PRETORIA, May 31 (Reuters) – South Africa’s unemployment rate fell to 34.5% in the first quarter of 2022 from 35.3% in the final quarter of last year, statistics agency data showed on Tuesday.



Statistics South Africa said the number of unemployed totalled 7.862 million people in the three months to end-March, compared with 7.921 million people in the previous three months.



According to an expanded definition of unemployment that includes those discouraged from seeking work, 45.5% of the labour force was without work in the first quarter, from 46.2% in the prior quarter.



South Africa’s economy rebounded quicker than expected from the COVID-19 pandemic last year, but growth in 2022 is expected to slow to a meagre 1.7% according to the central bank’s latest forecast.



Analysts say Africa’s most industrialised nation needs higher rates of growth to make a meaningful dent in poverty and unemployment.



In the first quarter, job gains were recorded mainly in the community and social services sector, followed by manufacturing. The trade sector also had job gains.



Despite the dip in the headline unemployment rate, it remained near record highs as other key sectors like finance, construction and agriculture recorded job losses in the quarter. (Reporting by Olivia Kumwenda-Mtambo Editing by Alexander Winning and James Macharia Chege)

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South Africa’s Q1 unemployment rate falls to 34.5%

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The quarterly labour force statistics for the first quarter of 2021 are out and the unemployment rate has recorded a slight increase of 0.1 percentage point bringing the overall rate to 32.6 per cent. This is the highest it&#8217;s been in 13 years unemployment according to the expanded definition increased by 0.6 of a percentage point in quarter 1 to 43.2 per cent. Joining CNBC Africa for more is South Africa&#8217;s Statistician-General, Risenga Maluleke.

SA’s unemployment rises to 13-year high

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Data from the National Bureau of Statistics shows a jump in headline inflation to 17.33 per cent in February this year from 16.47 per cent in January. The NBS earlier reported an increase in the unemployment rate in Nigeria to 33.3 per cent in the fourth quarter of 2020 from 27.1 per cent in the second quarter of the same year. Bismarck Rewane, CEO of Financial Derivatives joins CNBC Africa for more.

Financial Derivatives CEO breaks down Nigeria’s unemployment

Financial Derivatives CEO breaks down Nigeria’s unemployment, inflation numbers

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In the third quarter, there was a significant increase of 7.5 per cent in the South African unemployment rate to 30.8 per cent. The unemployment rate &#8211; according to the expanded definition &#8211; increased by 1.1 percentage points to 43.1 per cent in the third quarter compared to the second quarter of this year. This figure includes those who have given up looking for work. Annabel Bishop, Chief Economist at Investec joins CNBC Africa for more.

SA unemployment rate rises to 30.8%

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October is global Cyber Security Awareness Month. With the country’s ailing economy and high numbers of unemployment; ABSA is developing cyber skills to alleviate poverty, and is assessing the skills shortage in cybersecurity. Absa set up the Cybersecurity Academy with the Maharishi Institute to bring marginalised youth through the institute, giving them a hot skill and financial empowerment so they can earn a living: The intention is to set-up an academy on the Cape Flats, and train 300 people a year. Sandro Bucchianeri, Chief Security Officer at ABSA joins CNBC Africa for more.

ABSA looks to equip SA’s youth with cyber skills to fight poverty

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South Africa has one of the highest unemployment rates in the world and this data has been worsened due to the devastation of job losses amid the COVID-19 crisis. South Africa’s second quarter unemployment figure saw 2.2 million jobs shed and joining CNBC Africa for more is Dumi Jere, CEO of Talanta.co.

Finding solutions to SA’s unemployment crisis

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South Africa&#8217;s unemployment challenge is dire, with experts extremely pessimistic about our short and long-term economic growth prospects. However, Gumtree South Africa currently has just under 10 000 live jobs advertised on the website. Claire Cobbledick, General Manager at Gumtree South Africa joins CNBC Africa for more.

Gumtree: This is how COVID-19 is shaping SA’s jobs market

Antonio Pedro during ECA at 60_GREAT PIC

The Day After COVID-19: Overcoming the Novel Coronavirus double jeopardy in Central Africa

Amid the global COVID-19 pandemic and 21-day lockdown faced by South Africans, First National Bank has announced <a href="https://www.cnbcafrica.com/videos/2020/04/03/sas-banks-reveal-how-small-businesses-can-apply-for-the-r1bn-oppenheimer-fund/">additional measures to assist small and medium-sized enterprises</a> battling with funding in the country.



In addition to the implementation of financial relief systems for individual and business customers, FNB has expressed commitment towards assisting SMEs through, “alternative funding support, critical business support resources, links to various government resources and private funding initiatives.”



The following is a statement on behalf of First National Bank:



FNB extends additional help to assist SMEs with alternative funding and resource support



6 April 2020 – In addition to the various COVID-19 measures implemented to provide relief to individual and business customers, FNB has further committed to helping small businesses with alternative funding support, critical business support resources, links to various government resources and private funding initiatives.



Given the various relief interventions needed by small businesses across different sectors, FNB has launched a portal under the “COVID-19 – For My Business” menu on the FNB App or Online Banking, where SME customers in need of help can register their requests for assistance.This will enable the bank to obtain information and present potentially relevant relief solutions.



