JOHANNESBURG (Reuters) &#8211; South Africa retailer Massmart Holdings Ltd has started talks with unions to cut up to 1,800 jobs at the company’s struggling Game stores as constrained spending and the new coronavirus weigh on performance, the company said on Tuesday.



Majority-owned by Walmart and operator of supermarkets and wholesalers such as Makro and Game, Massmart said talks began after it assessed the efficiency of the stores.



Massmart said it was implementing a new operating model at Game after its “indifferent performance in the 2019 financial year” and the negative impact of trading restrictions because of the pandemic on sales.



The company said it would not close any of its Game stores, however.



Game, a general merchandise chain, has been a drag on group profit as financially-constrained customers prioritise spending on non-durables, such as food, over spending on goods such as appliances.



Massmart earlier in the year said it would cut costs and restructure into wholesale and retail units, but the impact of the virus has accelerated some of the turnaround strategies.



The group lost 4.6 billion rand ($268 million) in sales during a strict nine-week lockdown.



The potential job cuts would represent around 3% of Massmart’s total workforce.



Job cuts are a politically-sensitive issue in South Africa, where unemployment stands at around 30%.



Game joins some of the country’s big firms such as steel producer ArcelorMittal South Africa Ltd, food producer Tiger Brands and third-biggest telecom operator Cell C, which have already announcing plans to cut jobs.

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South Africa’s Massmart says 1,800 Game jobs at risk

ILONGWE (Reuters) &#8211; Malawi’s new President Lazarus Chakwera pledged to clamp down on corruption on Monday, as he delivered his inauguration speech in a scaled-down ceremony dampened by a surge in COVID-19 cases.Lazarus Chakwera addresses supporters after a court annulled the May 2019 presidential vote that declared Peter Mutharika a winner, in Lilongwe, Malawi, February 4, 2020. 



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/Dr__Lazarus_McCarthy_Chakwera.jpg" alt="" class="wp-image-375727" width="685" height="685" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Dr__Lazarus_McCarthy_Chakwera.jpg 220w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Dr__Lazarus_McCarthy_Chakwera-150x150.jpg 150w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/Dr__Lazarus_McCarthy_Chakwera-100x100.jpg 100w" sizes="auto, (max-width: 685px) 100vw, 685px" /></figure>



Chakwera unseated former leader Peter Mutharika in a June 23 re-run election after the 2019 polls were overturned by a court, citing irregularities.



The ruling echoed one by a Kenyan court in 2017, which cancelled President Uhuru Kenyatta’s election win. Both were surprising on a continent in which courts rarely flex their muscles against powerful presidents.



The repeat vote was regarded as a test of the ability of African courts to tackle ballot fraud and restrain presidential authority, and the power transition was cheered by pro-democracy activists and many of Malawi’s 18 million citizens.



The increase in COVID-19 infections, however, dampened the inauguration, which would have coincided with Independence Day celebrations that were also called off.



The inauguration was initially planned for a 40,000-capacity national stadium in the capital Lilongwe, but Chakwera called for a much smaller event.



Many watched it on television and others in rural Malawi listened to his speech on radio, without much fanfare across the country.



“It is no secret that we have had one administration after another shifting its post to the next election, promising prosperity but delivering poverty &#8230;promising good governance but delivering corruption,” Chakwera told a small crowd of about 100 dignitaries at the headquarters of the Malawi Defences Forces on the outskirts of Lilongwe.



“Before we can begin to rebuild, we must clear the rubble of corruption, for it has left our taxes in ruins; we must clear the rubble of donor dependency, for it has left our dignity in ruins,” he added.



Critics had accused former president Mutharika of doing little to tackle corruption.



COVID-19 cases in Malawi have more than doubled in the past two weeks to reach 1,406, with 19 deaths, and Chakwera is promising to take action in one of the few countries yet to impose a national lockdown.

Opposition Malawi Congress Party leader Lazarus Chakwera addresses supporters after a court annulled the May 2019 presidential vote in Lilongwe

Malawi’s Chakwera pledges graft clampdown in subdued inauguration amid virus

I hear this a lot: “We are in unprecedented times.” Actually, to borrow from author and motivational speaker Simon Sinek, we are not. We have been through tough business situations like this before. This is not the first time and it may not be the last, but the context of what we’re going through may be a lot more shocking and sudden than we’ve previously experienced.



