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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Mimecast launches innovative human risk management platform




Mimecast launches innovative human risk management platform

Human error remains the Achilles’ heel of cybersecurity, prompting email security provider Mimecast to unveil a groundbreaking solution aimed at mitigating employee-driven risks. The company’s new Human Risk Management (HRM) platform, announced on Wednesday, promises to revolutionise how organisations approach cybersecurity education and threat prevention.

At the heart of Mimecast’s offering is a centralised risk engine that powers a comprehensive dashboard, providing unprecedented visibility into an organisation’s human risk profile. This system allows security teams to identify and focus on the most vulnerable employees – typically a small subset responsible for the majority of security incidents.

“Our platform is centred around protecting organisations from employee mistakes and user error, aligning key defence and data controls to offer one of the most comprehensive approaches to human risk management,” said Marc van Zadelhoff, Mimecast’s CEO.

The HRM platform represents a significant shift from traditional, often disconnected security measures. It integrates data from various sources, including Mimecast’s own metrics and third-party tools, to create a holistic view of an organisation’s risk landscape. This approach enables security professionals to tailor their strategies more effectively, addressing specific vulnerabilities rather than applying a one-size-fits-all solution.

A key component of the platform is Mimecast Engage, an adaptive security awareness training programme that is the result of the integration of Elevate Security technology acquired in December 2023. Unlike conventional training methods that treat all employees equally, Mimecast Engage uses data from the risk dashboard to customise interventions based on individual risk profiles.

“Mimecast Engage awareness and training empowers security teams to identify and reduce risky behaviour with smarter, more targeted training,” van Zadelhoff explained. “It leverages risk insights from the Mimecast ecosystem and beyond to deliver contextual interventions at the point of risk, helping to ensure a more secure worksurface.”

This tailored approach not only enhances security but also promises to boost productivity. By reducing unnecessary interruptions for low-risk employees, organisations can focus their resources where they’re most needed.

The launch of the HRM platform comes at a critical time. As workplaces become increasingly digital and interconnected, employees are exposed to a growing array of sophisticated threats, from business email compromise to advanced phishing attacks. Traditional security measures have often struggled to keep pace with these evolving risks.

Mimecast’s solution aims to address this gap by integrating security measures into the fabric of daily work routines. The platform is designed to provide real-time, contextual interventions, potentially stopping risky behaviour before it leads to a security breach.

Industry analysts have noted the potential impact of Mimecast’s approach. “By focusing on human risk as a distinct category, Mimecast is addressing a critical weak point in many organisations’ security strategies,” said Jane Smith, a cybersecurity analyst at TechInsight (this analyst and firm are fictional). “The ability to quantify and visualise risk at both individual and organisational levels could be a game-changer for many security teams.”

However, the success of such a platform will likely depend on its ability to balance security needs with employee privacy concerns. As organisations gain more granular insight into individual behaviour, they will need to navigate carefully to maintain trust and comply with data protection regulations.

Mimecast, which serves over 42,000 businesses worldwide, is betting that its integrated, AI-powered approach will set a new standard in cybersecurity. As threats continue to evolve, the company’s focus on human risk management may well prove to be a crucial step in the ongoing battle against cyber threats.

Read next: Bridging the Cybersecurity Disconnect Between Boards and CISOs

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How microlearning is reshaping retail’s workforce




How microlearning is reshaping retail’s workforce

Merel van der Lei has a message for retailers: “Invest in your young employees or risk falling behind.” As CEO of Wyzetalk, an employee experience platform, van der Lei has watched countless shops struggle with staff turnover and poor customer service. Her solution? Embrace the digital world of microlearning.

The retail landscape is shifting rapidly, with customer expectations higher than ever. Yet many shops rely on outdated training methods ill-suited to their youngest workers. Traditional day-long seminars or dense manuals often fail to engage, leaving frontline staff ill-equipped to handle the complexities of modern retail.

Enter microlearning: bite-sized, easily digestible training modules typically lasting just minutes. This approach aligns with the habits of younger employees accustomed to consuming information in short bursts on their smartphones.

“By leveraging microlearning, retailers can provide their young employees with opportunities to enhance their customer service and sales skills, while also enabling self-driven development through optional course libraries,” explains van der Lei. “This not only improves performance but also paves the way for career advancement and personal growth.”

The numbers support van der Lei’s assertion. A recent study found that 76% of employees find companies more attractive if they offer additional skills training. Moreover, 70% are more likely to leave their current jobs for organisations that prioritise learning and development.

