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March 12.2025
3 Minutes Read

How KPMG Survey Reveals Business Opportunities for German Firms in South Africa

Mobile news on German business opportunities in Southern Africa.

Optimism Amidst Challenges: German Companies in Southern Africa

In the wake of South Africa’s recent national elections, a new survey reveals a cautiously optimistic outlook for German businesses operating in South Africa and the broader Southern African region. Conducted by KPMG Germany in collaboration with AHK Southern Africa, the ‘German-Southern African Business Outlook 2025’ offers critical insights into the professional climate and investment attitudes of German firms.

Survey Insights: Key Findings from the KPMG-AHK Survey

From November 11 to December 31, 2024, KPMG and AHK engaged 98 companies to explore the pressing challenges and opportunities facing businesses in the region. The results indicate a significant degree of optimism: 64% of participants in South Africa expect an increase in sales within the year, while 58% in the wider Southern Africa region echo this sentiment.

Profit expectations are also uplifting, with 48% of South African respondents anticipating higher profits—this reflects a gradual turnaround as businesses adapt to economic challenges. Furthermore, 44% of firms plan to invest in South Africa over the next three years, with at least €3 million earmarked for projects by 10% of these companies. In contrast, investment interest wanes in other Southern African countries, where only 20% express investment plans.

The Impact of Political Stability on Business Growth

The survey's responses suggest a strong correlation between enhanced political stability and business growth. Almost all respondents (77%) believe the recent election outcomes will favorably impact the economic environment. However, 65% anticipate that improvements will be moderate, illustrating a tempered perspective. Business leaders are hopeful that the newly formed Government of National Unity will spur necessary reforms for sustainable growth as they work to address longstanding issues in infrastructure and crime.

Corruption and Infrastructure: A Business Imperative

As noted by Andreas Glunz, KPMG Germany’s managing partner for international business, one of the most pressing tasks for the new government is to systematically combat corruption and crime. This sentiment resonates with 46% of surveyed companies identifying this as a paramount focus for improvement, clarifying their critical concern for the local business environment. Investment in infrastructure modernization—favored by 39% of firms—also appears essential to facilitate economic expansion.

Challenges Driving Innovation: The Role of Technology

In a world increasingly driven by technological advancements, German businesses are exploring digital solutions as they navigate local challenges. Areas such as cloud computing, data analytics, and cybersecurity are gaining traction, reflecting a need to innovate amidst infrastructural gaps.
For many firms, adapting technologies—like IOT devices for supply chain improvements or AI tools for decision-making—serves as both a response to immediate challenges and a catalyst for long-term growth.

Future Predictions: What Lies Ahead for German Enterprises

As businesses look beyond immediate recovery, the forecast for growth hinges on the government’s ability to stabilize political and economic conditions. The formation of a united government has reinvigorated hopes. Many German companies see South Africa as a gateway to expanding markets across sub-Saharan Africa, capitalizing on a youthful demographic and untapped resources.

While optimism prevails, industry players must remain cautiously vigilant, embracing innovative strategies and digital transformation frameworks that encompass automation, digital skills, and responsible tech investments. A holistic focus on cultural and social adaptation will serve as a foundation for creating robust business ecosystems ready to adapt dynamically.

Conclusion: Embracing Opportunities Amidst Uncertainty

In summary, the KPMG-AHK survey reflects a complex yet promising landscape for German companies in Southern Africa. The confluence of political change and economic opportunity beckons resilience and innovation from business leaders. Understanding and integrating advanced technologies, fostering public-private partnerships, and tackling systemic challenges will determine the region's future success. As executives and professionals hone their strategies, continuing to monitor evolving conditions will be crucial for sustaining growth and tapping into Southern Africa's full potential.

Stay informed and be part of the change—understand how you can engage with the technological advancements that may redefine business landscapes. Join the conversation today by exploring more insights on innovations in the region.