It’s easy to fall into a state of fear and panic. It is human nature to brood and worry – and none of us are immune from these impulses in extraordinarily challenging times. However, I urge you to take a different viewpoint of our current circumstances. I’ll start by reframing our context. Did you know that half of the companies currently listed on the Dow Jones were born in recession? Those companies understood the opportunities that disruption and tough periods offer and created something new from them.&nbsp;



Simon Sinek talks about the Infinite Game – and if you haven’t heard about him and this concept already, I urge you to watch his YouTube videos on the topic. The Infinite Game says that the players change, but the game doesn’t. It’s not about competing and being ‘the best’. Rather, it’s about asking, ‘how can I make myself, and my organisation, a better version tomorrow than today? By constantly striving to be better tomorrow than we are today, we free ourselves from the fixed mind set of, ‘I know it all’ and embrace the growth mind set of lifelong learning, opening ourselves up to the possibilities that come from uncertainty and change.&nbsp;



The Covid-19 pandemic has forced a mass digital transformation and shift to 4IR. Some organisations – including huge multinational corporations – have been unprepared for this transformation. Business models are already changing, so the challenge for us is to rethink and reinvent our business moving forward. Organisations that cling to the status quo, who focus their energies on preserving their current state, are going to find themselves in trouble when we reach the other side of this dark tunnel we’re currently in – no matter how much money they have. Talking about pay cuts and indulging in short-term thinking will not save them. Now is the time to think big, and think boldly, to shift our behaviour.



I urge you to set aside your fear and embrace the unknown. This disruption is opening up opportunities, and organisations who identify these, and approach them with a growth mindset, will be poised to seize that opportunity. We will invest in the skills sets we need to not only survive, but to thrive. I am intent on ensuring that every employee has the right skills for the challenges ahead. We have the chance to ask ourselves, how will we prepare ourselves for the change that is coming? My view is that those that are the most prepared are going to come out stronger.&nbsp;



I am not talking about thinking about how we take advantage of the situation or milk the crisis to our own benefit. Let’s rather look at how we can differentiate ourselves as an organisation, helping the citizens of South Africa and across the globe, and leading the way through the darkness of this uncertain time, into the light at the other end of it.



Let’s begin to explore what new ways of work and opportunities we can find coming out of the crisis we’re currently in. Importantly another conversation we must have is our embrace of the digital mind set. This is the new norm for us right now, and the new way of work. The dark side of this is, of course, digital fatigue – or even digital burnout – from a constant rotation of online meetings and work expectations. I heard President Cyril Ramaphosa comment that he is currently spending 18 to 20 hours a day in meetings. None of us are in quite the same position as the President, but we face great challenges with our time and mental resources. When work and home are one and the same, it’s easy to blur or forget the boundaries. I want to reinforce to you that our culture at SAS is one of trust – I don’t need to see all of you 24 hours a day to feel confident that you are engaged in the necessary work of the day.&nbsp;



Your emotional and physical wellbeing is of utmost importance. I want to encourage you to set appropriate boundaries and to take care your mental health and wellbeing at this time. These may not be unprecedented times, but they are for many of us, the most challenging times we have faced in our lifetime. Take care of yourselves, strive to find some work-life balance and let’s move calmly and assuredly forward with a sense of renewed purpose and excitement about the opportunities that lie ahead.



SAS’s Country Manager, Akesh Lalla.

Akesh Lalla_Country Manager_SAS_South Africa

COMMENT: COVID-19 – Yes, there is disruption, but also, opportunity

JOHANNESBURG (Reuters) &#8211; Barrick Gold’s Kibali gold mining joint venture in Democratic Republic of Congo will be able to get $500 million out of the country very soon, CEO Mark Bristow told Reuters on Monday.



The gold miner has been in discussions with Congo’s government over how to get the money out of the country for months. A resolution was close in January, but then the COVID-19 pandemic hit, Bristow said in a telephone interview.



Bristow said he expected the cash to be cleared for exit “very soon”, declining to give a specific timeline, after intensive discussions with the central bank, the mines minister, and the prime minister.



