BUSINESS - The African Mirror

Nov

05

2024

South Africa’s fight against extreme poverty needs a new strategy – model shows how social grants could work

BUSINESS

SOUTH Africa has been struggling for decades to reduce poverty, inequality and unemployment and raise the rate of economic growth. Economic growth has been slow since a recession in 2008. The annual growth rate averaged 1.1% between 2009 and 2021, slowing to 0.6% in 2023. Unemployment remains stubbornly above 30%. It was 32.9% in the first quarter of 2024. The country’s Gini coefficient, a measure of how income is distributed across the population, is estimated to be 0.63, one of the worst in the world. Poverty levels remain high too. A large number of people live in extreme poverty. According…

Nov

01

2024

By RENNIE NAIDOO

Mining must become more responsible and sustainable. Where hi-tech solutions fit in

BUSINESS

IF you visit a commercial mining operation anywhere in the world today, some sights and sounds – workers descending in elevators to underground shafts, the roar of truck engines – will be much the same as they have been for decades. But, like many other industries, mining is changing. Digital mining involves the use of digital technologies to make mining operations more efficient, safer, and sustainable. This industry emerged about a decade ago and has developed quickly over the past few years. This uptick is the result of recent advances in sensor technology, data analytics and artificial intelligence (AI), including…

Oct

24

2024

By SETH ONYANGO, BIRD STORY AGENCY

Kenya and Egypt soak up over half of African VC funding amid capital squeeze

BUSINESS

KENYA and Egypt have made major gains in the African venture capital stakes, sweeping up most regional funding as African startups continue to face a capital crunch that started in 2023. Egypt and Kenya have raked in over half of Africa's venture capital funding for the year to date, as the continent faces a sharp annual drop in investment inflows. Figures from Africa: The Big Deal show that the two countries collectively hauled in 75% of all venture capital in the third quarter of 2024. Egypt led with US$272 million, accounting for 43% of the total, while Kenya followed closely…

Oct

24

2024

By KEVIN P. GALLAGHER and ABEBE SHIMELES

IMF isn’t doing enough to support Africa: billions could be made available through special drawing rights

BUSINESS

AT the 2021 UN Climate Summit, Barbados Prime Minister Mia Mottley called for more and better use of special drawing rights (SDRs), the International Monetary Fund’s reserve asset. The special drawing right is an international reserve asset created by the IMF. It is not a currency – its value is based on a basket of five currencies, the biggest chunk of which is the US dollar, followed by the euro. It is a potential claim on the freely usable currencies of IMF members. Special drawing rights can provide a country with liquidity. Countries can use their special drawing rights to…

Oct

23

2024

By BONFACE ORUCHO, BIRD STORY AGENCY

Three African startups among finalists vying for the 2024 Earthshot Prize

BUSINESS

THREE African startups are among the fifteen contenders for the 2024 Earthshot Prize, which will be hosted in Africa for the first time in Cape Town. The startups all offer solutions that showcase Africa’s growing leadership in environmental sustainability, with the trio filling three of five global £1 million (about US$1.3 million) catalytic prize spots. The finalists for the 2024 Earthshot Prize - fifteen, across all awards - were unveiled at the third-annual Earthshot Innovation Summit on September 24. In a press statement unveiling the fifteen finalists, “this year’s Finalists were selected from nearly 2,500 nominees submitted by the Prize’s…

Oct

22

2024

By JONATHAN MUNEMO

Zimbabwe’s ZiG: devaluations won’t fix a currency that’s in trouble because of government overspending

BUSINESS

THE Reserve Bank of Zimbabwe devalued the ZiG by 43% on 27 September 2024. This weakened the official exchange rate from 13.9 ZiG per US dollar to 24.4 ZiG per US dollar. The ZiG (Zimbabwe Gold) is the nation’s newest currency and was launched in April 2024. The unexpected devaluation was prompted by the need to contain resurgent exchange rate pressure which started back in August due to higher food import costs and a slide in mineral export sales. The central bank decided to ease this pressure by lowering the value of the currency instead of burning reserves to keep…

Oct

22

2024

By OLUWASEYI OMOWUNMI POPOGBE

Poverty in Lagos isn’t just about money – here’s why

BUSINESS

LAGOS is Nigeria’s economic powerhouse, but it has some of the worst slums in the country. Lagos slums are characterised by high levels of poverty – the state of not having enough resources to meet basic needs for living, such as food, water, shelter, healthcare and education. Poverty is multidimensional. It is not only about money. Yet poverty in Lagos slums has often been studied using traditional methods that focus mostly on income thresholds. A person is considered poor if their income falls below a certain level. This approach captures financial hardship. But it misses other aspects of poverty, such…

Oct

16

2024

By GEDION ONYANGO

Kenya’s whistleblowers are key to fighting corruption: how a new law could protect them

BUSINESS

KENYA has published a draft bill outlining protections for whistleblowers. Long in the making, the Whistleblower Protection Bill 2024 could help to encourage disclosures in a country where 86% of the respondents to a 2023 survey feared what might happen to them if they reported corruption cases. Gedion Onyango, who researches public accountability reforms, anti-corruption and whistleblowing reforms, sets out what protections are needed and how to change public mindsets. What is whistleblowing? Whistleblowing is disclosing information about behaviour or misconduct that could harm the public interest – the overall welfare of a society. Whistleblowing is primarily associated with disclosing…

Oct

07

2024

By JOHANN KIRSTEN and LISETTE IJSSEL DE SCHEPPER

Business confidence in South Africa: how a 70-year-old survey has given early signals of the economy’s pulse

BUSINESS

Business tendency surveys provide very useful indicators of trends within an economy. The information is available well before the official statistics, such as GDP growth, and provides insights into business dynamics that cannot be found elsewhere. For 70 years the Bureau for Economic Research at South Africa’s Stellenbosch University has been conducting business tendency surveys. Indeed, South Africa remains one of the few countries where these surveys are conducted by a non-state agency. The surveys cover a range of questions, tracking everything from activity to demand, selling prices to inventories, investment and also the constraints holding back investment. But the…

Oct

02

2024

By HEIKKI HIILAMO and ENRICO NICHELATTI

Why pay tax? African study finds trust in government is key

BUSINESS

TAXES are important. They’re a primary way in which governments fund essential services like healthcare, education, infrastructure and social protection programmes. They are vital to the economic development of countries. In sub-Saharan African countries, the need for public services is great and fiscal resources are often scarce. Getting the public to pay their taxes is essential. However, a variety of structural and governance challenges have made it difficult to effectively mobilise revenue. Recent tax protests in Kenya illustrate the growing tension between taxpayers and the government in the region. The protests underscore the importance of designing tax policies that not…