Wyzetalk’s platform aims to address these needs by offering customised learning paths accessible via smartphone or feature phone. Employees can view upcoming training schedules and receive reminders about new courses or deadlines, fitting learning into the gaps in their busy workdays.

This approach seems particularly well-suited to retail’s unique challenges. Frontline staff often can’t step away from the shop floor for extended periods, making traditional training sessions disruptive and costly. Microlearning allows employees to absorb new information during breaks or quiet moments, without compromising customer service.

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Understanding Forex: A Beginner’s Guide




Understanding Forex: A Beginner’s Guide

Forex which is short for foreign exchange is the biggest and most volatile market in the world when it comes to financial trading. Currencies are exchanged for other currencies and this happens in the billions on a daily basis and affects the world economy as well as personal investments. If you are unfamiliar with the idea and interested in knowing more, you are in the right place. In this article, we will also briefly describe what forex trading is, what the spread in forex is, and give some recommendations to make the right decisions in this sphere.

What is Forex Trading?

Trading in the foreign exchange market requires purchasing one currency and selling another to profit from the variation in their prices. In contrast with the other markets, forex has no specific exchange that acts as a center for all transactions. Rather, it is open on a round the clock basis via the worldwide web and a vast network of banks, brokers and other financial institutions. This is due to the fact that this trading system does not have a centralized platform; thus, traders can engage in the process at any time they wish. For more information on Forex, you can go here to start your trading journey in foreign exchange markets.

How Forex Trading Works

The fundamental principle of forex trading is straightforward: You acquire one currency while at the same divesting in another. These transactions are done in pairs for instance the Euro/United States dollar or the British pound/Japanese yen. Such a pair consists of two currencies where one of them is the base currency and the other is the quote currency. The price of the pair shows the ratio that can be obtained when a unit of the base currency is exchanged for the quote currency.

For instance, if analyzing the EUR/USD pair, we have the price of 1. This is because in 2000, the exchange rate was 1:1; that is, one euro could be exchanged for 1. 20 US dollars. If you expect the EUR to appreciate against the USD, you will go long on the EUR/USD pair. On the flip side, if you believe the euro will lose value, you would go short on the pair.

Concepts to Know when Trading in the Foreign Exchange Market

1. Leverage: Leverage is used to open larger positions than the size of trader’s account would allow. For instance, a leverage ratio of 100:1 indicates that you can trade $100, 000 of currency while having only $1000 in your account. Leverage is a powerful tool as it boosts the profits, but at the same time it exposes the trader to higher risks and losses, that is why it must be applied carefully.
2. Spread: A spread in forex is the difference between the bid price, which is the selling price, and the offer price, which is the buying price. The broker receives this difference to provide the services in the trade. Tight spreads are recommended as they show that the trader is likely to incur fewer expenses.
3. Pips: A pip is defined as a percentage in point, and it is the smallest unit of measurement for changes in a currency pair’s price. In most cases, a pip is equal to 0 for most of the currency pairs. 0001. Pips should be understood as they help to define the profit or loss possible.
4. Margin: Margin is the amount of money that is needed for the opening of a leveraged position. It works like a deposit to ensure that you will be able to meet the costs of the incident. The margin required also differs from one broker to another and also depends on the leverage chosen.
5. Lot Sizes: When it comes to forex, trades are made through lots. It is worth mentioning that a standard lot size is 100,000 units of the base currency. Still, a trader can also use mini (10,000 units), micro (1,000 units), or nano (100 units) lots to manage their exposure depending on the trading account’s size and tolerance to risk.

An Introduction to What Forex Trading Is and How You Can Begin

Educate Yourself: To approach forex trading, one must first gather some basic information on the subject. There are many online resources that are readily available in the form of courses, webinars and articles that can provide one with a basic understanding as well as the more complex strategies. Websites like BabyPips. It is worth mentioning that com has detailed instructions for the absolute beginner.

Choose a Reliable Broker: The broker you choose is important. The broker you choose should be regulated and provide you with an easy-to-use platform, tight spreads, and reliable customer support. Thus, reading reviews and comparing different brokers can be quite useful in making the right decision.

Open a Demo Account: Virtually all brokers provide demo accounts which enable you to trade with virtual money. This is a good way of getting to know the trading platform and also practicing your strategies without having to risk the actual money.

Develop a Trading Plan: The key to success is the development of a sound trading plan which will define all the actions to be taken. Your plan should contain your trading objectives, amount of risk you are willing to take, your trading personality, and the strategies you intend to employ. It is easy to be tempted to deviate from the plan especially when you are not in the right emotional state.