Under Congo’s 2018 mining code, miners must repatriate 60% of revenue from mineral sales back into the Congo, to help develop Congo’s economy.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="960" height="640" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/open-pit-mining-3559203_960_720.jpg" alt="" class="wp-image-375523" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/open-pit-mining-3559203_960_720.jpg 960w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/open-pit-mining-3559203_960_720-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/open-pit-mining-3559203_960_720-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/open-pit-mining-3559203_960_720-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/open-pit-mining-3559203_960_720-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/open-pit-mining-3559203_960_720-600x400.jpg 600w" sizes="auto, (max-width: 960px) 100vw, 960px" /></figure>









The $500 million is the excess left over after Kibali repatriated 60% of revenue and paid all its in-country expenses, Bristow said.



Barrick needs the $500 million in order to pay back loans and dividends, Bristow said. AngloGold Ashanti, which owns 45% of Kibali, is entitled to half the money after dividends are paid, he said.



AngloGold Ashanti declined to comment, referring Reuters back to Barrick.



In May, Bristow had said the issue of the $500 million “keeps us awake at night”.



Barrick’s push to get the money out comes as Congo’s economy is under significant strain from the pandemic, with foreign currency reserves shrinking and mining companies taking longer to repatriate the 60% of mineral sales.



“Unfortunately, we have noted that repatriation of the 60% is currently erratic,” mines minister Willy Kitobo Samsoni told Reuters, adding he had warned mining companies to repatriate that capital immediately, or risk sanctions as set out in the mining code.



Delayed repatriation of funds is among the pressures facing the mining sector, a critical contributor to Congo’s economy, Samsoni said on Saturday

Why people seek refuge in gold during crises like COVID-19

Kibali’s $500 million will be cleared to leave Congo ‘very soon’: Barrick CEO

(Reuters) &#8211; Kenyan protesters set a police station on fire after an officer allegedly shot and killed a man for hawking fake hand sanitizer, according to a police report seen by Reuters on Monday.



The officer is now in custody, according to the report.



The police officer fired his weapon after a verbal argument with the man selling the counterfeit product in an open-air market in Kisii County, western Kenya, on Sunday, the report said.



After the shooting, protesters quickly descended on the police station, throwing rocks and setting bonfires, damaging the station and nearby vehicles.



Fourteen police officers were injured and protesters dispersed after an “unquantified number of live and blank ammunitions were used”, the report said.



Accusations of police brutality are common in Kenya. Since the coronavirus outbreak, multiple cases of alleged police violence towards lockdown violators have been reported.



In March, in the first 10 days of a curfew to curb the coronavirus, at least six people were killed, according to rights group Human Rights Watch.

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Man shot for allegedly hawking fake hand sanitizer – protesters torch police station

On the day Kenya Airways announced it was to shed staff, the skies darkened further with the findings of a gloomy International Air Transport Association report on the on the state of aviation in Africa.



The report laid bare the business case for running an airline in Africa painting it as a loss maker as COVID-19 has closed borders and discouraged travellers. There are quarantine restrictions in 36 countries across Africa and the Middle East. The numbers are depressing. The IATA report says &nbsp;East Africa has lost 56% of its revenue and 53% of its passengers; West Africa 60% and 58%; North Africa 58% and 56% and Southern Africa 60% and 58%.



IATA says it is so bad that African airlines actually pay $42 to transport every passenger they carry in 2020. CNBC Africa asked the man behind the report how long can African airlines last in the face of these losses.



“Not long, not long. Our estimates have already shown that airlines have already burned through their cash reserves. We don’t expect any airlines in Africa to survive these kind of losses,” says&nbsp;&nbsp; Muhammed Albakri, the regional vice-president for Africa and the Middle East for IATA, told CNBC Africa.&nbsp;



“The impact of COVID-19 has been devastating all over the world but particularly for the African continent where the demand from passengers has fallen by 58% in 2020 compared to 2019. Airlines are supposed to post a loss of $2 billion that is because the decrease in the passenger numbers and $6 billion from passenger revenues that is something that has not been seen before.”



Albakri believes the only hope for survival for African airlines is for governments to give bail out packages and to open up borders to help kick start the travel industry.



Airlines should play a key role in the revival of African economies in the post-COVID-19 world by providing cheap and abundant air travel in aid of growth. Sadly, many of them are tottering amid falling revenue and grounded planes.



