Browsing: South Africa

Yellen's trip comes a month after the US-Africa summit in Washington, where the US President promised billions of dollars in investment, trade and development aid. www.theexchange.africa
  • The United States has been working to increase its economic and political engagement with Africa in recent years.
  • Yellen arrived in Dakar, fresh off a nearly three-hour meeting with China’s vice premier Liu He.
  • The Biden administration is trying to counter China’s growing influence and infrastructure in the region by offering African countries an alternative path on economic and political security

US-Africa relations have been on the rise in recent years, and the recent visit by US Treasury Secretary Janet Yellen to Senegal has further solidified the commitment of the United States to expand economic opportunities for all in Africa.

Yellen’s visit to Senegal, which took place on January 18, 2023, was a clear demonstration of the importance the United States places on its relationship with Africa. During her visit, Yellen met with young entrepreneurs and business leaders, and delivered a speech emphasizing the potential of Africa’s young entrepreneurs and …

  • The Kenyan Startup ecosystem has employed 11,000 people according to the latest analysis by Disrupt Africa. 
  • The Kenyan Startup Ecosystem 2022 report indicates that at least 308 tech startups were in operation across Kenya as of November 2022. 
  • At least 242 Kenyan tech startups raised a combined US$1,281,918,200 between January 2015 and November 2022. 

A new report by Disrupt Africa has revealed that jobs by Kenyan startups hit 11,000 in 2022. 

The data dubbed ‘Kenyan Startup Ecosystem 2022’ indicates the jobs were created by 308 tech startups across Kenya as of November 2022. 

According to the report, these startups are also supported by a strong investment ecosystem. At least 242 Kenyan tech startups raised a combined US$1,281,918,200 between January 2015 and November 2022, a figure bettered only by Nigeria. 

By mid-November, 63 Kenyan startups had raised funding in 2022, with the country’s running total for the year standing at US$506,686,000.

The low adoption of CBDCs in Africa, which would hinder the policy objectives central banks hope to achieve, remains a significant concern for African central banks.

  • 90 per cent of central banks were involved in CBDC analysis or projects in 2021. The percentage of central banks undertaking pilot projects reached 26 per cent
  • Access to digital cash as an alternative payment mode is a critical factor driving the adoption of CBDCs in Africa.
  • Providing access to those without internet or smartphones is a significant challenge for adopting CBDCs in Africa.

What is a CBDC

A central bank digital currency (CBDC) is a digital currency valued in the national unit of account that serves as a central bank liability. Initially, central banks globally were cautious about CBDCs, but their interest has grown recently. According to a recent Bank of International Settlements (BIS) poll, 90 per cent of central banks were involved…

In terms of the fiscus, South Africa expects to run a deficit of -4.1 per cent in 2023, however, the deficit is expected to narrow for the next 3 years closing 2026 at -3.6 per cent. This demonstrates significant fiscal consolidation.

Over the next 3 years the South African government expects to consolidate its public finances and reduce its deficit by inter alia increasing revenues and or managing or containing costs. According to Investec, “The current fiscal year (2022/23) has seen a substantial boost to nominal (actual) GDP due to high inflation, which has eased both the fiscal debt and deficit projections as a per cent of GDP, although does not boost real GDP, which is the measure of the country’s growth and has the distorting effect of inflation removed.”

Among countries in Africa, South Africa is getting its public financial act together. The country is paying down its debts,…

A recent index report showed that Tanzania’s agro sector is mechanizing rapidly on the back drop of value addition mini-factories, the revolution is not unique to Tanzania, it is happening continent wide and North Africa is leading.

Evidence to this fact lies in the pages of the Africa Industrialization Index (AII) report that show more than 35 of Africa’s 52 countries have become more industrialized over the span of the last decade.

The multi-stakeholder report, prepared by the African Development Bank, the African Union and the United Nations Industrial Development Organization (UNIDO), attests to an ongoing industrial revolution in Africa.

The Africa Industrialization Index (AII) uses 19 indicators to rate each country’s level of industrialization ranging from performance of its manufacturing sector, capital, labor to a country’s business environment, its infrastructure and even its entire macroeconomic status.…

Seasonal adjustment is a means of removing the estimated effects of normal seasonal variation from the series so that the effects of other influences on the series can be recognised more clearly. Seasonal adjustment does not aim to remove irregular or non-seasonal influences which may be present in any particular month. According to Stats SA, seasonally adjusted estimates are generated each month using the X-12-ARIMA Seasonal Adjustment Program developed by the United States Census Bureau.

Seasonally adjusted manufacturing production increased by a total of 1.9 per cent in the third quarter of 2022 compared with the second quarter of 2022. Seven of the ten manufacturing divisions recorded positive growth rates over this period.

The largest positive contributions were made by motor vehicles, parts and accessories and other transport equipment division which increased by 21.1 per cent. The food and beverages division increased by 4.0 per cent contributing 0.9 of a …

Seasonally adjusted mining production increased by 2.2 per cent in the third quarter of 2022 compared with the second quarter of 2022. The largest positive contributors were gold with 9.6 per cent; diamonds with 20.4 per cent; coal 3.2 contributing per cent; and manganese ore with 10.2 per cent and contributing 0.7 of a percentage point according to Stats SA.

Mineral sales at current prices increased by 20.7 per cent year-on-year in September 2022. The largest positive contributors were: coal with 63.1 per cent and contributed 14.1 percentage points; gold contributed 122.4 per cent and contributed 10.0 percentage points; ‘other’ metallic minerals 164.0 per cent and contributed 3.1 percentage points; and manganese ore with 33.0 per cent and contributing 1.7 percentage points.

South Africa produces over 250 million tonnes of coal every year. It is estimated that almost 75 per cent of this coal is used domestically. Nearly 80 per …

The Kenya-South Africa visa deal will take effect on January 1.

At the time of the announcement, South African President Cyril Ramaphosa was in Kenya for his first official trip to the country at the invitation of President Ruto.

Ramaphosa said they discussed the visas issue between Kenya and South Africa to allow Kenyans to visit the Southern African nation visa-free basis.

“This will officially start on January 1, 2023, and it will be available to Kenyans for a 90-day period per year,” he said.

In addition, the Kenyan and South African leaders directed their respective trade ministers to work on removing barriers limiting trade between the two African countries. The two countries are also working to address trade barriers to increase business and trade cooperation.…

Heineken notes that this embedded grid-connected solar project incorporates single axis tracking technology that enables the panels to move with the rise and setting of the sun.

Single-axis tracking systems tilt on one axis, tracking the sun as it moves from east to west during the day.

A solar tracking system adjusts the position of a solar panel along an axis. This is done to ensure a small angle of incidence or the angle that sunlight hits a solar panel.…

Delivering the Medium-Term Budget Policy Statement (MTBPS), the Minister increased the revenue collection estimate that SARS must collect to R1.682 trillion from R1.598 trillion.

SARS is central to tax revenue collections in the country and allows for adequate fiscal space to attend to social and investment spending priorities while keeping an eye on debt service costs. It provides about 90 per cent of all government revenue, which makes this increase in the revenue to be collected by SARS very significant.

The South African Revenue Service (SARS) has welcomed Finance Minister Enoch Godongwa’s emphasis on ensuring that government finances are spent in an equitable, efficient and flexible manner to support South Africa’s development objectives.…