“The first phase of alternative funding that we are excited to make available to SME customers via the portal is from the South African Future Trust (SAFT), a Public Benefit Organisation established by Nicky and Jonathan Oppenheimer to extend financial assistance to employees of South African SMMEs who are at risk of losing their jobs or will suffer a loss of income because of COVID-19,” says Jesse Weinberg, Head of the SME Customer Segment at FNB.



FNB has received a range of queries from SME customers on various topics from SMEs, from assisting them with cashflow relief on their existing credit and merchant services facilities with the bank, to general requests such as resources and guidance on obtaining alternative funding support for their businesses.&nbsp;



“Requests registered by SMEs through our portal will enable us to rapidly assess the situation and requests of these businesses to determine possible financial and non-financial assistance that could help them,” adds Weinberg.



A challenge for many small and medium-sized businesses is that they often have limited access to funding, whether in the form of bank credit or alternative sources. In times of an economic down-turn or crisis, these businesses are some of the most vulnerable as they generally have less access to liquidity to weather the storm than larger businesses.



FNB SMEs can register their interest to apply for the South African Future Trust (SAFT) funding by completing the SME assessment found under the “COVID-19 – For My Business” menu on the FNB App or FNB Online Banking.



SMEs who meet the following criteria could be eligible for the funding as determined by SAFT:



<ul><li>The business has an annual turnover below R25m</li><li>The business can clearly demonstrate the impact of COVID-19 on their operations; the business must have been in good financial health prior to 1 March 2020.</li><li>The business must have been trading for at least 24 months</li><li>Confirmation of permanent employment status of employee</li><li>The business must have its main bank account with FNB and be in good standing with the bank; demonstrated sound banking behaviour maintained a good credit history</li></ul>



For more information on SAFT visit <a href="https://secure-web.cisco.com/1s3rkD1cj8AGmG18fuJ2x_AyOubeXbdWvhiXPo8wZ_fmWLNsrU01mXeBoxjCwGmtfWv0_7G5MnIEPL_jXEIIIUVQ93d3CyIARz5pRNgDbia73tmakzFlkFJDMQmUIp81qp2Ws3DkUNZlwngU0dQCKCk85ggzzNgh1omemqUvK287zcye7g3WZf8AX8ROyIEsVmeJPFiiq58tRsXlTsTvwIzxaC5SYIJB9WSr4dJcgOMy0hJ-vC35u4l02Q7YJ5XHxP25MtZ9Fq-SW1y9D2B3bt0b9czIZr6VkYTK5dqRoViPNPfbPXoJMCSr7WDOAdJxxWL66c87g7X50OzKbZGyKog/https%3A%2F%2Fopp-gen.com%2Fsaft%2F">https://opp-gen.com/saft/</a>



“As announced in President Cyril Ramaphosa&#8217;s address to the nation, we have pledged R1bn to extend a financial lifeline to employees of South African Small, Medium, and Micro-sized Enterprises (“SMMEs”). Our aim is to mitigate the immediate economic impact of the COVID-19 crisis by keeping companies in business and protecting jobs, in order to fast-track South Africa’s economic recovery after this pandemic. Our response, in collaboration with the South African Government and private sector, is to create a structure that will extend direct financial support to SMME employees who are at risk of losing their jobs or will suffer a loss of income because of COVID-19,” said Nicky and Jonathan Oppenheimer.



“In much the same way as our SME clients are dealing with unprecedented uncertainty, we too realised we also needed a different approach to respond to the crisis and try extend help our SMEs in a more holistic way,” concludes Weinberg.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Administrators propose sales plan for SA retailer Edcon, see potential job cuts

FNB extends aid for battling SMEs in South Africa amid COVID-19, lockdown

By Piet Nel, SAICA
Project Director, Tax. 



Johannesburg, 30 March 2020 – The President of South Africa, Mr
Cyril Ramaphosa, recently announced a 21-day lockdown period from midnight on
Thursday, 26 March until midnight on Thursday, 16 April 2020 due to the
COVID-19 pandemic. 



The COVID-19
lockdown currently in place will have an impact on tax-related matters.&nbsp;
This includes contact with the South African Revenue Services (SARS), returns
and payments due to SARS, as well as disputes.&nbsp; It also has an impact on
employers and their employees.&nbsp; Whilst a lot of information was available
at the time of writing of this article, it is expected that more information
will be made available over the next couple of days.&nbsp; The following is
based on information that was available on 29 March 2020: 



Contact
with SARS during the period 



SARS advised
taxpayers and tax practitioners to use the online channels such as eFiling, the
SARS MobiApp and e@syFile to interact with SARS.&nbsp; SARS has provided
dedicated email addresses for this purpose on their website.&nbsp; 



It is
envisaged that visits to SARS offices are possible, but an appointment must be
made on the SARS website.&nbsp; Please remember the lockdown restrictions that
are in place when you are travelling to a SARS branch.&nbsp; Remember that
accountants and tax practitioners are not seen as the providers of essential
services.&nbsp; Special rules relating to Customs and border posts were made
available by SARS.&nbsp; 



Submission
of returns&nbsp; 



There is no
relief for the submission of tax returns.&nbsp; Taxpayers must therefore ensure
that returns are submitted on or before the due dates.&nbsp;&nbsp;&nbsp; 



Disputes 



According to a
notice from the Chairperson: Customs and Excise National Appeals, the days
during the period 27 March 2020 to 16 April 2020 will not be taken into account
in determining days or period for purposes of an appeal under the Customs
Act.&nbsp; 



