SA insurtech Yalu has reported a jump in retrenchment benefit queries as the Covid-19 pandemic begins to bite. The finding is in step with a new Statistics SA survey which found that one in five SA businesses have laid off staff.
This, as in a speech last night, South African President Cyril Ramaphosa last night a R500-billion social and economic support package to help the country to recover from the effects of the Covid-19 pandemic
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With the coronavirus (Covid-19) headlining news all over the world, Ventureburn has launched a regular daily roundup on the virus and how it is affecting Africa’s tech startup sector.
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SA insurtech Yalu has reported a jump in retrenchment benefit queries as the Covid-19 pandemic begins to bight.
Here then is the latest on the coronavirus and African tech startups:
Ramaphosa announces R500bn in support: In a speech last night, South African President Cyril Ramaphosa announced a R500-billion social and economic support package to help the country to recover from the effects of the Covid-19 pandemic. Much of the support will go to small businesses and their employees (see this story).
SA firms hit hard by pandemic: One in five SA businesses have had to let go of employees due to the impact of the coronavirus pandemic, reveals a new survey of 707 businesses by Statistics SA. In addition, just under a third of those firms surveyed said they had reduced staff working hours.
Jump in online payment accounts: Online payment gateway PayFast announced yesterday that it has seen a 226% year-on-year increase in new business account registrations in the food industry since Covid-19 led restrictions were put in place last month. Payfast added that the lockdown has also spurred further growth in the online purchasing and home delivery of pet-care products and essential goods for babies. Overall, PayFast has seen an 83% year-on-year increase in new business account registrations since SA’s lockdown began.
Pre-lockdown, our average queries volume relating to retrenchment claims has been approx. 0.6% of the total Yalu Credit Life Insurance Plan Policies. As at 9 April 2020, this has jumped to 4.5%.#SALockdown #Retrenchment #Yalu #KnowBetter #DoBetter pic.twitter.com/0DLutfoCF9
— Yalu South Africa (@Yalu_SA) April 21, 2020
Crowdfunding initiative: A number of Nigerian tech entrepreneurs have come together to raise funding through an initiative called We Are Together for those Nigerians experiencing financial difficulties due to the pandemic, tech publication Disrupt Africa reported in an article yesterday. They include members from startups such as Paystack, Hotels.ng, Zrosk and others. So far 17.4 million naira ($45 000) has been raised and over 10 million naira disbursed.
Featured image: Yalu CEO Nkazi Sokhulu (Supplied)