Speak good English, can’t afford lunch, South Africa’s education paradox




Speak good English, can’t afford lunch, South Africa’s education paradox

Let’s be accountable instead of pointing fingers.

It appears South Africa is fast on track when it comes to delivering English-competent individuals who pride themselves on being articulate all while faced with a dire reality being hungry.

We use the term hungry, in the form of an empty stomach, inadequately educationally nourished, and in some cases skills and sometimes work ethic deprived.

There appears to be a broken system, pipeline of some sort, as graduates, are not equating to a better economy.

Could this be a job market crisis, or is there some underlying factor?

South Africa boasts a growing university system, with enrollment figures steadily climbing over the past two decades.

However, this seemingly positive trend masks a deeper concern: a significant disconnect between education and employability.

Many graduates lack the skills and experience sought by employers, leaving them ill-equipped to navigate the challenging job market.

A legacy of unequal education:

South Africa’s education system carries the scars of its apartheid past.

Bantu education, the discriminatory system implemented during that era, prioritized white education while neglecting black education. This resulted in a poorly resourced and segregated system, leaving black South Africans at a significant disadvantage.

While strides have been made since the dismantling of apartheid, inequalities persist. A 2021 report by the National Income Dynamics Study – NIDS revealed that black African students were only half as likely as white students to complete a bachelor’s degree.

This educational gap translates to a skills gap, hindering black South Africans’ access to skilled jobs.

Universities: Quantity over quality?

University enrollment figures have indeed seen a positive trajectory.

According to Higher Education Statistics South Africa – HESA, there were over 1.1 million students enrolled in public universities in 2022, a significant increase from the early 2000s.

However, graduation rates remain stubbornly low. A 2023 News24 report cited a study by BusinessTech revealing that only 18% of students enrolled in 2015 graduated within the prescribed timeframe.

This raises concerns about the quality of education being offered.

Overcrowded classrooms, limited resources, and a lack of qualified teachers can hinder learning outcomes. Additionally, the curriculum may not be aligned with the needs of the current job market, leaving graduates with outdated or irrelevant skills.

The job market squeeze:

The consequences of an inadequate education system are acutely felt in the job market.

South Africa faces a chronic unemployment crisis, with Statistics South Africa reporting an unemployment rate of 34.9% in the first quarter of 2024. This translates to millions of South Africans struggling to find work.

Furthermore, the available jobs are often mismatched with the skills of graduates.

A 2022 IOL report highlighted a survey by ManpowerGroup South Africa finding that 75% of South African employers struggle to find candidates with the necessary skills.

This skills mismatch creates a vicious cycle, with graduates unable to find work and employers struggling to fill vacancies.

Solutions and strategies

Addressing this complex issue requires a multi-pronged approach.

Reforming the education system to prioritize quality over quantity is crucial. This involves investing in teacher training, developing a curriculum that aligns with industry needs, and providing more practical and vocational training opportunities.

Universities can play a vital role by strengthening partnerships with the private sector to ensure graduates possess the skills employers demand.

Internship programs, mentorship opportunities, and work-integrated learning initiatives can all help bridge the gap between academia and the workplace.

The government has a role to play as well. Policies that incentivize businesses to invest in skills development and create an environment conducive to innovation and entrepreneurship can foster job creation. Additionally, continued investment in early childhood development can help level the playing field from the very beginning.

South Africa’s education system holds the key to unlocking its economic potential.

Overcoming the mismatch between education and employment requires a collective effort from policymakers, universities, and the private sector.

By investing in quality education, aligning curriculums with industry needs, and fostering a culture of skills development, South Africa can create a more inclusive and prosperous future for all its citizens.

Also read: The evolving telco sector, the gap for emerging providers

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Peach Payments’ African fintech power play




Peach Payments’ African fintech power play

The African fintech landscape witnessed a significant shift on 22 July 2024, as digital payments service provider Peach Payments announced its acquisition of custom software development firm Operativa, a move that sends ripples through the continent’s burgeoning financial technology sector.

This strategic purchase, coming on the heels of Peach Payments’ US$30M million funding round led by the Apis Growth Fund II last year, marks a significant milestone in the company’s ambitious growth trajectory.