SARS has not
given a similar notice for objections and appeals under the other tax
Acts.&nbsp; Where a taxpayer is unable to comply with a prescribed period
during which steps in the dispute process must be instituted due to the
lockdown, it would constitute exceptional circumstances.&nbsp; 



Payments 



Tax debt:



There is no
relief for the payment of assessed taxes and payment must be made on the due
date.&nbsp; In fact, SARS said that this is a critical period for SARS in terms
of revenue collections and now, more than ever, the country requires everyone
to pay their fair share.&nbsp; SARS requested that payments are made on time
and that COVID-19 uncertainty is not used as a reason for non-payment.&nbsp;
SARS may well continue with their collection procedures of tax debt.&nbsp; 



Where a
taxpayer is unable to make the payment, or can only do so partially, a request
for a deferred arrangement during the lockdown period must be sent to the
dedicated email addresses made available by SARS.&nbsp; 



Other
taxes:



In line with
the announcement by the President, SARS and National Treasury confirmed that
effective 1 April 2020, tax compliant businesses with a turnover of less than
R50 million will be allowed to delay paying a portion of their amounts due to
SARS.&nbsp; The details are as follows: 



Employees’
tax



With respect
to pay-as-you-earn (PAYE) liabilities, tax compliant business with a turnover
of less than R50 million can delay 20% thereof for a limited period of four
months, beginning 1 April 2020 and ending on 31 July 2020.&nbsp; The deferred
PAYE liability must be paid to SARS in equal instalments over the six-month
period commencing on 1 August 2020, i.e. the first payment must be made on 7
September 2020.&nbsp; There is no relief for the March payment due on 7 April
2020.&nbsp; 



Provisional
tax: 



Tax compliant
small- to medium-sized businesses will also be allowed to defer of a portion of
the payment of the first and second provisional tax liability to SARS, for a
period of twelve months, beginning 1 April 2020 and ending on 31 March 2021,
without SARS imposing administrative penalties and interest for the late
payment of the deferred amount.&nbsp; This means that the payment due 31 March
2020 must be made in full.&nbsp; 



The first
provisional tax payment due from 1 April 2020 to 30 September 2020 will be
based on 15% of the estimated total tax liability, while the second provisional
tax payment from 1 April 2020 to 31 March 2021 will be based on 65% of the
estimated total tax liability.&nbsp; Provisional taxpayers with deferred
payments will be required to pay the full tax liability when making the third
provisional tax payment in order to avoid interest charges.&nbsp; 



The proposed
amendments are deemed to have come into operation on 1 April 2020 and apply to
first provisional tax periods ending on or after 1 April 2020 but before 1
October 2020 and to second provisional tax periods ending on or after 1 April
2020 but before 1 April 2021.&nbsp; 



Employment
Tax Incentive (ETI): 



For the period
of four months, beginning 1 April 2020 and ending on 31 July 2020:



<ul><li>The maximum amount of ETI claimable during this four-month period for employees eligible will be increased from R1 000 to R1 500 in the first qualifying twelve months and from R500 to R1 000 in the second twelve qualifying months.  </li><li>Allowing a monthly ETI claim in the amount of R500 during this four-month period for employees from the ages of: <ul><li>18 to 29 who are no longer eligible for the ETI as the employer has claimed ETI in respect of those employees for 24 months; and </li><li>30 to 65 who are not eligible for the ETI due to their age.  </li></ul></li><li>Accelerating the payment of employment tax incentive reimbursements from twice a year to monthly as a means of getting cash into the hands of tax compliant employers as soon as possible.</li></ul>



This will,
however, only apply to employers that were registered with SARS as at 1 March
2020. Further to the above, the current compliance requirements for employers
under sections 8 and 10(4) of the ETI Act will continue to
apply.&nbsp;&nbsp;&nbsp; 



Unemployment
Insurance 



The President
also said that government is exploring the temporary reduction of employer and
employee contributions to the Unemployment Insurance Fund and employer
contributions to the Skill Development Fund.&nbsp; The Unemployment Insurance
Commissioner has developed a Corona Virus Tem­porary
Employer-Employee Relief Scheme (COVID19TERS) to contribute to the containment
of the Coronavirus and its impact.



In terms of
the Temporary Employer/Employee Relief Scheme (TERS) process, the UIF may fund
the distressed companies directly in relation to the TERS Allowance. The
benefits paid will be capped at a 38% to 60% of the maximum of R17 712 per
month and the employee will be paid in terms of the income replacement rate
sliding scale as provided in the Unemployment Insurance Act.&nbsp; The minimum
that will be paid will be a replacement income equal to minimum wage of the
sector concerned.&nbsp; 



Where an
employer, as a direct result from the current COVID-19 pandemic, decided to
close their business for a period and send employees home, this would
constitute a temporary lay-off. If the employer cannot pay his employees for
this period, the employer can apply for the “National Disaster Benefit” from
the UIF.&nbsp; 



Where an
employee has been quarantined for 14 days or longer, the Illness Benefit will
apply.&nbsp; Existing benefits for illness and unemployment will kick in if no
leave is granted.&nbsp; 



Should a UIF
contributor pass on from COVID-19, death benefits will be paid to the
beneficiaries of the deceased.&nbsp; 



Employers
should apply by reporting their closure to the email address: <a href="mailto:Covid19ters@labour.gov.za">Covid19ters@labour.gov.za</a>.&nbsp; 



Value-Added
Tax



SARS announced
that, due to the measures put in place under the Disaster Management Act 57 of
2002, “essential goods” as defined in Regulation R.398 in Government
Gazette No 43148 of 25 March 2020 will be subject to a VAT exemption and a full
rebate of customs duties during the COVID-19 pandemic.&nbsp; 



The
VAT-rulings department at SARS announced that work on rulings in progress will
be delayed. Any correspondence, including new ruling applications submitted to
SARS from 27 March 2020, will be acknowledged or responded to once the
aforementioned measures have been relaxed or ended.



