BUSINESS - The African Mirror

Jun

28

2023

Shifting Tides, Rising Investments: The rise and rise of Africa’s climate tech startup funding

BUSINESS

AFRICA'S climate-related tech startups are experiencing a remarkable surge in funding. From January to May 2023, 33% of all financing directed towards tech startups was dedicated to green initiatives. Recent findings from the startup funding database, 'Africa: The Big Deal,' reveal that as much as US$2.8 billion has been invested in climate-related startups in Africa since 2019. This accounts for 21% of the total funding received by startups across the continent during this assessment period. According to the database's latest funding status report, more than 230 deals, each exceeding US$1 million, have been inked since 2019. Such a substantial number…

Jun

22

2023

By SETH ONYANGO, BIRD STORY AGENCY

Calls to shift intra-African trade to local currencies intensify as consensus build

BUSINESS

AFREXIMBANK is set to expand a local currency trade initiative, the Pan-African Payments and Settlement System or PAPSS, beyond its early adopters in order to provide greater financial autonomy to African traders. This follows the successful pilot of PAPSS, billed as a project to advance intra-continental commerce transactions in local currencies, in nine countries. Afreximbank President Benedict Oramah, speaking at the 30th anniversary of Afreximbank in Accra, announced that the roll-out of PAPSS would enable the conversion of all African and Caribbean currencies on the continent. "Very soon, we will be able to domesticate all intra-Africa payments and extend the…

Jun

20

2023

By The African Mirror

South African rand little changed as power cuts ease

BUSINESS

SOUTH Africa's rand was little changed as a reduction in the intensity of rolling power cuts boosted the currency. At 1514 GMT, the rand traded at 18.1950 against the dollar, near its previous close of 18.1900. The dollar index, which measures the U.S. currency against six major rivals, was up 0.16% to 102.46. It remained close to a one-month low of 102.00 it touched on Friday. "Locally, load-shedding (blackouts) have somewhat diminished allowing for businesses to run more efficiently and if this trend is to continue, the rand may gain additional traction," DailyFX analyst Warren Venketas said. Increased generation over…

Jun

21

2023

By The African Mirror

Nigeria’s new foreign exchange policy is good news – but it can’t work wonders for the economy on its own

BUSINESS

THE Central Bank of Nigeria recently announced changes to the way the country’s foreign exchange market will work. Foreign currencies can now be bought and sold at rates determined by the market – not by the central bank. This signals the intention of the Bola Ahmed Tinubu administration to allow market forces to determine the value of the naira. STEPHEN ONYEIWU, Professor of Economics & Business, Allegheny College In the past, there were multiple exchange rates for the currency. The International Monetary Fund has repeatedly called on Nigeria to end this. The huge gap between the official and unofficial rates…

Jun

16

2023

By The African Mirror

Republic of Congo rejects SocGen’s sale of subsidiary to Vista Group

BUSINESS

THE government of the Republic of Congo has said it will not recognise Societe Generale's sale of its country subsidiary to Vista Group because the bank did not give it a right of first refusal. Congo's finance ministry said in a statement dated June 12 that it was surprised by the announcement by SocGen that it had sold some of its subsidiaries in Africa including in the Republic of Congo. SocGen said on June 8 that it had reached an agreement to sell its subsidiaries in Congo Brazzaville and Equatorial Guinea to Vista Group for an undisclosed amount. The bank owned 93.5% of Societe…

Jun

16

2023

By NYASHA CHINGONO

Zimbabweans hit by rising prices as local currency plummets

BUSINESS

ZIMBABWEAN businesses and households are fearing a repeat of the hyperinflation seen more than a decade ago as prices of basic commodities spike after a sharp weakening in the local currency, despite government efforts to boost it. The Zim dollar has so far this month plunged more than 50% in value against the U.S. dollar after the government announced on May 29 measures to encourage the use of the local currency - as opposed to the dollar - in a bid to tame inflation. The currency has weakened by more than 80% since the start of the year. "I went into the…

Jun

15

2023

By DUNCAN MIRIRI

Kenyan president’s tax hikes alienate his ‘hustler’ base

BUSINESS

EIGHTY percent of voters in this constituency in the heart of Kenyan tea country cast their ballots for William Ruto last August, helping the self-proclaimed champion of impoverished "hustlers" score an upset presidential election win. Less than a year later, it is hard to find anyone in Githunguri willing to speak up in his defence. Since Ruto came to office, prices for staple food items have continued to rise. Ruto has also faced criticism for increasing allocations to his office and the deputy president's while cutting petrol subsidies. Now, a proposal to hike taxes on petrol and housing is fuelling the…

Jun

15

2023

By The African Mirror

Eritrea rejoins regional East African bloc after 16-year absence

BUSINESS

ERITREA has rejoined a regional East African bloc it left 16 years ago, its information minister said, in the country's latest move to rebuild ties with its neighbours. The Asmara government quit the Intergovernmental Authority on Development in Eastern Africa (IGAD) in 2007 to protest Ethiopian troops' entry into Somalia to force out its Islamist rulers. "Eritrea resumed its activity in IGAD and took its seat at the 14th Ordinary Summit in Djibouti," Information Minister Yemane Meskel wrote on Twitter late on Monday after the summit. He did not say what had prompted the decision but said Eritrea wanted to…

Jun

14

2023

By The African Mirror

Nigerian president advised by team to cut state’s stake in oil and gas sector

BUSINESS

NIGERIAN President Bola Tinubu has been advised to reduce the state's stake in the oil and gas sector to raise up to $17 billion to boost economic growth during his four-year term, a policy document showed. The proposals, drawn up by Tinubu's policy advisory team and first reported by Nigerian media at the weekend, would represent a major shake-up of the sector that has been Nigeria's economic lifeblood since the 1960s. Under the plans, the state-controlled Nigerian National Petroleum Corporation Ltd (NNPC) would sell part of its stakes in joint ventures it operates with oil majors. The document finalized in…

Jun

08

2023

By ANNE NDUNGU, BIRD STORY AGENCY

The ex-banker supplying frozen fries to international fast-food chains

BUSINESS

IN June 2007, Humphrey Mburu was excited to begin work at a local bank. The excitement didn't last, however. Just weeks into the job, he realised banking was not for him. "I felt I was not cut out for the corporate world. I was not maximising my potential, and I wanted to experience some freedom that comes with self-employment, both socially and financially," he said. Sereni Fries founder, Humphrey Mburu inspecting potato crops on a farm in October 2022. Photo Courtesy: Sereni Fries While the regular pay meant he needed to stay on the job, that didn't mean he couldn't…