Winter is coming❄️… for jobs👷🏾
Hello Venturer,
"Winter is coming."
Does that sentence ring a bell? I bet it does. (If it doesn't, this is your sign to binge-watch Game of Thrones). But that's not what I'm writing about. There's a financial winter happening, and it's coming to Africa.
So here's the gist: 2021 was a record year for tech globally. We can call it a financial summer. Everyone was throwing money at tech firms and pumping their valuations to outer space. Startups raised more money than ever, and unicorns became less uncommon.
But this year, the tides have changed. A global economic downturn is plunging valuations, and startup funding has slowed down in many markets. Firms as big as Tesla, Microsoft and Netflix have laid off workers to save money. Over 70,000 employees have packed their boxes home this year.
Africa's case is a little bit different. Tech funding hasn't slowed down. Instead, it reached a new record this year. But the financial winter is slowly coming for jobs in Africa, as tech firms are now downsizing their staff.
Who is laying off workers? Why are they doing it? Will this trend continue? We have answers.
Oluwatosin Ogunjuyigbe
Staff Writer
What's new
African tech companies are raising funds, but laying off workers
A layoff wave is now creeping into Africa, as tech firms are now downsizing their staff and slowing down on hiring. But even more interesting is that some of these startups raised money shortly before asking employees to pack their boxes. Read more.
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MTN has initiated a trial phase of its 5G technology in Nigeria ahead of commercial launch in seven cities including Lagos, Port Harcourt, Ibadan, Kano, Owerri, Maiduguri and Abuja. Read more.
Why aren’t there any new African unicorns this year?
If tech startups are raising more money than ever, how is no one becoming a unicorn, and why is the hype around valuations losing steam? Learn more.
Food inflation rate soars again in July. Here is the way out.
The National Bureau of Statistics (NBS) said in its Selected Food Prices Watch Report for July 2022 that the prices of selected food items have soared again. Why are food prices rising? Learn more
Ghana’s runaway inflation and surging interest rates are causing worries for investors
The Bank of Ghana increased its benchmark interest rate by 300 basis points from 19 per cent to 22 per cent. That's the bank's highest rate jump since it received the independence to set interest rates. Read more.
How Nigeria can prevent its annual N3.5 trillion post-harvest losses
Nigeria and its farmers are losing a fortune to post-harvest loss. The Federal Government recently disclosed that the total cost of post-harvest losses in Nigeria’s agriculture industry is N3.5 trillion. Learn more.
African governments must protect fragile health gains from the smoking surge
While smoking rates have declined globally over the past two decades, tobacco use is on the rise in Africa, with experts already dubbing the continent the “future epicentre of the tobacco epidemic.” Learn more.
Weekly Economic Index: Ghana’s Cedi drops to become the world’s second worst-performing currency
According to a currency performance ranking by Bloomberg, Ghana’s cedi dropped 1.1 per cent to trade at 9 Gh cedi/$1. Learn more.
VA BIZ HIVE: The Agric Issue
The need for a technological footprint has given rise to an agritech ecosystem on the continent. Startups in this space are proferring technological solutions to problems faced in the agricultural sector with ultra-modern technologies like drones, automated irrigation systems, soil sensors, etcetera. Learn more.
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Remember to stay safe