Kenya Airways is the next to take the pain. It has announced job losses will be made – even though the airline is not saying how many – will happened to keep the airline afloat. The airline has 4,000 workers and operates a fleet 36 planes flying to 54 global destinations.



Prior to the pandemic, the airline faced financial difficulties in its operations, owing to losses and debt.&nbsp; In December 2019, the airline issued a profit warning, signalling that its losses widened to $129.7 million from $75.8 million in 2018.

Rolling out, AMS.

Loss making in COVID-19 -Why it costs African airlines $42 every time you fly

NAIROBI (Reuters) &#8211; Kenya’s President Uhuru Kenyatta announced on Monday a phased re-opening of the country from a lockdown imposed to curb the spread of the new coronavirus, lifting restrictions in and out of the capital Nairobi and the coastal city of Mombasa.



“Today I order and direct that the cessation of movement into and out of the Nairobi metropolitan area, Mombasa county and Mandera county that is currently enforced shall lapse today or at 4 a.m. (0100 GMT) tomorrow, Tuesday the 7th of July 2020,” said Kenyatta in a televised address.



Kenyatta extended the current nationwide nightly curfew between 9 p.m. and 4 a.m. for a further 30 days.



He said that international commercial travel would resume from Aug. 1, while domestic flights are scheduled to restart on July 15.



But Kenyatta warned that should the situation worsen over the next few weeks the country could be locked down again.



“In the next 21 days we shall study patterns of interactions and the spread of the disease. Any trends that signal a worsening of the pandemic, we will have no choice but to return to lockdown,” he said.



Kenya has confirmed nearly than 7,900 cases of the coronavirus as of July 6, with 160 deaths. The outbreak has battered the economy, with the finance ministry projecting growth to slow to 2.5% this year from 5.4% last year, due to the impact of the COVID-19 pandemic.

Uhuru_Kenyatta_2015

Kenya announces phased re-opening of the country from coronavirus lockdown

HARARE (Reuters) &#8211; Australian-listed Prospect Resources said on Monday it had picked Renaissance Securities Capital as its exclusive financial advisor for the possible sale of shares in Zimbabwe’s Arcadia Lithium mine to Russian energy firm Uranium One.



Uranium One, a unit of Russia’s state-owned nuclear energy firm Rosatom, agreed with Prospect last December to start talks towards buying equity in Arcadia and an offtake agreement.



Zimbabwe is pushing lithium as a major draw for investors as it looks to attract capital to its mining sector.



Prospect said in a statement that Renaissance Securities would advise “in relation to the potential sale, directly or indirectly, of the Company’s economic or other participation in, or the whole or part of the licence and/or the assets of, the Arcadia Lithium Project”.



Prospect said discussions with Uranium One were ongoing but there was no guarantee this would lead to a formal binding agreement.



In December, Prospect appointed African Export-Import Bank to arrange and syndicate a $143 million project finance debt facility for the Arcadia lithium project.

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Australia’s Prospect Resources picks advisor for sale of Zimbabwe lithium mine

NAIROBI (Reuters) &#8211; Kenya Airways will lay off an unspecified number of workers, reduce its network and also get rid of some assets due to the coronavirus crisis, its chief executive said in an internal memo seen by Reuters.



The coronavirus crisis has hit the global aviation industry hard, with African carriers alone expected to lose $6 billion this year in revenue.



“Our short and medium-term projections indicate that we must inevitably reduce our operations before we begin to scale up again,” Allan Kilavuka wrote in the memo dated July 3, adding that the exercise will be completed by Sept. 30.



The carrier, in which Air France-KLM holds a small stake, was struggling long before the outbreak, posting 2019 losses of almost 13 billion shillings ($122.2 million).



It cut salaries by as much as 80% when the crisis started, and sought a government bailout to help it take care of running costs after it grounded its planes when Kenya stopped commercial passenger flights to curb the spread of the virus.



The government declined to bail it out, opting to press ahead with a pre-pandemic plan to nationalise the carrier, part of wider reforms of the East African nation’s aviation sector.



Michael Joseph, the airline’s chairman, said the decision to lay off workers and reduce operations was not informed by the failure to secure a bailout.



