BUSINESS - The African Mirror

Sep

28

2024

By DANNY BRADLOW; KEVIN P. GALLAGHER and MARINA ZUCKER-MARQUES

Easing Africa’s debt burdens: a fresh approach, based on an old idea

BUSINESS

THE statistics are stark: 54 governments, of which 25 are African, are spending at least 10% of their revenues on servicing their debts; 48 countries, home to 3.3 billion people, are spending more on debt service than on health or education. Among them, 23 African countries are spending more on debt service than on health or education. While the international community stands by, these countries are servicing their debts and defaulting on their development goals. The Group of 20’s current approach to dealing with the debts of low-income countries is the Common Framework. It requires the debtor to first discuss…

Sep

18

2024

By WANDILE SIHLOBO

South African agriculture needs to crack the Chinese market. How to boost exports

BUSINESS

SOUTH Africa’s agricultural sector has more than doubled in value and volume terms since 1994. This success has been linked to international trade. Exports now account for roughly half (in value terms) of the annual agricultural production. Other drivers have been improvements in productivity through crop and animal genetics. Exports are largely to the rest of the African continent. In 2023 these accounted for 38% of South Africa’s agricultural exports. The EU is another important market for South Africa’s agricultural sector, accounting for a 19% share in 2023. In recent years, Asia and the Far East, in particular China, have…

Sep

18

2024

By ODONGO KODONGO

Kenya could run out of money to repay massive debts: how to avoid this

BUSINESS

DATA from Kenya’s central bank show that public debt (total money owed) declined between December 2023 and June 2024. The drop in external debt – by 15.4 % – over this period does not mean that the country’s overall finances have improved. Rather, it is due to the gains in the value of the Kenyan shilling, thanks to pervasive state interventions since February 2024. So high is Kenya’s public debt that servicing it ate up 69.6% of domestic revenues as of June 2024. This is more than double the recommended limit of 30%, making the country’s public debt unsustainable. This…

Sep

12

2024

By SETH ONYANGO, BIRD STORY AGENCY

Kenyan-built fintech breaks traditional banks’ stronghold in Eswatini

BUSINESS

INSTACASH, a mobile money platform, has begun to break the decades-long hold of traditional banks and telecommunications providers in Eswatini’s financial sector. Just two years after launch, the fintech developed by Kenya’s Directcore Technologies has made significant inroads into the southern African Kingdom. The non-telco operator has already captured over 200,000 users, representing more than 16.67% of the country’s population and has begun to upend the market where five banks — including three South African institutions — have long-controlled access to financial services. Its fast-growing adoption rate hints at a potential M-PESA-like effect in Eswatini as young users embrace mobile…

Sep

11

2024

By MISHECK MUTIZE

Rating agencies and Africa: the absence of people on the ground contributes to bias against the continent – analyst

BUSINESS

RATING agency Fitch recently warned that the rapid spread of the mpox virus in sub-Saharan Africa could add to the fiscal pressures many countries in the region are already experiencing. The Africa Centres for Disease Control and Prevention and the World Health Organization have declared the latest outbreak of mpox in Africa a health emergency. An epidemic in the Democratic Republic of Congo has spread to neighbouring countries. Seven countries rated by Fitch – Cameroon, Côte d'Ivoire, Kenya, Nigeria, Rwanda, South Africa and Uganda – have confirmed mpox cases. Fitch cautioned investors about possible under-reporting of mpox cases and that…

Sep

09

2024

By THOKOZILE MADONKO and FABIO ANDRÉS DÍAZ PABÓN

South Africa’s economy needs a shot in the arm, not austerity: 3 key areas where more public spending would get results

BUSINESS

FOR the past 11 years, the South African government has pursued a policy of austerity. In recent years, the government has reduced per capita spending (adjusted for inflation) by significant amounts. Spending on public services, for example, health and education, for each member of the population, has fallen since 2019, from about R30,000 (about US$1,689) to about R28,000 (about US$1,576) in 2023. The National Treasury has confirmed the deterioration in public spending and investment. But the austerity approach hasn’t worked. Unsurprisingly, the government has little to show for it. Per capita, debt service costs continue to constrain the resources available…

Sep

06

2024

By The African Mirror

Barloworld Equipment unveils state-of-the-art Botswana facility

BUSINESS

CELEBRATING six decades of partnership with Botswana, Barloworld Equipment Southern Africa inaugurated a cutting-edge dealership facility in Phakalane. This significant investment underscores Barloworld's commitment to delivering exceptional customer service, fostering local economic growth, championing sustainability, and further strengthening its enduring legacy in the nation. Since 1964, Barloworld Equipment has been a steadfast partner in Botswana's growth, supporting key industries and contributing to the development of its infrastructure. This new facility marks a new chapter in this journey, further enhancing its capacity to serve customers across mining, construction, energy, and transportation. "This milestone underscores our commitment to Botswana," said Andronicca Masemola,…

Aug

31

2024

By CONRAD ONYANGO, BIRD STORY AGENCY

Made in Africa shipbuilding gains momentum

BUSINESS

AS a South African shipbuilding firm works on an export vessel that needs no sailor, several other African countries are joining the league of local shipbuilders, to tap into a burgeoning market on the continent and elsewhere. In May, South African media reported that shipbuilder Legacy Marine was building an autonomous vessel for a client in Saudi Arabia as a proof-of-concept for search and rescue. The 9.5-metre unmanned surface vehicle (USV) being built in Port Elizabeth, Gqeberha in partnership with Noble Concentric Solutions was expected to be completed in December. UK-based Robosys Automation, a smart-shipping specialist, was contracted to deliver the…

Aug

30

2024

By WILLIE TAFADZWA CHINYAMURINDI

Starting a business after university: young South African entrepreneurs discuss the highs and lows

BUSINESS

SOUTH Africa’s youth unemployment rate, at 45.5% (among those aged between 15 and 34), is worryingly high, even in the context of widespread unemployment across the African continent. More than 72 million young people in Africa, most of them women, are neither employed nor pursuing tertiary education. And, while South African statistics have shown that holding a tertiary degree or diploma increases young people’s chances of finding employment compared with their less educated peers, there are fewer job opportunities available than there are graduates. This was illustrated in a recent study I conducted with my colleagues that traced the experience…

Aug

28

2024

By ADRIAN SAVILLE

South Africa’s new pension rules: Australia, Chile and Singapore show how personal savings can grow the economy

BUSINESS

UP until now, South Africans have been allowed to withdraw their entire pension or provident fund when leaving a job. This has left many with no savings at all when they get to retirement age. But a new system, due to come into effect on 1 September 2024, will introduce a form of enforced saving. The new regime will ensure that a significant portion of retirement savings will be retained and only accessible on retirement. This change will have profound implications for individuals – as well as the country’s economic future. That’s because savings have an enormous impact on a…