Author: Evelyn Shumba

Folktales and fairy tales alike carry stories of ordinary beings rising through superhuman ways to become extraordinary. The story of China’s rise to global dominance reads much like a fairy tale. Just a simple agrarian-based economy in the 1960s, it has grown to become a world superpower in less than a decade. This phenomenal growth is outstanding and carries hope for Africa. The question is can Africa replicate the Chinese story?  The recent IMF’s World Economic Output 2020 revealed a new world order. According to the report, the US economy at $20.8 trillion trails the Chinese economy at $24.2 trillion.…

Public funds are seldom enough to fund developmental projects which is why many Africa countries have turned to debt.  Albeit the challenge with accumulating mounds of debt is the equal mounds of repayment obligation with the added inconvenience of interest accrual.  The fluctuations in commodity prices which African countries rely on have not helped the situation. Data from the IMF indicates that 20 of the 54 countries in Africa are already in or headed towards distress.  With the rising number of countries going towards the red zone, it is certainly a nerve-wracking fact for Africa. COVID-19’s Impact on African Debt …

South African Credit rating agencies, Moody’s and Fitch, have both downgraded South Africa’s credit rating. The country’s credit rating further plummeted into junk territory making debt issuance both difficult and expensive Moody’s dropped the credit rating two steps below investment grade to Ba2 from the previous Ba1 level. ”The downgrade reflects the impact of the pandemic shock, both directly on the debt burden and indirectly by intensifying the country’s economic challenges and the social obstacles to reforms. South Africa’s capacity to mitigate the shock over the medium term is lower than that of many sovereigns given significant fiscal, economic and…

Africa’s Cashless Payment Revolution, According to World Bank data, more than two-thirds of Africa’s population has no access to the formal banking system. This is largely the direct result of challenges such as underdevelopment, financial illiteracy as well as a predominantly rural based population.  These factors among others have led to a situation where banking is both inaccessible and overly expensive for the bulk of the population. Further, African economies are driven by an informally oriented economic climate; as a result, banking for many is not an option.  This situation has prompted innovative approaches to avail financial services. Among the disruptions in financial…

South Africa’s unemployment soars have risen to levels last seen in 2008. According to the country’s National Statistics Agency, 30.8% of South Africans are now unemployed. This figure is the highest the country has experienced since 2008. COVID causes rising unemployment. Source: Trading Economics The statistics are mainly caused by the effects of COVID-19 on the economy. The southern African country, one of the most industrialized in Africa, was among the first to record a case of COVID-19 on the continent. It is also one of the most heavily affected countries in Africa. In response to the pandemic the government…

A South African tech-based company FinChatBot has secured a funding round worth $1.6 million to drive expansion beyond South Africa. The fintech company is a provider of customer service AI bot technology in the financial services industry. Its bespoke technology connects with different operating systems and third-party systems allowing financial services firms smooth interaction with their customers. Their AI-based chat system operates independently of human interaction. The company’s mission of guiding the customer experience will be supported by three funding partners. The participants in the funding round are:  Compass Venture Capital, an early-stage focused investor that is based in Mauritius.…

In what could easily be mistaken as a scene from the TV series Knight Rider, an autonomous bot delivery vehicle took to the streets of London. In its maiden journey, it delivered medical supplies for a Hounslow care home. The vehicle named Kar-go is a brainchild of Zimbabwean serial entrepreneur Pasi William Sachiti. It uses artificial intelligence to learn from natural events, including the terrain, allowing it to use this learned knowledge in new situations.  The bot also has a specialized delivery management system and is capable of delivering parcels completely autonomously.  To fulfill safety regulations, Kar- go moves around…

The South African government last week announced a resumption in international visitors to the country amid a COVID- 19 infection reality.  Earlier this year, South Africa, like many other countries, shut itself out from the world to control the spread of COVID within its borders. It immediately implemented local lockdowns which have been gradually lifted in different phases.  Authorities had initially indicated that international borders were billed to be opened in February 2021. The country has, however, given the green light to international visitors in order to stimulate a faltering tourism sector. Initially, borders were opened on October 1 but…

COVID-19 Vaccine On African Soil South African Aspen Pharmacare, a wholly-owned subsidiary of Aspen Holdings, has entered into an arrangement with Janssen Pharmaceutical, an arm of Johnson & Johnson, for the commercial reproduction of candidate COVID vaccine Ad26.COV2-S. Aspen Pharmacare will do the formulation, filling as well as secondary packaging of the vaccine. After which it will be supplied to Johnson & Johnson.  COVID-19 Vaccine The fine print of the agreement, including the terms of manufacturing, is yet to be concluded. Further, the technology transfer required to complete the successful implementation of the deal has not yet been finalized. The…

Education Business Exeo capital, an African alternative investment firm, has acquired the Pearson Institute of Higher Education. The acquisition, a joint initiative between EXEO Capital and Stellenbosch Graduate Institution, is set to widen availability and access to higher education in Africa, particularly South Africa.  Person Institute Of Higher Education operates across 12 separate campuses in South Africa covering over 7000 students.  The institute of higher learning was formed through the union of CTI Education Group and Midrand Graduate Institution in 2010. The institution offers academic and career-oriented learning programs.  The investment aims to scale the operation of Pearson Institute within…