“We have to face the fact that demand for air travel is going to be reduced significantly for the next 2-3 years,” Joseph told Reuters on Monday, adding that other carriers were taking similar actions.



“We have delayed taking this action for too long.”



On Friday, the Nairobi bourse suspended trading of Kenya Airways shares for three months, citing the government’s plan to restructure the carrier, after it submitted to parliament a bill on the nationalisation of the airline.



($1 = 106.4000 Kenyan shillings)

Kenya Airways to lay off staff, reduce network and assets -CEO

JOHANNESBURG (Reuters) &#8211; South Africa’s rand gained early on Monday, as the dollar was dragged down by a steady rise of coronavirus infections in the United States.



At 0630 GMT, the rand was up 0.66% at 16.9425 per dollar after closing at 17.0500 on Friday.



Trading in the Asian session saw a return of risk appetite after last week’s narrow ranges, with demand growing for the rand and other emerging-market currencies.



Rising coronavirus infections in the United States have discouraged some investors from taking big positions in the currency market, but most remain focused on the growing likelihood that major economies will continue to recover.



“With the U.S. celebrating Independence Day, trading volumes dipped on Friday. Concerns surrounding rising infections – and renewed outbreaks after Fourth of July celebrations,” said analysts at NKC African Economics in a note.



“The rand surged stronger during Asian trading this morning driven by improved risk sentiment.”



Bonds rose, with the yield on the 2030 government issue down 2 basis points to 9.405%.

101416618-rand

South Africa rand up as risk appetite revives

MAPUTO (Reuters) &#8211; South African petrochemicals giant Sasol Ltd has opted to give up its licence to explore for gas off the Mozambique coast, the company said on Sunday.



“Sasol will return Block 16/19 in its entirety to the Government of Mozambique. To this end, a withdrawal notification has already been sent to the relevant Mozambican authorities”, the firm said in a statement.



Sasol was awarded the research licence in 2005. In 2013 it abandoned the deep water part of the licence, retaining the shallow water allotment to assess its hydrocarbon potential.



It is still exploring for gas onshore in the fields of Pande and Temane, in the northern province of Inhambane.



Sasol, the world’s top producer of motor fuel from coal, is trying to shed assets to pay off its debt pile and avoid a rights issue of up to $2 billion.

Sasol_Garage_in_Boksburg

Sasol gives up licence to seek offshore gas in Mozambique

An analysis of financial inclusion in South Africa shows that affordability limits poor households’ access to formal financial services.&nbsp;<a href="https://www.african-review.com/view-paper.php?serial=20200501144727-278204">In our study</a>, which looked at people’s use of financial goods and services between 2008 and 2015, we found that there was a general increase in use. But this was severely skewed to households with higher incomes.



Financial inclusion is broadly defined as the ability of people to access a range of affordable financial services. Among these are bank and savings accounts, loans and insurance products. Households that are financially excluded can’t take part in various forms of savings or wealth accumulation. These range from paying bills via direct debit to gaining favourable forms of credit.



The key policy implication of our findings is that more financial services should target low-income households. It should be a priority, given the high rate of exclusion among the poor.



<h2 class="wp-block-heading">Measuring use based on income</h2>



In general, there are four dimensions of financial inclusion: access, usage, quality and welfare. In our study, we focus on usage.



The financial services available in South Africa range from the well-known ones such as bank accounts and credit cards to the less well known ones such as hire purchase agreements and loans with “mashonisa” (loan sharks). In the South African context, a bank account remains the most used financial service. The number of unbanked adult individuals decreased from 17 million to 14 million between&nbsp;<a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1813-6982.2004.tb00127.x">2003</a>&nbsp;and&nbsp;<a href="http://www.statssa.gov.za/?page_id=1854&amp;PPN=P0318&amp;SCH=7348">2017</a>.



Our study is the first to thoroughly investigate the data from the&nbsp;<a href="http://www.nids.uct.ac.za/images/documents/what-is-NIDS.pdf">National Income Dynamics Study</a>. This study interviews the same households (if possible) every two years to track the changes in their income and non-income welfare over time.



One standout feature of the study is that it asks household heads about their usage of 14 financial services.



With the aid of some statistical techniques, we developed an aggregate financial usage index to investigate the profile of people who were comprehensively financially included.



