South Africa’s unemployment rate for the first quarter increased to 30.1%, the highest rate in the past decade. The rate is expected to rise further in the second quarter.
This, while fintech lender Merchant Capital on Monday (22 June) announced a partnership with Discovery Insure that will provide SMEs with working capital.
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With 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’s unemployment rate for the first quarter increased to 30.1%, the highest rate in the past decade
Here then is the latest on the coronavirus and African tech startups:
Joblessness hits decade high: South Africa’s unemployment rate has increased to 30.1%, the highest rate in the past decade. Statistics South Africa yesterday released its quarterly labour force survey for the first quarter of the 2020. The rate, which measures only those who have been actively looking for work in the last three months, stood at 29.1% in the fourth quarter of 2019. As the latest survey covered only the period of January to March 20202, the current unemployment rate considered only the initial days of South Africa’s lockdown, which began on 27 March. Unemployment is expected to have climbed well beyond 30% by now.
Bank provides over R133bn in relief: Standard Bank Group yesterday said it had provided more than R92-billion of debt relief to individual and business customers in South Africa through its Personal and Business Banking division, as part of its ongoing efforts to mitigate the impact of the Covid-19 pandemic on society. In other African markets, Standard Bank’s Personal and Business Banking division had provided debt relief worth R11-billion by the end of last month. The bank said it had also concluded restructures for eligible Corporate and Investment Banking (CIB) clients — mostly in South Africa — with risk exposures amounting to about R30-billion.
Merchant Capital announces partnership: Fintech lender Merchant Capital on Monday (22 June) announced a partnership with Discovery Insure that will provide SMEs with working capital. Successful applicants will be able to use these funds to meet their business requirements, including paying their insurance premiums. Discovery Insure clients can also receive up to 50% cash back on their business insurance premiums while remaining adequately protected. Merchant Capital CEO Dov Girnun (pictured above) said successful applicants would get access to funds in as little as 48 hours, with repayments based on a set percentage of debit or credit card sales in future months to provide for flexibility during periods of low turnover. SMEs can then access additional capital once they have repaid 70% of the cash advance.
Read more: Covid-19 and African tech startups roundup [23/06/2020]
Read more: Covid-19 and African tech startups roundup [22/06/2020]
Featured image: Merchant Capital CEO Dov Girnun (Twitter)
