South Africa’s economy now in third place after Nigeria and Egypt

Updated on 16 May 2016

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South Africa’s domestic and political issues have seen it fall to third place behind Nigeria and Egypt. This is according to KPMG, using data from the International Monetary Fund (IMF).

While South Africa remains the “continent’s most developed economy, and has a more diversified economic base than the Egyptian economy… its fall from first and now second place amongst the continent’s giants is of great concern,” KPMG Financial Risk Manager Christie Viljoen said.

“South Africa has been known as the continent’s second-largest economy since Nigeria rebased its gross domestic product (GDP) data in early 2014. However, the IMF World Economic Outlook (WEO) released in mid-April provided more sobering GDP statistics for South Africa.

“Not only did the multilateral organisation suggest that the South African economy would grow by a mere 0.6% this year, but also that the country is now only the third-largest economy on the continent behind Nigeria and new silver medalist Egypt,” Viljoen said. (Pulse)

Half a million rands in business funding up for grabs for Soweto entrepreneurs
​Soweto entrepreneurs with innovative and original business idea are encouraged to enter the Soweto Business Stars competition, for a chance to win a share of R575 000 for their business in funding and business development support.

The competition is an initiative by the City of Joburg, in partnership with The Business Place. It is open to entrepreneurs over the age of 18 who are either operating a small business in Soweto, or who plan to launch a new business there soon. Applicants must be current Soweto residents.

20 finalists from the competition will be chosen to compete for the grand prize of R175 000, to be invested in their business. In addition the top 5 finalist receive 9 months incubation support from The Innovation Hub, all 20 finalists will benefit from an intense business support programme, which includes training, mentorship and peer-to-peer support.

To enter the competition, you can download and complete an entry form at Entries close on Friday, 13 June 2016.

Call for African governments to open up borders to encourage economic growth
Top economists and entrepreneurs put out a call that African governments open up their borders if the continent is to realise its full potential.

This was discussed by delegates at the ‘Africa Rising’ narrative at the World Economic World Forum meeting in Kigali.

AllAfrica reports that Donald Kaberuka, the former President of the African Development Bank, and currently Senior Advisor, TPG/Satya, said the easier movement of African youth across the continent would see them make significant contributions toward Africa’s growth.

This would see them tap into market and investment opportunities to expand the scope of their enterprises and create more job opportunities, added Kaberuaka, a former Rwandan finance minister.

Ashish Thakkar, the co-founder of Atlas Mara Group, praised Rwanda’s on-arrival visa policy which he said was delivering good returns in terms of investments.

Since 2014, all holders of African passports traveling to Rwanda obtain visa at the point of entry. (AllAfrica)

See Also: The Role of Women in Africa’s Economy

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