<h2 class="wp-block-heading">What we found</h2>



The study found that the increased use of financial products and services was mostly associated with higher income households. The other characteristics of individuals and households that showed higher usage of financial services were: middle-aged, male, white, more educated, urban residents in Western Cape and Gauteng provinces. They came from bigger households with more employed members.



The likelihood of complete financial exclusion was more prevalent in poor rural households living in the Eastern Cape, KwaZulu-Natal and Limpopo provinces. Almost invariably, these households were made up of black people. The study also found that households with low real per capita income and fewer employed members were associated with greater likelihood of financial exclusion. Households bigger in size and headed by middle-aged people were associated with significantly higher financial inclusion and lower likelihood of complete financial exclusion.



The table below presents the proportion of households with at least one adult member having some form of the observed financial services. The results indicate that there has been an increase in the use of most financial services between waves 1 (2008) and 4 (2014/2015). In particular, the proportion of households that have at least one member with a bank account increased from almost 57% in wave 1 (2008) to over 78% by wave 4 (2014/2015), while those with a personal loan from a bank nearly doubled (8.63% to 16.41%) between the first (2008) and last waves (2014/2015).



<figure class="wp-block-image"><a href="https://images.theconversation.com/files/343724/original/file-20200624-132965-1igt05z.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img decoding="async" src="https://images.theconversation.com/files/343724/original/file-20200624-132965-1igt05z.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""/></a><figcaption>Proportion of households with at least one adult having some form of financial services.&nbsp;Author supplied</figcaption></figure>



We also considered variables from informal financial sources, such as loans from mashonisa (loan sharks), which have increased from 1.69% in wave 1 to 2.97% in wave 4, and loans from a family member, friend or employer, which increased from less than 2.85% to 8.76%. The use of other important services, such as hire purchase agreements, store cards and pension or retirement annuity plans, also increased across the four waves. There is a decrease in the use of some of the major financial services. For example, households where at least one member reported to have a home loan or bond were at 8.63% in wave 1 and gradually declined over the years, ending up at 5.68% by wave 4. There was also a slight decline in study loans and vehicle finance.



One finance source that particularly stands out is the use of credit cards, which decreased from 12.5% (wave 1) to 9.74% (wave 4).



In all four waves, households that were regarded as poor had relatively lower rates of use of each source of finance.



<figure class="wp-block-image"><a href="https://images.theconversation.com/files/343725/original/file-20200624-132972-1objgy2.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img decoding="async" src="https://images.theconversation.com/files/343725/original/file-20200624-132972-1objgy2.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""/></a><figcaption>Poor households had relatively lower rates of use.</figcaption></figure>



The figure below shows the proportion of households that were completely financially excluded (they didn’t have any of the 14 sources of finance). It more than halved between the first (36.77%) and fourth (16.40%) waves.



<figure class="wp-block-image"><a href="https://images.theconversation.com/files/343726/original/file-20200624-133013-1gs2ib7.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img decoding="async" src="https://images.theconversation.com/files/343726/original/file-20200624-133013-1gs2ib7.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""/></a><figcaption>Proportion of households completely financially excluded.</figcaption></figure>



<h2 class="wp-block-heading">What next?</h2>



Supporting alternative, black finance access and usage is one possibility. This may range from low-cost bank accounts and products to advanced technologies that deliver financial services to the excluded in a swift, affordable and efficient manner.



Other countries can be used as a case study.



For instance, in India, the government and private providers have worked together to grow access to financial products such as insurance at a lower cost. The Indian government founded a social security fund that finances insurance companies to subsidise insurance premium policies offered to poorer households. This initiative has provided over&nbsp;<a href="https://www.social-protection.org/gimi/gess/ShowRessource.action;jsessionid=yWZDNJblhn3GOxUg9oeY_m7VGnYmb9h-NN-Q5AjRJKXqpxrTDEzf!-1463413688?lang=EN&amp;ressource.ressourceId=7533">two million poor Indians with access to insurance policies</a>.



The promotion of money pools is also another option.&nbsp;<a href="https://journals.sagepub.com/doi/abs/10.1007/s12114-013-9171-9">A study</a>&nbsp;conducted from five Caribbean countries showed that money pools, where poor people pool their money and create collective banks, helped people save. In Cameroon, the practice of lending and saving through kinship and financial networks was found to be more trusted than the mainstream.



