BUSINESS - The African Mirror

Aug

23

2024

By SAMUEL ADOMAKO and JOSEPH AMANKWAH-AMOAH

Corruption holds small businesses back: Ghana study reveals two strategies to avoid the traps

BUSINESS

SMALL and medium enterprises account for 95% of all registered businesses and contribute about 50% to the total GDP of countries in sub-Saharan Africa. Yet they face significant obstacles to growth and prosperity. These include, but are not limited to, the traditional barrier of acquiring finance. Corruption is perhaps the biggest challenge. Its effects are worsened by the region’s generally weak governance and, in some cases, political instability. Small and medium businesses in these kinds of environments struggle to get the vital resources and expertise they need to operate efficiently and to grow. Ghana is no exception. The country was…

Aug

22

2024

By The African Mirror

Africa’s mobility startups dethrone fintechs, scale new heights

BUSINESS

AFRICA’S mobility startups are having a moment. For the first time, these small businesses in transport and logistics have dethroned Fintechs in attracting the most investor funding on the continent. In another historic first, mobility startups are beginning to explore cross-border rental trips as they look to capitalize on growing intra-Africa tourism fuelled by the removal of visa requirements by some countries and the adoption of multi-country visa regimes by others. In the first half of 2024, mobility startups raised US$218 million compared to Fintech’s US$186 million, According to an Africa: The Big Deal report, which put overall funding to…

Aug

22

2024

By ANTON VAN WYK, ANMAR PRETORIUS and DERICK BLAAUW

South Africa’s competition law has special conditions for company mergers: do they benefit society or hinder business?

BUSINESS

COMPETITION is a good thing. This is the common thread through global competition law, which aims to prevent monopolies – when one firm dominates a sector. For instance, if the two most prominent companies in an industry want to merge, a country’s competition authority would likely block the merger. This would be on the grounds that the new entity would reduce competition. Such dominance wouldn’t be good for consumers, as competition usually drives down prices and is good for product quality. South Africa’s competition law follows the same principles. But it has another unique set of conditions too. South African…

Aug

21

2024

By CONRAD ONYANGO, BIRD STORY AGENCY

bird TenX : Africa’s top 10 Investment destinations

BUSINESS

IN 2021, Egypt, Morocco, and South Africa were the top investment destinations in Africa. Fast forward to 2024, the tables have turned for these large economies with substantial populations and economic wealth. Instead, two island nations - Seychelles and Mauritius - have emerged as the new investor favourites, as the focus shifts beyond population size and overall wealth to a consideration of personal freedom and human development. However, despite these shifting investor preferences, the major economies in North, South, and West Africa still dominate the list of Africa's most attractive countries for investors. A report compiled by Rand Merchant Bank…

Aug

20

2024

By RALPH HAMANN; CHIEN-MING CHEN; JURY GUALANDRIS; KEVIN DOOLEY; MARTINA LINNENLUECKE; MICHAEL L. BARNETT; MIRIAM WILHELM and SERGIO LAZZARINI

Supply chains should make the world better, not worse – it’s time for a rethink

BUSINESS

EVERY product or service that you consume is part of a supply chain. Supply chains include an array of activities connecting mining or harvesting, processing, manufacturing, logistics, marketing, retail, consumption, and waste management. Even quite simple products or services can have complex supply chains that span the globe. Each of these activities along the supply chain will have an impact, socially and environmentally. Some are positive, such as job creation and training opportunities. Others are negative, such as deforestation to expand rangelands for meat production. For years, large companies and brands have come under increasing pressure from governments, NGOs and…

Aug

18

2024

By TSEGAY TEKLESELASSIE

Ethiopia’s bold economic reforms target stability and growth, but they come with risks

BUSINESS

ETHIOPIA’S recent macroeconomic reforms, supported by the International Monetary Fund (IMF) and the World Bank, could have profound implications for the country and the region. The key reforms include the use of a floating exchange rate system and of interest rates as a policy tool. They were introduced just ahead of the approval of a financial package that could eventually amount to about US$20 billion by the IMF and the World Bank. Ethiopia is also expected to save about US$5 billion from its credit restructuring following the IMF deal. The financial package aims to tackle pressing issues such as inflation,…

Aug

16

2024

By The African Mirror

South Africa can position itself as a major player in the digital economy, creating jobs

BUSINESS

DAVID MASONDO SINCE our peaceful 2024 general elections, two significant positive events have occured. Firstly, we have successfully constituted the Government of National Unit (GNU) through the collaboration between parties from across the political spectrum to advance the interests of the South African people. Secondly, during the Opening of Parliament Address, President Cyril Ramaphosa on July18, outlined the following as GNU priorities: Drive inclusive growth and job creation Reduce poverty and tackle cost of living Build a capable, ethical and developmental state. In less than three weeks, retirement funds across the country will implement the Two-Pot Retirement System. This system…

Aug

14

2024

By The African Mirror

Smaller African economies are getting more investor attention

BUSINESS

CONRAD ONYANGO SMALL African economies are punching above their weight to emerge as the most attractive to investors, bolstered by their higher economic and personal freedoms. A new study, ‘The 2024 RMB Where to Invest in Africa report,’ shows that investors are looking beyond markets with big populations and larger economies. Instead, they are seeking destinations with higher levels of stability and growth opportunities in a well-regulated environment. The report, developed by Rand Merchant Bank(RMB) in collaboration with the Gordon Institute of Business Science, ranks two island nations — Seychelles and Mauritius — as the most attractive investment destinations in…

Jul

30

2024

By The African Mirror

South Africa is changing its retirement rules to help boost country savings: how it will work

BUSINESS

A study of 160 countries, spanning 60 years of economic history, establishes that there is no country that has been able to transition from “poor to prosperous” without a high savings rate. And that households - in other words you and me - are one of the most important contributors to a country’s overall level of savings rate. Yet, South Africa’s household savings rate is among the lowest in the world at only 0.5%. This is far below that of many emerging market peers like Brazil, Chile, or India where households save between 5% and 9% of gross domestic product.…

Jul

27

2024

By XN IRAKI

Kenya’s new cabinet: finance minister faces an uphill battle against corruption, unemployment and debt

BUSINESS

KENYA faces difficult times ahead because of pressure to pay debts, create jobs for the youth, offer improved services to citizens and uproot entrenched corruption. The tough journey on the new path begins afresh with the appointment of a new cabinet which takes office after weeks of unrelenting protests by Kenya’s young population demanding better governance. The protests were triggered by steep tax rises proposed in the 2024/25 Finance Bill 2024. Ensuing nationwide protests forced President William Ruto to withdraw the bill. This didn’t stop the protests and President Ruto subsequently fired his cabinet with a promise to address a…