Conclusion 



Employers,
employees, taxpayers and tax practitioners are advised to regularly check the
SARS website for updates on the issues.&nbsp; SARS indicated that it would make
information available to recognised professional bodies to be communicated to
tax practitioners.&nbsp; 



[End]



About SAICA



The South African Institute of Chartered Accountants (SAICA), South
Africa’s pre-eminent accountancy body, is widely recognised as one of the
world’s leading accounting institutes. The Institute provides a wide range of
support services to more than 50 000 members and associates who are chartered
accountants [CAs(SA)], as well as AGAs(SA) and ATs(SA), who hold positions as
CEOs, MDs, board directors, business owners, chief financial officers, auditors
and leaders in every sphere of commerce and industry, and who play a
significant role in the nation’s highly dynamic business sector and economic
development.



SAICA Media Contact



Kulani
Chauke



Communication
Coordinator: Corporate



SAICA Brand
Division 



011 479 0698



<a href="mailto:kulanic@saica.co.za">kulanic@saica.co.za</a>



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

The impact of COVID-19 lockdown on tax and unemployment related matters

South Africa&#8217;s Moody&#8217;s reprieve is over. The rating agency, the last to rate the country investment grade, has cut South Africa’s sovereign credit rating to junk <a href="https://www.cnbcafrica.com/news/2020/03/27/moodys-to-cut-south-africas-sovereign-credit-rating-to-junk-economists/">in line with economists&#8217; forecast</a>. This comes as the country&#8217;s recession deepened by the impact of COVID-19 frustrates its economic reform efforts and stifles its plans to reduce government debt.



The action will result in South Africa&#8217;s expulsion from the World Government Bond Index (WGBI), as a consequence those funds tracking this index as a benchmark will become forced sellers.



<a href="https://www.cnbcafrica.com/insights/sa-downgrade/2017/11/24/sa-downgrade-2/">Analysts have warned </a>that the magnitude of this forced selling could be as high as $8 billion (R141 billion at R17.64 exchange rate).&nbsp; 



Moody&#8217;s issued the following statement explaining its reasons: 



Moody&#8217;s Investors Service, (&#8220;Moody&#8217;s&#8221;) has today downgraded the Government of South Africa&#8217;s long-term foreign-currency and local-currency issuer ratings to Ba1 from Baa3. The outlook remains negative. A Ba1 rating is judged to have speculative elements and a significant credit risk. 



READ: <a href="https://www.cnbcafrica.com/news/financial/2020/03/28/governments-response-to-moodys-downgrade-of-sa-to-junk-status/">SA government&#8217;s response to Moody&#8217;s downgrade </a>



The key driver behind the rating downgrade to Ba1 is the continuing deterioration in fiscal strength and structurally very weak growth, which Moody&#8217;s does not expect current policy settings to address effectively.



Both outcomes speak to weaker economic and fiscal policy effectiveness than Moody&#8217;s previously assumed.



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The negative outlook reflects the risk that economic growth will prove even weaker and the debt burden will rise even faster and further than currently expected, weakening debt affordability and potentially, access to funding.



Moody&#8217;s also downgraded South Africa&#8217;s long-term foreign-currency and local-currency senior unsecured debt ratings to Ba1 from Baa3, its foreign-currency senior unsecured MTN and senior unsecured Shelf ratings to (P)Ba1 from (P)Baa3, as well as its foreign-currency other short-term rating to (P)NP from (P)P-3.



In a related action, Moody&#8217;s downgraded ZAR Sovereign Capital Fund Propriety Limited&#8217;s foreign currency, backed senior unsecured debt rating to Ba1 from Baa3 and maintained its negative outlook. ZAR Sovereign 



Capital Fund Propriety Limited is a special purpose vehicle whose debt issuance is ultimately the obligation of the South African government.



All South Africa&#8217;s long-term country risk ceilings were revised down by one notch. Its long-term local-currency bond and bank deposits ceilings were revised down to A3 from A2, and the long-term foreign-currency bond ceilings to Baa1 from A3. The short-term bond foreign-currency ceiling remained unchanged at Prime-2. Moody&#8217;s also lowered the long-term foreign-currency bank deposits ceilings to Ba1 from Baa3 and the short-term foreign-currency bank deposits ceiling to Not Prime(NP) from Prime-3.



RATINGS RATIONALE



RATIONALE FOR THE RATING DOWNGRADE TO Ba1



STRUCTURALLY VERY WEAK GROWTH AND CONSTRAINED CAPACITY TO STIMULATE THE



ECONOMY



Unreliable electricity supply, persistent weak business confidence and investment as well as long-standing structural labour market rigidities continue to constrain South Africa&#8217;s economic growth. As a result, South Africa is entering a period of much lower global growth in an economically vulnerable position. The government&#8217;s own capacity to limit the economic deterioration, in the current shock and more durably is constrained. Fiscal space is very limited and looser monetary policy will not address underlying structural problems. The unprecedented deterioration in the global economic outlook caused by the rapid spread of the coronavirus outbreak will exacerbate the South Africa&#8217;s economic and fiscal challenges and will complicate the emergence of effective policy responses.



