Presenting his special adjustment budget yesterday, Finance Minister Tito Mboweni said he expects the SA economy to contract by 7.2% in 2020, the country’s largest contraction in 90 years.
This, while US software talent company Andela is looking at closing all of its offices to go completely remote in Africa, tech publication Techmoran reported in an article yesterday.
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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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The SA economy is expected to contract by 7.2% in 2020, the country’s largest decline in 90 years
Here then is the latest on the coronavirus and African tech startups:
Biggest fall in 90 years: Presenting his special adjustment budget yesterday, Finance Minister Tito Mboweni said he expected the SA economy to contract by 7.2% in 2020, the country’s largest contract in 90 years. The International Monetary Fund (IMF), in its latest forecast yesterday, expects the SA economy to decline by 8% in 2020, with growth rebounding by 3.5% in 2021.
UIF provides R23bn to employees: As of the middle of June, the Unemployment Insurance Fund (UIF) had provided R23-billion in Covid-19 relief to over 4.7 million workers affected by the pandemic, after a huge upgrade and repurposing of the UIF system to deal with the increase in mostly online applications, and to build in protections against fraud, Finance Minister Tito Mboweni said in his special adjustment budget yesterday.
Guarantee scheme has lent out R10bn: Banks lent out over R10-billion in the first month of the government’s R200-billion loan guarantee scheme, which kicked off in May, Finance Minister Tito Mboweni said in his special adjustment budget yesterday. He added that more applications are being processed, and lending is expected to rise significantly. He said the scheme includes a business restart option, for businesses who need support to get up and going after the lockdown. Work is also continuing to expand the scheme to non‐bank lenders.
‘Andela to close offices’: US software talent company Andela is looking at closing all of its offices to go completely remote in Africa, tech publication Techmoran reported in an article yesterday. The publication said close sources have revealed that the software development firm has already sold off its equipment to a few employees and is now selling to asset disposal companies. It comes barely a month after the tech company laid off 135 employees due to the Covid-19 pandemic.
Over 2000 applications for Covid-19 challenge: Singapore headquartered early-stage venture capital (VC) company Antler said yesterday that it has received over 2000 applications, after it launched a call in April for startups tackling the Covid-19 pandemic to apply for funding. Antler, which has an African office in Nairobi, plans to invest in up to five teams and deploy up to $500 000 in all five (see this story). It said it is currently in the process of choosing the companies in which to invest.
Read more: Covid-19 and African tech startups roundup [24/06/2020]
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: Finance Minister Tito Mboweni by GovernmentZA via Flickr (CC BY-ND 2.0, cropped)