This clearly calls for a proactive financial system that promotes such channels and one that is trusted by the general public, especially low-income earners.



But financial inclusion initiatives directed at the poor should be closely monitored. This is because&nbsp;<a href="https://developingeconomics.org/2019/07/31/misunderstanding-the-average-impact-of-microcredit/">they don’t always have a positive impact</a>, particularly on poor people.

Informal_settlement_where_people_now_have_community_ablution_blocks_(8152040443)

South African banks need to do more to ensure financial inclusion

CAIRO (Reuters) &#8211; Egypt’s Suez Canal revenues fell to $5.72 billion in the 2019/20 financial year from $5.75 billion in the year prior, the canal authority said on Saturday.



The canal is the fastest shipping route between Europe and Asia and one of the Egyptian government’s main sources of foreign currency.



Revenues fell by 9.6% year-on-year in May alone, due to the impact of the coronavirus on global trade movement, Osama Rabie, chairman of the canal authority said in June.

Suez_Canal,_Port_Said_-_ISS_2

Egypt’s Suez Canal revenues in FY 19/20 fall to $5.72 bln – statement

JOHANNESBURG (Reuters) &#8211; Insecurity around Société Minière de Bisunzu’s (SMB) coltan mine in Democratic Republic of Congo could get worse if it is cut out of supply chains following a deadly grenade attack there, the company running the mine’s mineral tracing scheme said. Up to three people were reported killed in the attack on June 23 in Kisura village, which is on an unmined part of SMB’s vast mining concession known as PE 4731.



SMB, which has some of Africa’s largest deposits of the tantalum-rich ore coltan, has been using a digital tracing system since January 2019 to show its minerals are not mined by children or fund warlords and corrupt soldiers.



The system, called the “Better Sourcing Program” (BSP), is run by Berlin-based RCS Global.



“A disengagement from purchasing PE 4731 material, or for mining activities to stop, would be hugely detrimental to the security in the area and could worsen tensions, as occurred in 2018 when mining activity was temporarily suspended,” RCS Global said. “DRC government and international stakeholder engagement will be beneficial to move the underlying tensions towards resolution,” RCS Global said in a statement due to be released to smelters and stakeholders on Monday.



Tantalum is used in electronic goods such as smartphones, laptops and video game consoles. Companies that use the mineral are under pressure from regulators and investors to show the metals have been sourced responsibly.



SMB and the mineworkers cooperative which works on the site have given diverging accounts of what happened in the attack last month. Miners accused police hired by SMB of using excessive force, which SMB and the police deny.



In its statement, RCS Global said SMB was in the process of implementing a series of corrective actions it had recommended to address concerns about SMB’s supply chain following the incident.



These included training mine police on the respect of voluntary principles on security and human rights, engaging with provincial bodies, and requesting support from national authorities. BSP, which has four full-time monitoring agents on SMB’s concession, said it was unclear who launched the grenade attack.



SMB said last month that two policemen were targeted in a nighttime grenade attack, which was followed by gunfire. Three people were killed and three, including one policeman, were hurt and taken to hospital, it said.

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Keep SMB’s Congo coltan mine in supply chains, says mineral tracker

ACCRA (Reuters) &#8211; Ghana’s President Nana Akufo-Addo will self-isolate for 14 days on the advice of doctors after a person in his close circle tested positive for coronavirus, the government said in a statement late on Saturday.



“He has, as at today, tested negative, but has elected to take this measure out of the abundance of caution,” the statement said, adding that the president will continue to work during the period, in compliance with COVID-19 safety protocols.



The statement did not say if the close person was a staff or family member.



Ghana has recorded 19,388 coronavirus cases, one of the highest number of cases in sub-Saharan Africa, with 117 deaths.



The West African nation’s deputy trade and industry minister Carlos Kingsley Ahenkorah resigned on Friday for violating coronavirus self-isolation measures after he tested positive for the virus.

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Ghana’s president self-isolates after close person tests positive for coronavirus

RABAT (Reuters) &#8211; Moroccan airline Royal Air Maroc plans to cancel some air links, cut jobs and may sell 20 aircraft to secure state aid it needs to cope with the coronavirus crisis, a source from within the company said on Friday.