At the heart of this acquisition lies a story of collaboration turned partnership. Since 2022, Operativa has been the unseen hand behind many of Peach Payments’ core systems, quietly laying the foundation for the company’s rapid expansion across Africa. Now, with the deal sealed, Operativa’s entire team will be integrated into Peach Payments, with co-founders Dayne Olivier and Ben Janecke stepping into Principal Engineer roles.

Rahul Jain, CEO and Co-Founder of Peach Payments, views the acquisition as a natural progression of their existing relationship. “Operativa has been a trusted partner since the very beginning,” Jain explains. “The opportunity to acquire the business was not only a strategic decision but felt like an inevitable next step in our journey together.”

This move is more than a mere consolidation of resources; it’s a calculated stride towards accelerating Peach Payments’ growth strategy. By bringing Operativa’s specialised skills and developers in-house, the company aims to supercharge its capacity for innovation and expansion across the African continent.

For Olivier and Janecke, the decision to sell represents a vote of confidence in Peach Payments’ vision. “We believe that the business has what it takes to become the undisputed payments leader in Africa,” Olivier states. “We see this acquisition as a call up to the winning team.”

The sale was influenced by various factors, including their existing relationship with Peach Payments and current market conditions. Janecke adds, “We were able to build something really special with Operativa. We made significant strides working with Peach Payments as our partner, and we are confident that as an integrated business, we’ll be able to achieve even more.”

This acquisition comes at a pivotal time for Peach Payments. The additional capital from the Apis Growth Fund II is enabling the company to accelerate its product development and expansion across Africa. Jain elaborates, “Operativa has the people, skills, and intricate knowledge that comes from having worked with us on developing our systems, allowing us to hit the ground running together on some really exciting new projects.”

The move also reflects broader trends in the African fintech landscape. As the continent continues to leapfrog traditional banking infrastructure in favour of digital solutions, companies like Peach Payments are positioning themselves to meet the growing demand for seamless, reliable payment systems.

Peach Payments’ focus on making online commerce and digital payment acceptance more accessible across Kenya, Mauritius, and South Africa aligns with the continent’s push towards financial inclusion. The company’s toolkit, which enables businesses to accept, manage, and disburse payments through web and mobile platforms, is particularly relevant in a region where mobile money and digital payments are rapidly becoming the norm.

As the fintech sector in Africa continues to evolve, acquisitions like this one are likely to become more common. They represent a way for companies to quickly acquire talent and technology, enabling them to stay competitive in a fast-moving market.

The full acquisition is expected to be completed by August, marking the beginning of a new chapter for both Peach Payments and the Operativa team. As they join forces, the industry will be watching closely to see how this strategic move shapes the future of digital payments in Africa.

Read next: Africa’s fintech boom: fastest-growing region

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Salesforce unveils AI-powered customer service revolution




Salesforce unveils AI-powered customer service revolution

Salesforce has launched a groundbreaking AI-powered customer service solution, Einstein Service Agent, aiming to redefine automated customer interactions.

This fully autonomous AI agent, announced on 19 July 2024, aims to consign traditional chatbots to the dustbin of technological history.

Einstein Service Agent represents a quantum leap in AI-powered customer interactions. Unlike its predecessors, which stumble through rigid, pre-programmed scenarios, this new system boasts an advanced understanding of context and nuance, enabling it to handle a wide array of customer queries with unprecedented sophistication.

“Salesforce is delivering a future where human and digital agents join forces to improve the customer experience,” said Linda Saunders, Head Solution Engineering for Africa. “Einstein Service Agent, our first fully autonomous AI agent, will not just complete service jobs on its own; it will augment how human agents work and completely transform how service teams operate, making them far more efficient and productive.”

At the heart of Einstein Service Agent lies the Einstein 1 Platform, which leverages large language models (LLMs) to analyse customer messages comprehensively. This deep contextual understanding allows the system to determine appropriate actions autonomously, a stark contrast to the rigid, scenario-based responses of traditional chatbots.