Progress on structural economic reforms has been very limited. Some initiatives to improve competition and encourage job creation have progressed, but none that constitute a step-change for the economy. 



Structural issues such as labour market rigidities and uncertainty over property rights generated by the planned land reform remain unaddressed. 



Moreover, a strategy to stabilize electricity production has been slow to emerge and has yet to prove its effectiveness. Moody&#8217;s assumes that while power supply will become more reliable, the restoration of full capacity will take some years to complete. As a result, after the immediate sharp downturn, growth will remain very low in the following years.



INEXORABLE RISE IN GOVERNMENT DEBT OVER THE MEDIUM TERM



South Africa&#8217;s debt burden will rise over the next five years under any plausible economic and fiscal scenario.



Debt-to-GDP increased by 10 percentage points (ppts) over 2014-18 and will rise by a further 22 ppts over 2019-23 under Moody&#8217;s baseline projections. Over that timeframe, Moody&#8217;s expects primary deficits to persist. The fiscal deficit will widen in fiscal 2020 to around 8.5% of 



GDP, as revenue declines this year, only narrowing very gradually thereafter. Fiscal strains from interest payments and support to state-owned enterprises will continue.



In this context, and consistent with the recently announced budget, any fiscal consolidation will rest primarily on containing the large and growing public sector wage bill. The government aims to achieve ZAR160 billion (3% of GDP) in savings over the next three fiscal years by keeping wage growth below inflation. That would mark a material departure from current agreements and past outcomes, and as such is likely to prove challenging to implement. Moody&#8217;s expects expenditure on wages to exceed budget at least in 2020.



Interest rates are likely to rise above the levels assumed in the budget and nominal growth will be weaker. Moody&#8217;s estimates that the debt burden will reach 91% of GDP by fiscal 2023, inclusive of the guarantees to state-owned enterprises from 69% at end of fiscal 2019. Even if the government&#8217;s plans to restrain wage growth were fully implemented, debt-to-GDP would still continue to rise significantly. Similarly, even under a scenario of more effective improvement in tax compliance and falling interest rates from fiscal 2021, government debt would still rise to around 87% by 2023.



RATIONALE FOR THE NEGATIVE OUTLOOK



The negative outlook reflects downside risks around economic growth and fiscal metrics, that could lead to an even more rapid and sizeable increase in the debt burden, further lowering debt affordability and potentially weakening South Africa&#8217;s access to funding.



Downside risks to growth are both immediate and longer term, relating to heightened uncertainty about the economic impact of the coronavirus pandemic and to the possibility that negative economic sentiment becomes further entrenched as policymakers and stakeholders continue to struggle to reach consensus on the structural reforms that would sustainably stimulate growth and employment. With unemployment at already very high levels (29%), even weaker growth would have significantly negative social implications.



Should these downside risks materialise, South Africa&#8217;s government debt would stabilise later and at a higher level than currently expected by Moody&#8217;s. A steeper increase in debt would weaken debt affordability, potentially challenging the government&#8217;s currently strong access to funding at manageable costs, particularly during periods of acute risk aversion by global investors such as at present. Although South Africa&#8217;s exposure to global financing conditions is mitigated by its reliance on local currency debt, its weak economic and fiscal fundamentals could exacerbate adverse capital flows.



ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS



Environmental risk influences Moody&#8217;s assessment of South Africa&#8217;s economic resilience. Due to its geographical location, South Africa is subject to frequent climate change-related shocks such as droughts which undermine the agricultural sector&#8217;s performance and weigh on growth. Set against that, the country&#8217;s economic diversification and sophisticated agricultural techniques mitigate the impact of environmental considerations on South Africa&#8217;s credit profile.



Social considerations are material for South Africa&#8217;s credit profile and their implications for the economy and public finances are a driver of the rating downgrade. Deep socio-economic inequalities complicate the implementation of reforms that would otherwise unlock the economy&#8217;s significant potential. They also contribute to tensions and resistance from key stakeholders that ultimately fuel political risk.



Governance considerations are material to South Africa&#8217;s credit profile. South Africa&#8217;s ranking under the Worldwide Governance Indicators is stronger than Ba1-rated sovereigns, and the strength of key institutions, 



in particular the South African Reserve Bank and the Treasury, support the rating. However, the broader erosion in institutional strength induced by the wide-spread corruption of the Zuma administration is an important factor behind the erosion in South Africa&#8217;s credit profile in recent years. Moreover, the legacy that era has bequeathed of poor governance of state-owned enterprisess remains a key drain on fiscal resources.



WHAT COULD CHANGE THE RATING UP



Given the negative outlook a rating upgrade is unlikely
in the near future.



Moody&#8217;s would likely change the rating outlook to stable if the government&#8217;s medium-term fiscal consolidation were to proceed broadly in line with the rating agency&#8217;s central expectations, with prospects of a slow but durable pick-up in growth and financing risks remaining low. In this scenario, Moody&#8217;s would likely see a gradual reduction in South Africa&#8217;s primary deficit in the next few years, with increasing assurance that government debt will stabilize comfortably below 90% of GDP.



