Africa Economy News Updates 2020

88 Latest Africa Economy news updates.
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Mboweni's big budget challenge: revive South africa's economy while cutting expenses

South african Finance Minister Tito Mboweni will have to show commitment to curb spending and rein in debt in this week's budget, while finding ways to revive an economy that probably contracted the most in nine decades last year.

feb 22 2021 6:11pm
business News : Finance
South africa's economy: Are we just frogs in boiling water?

As South africa's economy reaches boiling point, have we been lulled into submission by the slow and gradual increase in...

feb 20 2021 5:24pm
business News : Finance
Why South africa can be optimistic about the future of the economy

Bolder implementation of economic reform announcements is needed to lift confidence in South africa's economy, writes Natale Labia.

feb 20 2021 5:24pm
business News : Finance
Rand Report: The rainbow nation suffers further ratings downgrades

(Partner content) The South african economy has suffered further downgrades by ratings agencies, but any damage caused to the Rand...

feb 20 2021 5:24pm
business News : Finance
Opinion: South africa's economy is on a wing and a prayer

Tito Mboweni knows the bleakness of the outlook better than anyone, he is after all a realist if nothing else,...

feb 20 2021 5:24pm
business News : Finance
Knife Capitals african Series B Expansion Fund receives $10-million

A South african venture capital company, Knife Capital has secured $10million towards its Series B Expansion Fund from Mineworkers Investment Company. Knife Fund III aims to invest in innovative african companies and provide much-needed funding for businesses in the sector. Speaking on the announcement, Nchaupe Khaole, Chief Investment Officer at MIC explains that the investment into the fund is critical to supporting SMEs and the local economy. The move to change the way local institutional investors approach venture capital investment has been in the pipeline at MIC for a number of years now. Our venturing into the earlier-stage alternative asset class space makes sense given the slow economic growth in the last three years. We believe that the impact of investment in small to medium scale enterprises on innovation, job creation, and economic growth is crucial, and therefore urgent to unlock, especially right now. Our commitment brings to the table the investment, along with many of our strengths as an experienced player. One of which is our ability to influence the companies within our portfolio to partner with us and effect real, tangible change to the South african economy. We are delighted to be a key catalyst in the success of this funding round. Knife Capital Series B Fund With an aim to close the existing funding gap that is reportedly prevalent in the business sector in africa, the Series B fund aims to provide significant risk funding for the aggressive growth and scaling of businesses. Knife Capital believes that innovators and entrepreneurs in africa remain "under-capitalised" and is focused on resolving this with the launch of its Series B Fund. The venture capital fund, Knife Fund III's target is to secure $50-million and will focus on investing in scalable business-to-business technology companies that are investor-ready with attractive exit optionality. Essentially, Knife Fund III aims to address the critical Series B funding gap that has characterised the venture capital asset class in South africa, resulting in businesses not reaching full potential or exiting too early. According to Knife Capital, the Fund consists of two main funding vehicles: a USD-denominated limited partnership in Jersey and a ZAR-denominated limited partnership in South africa, which will co-invest alongside one another in portfolio companies.

feb 19 2021 5:05pm
newsarticle News : Crowdfunding
Ramaphosa warns of 'uneven' recovery for South africa

Early data shows that South africa's economy is showing signs of recovery, says president Cyril Ramaphosa.

feb 19 2021 5:05pm
business News : Mixed
South africa's three alcohol bans wiped R52 billion from the economy

The alcohol industry has published a new report detailing how much money the government's ban on the sale of liquor has cost South africa's economy.

feb 19 2021 5:05pm
business News : Finance
Youth urged to comment on Lanseria Smart City draft framework