One of the most striking features of Einstein Service Agent is its ability to generate conversational responses grounded in a company’s trusted business data, including Salesforce CRM information. This ensures that interactions are not only natural but also tailored to each organisation’s unique brand voice and guidelines.

For service organisations, the implications are significant. By offloading routine inquiries to Einstein Service Agent, human staff can focus on more complex tasks that require a personal touch. Customers, in turn, benefit from faster resolution times and round-the-clock availability.

Despite its advanced capabilities, Einstein Service Agent is designed with user-friendliness in mind. Salesforce claims it can be set up in minutes using pre-built templates and low-code actions, making it accessible to organisations regardless of their technical expertise.

The timing of this release appears strategic. Recent studies indicate a growing dissatisfaction with current chatbot solutions, with 81% of customers preferring to wait for a human agent. However, 61% of customers express a preference for self-service options when dealing with simple issues, highlighting a clear market opportunity for more intelligent, autonomous agents.

As businesses increasingly seek to balance efficiency with customer satisfaction, Einstein Service Agent offers a compelling proposition. By combining the speed and availability of automated systems with the nuanced understanding traditionally associated with human agents, Salesforce is betting on a hybrid approach to customer service.

The system’s ability to handle text, images, video, and audio inputs further enhances its versatility, allowing customers to communicate their issues more effectively. When faced with queries beyond its scope, Einstein Service Agent seamlessly transfers the conversation to a human agent, ensuring a smooth customer experience.

Currently in its pilot phase, Einstein Service Agent is slated for general availability later this year. As businesses prepare for this new era of AI-driven customer service, the success of Salesforce’s ambitious offering will likely hinge on its ability to deliver on the promise of truly intelligent, context-aware automated interactions.

Read next: NTT DATA Scores Massive Deal to Streamline Salesforce’s App Environment

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Venture capital investments in SA hit the R3 billion mark




Venture capital investments in SA hit the R3 billion mark

The Southern African Venture Capital and Private Equity Association (SAVCA) released its annual VC Survey Launch 2024, revealing positive developments in the South African venture capital (VC) market for 2023.

Key findings:

• Total investment: For the first time since the survey’s inception, total invested capital surpassed R3 billion. Since the survey’s launch 14 years ago, the South African VC industry has seen R10.73 billion invested across 1,106 deals.
• Deal activity: While the number of deals decreased slightly in 2023 compared to 2022, the overall activity remains higher than pre-pandemic levels. This indicates a trend of larger investments being made in a smaller number of companies.
• Dominant sector: The ICT sector, encompassing sub-sectors like Fintech, EdTech, Software, eCommerce, and Online Marketplaces, continued to attract the most investment, capturing nearly 88% of the total capital flow. Fintech remained the leader within ICT, followed by Software.
• Fund management: Independent funds were the most active investors, followed by captive corporate ventures and angel investors. Interestingly, angel investors made a smaller number of deals but with a relatively high average deal size.
• Diversity in fund management: The survey highlighted a positive trend in diversity within fund management teams. Over 70% of respondents reported being rated B-BBEE Level 4 or higher, with a significant number having female CEOs or black founders.

Industry leaders’ perspective:

• Tshepiso Kobile, SAVCA CEO, emphasized the importance of VC in supporting high-growth startups and fostering innovation. She noted the need for an enabling regulatory environment to further strengthen the ecosystem.
• Stephan Lamprecht, Founder of VS Nova (SAVCA’s research partner), highlighted the significant growth in VC investment from R273 million in 2014 to R3.28 billion in 2023.

  He stressed the need to continue supporting entrepreneurs by increasing the number of businesses receiving funding.

Looking forward:

• SAVCA remains committed to advocating for regulatory reforms that create a more favorable environment for high-growth startups.

  This includes supporting the proposed South African Startup Act and advocating for relaxed exchange control regulations for technology and telecommunications companies.

The 2023 VC landscape in South Africa demonstrates a positive trajectory with increased investment and a maturing ecosystem.

Continued efforts towards creating a supportive regulatory environment are crucial to further unlock the potential of the VC sector and foster innovation in the South African economy.

Also read: Understanding Forex: A Beginner’s Guide

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