WHAT COULD CHANGE THE RATING DOWN



South Africa&#8217;s ratings would likely be downgraded if Moody&#8217;s were to conclude that any combination of very weak growth, failure to reduce the primary deficit, and rising financing costs was likely to cause the debt burden to rise to even higher levels than currently projected with even greater uncertainty regarding its eventual stabilisation, in turn threatening South Africa&#8217;s access to funding at manageable costs. Such an outcome would speak to weaker institutional policymaking capacity and, over time, a diminution of economic and fiscal strength consistent with lower rating levels.



Important indicators in this regard include the government&#8217;s ability over the next year or so to contain the impact of global recession on the South African economy and to promote recovery thereafter; to agree and begin to implement the structural reforms that would strengthen the economy. The implementation of the framework for a reliable supply of power to the economy and fiscal reforms to contain expenditure and enhance revenues are important milestones.

Moody’s downgrades SA to junk

JOHANNESBURG, March 19 (Reuters) &#8211; South African retailer Massmart said on Thursday it had decided to close all of its non-performing stores, as cash-strapped consumers battle with high unemployment, modest wage increases and higher average fuel and utility prices. 



The company said management will cease trading of the affected 23 Dion Wired Stores on March 19, and will decide whether to cease trade in relation to the 11 affected non-performing Masscash stores.



(Reporting by Tanisha Heiberg; Editing by Shri Navaratnam)



This article was first published on Reuters Africa <a href="https://www.reuters.com/article/massmart-closures-idUSL8N2BC0T7">https://www.reuters.com/article/massmart-closures-idUSL8N2BC0T7</a> and is republished with its permission.

South Africa’s Massmart to close non-performing stores

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22 year old Yvonne Nyinawumuntu established an online platform dubbed “Go Cook” that is set to transform the food delivery market and also solve unemployment issue among people who pursued culinary arts. Yvonne, Founder of the company joins CNBC Africa for more.

How this 22 year old entrepreneur is disrupting Rwanda’s food delivery market

How this 22 year old entrepreneur is disrupting Rwanda’s food delivery market, helping fight youth unemployment

PRETORIA (Reuters) &#8211; South Africa’s unemployment rate remained unchanged at 29.1% in the final quarter of 2019 compared with the previous quarter, official data showed on Tuesday.



There were 6.726 million people without jobs in the three months to December 31, from 6.734 million people in the prior quarter, Statistics South Africa said its quarterly labour force survey.



The expanded definition of unemployment, which includes people who have stopped looking for work, was 38.7%, slightly up from 38.5% in the previous quarter.



Reporting by Mfuneko Toyana; Writing by Olivia Kumwenda-Mtambo; Editing by Alex Richardson

South Africa Q4 unemployment rate remains unchanged at 29.1%

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Angola is the second largest oil producer in sub-Saharan Africa and has achieved some economic and political strides in recent years, but could the recent scandals and high unemployment and poverty rates leave international investors doubtful? Joining CNBC Africa for more is Rui Oliveira, CEO at BFA Asset Management.

How the coronavirus

How the coronavirus, Luanda leaks impacts Angolan markets

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Lagos state is among the top five states with the highest unemployed population in Nigeria – that’s according to data from the Labour Force Statistics of the National Bureau of Statistics. Nosike Nwajide, Analyst at FDC joins CNBC Africa to explore ways to change the narrative on unemployment in Nigeria.

How Nigeria plans to change the narrative on unemployment

The 2010s kicked off a decade of uncertainty within the job market. Many sectors were still dealing with the aftermath of the Great Recession, the national&nbsp;<a href="https://www.bls.gov/opub/ted/2010/ted_20100217.htm" class="" rel="noreferrer noopener" target="_blank">unemployment rate</a>&nbsp;sat at 9.7%, the&nbsp;<a href="https://www.epi.org/press/class_of_2010_faces_worst_job_market_in_a_generation_says_epi_report/" class="" rel="noreferrer noopener" target="_blank">class of 2010</a>&nbsp;graduated into the worst job market in a generation, and by the summer of 2010, more than a million job seekers&nbsp;<a href="https://www.cnbc.com/id/37554163" class="">quit looking for employment</a>.



However, now at the close of the decade, the&nbsp;<a href="https://www.cnbc.com/2019/12/06/us-nonfarm-payrolls-november-2019.html" class="">job market has markedly improved</a>&nbsp;for most workers. That’s especially true for those in the technology space.



While developing tech has&nbsp;<a href="https://www.cnbc.com/2019/12/05/map-the-us-cities-where-robots-are-impacting-jobs-the-most.html" class="">eliminated some job functions</a>, it’s also&nbsp;<a href="https://www.cnbc.com/2019/11/27/high-paid-well-educated-white-collar-jobs-heavily-affected-by-ai-new-report.html" class="">redefined</a>&nbsp;and created completely new roles in the past 10 years — many that pay well, thanks in part to&nbsp;<a href="https://www.cnbc.com/2019/11/06/how-switching-careers-to-tech-could-solve-the-us-talent-shortage.html" class="">a short supply of workers</a>&nbsp;with the&nbsp;<a href="https://www.cnbc.com/2019/11/19/these-will-be-the-top-10-most-popular-tech-skills-of-2020.html" class="">right skill sets</a>&nbsp;to fill emerging jobs that are crucial to keeping businesses competitive.