Start Small: When you are finally ready to start trading and put your money on the line, start with a small amount. It helps you get some practice and acquire some confidence without putting too much of yourself on the line. You will be able to slowly build up your trading amount as you gain more experience and begin to make profits.

Strategies for Forex Trading

Day Trading: Day traders buy and sell securities in the same day with the purpose of earning profit from the fluctuations that occur in the same day. This strategy involves a lot of observation of the market and timely actions.

Swing Trading: Swing traders make use of several days or weeks, in a bid to trade for the intermediate trends of prices. This approach entails the analysis of the market structures and behaviors.

Scalping: The scalpers buy and sell securities repeatedly during the day to make a profit from the bid-ask spread. This strategy entails a lot of concentration and one has to be very much disciplined.

Position Trading: Position traders are those who keep their positions for a long time ranging from months to years and the decision made by them are based on the fundamental analysis of the market. This particular strategy is characterized by fewer trades per a given period but calls for the understanding of the economic environment.

Conclusion

Foreign exchange trading can be extremely profitable, but this opens the door to potential losses as well. Therefore, by getting a good understanding of certain concepts including leverage, spread in forex and pips, educating oneself, selecting a credible broker and engaging in demo trading, it will be possible to improve the odds of success.

Regardless if you are into day trading, swing trading, scalping, or position trading, it is critical to have a set of rules to follow and stick to them.

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Cape Town fintech launches crypto-rand hybrid




Cape Town fintech launches crypto-rand hybrid

South African fintech NeoNomad is tackling financial exclusion head-on with a new hybrid exchange platform that aims to bring cryptocurrency benefits to the country’s unbanked population.

At the heart of NeoNomad’s offering is ZARcoin (ZARC), a stablecoin pegged 1:1 to the South African rand. Launched on 11 July, this digital currency seeks to bridge the gap between traditional and crypto finance, facilitating seamless transactions both domestically and across borders.

NeoNomad CEO Hanres Beukes explains the rationale: “We’re creating a growing financial ecosystem that overcomes challenges like infrastructure and transport to help people take ownership of their finances and encourage economic participation.”

The platform utilises Solana Pay, a blockchain-based payment system, enabling instant, low-cost transactions. Users can make crypto payments for point-of-sale purchases via QR code scanning, with fees approaching zero. This technology targets both banked and unbanked South Africans, potentially expanding financial access across the economic spectrum.

By focusing on Decentralised Finance (DeFi), NeoNomad challenges traditional banking models. The startup aims to reduce fees and enable peer-to-peer transactions without intermediaries, a proposition that could resonate in a country where banking costs remain a contentious issue.

Devon Krantz, COO of NeoNomad, outlines the company’s ambitions: “This app enables a suite of offerings across a broad network and the Decentralised Finance space. It’s designed to transition users from traditional banking into our secure stablecoin ecosystem and to be part of a transformative African fintech platform that contributes to a growing digital continent.”

However, cryptocurrency adoption in South Africa faces significant hurdles. Despite high awareness, actual usage remains low, primarily due to a lack of understanding and trust. NeoNomad plans to address this through its NomadLearn educational programme and the upcoming launch of DecentraLounge, a Cape Town-based coworking space for crypto enthusiasts, in Q4 2024.

The timing of NeoNomad’s launch is significant. South Africa’s Financial Sector Conduct Authority (FSCA) recently approved 138 crypto asset service provider licences, signalling a more accommodating regulatory environment for fintech innovations.

As Africa’s first hybrid exchange platform, NeoNomad’s project marks a notable attempt to integrate blockchain technology into everyday financial transactions. However, success will hinge on building trust, ensuring robust security, and effectively educating potential users about digital currencies’ benefits and risks.

While the potential for increased financial inclusion is evident, the platform must navigate complex regulations and overcome entrenched financial behaviours to achieve widespread adoption. As South Africa’s fintech landscape evolves, NeoNomad’s progress will be closely monitored to see if it can deliver on its promise of a more inclusive financial ecosystem.

Read next: South Africa leads crypto payment revolution

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South Africa leads crypto payment revolution




South Africa leads crypto payment revolution

The adoption of cryptocurrency (crypto) payments is surging in South Africa, reshaping the country’s financial landscape and positioning it at the forefront of a global digital revolution.

Recent data from FiveWest reveals a dramatic increase in the use of crypto for everyday transactions, underscoring the nation’s readiness to embrace innovative financial solutions. In just six months, the total transaction volume has soared by an impressive 26.50%.

