BUSINESS - The African Mirror

Jul

30

2024

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…

Jul

25

2024

By IMRAAN VALODIA

South Africa has a joblessness crisis: fixing it will take fresh thinking to find a game-changer

BUSINESS

EVERYONE agrees that solving the unemployment problem in South Africa is the number one priority for economic policy for the new government, as it has been for all governments since 1994. What is less clear, and highly contested, is what should be done to solve this problem. It’s worth starting by acknowledging that the problem is complex and there are no easy solutions. It is important to understand why unemployment is such a vexing problem, why it has remained a feature of the post-apartheid labour market, why some parts of the problem are found in other countries and why others…

Jul

20

2024

By SETH ONYANGO, BIRD STORY AGENCY

Africa muscles in on the semiconductor value chain

BUSINESS

AFRICA could finally insert itself into the chip-making value chain as the U.S. taps Kenya for a groundbreaking semiconductor manufacturing partnership. In the World Economic Forum's latest analysis, this development represents a pivotal moment for Africa, offering an opportunity to transition from a raw materials supplier to an essential player in the high-tech ecosystem. In May 2024 the US Trade and Development Agency teamed up with Kenya to enhance semiconductor manufacturing in the East African country, a move that would bring Africa into the fold of global semiconductor supply chains. “USTDA’s assistance will unlock significant investment opportunities for Semiconductor Technologies…

Jul

18

2024

By SAMUEL ADOMAKO, JOSEPH AMANKWAH-AMOAH, SHLOMO TARBA and ZAHEER KHAN

Corruption hurts businesses but digital tools offer the hope of fighting it, say manufacturers in Ghana and Nigeria

BUSINESS

TECHNOLOGY has changed the way the world does business. Mobile and digital payment platforms, blockchain, cloud computing and artificial intelligence (AI) tools have all driven innovations in recent years. They allow businesses of all sizes to become more efficient and reach new markets. For small and medium enterprises (SMEs), these advances can be especially powerful. SMEs are often the backbone of emerging economies. The World Bank estimates they provide between 60% and 70% of jobs in sub-Saharan Africa and about 40% of the GDP in low-income countries. Now that smartphones are nearly ubiquitous and mobile internet access has become more…

Jul

17

2024

By XICHAVO ALECIA NDLOVU

Mining needs more regulation, according to South Africans – survey

BUSINESS

SOUTH Africa has large reserves of coal, gold, manganese and platinum. It also has “critical” minerals and metals. Though there is no consensus on which minerals are critical, they are often referred to as those natural resources that are essential for the energy transition. The transition refers to the shift from fossil fuels to renewable energy sources to reduce greenhouse gases. The technologies needed to make this shift require certain mineral and metal inputs. South Africa’s critical minerals and metals list includes cobalt, nickel, copper, lithium and rare earth minerals. It has one of the largest reserves of graphite on…

Jul

16

2024

By BONFACE ORUCHO, BIRD STORY AGENCY

Benin joins a thriving “Made-in-Africa” garment exporters club

BUSINESS

BENIN recently made its debut export of 'Made in Benin' garments to Europe from the Glo-Djigbé Industrial Zone (GDIZ), shipping 80,000 children’s leggings to French brand KIABI. According to the Investment and Promotion Company for Industry in the Cotonou-based GDIZ, Létondji Beheton, the export is a “proof of our commitment to promoting the Beninese textile industry on the international stage.” “By the end of 2024, we will produce 2 million pieces of clothing for KIABI, demonstrating our ability to meet international standards while maintaining high quality,” said the Managing Director of SIPI-Bénin S.A in a statement on July 9. The…

Jul

14

2024

By SETH ONYANGO, BIRD STORY AGENCY

Shift in investor focus as Kenya tops Africa in H1 venture capital

BUSINESS

KENYA continued its impressive investment run for the third consecutive semester, hauling in US$244 million in startup funding in the first half of 2024. In the review period, the East African nation captured almost a third (32%) of all funds raised by startups in Africa, according to the startup tracker, Africa: The Big Deal. Kenya's share of total funding grew by 5 percentage points compared to 2023 as other 'Big Four' markets, Nigeria, South Africa and Egypt struggled. In East Africa, Kenya accounted for 86% of the region’s total funding, down slightly from 89% in 2023 while overall, the region…

Jul

11

2024

By OLIVIER WALTHER

West Africa trade will take a hit as Mali, Niger and Burkina Faso leave Ecowas

BUSINESS

THE membership of the Economic Community of West African States (Ecowas) has been whittled down from 15 to 12 following the unilateral withdrawal of Niger, Mali and Burkina Faso in February. Founded in 1975, Ecowas is one of eight regional economic communities recognised by the African Union to foster regional integration on the continent. Its main objective is to create a single, large trading bloc through economic cooperation. Since 1975, Ecowas and its sister organisation the West African Economic and Monetary Union (known by its French acronym, Uemoa) have implemented numerous policies aimed at improving how west African countries trade…

Jul

06

2024

By SETH ONYANGO, BIRD STORY AGENCY

Booming demand lifts African airlines back to profit for second straight year

BUSINESS

AFRICAN airlines have returned to profit on booming demand which will further shore up their earnings in 2024, according to the International Air Transport Association. Profit per passenger is expected to be nearly double the 2023 figure. However, the projected US$100 million profit, equating to 90 cents per passenger, is in stark contrast to the global average of US$6.14, underscoring the tenuous nature of this rebound, according to the trade association of the world's airlines. Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East, emphasized the dual nature of this financial outlook. “Africa’s airlines are making a…