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01.27.2026

Nigeria's Economy Hits $46B in Reserves: A New Beginning for Business Leaders

Update Resilience Reclaimed: Nigeria's Economic ComebackNigeria's recent achievement of surpassing $46 billion in external reserves marks a significant milestone in its economic landscape. The last time the reserves hit such heights was nearly eight years ago, signaling not only a recovery from past financial constraints but also an enhanced position among Africa's top economies. This positive trajectory has been largely attributed to several strategic moves aimed at boosting oil exports, reforms in the foreign exchange market, and reducing dependency on fuel imports.The Road to Recovery: Key Factors Behind the RiseAs detailed by data from the Central Bank of Nigeria, the steady build-up of reserves since 2025 underscores the effectiveness of recent economic reforms. Increased crude oil production has played a crucial role, improving dollar inflows significantly. Additionally, the unification of exchange rates has allowed for enhanced portfolio flows, attracting foreign investments which are critical for strengthening the naira. Moreover, the push for greater domestic refining capacity has emerged as a game-changer, assisting in minimizing the nation's reliance on imported fuels.Lessons from the Past: Understanding VolatilityThis rise in reserves is particularly poignant considering the history of fluctuations that have characterized Nigeria's economy. From periods of decline due to oil price volatility and navigating the uncertainties of currency management, the recent decades have taught valuable lessons in fiscal discipline and the importance of diverse economic strategies. Analysts stress that the resilience seen today must be matched by ongoing commitment to reform, especially as the nation heads into an election cycle, which traditionally brings about economic uncertainties.Implications for Policymakers: Navigating Challenges AheadWhile the current state of the reserves is promising, analysts express tempered optimism regarding sustainability. A continuation of disciplined fiscal policies, consistent oil production levels, and the adherence to FX reforms will be vital in maintaining momentum. Policymakers must also remain vigilant about potential external shocks that could jeopardize hard-won gains. This calls for a proactive approach that adjusts to both domestic needs and global market trends.Broader Market Dynamics: Nigeria Among Africa’s Economic GiantsNigeria now stands shoulder to shoulder with other major African economies like South Africa and Egypt in terms of reserve strength. While Nigeria's reserves contribute significantly to import coverage, boosting confidence in the naira, its position also relies heavily on oil market dynamics. Understanding the interconnectedness of these economic factors is essential for stakeholders looking to make informed investments and decisions.Looking Ahead: Opportunities in the Evolving EconomyAs Nigeria works toward transmuting its recovering reserves into long-term economic stability, the spotlight turns to innovative sectors such as fintech, agritech, and renewable energy. The evolving digital landscape, coupled with Nigeria’s entrepreneurial spirit, provides fertile ground for investment opportunities across technology and resource sectors. This digital transformation holds the potential to underpin future growth as the nation seeks to diversify and build on its strong foundation.As we contemplate Nigeria's vast economic landscape, one must consider the importance of capitalizing on this momentum. For business leaders and investors, engaging in Nigeria's economic journey opens a realm of possibilities.

01.25.2026

Transforming African Trade: The Imperative of Limitless IoT Connectivity

Update Transforming African Trade: The Imperative of Limitless IoT Connectivity The dynamics of trade across Africa are shifting rapidly, with a compelling prediction suggesting that intra-African trade could potentially double by 2035. However, a report from Peter Walsh, Managing Director of IoT connectivity service provider CommsCloud, reveals a concerning paradox: outdated connectivity infrastructure threatens to stifle this promising growth. The call for a borderless approach to the Internet of Things (IoT) is loudly resonating in logistics and trading circles across the continent. The Critical State of African Trade Corridors Africa's trade corridors are the arteries of its economy, facilitating the movement of goods from Durban to Lusaka and beyond. Yet, they are hindered by an alarming lack of reliable connectivity. Walsh points out that despite the critical role played by IoT devices in tracking cargo and providing real-time communication, persistent challenges such as network failures, blackouts at borders, and costly roaming have left logistics providers grappling with supply chain blind spots. When connectivity falters, it represents more than mere inconvenience; it translates to lost revenue opportunities and severe customer dissatisfaction. The fragmented nature of data streams can jeopardize the application of artificial intelligence (AI) and analytics, which inherently require uninterrupted information flows to function optimally. Rising Economic Potential: A Closer Look Mordor Intelligence estimates that the cross-border road freight transport market in Africa stood at USD 9.81 billion this year and is anticipated to exceed USD 12.02 billion by 2030. This surge in trade is supported by the African Continental Free Trade Area (AfCFTA), which is set to boost intra-African commerce further. As key sectors like retail, precious metals, and temperature-controlled freight expand, the need for enhanced digital integration is undeniable. With high-value goods dominating these sectors, maintaining cargo quality through effective temperature monitoring and real-time tracking becomes imperative. Unfortunately, the current SIM solutions fail to provide the robust capacity required for high-data IoT applications, resulting in an urgent need for change in this landscape. Bridging the Connectivity Divide Currently, many truckers depend on a small selection of mobile operators within each country, which forces them to switch networks where coverage is lacking. Walsh conveys that reliance on dual SIM cards for multiple networks is a temporary fix; if either network experiences downtime, trucks face momentary disconnections. Businesses require seamless access to multiple mobile networks to ensure continuous service. As such, the push is on for infrastructure that supports a borderless IoT network. According to Walsh, integrating mobile networks across critical trade corridors will pave the way for smooth, uninterrupted logistics operations, thereby enabling a significant breakthrough in intra-African trade. A Multi-Core Solution to Connectivity The key to overcoming these challenges lies in the adoption of multi-IMSI, multi-core SIM technology. Unlike traditional SIMs, which are tethered to a single mobile network, these advanced SIMs provide automatic failover capabilities. This means that even when trucks traverse remote corridors and traverse international borders, they can maintain connectivity, thus avoiding outages that can disrupt operations. CommCloud, collaborating with global data network provider floLIVE, is already employing this technology to ensure that connectivity does not come to a standstill at national boundaries. This partnership will help support roaming agreements across all African nations, promoting localized data traffic and improving cost efficiencies. Future Outlook: The Path Ahead With Africa increasingly embracing the principles of efficiency and digital integration, the quest for a borderless IoT ecosystem is not merely a futuristic vision; it is an urgent necessity. As we look ahead to a continent where trade knows no bounds, the ability to maintain uninterrupted communication and data transfer will be pivotal. This endeavor not only serves to boost economic growth but is also a transformative step toward fostering trust and reliability in logistics. Africa's push towards borderless connectivity represents a crucial shift not just within its borders but also on the global trade stage, enabling the continent to emerge as a formidable player in international commerce. In conclusion, advancing towards a limitless IoT infrastructure across Africa is not just beneficial but essential for unlocking its vast economic potential. Businesses, governments, and technology providers must collaborate to ensure that crucial changes in policy and technology come to fruition. As we prepare for a new era of connectivity, let us collectively advocate for the infrastructure support needed to build an integrated and competitive African economy.