<a class="" href="https://www.cnbc.com/make-it/">CNBC Make It</a> spoke with Glassdoor senior economic research analyst Amanda Stansell about the jobs that barely existed at the turn of the decade, but that have exploded in growth and median base pay through the 2010s.



<h2 class="wp-block-heading">Data scientist: $107,697 per year</h2>



In 2012, Harvard Business Review named data scientist&nbsp;<a href="https://hbr.org/2012/10/data-scientist-the-sexiest-job-of-the-21st-century" class="" rel="noreferrer noopener" target="_blank">“the sexiest job of the 21st century</a>.” And for the past four years, Glassdoor has recognized it as the&nbsp;<a href="https://www.cnbc.com/2019/01/22/glassdoor-the-20-best-jobs-in-america-in-2019.html" class="">No. 1 job in the U.S.</a>&nbsp;based on job satisfaction, pay and opportunities.



Stansell says demand for data scientists is still most concentrated within the tech industry, but that it’s growing across every sector: health care, finance, business, retail, media and beyond.



“All these companies have a need for a data scientist who can make use of the growing amount of data they have and turn it into something valuable,” Stansell says.



While the term “data science” was first coined as an independent discipline (separate from traditional statistics) in 2001 by&nbsp;<a href="https://www.stat.purdue.edu/~wsc/" class="" rel="noreferrer noopener" target="_blank">William S. Cleveland</a>, jobs in data science have grown most rapidly since 2010. That’s because as more companies are investing in technology to collect user data, the need for professionals to interpret said data has skyrocketed.



Because it’s still a relatively new field, many of today’s data scientists have varied backgrounds in computer science, math, statistics and engineering. However, <a class="" rel="noreferrer noopener" href="https://www.insidehighered.com/digital-learning/article/2017/03/15/data-analytics-programs-taking-colleges" target="_blank">more universities</a> have begun offering specific degrees, courses and even bootcamps in data science within the past decade.



<h2 class="wp-block-heading">Information security engineer: $100,553 per year</h2>



Since 2010, data breaches have&nbsp;<a href="https://www.cnbc.com/2019/12/23/the-10-biggest-data-hacks-of-the-decade.html" class="">compromised over 38 billion accounts,</a>&nbsp;according to the cybersecurity firm Risk Based Security.



These breaches, and the need to protect user data, has resulted in information security being one of the fastest-growing fields. Information security engineers work to safeguard an organization’s computer network systems, and plan and carry out security measures to protect sensitive information from infiltration and cyber attacks.



“As there have been more and more high-profile data breaches in recent years, this has translated to companies seeing the need for having people who can help them protect their data,” Stansell says.



The field is projected to&nbsp;<a href="https://www.bls.gov/ooh/computer-and-information-technology/information-security-analysts.htm" class="" rel="noreferrer noopener" target="_blank">grow by 32% through 2028</a>, according to the Bureau of Labor Statistics. (The average growth rate for all occupations is 5%.)



However, the need for information security engineers has far eclipsed the number of people with the skills to do the job. The U.S. Department of Commerce&nbsp;<a href="https://www.cnbc.com/2018/08/09/cybersecurity-jobs-non-technical-workers.html" class="">recently estimated</a>&nbsp;there are 350,000 unfilled cybersecurity jobs in the country. Cybersecurity Ventures, an analytics and research company, estimates 3.5 million jobs in cybersecurity around the world are likely to go unfilled by 2021.



This talent shortage means workers in the field are paid handsomely. While Glassdoor data says information security engineers earn a median base salary of just over $100,000 per year, top-level jobs in the field, like chief information security officer, can yield <a class="" href="https://www.cnbc.com/2018/08/09/cybersecurity-jobs-non-technical-workers.html">pay above $300,000 in top metro areas</a>, according to cybersecurity recruiting firm SilverBull.



<h2 class="wp-block-heading">Director of diversity and inclusion: $98,154 per year</h2>



The only top-paying emerging job of the decade that doesn’t fall into the tech space is one that focuses on workplace culture, particularly within diversity and inclusion. The position of D&amp;I director is so new, Glassdoor doesn’t have adequate pay data for the specific role, but uses Human Resources Director salaries with an average pay of $98,154 per year as a guide.



According to a&nbsp;<a href="https://www.glassdoor.com/about-us/diversity-inclusion-2019/" class="" rel="noreferrer noopener" target="_blank">2019 Glassdoor survey</a>, 61% of U.S. employees have witnessed or experienced discrimination in the workplace based on age, race, gender or LGBTQ identity. Meanwhile, the career site saw a 30% increase in the past year of diversity and inclusion job openings, such as D&amp;I director, program manager, diversity recruiter and D&amp;I consultant.



“This signals that these are issues employees are facing, and employers are catching up and trying to make an impact in this field,” Stansell says, “which is really an encouraging sign that employers are making the investment towards an inclusive workplace.”



Larger companies with 5,000 or more employees are the ones making the biggest investment in growing their D&amp;I departments, likely because they have the financial resources to do so.



Stansell predicts progress in these types of roles will continue into the next decade. According to a&nbsp;<a href="https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/inclusion-survey.html" class="" rel="noreferrer noopener" target="_blank">2017 survey from Deloitte</a>,&nbsp;<a href="https://www.cnbc.com/2017/07/26/75-percent-of-execs-would-leave-their-company-for-one-that-values-diversity.html" class="">72% of employees</a>&nbsp;said they would consider leaving their company to join another with better diversity initiatives and programs.