Spokesperson for the Ministry in the Presidency Nonceba Mhlauli has encouraged young people to comment on the Lanseria Smart City draft framework. In his hybrid State of the Nation Address (SONA) last week, President Cyril Ramaphosa announced that the draft masterplan for the city, which will become home to between 350 000 to 500 000 people within the next decade was completed in November 2020 and is now out for public comment. This project forms part of governments Reconstruction and Recovery Plan for the South african economy aimed at stimulating equitable and inclusive growth on a massive rollout of infrastructure throughout the country. The infrastructure programme is expected to boost aggregate demand, assist in reviving the construction industry and contribute to employment creation. Mhlauli said some issues that young people can raise regarding the draft masterplan were about opportunities for young people in the project in terms of construction, access to finance, job creation and Small, Medium and Micro Enterprises (SMMEs). That becomes our way of engaging positively and making a contribution, so that whatever ultimately becomes the developmental project of South africa it is one that we have had an input in, she said on Thursday. The spokesperson was addressing a Youth Imbizo webinar, hosted by the Government Communication and Information System (GCIS), for young people to engage on the contents of SONA and reflect on how it relates to them as the future of South africa. Justice and Correctional Services Ministry spokesperson Chrispin Phiri welcomed the interventions outlined by the President to tackle corruption. Ramaphosa last Thursday announced the appointment of a National Anti-Corruption Advisory Council to oversee the initial implementation of the National Anti-Corruption Strategy. The Presidents solution to tackling corruption is quite pioneering. He outlined that we have an Anti-Corruption Strategy and to roll out this strategy, he has an interim council that reports to Parliament. That is instructive because you have an interim structure which is wholly independent and goes to one of the highest accounting bodies in the country, which is Parliament, to explain to the nation what is being done about corruption, Phiri said. He emphasised the importance of having a council that is multi-dimensional with the private sector, civil society and government to deal with corruption in different spaces in society. The speech also provided feedback on what has been done to combat corruption thus far and what the results are, Phiri said. These achievements include the filling of critical leadership positions within law enforcement with capable, experienced and trustworthy professionals. The President noted the improved cooperation and sharing of resources between the respective law enforcement agencies, enabling a more integrated approach to investigations and prosecutions. When allegations of fraud and corruption in the procurement of COVID-related goods and services surfaced last year, government acted decisively to put a stop to these practices. A fusion centre, which brings together key law enforcement agencies to share information and resources, was established. The fusion centre has brought many cases to trial and preserved or recovered millions of rands in public funds. In addition, the Special Investigating Unit (SIU) was authorised to investigate allegations of unlawful conduct with respect to COVID procurement by all state bodies during the National State of Disaster. The SIU has finalised investigations into 164 contracts with a total value of R3.5 billion.

feb 18 2021 6:15pm
Government's commitment to economic stabilisation welcomed

The National Association of Automobile Manufacturers of South africa (Naamsa) CEO, Mikel Mabasa, has welcomed governments commitment to economic stabilisation and the investment drive in the country. This comes after President Cyril Ramaphosa delivered the State of the Nation Address (SONA) on Thursday evening during a hybrid Joint Sitting of the National Assembly and the National Council of Provinces. Since the start of [the COVID-19 pandemic], the President has announced over R800 billion fiscal and monetary intervention; the COVID-19 social relief of distress has been extended by three months, and R57 billion in wages through the special Unemployment Insurance Fund (UIF) Temporary Employee/Employer Relief Scheme (TERS) scheme amongst other stimulus relief made available by government, Mabasa said on Friday. Naamsa said the Presidents reference to the ongoing announcements of significant investments in the countrys automotive industry underscores the confidence in the country by the automotive industry and all its multinational corporations partners. During his SONA speech, the President said by the end of 2020, the sector had recovered around 70% of its normal annual production under challenging circumstances. The automotive sector's recent investment announcements prove that the industry is committed to the country's economic recovery and growth prospects. Ford Motor Company announced a R16 billion investment to expand its manufacturing facility in Tshwane for the next-generation Ford Ranger bakkie. This investment will support the growth of around 12 small and medium enterprises in the automotive component manufacturing. The Tshwane Special Economic Zone procurement spend on construction amounting to R1.7 billion will be allocated for Small, Medium and Micro Enterprise Businesses (SMMEs), President Ramaphosa said. Toyota has invested in their KwaZulu-Natal facility to start production of the first generation of hybrid electric vehicles to come off a South african assembly line. This follows investment announcements by Nissan, Mercedes Benz and Isuzu in expanded production facilities, all of which cement South africas position as a global player in auto manufacturing, the President said. Naamsa said in addition, the R6 billion Automotive Industry Transformation Fund industry-wide initiative -- earmarked to transform the industry by broadening and deepening the participation of black and historically disadvantaged entrepreneurs -- is now fully operational. The South african automotive industry remains the most dynamic manufacturing sector in the South african economy and is a significant driver of economic growth and development for the country, Naamsa said. The automotive industry contributes 6.4% to gross domestic product (GDP) [4.0% manufacturing and 2.4% retail] and in 2019, the total automotive revenue in South africa amounted to R500 billion.

feb 12 2021 5:38pm