01.24.2026

FENIX360's $90 Million Commitment: What It Means for Creators

Update FENIX360's Landmark Equity Commitment: A $90 Million Boost for Creators In a significant move that sets the stage for transformative growth in the creator economy, FENIX360 Pte Ltd has secured a definitive Share Subscription Facility agreement worth up to USD 90 million from GEM Global Yield LLC SCS. This Luxembourg-based alternative investment group brings not only capital but also strategic partnership potential that aligns perfectly with FENIX360's vision to become a leader in the social media landscape focused on artists and creators. Understanding the Landscape The creator economy has gained massive traction, with platforms increasingly looking to empower artists by enabling them to retain greater control over their work and gain higher revenue shares. This agreement marks a pivotal acknowledgment of FENIX360's unique proposition—a platform that integrates various aspects of digital interaction, from music distribution and merchandising to NFTs and social networking. FENIX360's CEO, Allan Mark Klepfisz, emphasized that this equity facility provides substantial flexibility as they gear up for a public listing. With over 7,000 artist ambassadors already on-boarded, they aim to leverage this financial backing to expand globally and enhance their platform's functionalities. The growing community of artists can expect not just monetary benefits but the tools to forge deeper connections with their fans. Strategic Implications for FENIX360's Growth This capital infusion will enable FENIX360 to execute its ambitious expansion strategy while ensuring that the timing of financing aligns with corporate milestones. This strategy aims to minimize business risk, allowing the platform to respond agilely to market conditions. As it prepares for its public offering, the institutional backing from GEM reflects a growing confidence in the platform's business model amid a rapidly changing social media landscape. Furthermore, the deal positions FENIX360 among a select league of creator-focused platforms that are beginning to redefine engagement in the digital era. As they aim to realize their vision of transforming the creative economy, early access to capital allows for immediate investment in infrastructure and technology, providing a more seamless user experience. The Relevance of GEM Global Yield in This Partnership GEM Global Yield, with a focus on emerging markets and having successfully completed over 570 transactions worldwide, offers FENIX360 the expertise and network necessary for navigating complex markets. The diversified portfolio that GEM manages will bring invaluable insights to FENIX360 as it scales its operations, enhancing both venture growth and financial stability. This equity commitment stands as a testament to the increasing momentum within the creator economy, where innovative solutions are sought to address the complex intersection of art, technology, and market demand. With potential disruptions from ongoing economic fluctuations and the evolution of social interaction, the strategic alliance with GEM is poised to yield long-term benefits. What Lies Ahead for FENIX360 As the platform aims for a future-facing approach, the next few years will be critical. With plans to enhance its functionality and appeal to a broader demographic of artists and fans alike, FENIX360 is expected to not only contribute to the creator economy but also redefine how digital platforms serve artistic communities. The potential for expanded monetization avenues across various formats will likely excite current and prospective users. This notable funding round reinforces the importance of continued innovation and value creation in the competitive landscape of digital platforms. For FENIX360 and its network of artist participants, the path forward promises to be both enriching and exciting, sustaining the momentum of a rapidly evolving ecosystem. Conclusion The consensus around FENIX360's agreement with GEM Global Yield affirms a robust partnership with noteworthy implications for the creator economy. As social media platforms continue to evolve, the emphasis on artist empowerment will shape how these entities engage with their communities. Stakeholders should remain alert to further developments from FENIX360 as they navigate the waters of public listings and global expansions.

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