“In the next few years, we’ll continue to see medium-sized companies invest in diversity and inclusion, especially as it is such an important thing to job seekers,” Stansell says.



<h2 class="wp-block-heading">Sales engineer: $90,000 per year</h2>



Sales engineers work for tech companies to sell customized software and products to other businesses looking to expand their IT efforts.



“As tech companies are offering really high-value products to potential customers, they need to have the ability to adapt to each individual [client],” Stansell says. “Having a sales engineer, who is a communicator between the sales and engineering aspects, is really important make sure that the needs of the potential customer are met.”



Because workers must have extensive knowledge of these products and understand the scientific processes behind their operations, sales engineers tend to have technical backgrounds (for example, a degree in computer science or engineering). However, Stansell adds they also need solid interpersonal skills such as communication, negotiation and marketing know-how in order to provide customized solutions to clients during the sales process.



Those with a marketing background may also be able to learn more about tech products and software in order to transition into this type of role.



While Glassdoor puts the annual median salary of a sales engineer at $90,000 per year, pay can vary based on what they’re selling. For example, the <a class="" href="https://www.cnbc.com/2019/04/23/glassdoor-the-7-highest-paying-sales-jobs-in-the-us.html">Bureau of Labor Statistics says</a> those operating in the telecommunications industry tend to earn the most, about <a class="" rel="noreferrer noopener" href="https://www.bls.gov/ooh/sales/sales-engineers.htm#tab-5" target="_blank">$118,000 a year</a>, followed by sales engineers in computer systems design and wholesale electronic markets, who also command six-figure salaries.



<h2 class="wp-block-heading">Salesforce developer: $80,357 per year</h2>



While Salesforce, the cloud-based software company that specializes in customer relationship management, was founded in 1999, its influence in U.S. workplaces expanded vastly in the past 10 years, so much so that the role of Salesforce developer became a sought-after position at companies such as&nbsp;<a href="https://www.glassdoor.com/Job/jobs.htm?sc.keyword=salesforce%20developer&amp;amp;locT=&amp;amp;locId=0&amp;amp;locKeyword=&amp;amp;jobType=all&amp;amp;fromAge=-1&amp;amp;minSalary=0&amp;amp;includeNoSalaryJobs=true&amp;amp;radius=25&amp;amp;cityId=-1&amp;amp;minRating=0.0&amp;amp;industryId=-1&amp;amp;sgocId=-1&amp;amp;seniorityType=all&amp;amp;companyId=-1&amp;amp;employerSizes=5&amp;amp;applicationType=0&amp;amp;remoteWorkType=0" class="" rel="noreferrer noopener" target="_blank">Google, Amazon, PwC and Uber</a>.



As a Salesforce developer, workers use the Salesforce platform or cloud technology to code software or application solutions for their company to better connect with customers, partners and potential customers.



“It’s a job completely born out of successful technology product that’s changed the ways companies function and organize data,” Stansell says.



Developers generally have a background in computer science and may&nbsp;<a href="https://www.cnbc.com/2019/11/19/these-will-be-the-top-10-most-popular-tech-skills-of-2020.html" class="">pursue certification</a>&nbsp;in specific&nbsp;<a href="https://trailhead.salesforce.com/credentials/developeroverview" class="" rel="noreferrer noopener" target="_blank">Salesforce applications</a>&nbsp;or processes. That said, these developers also need&nbsp;<a href="https://www.cnbc.com/2019/11/21/10-top-soft-skills-to-master-for-2020-if-you-want-a-raise-promotion-or-new-job.html" class="">soft skills</a>, such as communication, in order to interpret data and workflows for a non-technical audience.



“I think we’ll continue to see this trend in the future with really successful tech products,” Stansell says, adding, “people who are able to learn those skills and apply them for different companies can have really great career paths.”



This article was first published on CNBC <a href="https://www.cnbc.com/2019/12/30/5-high-paying-growing-jobs-that-will-be-booming-through-the-2020s.html">https://www.cnbc.com/2019/12/30/5-high-paying-growing-jobs-that-will-be-booming-through-the-2020s.html</a> and is republished with its permission.

unemployment

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These 5 high-paying, growing jobs didn’t exist a decade ago—but they’ll be booming through the 2020s

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unemployment

South Africa’s Q1 unemployment rate falls to 34.5%

SA’s unemployment rises to 13-year high

Financial Derivatives CEO breaks down Nigeria’s unemployment, inflation numbers

SA unemployment rate rises to 30.8%

ABSA looks to equip SA’s youth with cyber skills to fight poverty

Finding solutions to SA’s unemployment crisis

Gumtree: This is how COVID-19 is shaping SA’s jobs market

The Day After COVID-19: Overcoming the Novel Coronavirus double jeopardy in Central Africa

FNB extends aid for battling SMEs in South Africa amid COVID-19, lockdown

The impact of COVID-19 lockdown on tax and unemployment related matters

Moody’s downgrades SA to junk

South Africa’s Massmart to close non-performing stores

How this 22 year old entrepreneur is disrupting Rwanda’s food delivery market, helping fight youth unemployment

South Africa Q4 unemployment rate remains unchanged at 29.1%

How the coronavirus, Luanda leaks impacts Angolan markets

How Nigeria plans to change the narrative on unemployment

These 5 high-paying, growing jobs didn’t exist a decade ago—but they’ll be booming through the 2020s

News Tips

Advertise With Us

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