereign debt is building up and interest on this debt is increasing. This raises concerns over the South African government’s financial sustainability. The debt-to-GDP ratio has skyrocketed from 23.6% in 2008/09 to a projected 74.7% in 2024/25. The International Monetary Fund has recommended that, over the long term, South Africa should reduce its debt-to-GDP ratio to 60% of GDP, in line with that of peers. Arguably more important than the debt level is how quickly debt has accumulated. Debt servicing costs, which consist of the…

Jan

28

2025

By MAEL ATAYI

The strategic role of logistics in supporting large-scale mining projects in Guinea

BUSINESS

THE Republic of Guinea is rapidly becoming a central player in the global mining sector, thanks to its rich deposits of mineral wealth. Among these resources, the Simandou mountain range holds the world’s largest untapped reserves of high-grade iron ore, estimated at over 2 billion tons. In addition to iron ore, Guinea is a top global exporter of bauxite and possesses substantial reserves of gold, diamonds, graphite, and nickel. This makes Guinea’s mining sector a key driver of economic growth and development. Mining in Guinea not only contributes to government revenue but also plays a significant role in the country's…

Jan

25

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

African nations ramp up R&D, turning page on past

BUSINESS

AFRICAN nations are making bold strides in Research and Development (R&D) investments, driving a shift in the continent's innovation landscape, according to a recent World Intellectual Property Organization (WIPO) analysis. The analysis, released on December 18, 2024, highlights how countries are increasingly channelling resources into research and development despite global economic challenges, such as inflation, geopolitical tensions and supply chain disruptions. “While many economies continue to grapple with the challenge of adequately funding their innovation ecosystems, the latest data carries an uplifting message: the momentum of innovation is alive and thriving across the globe,” the authors explained. The reported progress…

Jan

16

2025

By SETH ONYANGO, BIRD STORY AGENCY

New investments and tie-ups as insurers target rising incomes in Africa

BUSINESS

INSURANCE firms are shifting tact in a fresh push to sign up new policyholders as disposable incomes begin to surge across Africa. Allianz Europe BV, a subsidiary of Allianz SE, recently raised its stake in SanlamAllianz Africa Proprietary Limited to 49% as it bolsters its foray into the continent. Sanlam and Allianz inked their tie-up last year, with plans to launch in multiple countries, including Senegal, Côte d’Ivoire and Cameroon. SanlamAllianz now covers 27 countries in Africa, solidifying its presence in 12 overlapping markets. Their tie-up merges Sanlam’s regional dominance with Allianz’s global scale, targeting one of the world’s least-penetrated…

Jan

15

2025

By SETH ONYANGO, BIRD STORY AGENCY

Ethiopia bets on first exchange in 50 years to pull foreign capital

BUSINESS

ETHIOPIA has debuted its first securities exchange in 50 years, the latest reset in its market liberalisation drive to slash restrictions and attract foreign investments. It’s a boon for investors eyeing the populous Horn of Africa state, which has been cautiously opening its economy to global capital. The Ethiopian Securities Exchange (ESX) opened with just one listing, Wegagen Bank, but officials are optimistic about its growth. Speaking at the launch on Friday, ESX CEO Tilahun Kassahun projected that as many as 90 companies could join the exchange over the next decade, including the state-owned telecom giant Ethio Telecom, preparing for…

Jan

15

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

Africa’s “immense” value-addition opportunity

BUSINESS

AFRICA holds untapped potential in global and regional value chains, with the capacity to redefine its economic trajectory through strategic investments and integration, according to a new report. The report, Regional Value Chains and Intra-African Trade Promotion, jointly by Afreximbank and the University of Development Studies, Ghana highlights that by tapping into opportunities in sectors such as agriculture, manufacturing, and technology, Africa can transition from being a primary exporter to a prominent player in value-added global trade. “Africa could leverage a number of products and services across various sectors to develop and enhance Regional Value Chains (RVCs)… Effective RVC participation…

Jan

10

2025

By CONRAD ONYANGO, BIRD STORY AGENCY

Africa’s startup scene set for a comeback in 2025

BUSINESS

AFRICA'S startup ecosystem is set for a comeback in 2025, driven by positive funding prospects in the last half of 2024- headlined by stabilizing equity levels, the emergence of new unicorns, and an expanding digital economy. According to the latest update by Africa: The Big Deal, capital flows into Africa’s startups have experienced something of a rebound, with most of that recorded in the second half of 2024 after a slow start of the year. Although there was a 25% decrease in overall startup funding for 2024 (US$2.2 billion compared to 2023's US$2.9 billion), there is optimism as founders begin…

Jan

09

2025

By BOMIKAZI ZEKA and JASMINE KINSMAN

Should you use your retirement savings to pay off debt? Three things to keep in mind

BUSINESS

A host of countries have taken steps to reform the terms under which people can access their retirement benefits. South Africa is the most recent. In 2024 it introduced changes that allow access to some retirement savings while ensuring that most of the money is still preserved for later. Other countries that have changed the rules to allow members to dip into their savings before retirement include Australia, Chile, India and Portugal. Changes were introduced to ease the financial strain caused by COVID-19 pandemic lockdowns. People across the world are grappling with debt and the cost of living. Policymakers have…

Jan

09

2025

By MISHECK MUTIZE

Eurobonds issued by African countries are popular with investors: why this isn’t good news

BUSINESS

EUROBONDS are debt instruments issued by a country in a currency different from its own. Eurobonds have risen to prominence in Africa because they have opened a window for governments to diversify their funding sources from traditional concessionary loans offered by the International Monetary Fund (IMF) and foreign aid, both of which are declining. In addition, multilateral loans were becoming unpopular because they set strict conditions about austerity which are designed for governments to reduce spending. A bond functions as a loan in which an investor gives a borrowing entity an amount of money for a specific period of time…