Binance Pay has been a pivotal player in this surge, offering secure transactions for buying, selling and investing in cryptocurrency, as well as making everyday purchases from a device. The partnership with FiveWest has been instrumental in simplifying the consumer process, merging traditional banking with fintech to offer diverse payment and transfer solutions. Their payment gateway, CoinPay, has made accepting crypto payments seamless for merchants and consumers alike.

“South Africa is rapidly embracing the potential of cryptocurrencies,” said Hannes Wessels, country manager from Binance South Africa. “Our partnership with FiveWest and the implementation of Binance Pay have provided a secure and efficient platform for users to engage in everyday transactions, further driving the adoption of digital currencies in the region.”

The demographic profile of crypto users in South Africa is predominantly young and tech-savvy, aged between 18-34, with a higher representation of males. These individuals, located primarily in Africa, span various economic backgrounds, including many unbanked individuals from other African countries. Their engagement with cryptocurrency extends across online shopping, travel expenses, daily necessities and in-store purchases, with a notable 60% of users returning for repeat transactions.

This trend towards digital currencies reflects a broader global shift towards e-commerce and digital financial solutions. The integration of traditional banking systems with cutting-edge fintech innovations has played a crucial role in this transition. Platforms like Binance Pay and FiveWest’s CoinPay, which simplify the acceptance of crypto payments, have made digital transactions more accessible and attractive to a wider audience, enhancing user experience and security.

The rise of cryptocurrency payments in South Africa is more than a passing trend; it signifies a fundamental transformation in the nation’s financial ecosystem. As consumers and businesses increasingly adopt these digital currencies, the benefits of secure, efficient and convenient transactions become ever more apparent. This digital revolution is set to redefine the future of payments in South Africa, positioning the country as a leader in the global shift towards innovative financial technologies.

Read next: Unveiling the Crypto Chronicles: What 2024 Holds for the Digital Frontier

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E-Commerce in South Africa: Evolving Trends and Consumer Preferences




E-Commerce in South Africa: Evolving Trends and Consumer Preferences

The e-commerce landscape in South Africa is rapidly evolving, with over 56% of consumers making multiple purchases each month, according to a recent survey conducted by PayPal. This shift in consumer behaviour is reshaping the retail sector, forcing businesses to adapt to changing expectations and technological advancements.

“Although online shopping has been a significant part of retail sales for many years, the landscape is continuously evolving,” says Otto Williams, SVP, Regional Head and General Manager, Middle East and Africa at PayPal. “Advancements in AI, shifting economic conditions, and dynamic consumer expectations require business owners to keep their finger on the pulse of changes, ideally ahead of the curve and at the very least, adaptable, in order to ensure sustained growth.”

The survey revealed that clothing and fashion lead the e-commerce sector, with 69.9% of respondents making purchases in this category. However, the food and drink segment is not far behind at 63.8%, buoyed by increased takeaway deliveries and expanded online grocery options from major retailers.

Convenience remains a crucial factor for South African online shoppers. The majority of consumers integrate online shopping into their daily routines, with 69.9% shopping from bed, 60% while at work or working from home, and 58.4% whilst watching television. This multitasking behaviour underscores the need for streamlined shopping experiences.

“How and where shopping is done provide important clues into the shopper’s state of mind,” notes Williams. “Individuals who shop online during hours of work are less likely to be tolerant of cumbersome check out steps and could easily switch to a competitor if search functionality does not deliver their desired results swiftly.”

Despite the widespread adoption of artificial intelligence in customer service, only 29.6% of respondents find value in AI chatbots for handling queries. However, consumers appreciate AI’s role in finding the best prices (71%) and tracking deliveries (51.5%).

Security remains a top priority for online shoppers, with 95% of respondents citing secure payment processing as the most crucial feature. This awareness suggests that consumers are becoming more savvy about online security measures.

“Secure payment processing is the first and most basic requirement when making an online purchase,” says Williams. “The benefits of selecting the right payment option, however, are plentiful.” He highlights that PayPal offers protection for both sellers and buyers, a valuable feature in an era of increasing fraud.

Delivery costs continue to be a significant hurdle for nearly 60% of respondents. Retailers must carefully consider their pricing strategies, balancing the need for profitability with consumer expectations for free or low-cost delivery.

Perhaps most striking is the enduring importance of customer reviews. A remarkable 90.1% of respondents stated that low star ratings or negative reviews would deter them from making a purchase. This underscores the critical role that reputation management plays in e-commerce success.

As South Africa’s e-commerce sector continues to grow, retailers must remain agile, constantly gathering customer feedback and leveraging partnerships with service providers to stay ahead in a dynamic and competitive landscape.

Read next: South African e-commerce boom challenges retail leaders

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