A government aid package for the state-owned carrier will be revealed in the upcoming review of the 2020 budget, the source said, but it will be conditional on spending cuts. The timing of the review is not yet known.



RAM said in May it may seek a state loan guarantee to help cover expenses as it struggles with $5 million in daily losses caused by the pandemic.



It resumed domestic flights on June 25 but international air traffic in and out of Morocco remains suspended.The government has also asked public administrations to freeze hiring for 2021 to help preserve cash and cushion the economy from the fallout from the pandemic.

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Morocco’s RAM to axe routes, may reduce fleet to secure aid

JOHANNESBURG (Reuters) &#8211; Old Mutual said on Friday acting CEO Iain Williamson had been made permanent, ending a year of uncertainty over who will lead one of South Africa’s biggest insurers.



Williamson has held the interim position since May 2019, when then-CEO Peter Moyo was suspended and subsequently sacked in a dispute over a conflict of interest.



Since then, he has had to contend with a court battle with Moyo and the coronavirus crisis, both of which have hurt the insurer’s bid to remake itself, improve performance and assuage some frustrated investors.



“His steady hand, strategic mind, and authentic leadership style has been both refreshing and truly welcomed,” Chairman Trevor Manuel said of Williamson, an actuary by profession and Old Mutual veteran of almost three decades.



The decision clears up the last big question following the saga with Moyo, a difficult period for the 175-year-old insurer whose share price &#8211; and reputation &#8211; was dealt a hefty blow throughout.



It endured a series of losses early on in litigation bought by its former boss, including a block on seeking his replacement. These have been overturned, but Moyo still plans to pursue a case seeking permanent reinstatement or damages.



Williamson will now be tasked with reviving Old Mutual’s performance more broadly. The company has seen profits slide since it re-listed in Johannesburg in June 2018.



Some investors thought an external candidate would be better able to reset the dial. But Jacques Plaut, portfolio manager at Allan Gray, Old Mutual’s No.2 shareholder, was pleased with the choice.



“(Williamson) knows the business very well and he speaks sense,” he said. “There are definitely some things to fix there, and part of me thinks maybe it needs an outsider to do it, but not necessarily.”



Old Mutual shares climbed off earlier lows on the news, but were still 1.33% down at 1300 GMT.

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Australia’s Prospect Resources picks advisor for sale of Zimbabwe lithium mine

Kenya Airways to lay off staff, reduce network and assets -CEO

South Africa rand up as risk appetite revives

Sasol gives up licence to seek offshore gas in Mozambique

South African banks need to do more to ensure financial inclusion

Egypt’s Suez Canal revenues in FY 19/20 fall to $5.72 bln – statement

Keep SMB’s Congo coltan mine in supply chains, says mineral tracker

Ghana’s president self-isolates after close person tests positive for coronavirus

Morocco’s RAM to axe routes, may reduce fleet to secure aid

Old Mutual makes acting CEO permanent, a year after sacking predecessor

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Newsletter

South Africa’s Massmart says 1,800 Game jobs at risk

Malawi’s Chakwera pledges graft clampdown in subdued inauguration amid virus

COMMENT: COVID-19 – Yes, there is disruption, but also, opportunity

Kibali’s $500 million will be cleared to leave Congo ‘very soon’: Barrick CEO

Man shot for allegedly hawking fake hand sanitizer – protesters torch police station

Loss making in COVID-19 -Why it costs African airlines $42 every time you fly

Kenya announces phased re-opening of the country from coronavirus lockdown

Australia’s Prospect Resources picks advisor for sale of Zimbabwe lithium mine

Kenya Airways to lay off staff, reduce network and assets -CEO

South Africa rand up as risk appetite revives

Sasol gives up licence to seek offshore gas in Mozambique

South African banks need to do more to ensure financial inclusion

Egypt’s Suez Canal revenues in FY 19/20 fall to $5.72 bln – statement

Keep SMB’s Congo coltan mine in supply chains, says mineral tracker

Ghana’s president self-isolates after close person tests positive for coronavirus

Morocco’s RAM to axe routes, may reduce fleet to secure aid

Old Mutual makes acting CEO permanent, a year after sacking predecessor

News Tips

Advertise With Us

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