Business News - 2 August 2025

Economic Overview

South Africa’s rand had a mixed week. It weakened against the US dollar, moving from about R17.76/$ a week ago to R18.20/$ by period-end. It was nearly flat against the euro (around R20.81/€ to R20.77/€), and slightly weaker versus the British pound (from about R23.72/£ to R23.93/£). In other words, the rand lost ground against the dollar and pound, while staying almost unchanged against the euro over the 7-day period.

Several factors influenced the rand’s performance.

Locally, the SA Reserve Bank’s interest rate cut – a 0.25% reduction bringing the repo rate to 7.00% – made holding rand assets a bit less rewarding for investors. This, combined with concerns over potential US tariffs on South African exports, put pressure on the currency. Globally, a stronger US dollar during the week also weighed on the rand. On the positive side, news that Parliament passed a key budget bill earlier boosted optimism, but by week’s end global trade worries dominated.

Absa & Foton Launch Taxi Finance to Modernise the Minibus Fleet

Absa Vehicle Finance has officially launched a new taxi financing programme in partnership with Chinese automaker Foton, aimed at helping South Africa’s minibus taxi operators upgrade their fleets. The initiative, called Foton Taxi Finance, allows drivers to buy the new 16-seater Foton Asambe with customised loan packages that include lower deposit requirements and extended repayment terms. The typical deal spans four years, with monthly instalments starting below R12 000 and a deposit of around R45 900. Importantly, the ownership of the vehicle transfers to the operator at the end of the loan, offering long-term security.

Absa has added support features to improve uptake and performance: operators who complete a free Absa financial literacy course qualify for a complimentary first service, and the Foton vehicles are eligible for advanced app-based tracking via RUTCO. The launch comes as part of a broader push by Absa to deepen its reach into SME-focused asset finance. The minibus taxi sector is a multibillion-rand industry, employing hundreds of thousands across the country, yet access to vehicle finance has remained a major barrier for many operators. With Foton offering a newer, budget-friendly alternative to incumbents like Toyota, and Absa providing more flexible financing, this programme aims to simultaneously modernise transport and promote financial inclusion in one of South Africa’s most essential sectors.

Google Commits R700 Million to African AI Innovation

Google has announced a bold $37 million (±R700 million) investment in artificial intelligence across Africa, with a significant portion directed toward South African institutions and researchers. The funding will support AI initiatives that focus on solving real-world challenges, such as climate resilience, agricultural productivity, and language inclusion. Notably, R18 million each has been awarded to the University of Pretoria’s AfriDSAI Institute and Wits University’s MIND Institute to drive advanced local research, train students, and expand regional expertise in AI development.

The broader investment also includes a $25 million fund to support AI tools that enhance food security—particularly in forecasting droughts and crop yields—and another $3 million to support the open-source Masakhane project, which builds machine learning tools in over 40 African languages. Additionally, Google will launch Africa’s first AI Community Centre in Accra, Ghana, a collaborative space for researchers, entrepreneurs, and students. This is accompanied by startup funding and skills development programs across key markets including South Africa, Nigeria, Kenya, and Ghana.

For South Africa, this announcement is more than just academic—it positions the country as a strategic node in Africa’s AI evolution. Google’s support of local institutions will help embed AI into sectors like agriculture, health, and education. With global players like Google recognising Africa’s tech potential, the initiative signals a long-term commitment to building innovation capacity and ensuring Africa contributes meaningfully to the next wave of global AI breakthroughs.

FNB Appoints Ghana Msibi as CEO of FNB Business

First National Bank has selected Ghana Msibi, previously the CEO of WesBank, to lead FNB Business, its top-tier division focused on small and medium enterprises (SMEs) in South Africa. Msibi brings more than 22 years of financial services experience, including executive roles spanning banking, insurance, risk, and channel management. He joined the FirstRand Group in 2015 and, since taking over WesBank in 2022, has guided the division through solid performance and strategic innovation. In his new role, Msibi will report directly to FNB Group CEO Harry Kellan and serve on the Executive Committee, remaining involved in WesBank strategy until successors are in place to ensure a smooth transition.

Msibi takes charge at a time when FNB Business already serves over one million SME clients and holds a leadership position in business banking across South Africa. With his background in commercial lending and digital transformation, the bank expects Msibi to drive the next phase of growth, enhancing access to working capital, streamlining online tools for entrepreneurs, and expanding into township economies and underserved markets where digital finance can make a real difference. Analysts see this appointment as a strategic move to solidify FNB’s position in SME asset finance and to fend off growing competition from fintech upstarts

Vodacom wins ‘Please Call Me’ court round

On 31 July 2025, the Constitutional Court of South Africa overturned a previous ruling from the Supreme Court of Appeal that had ordered Vodacom to pay former employee Nkosana Makate between 5% and 7.5% of the revenue earned from the “Please Call Me” service. The Constitutional Court found that the appeal court had exceeded its powers and failed to properly consider procedural issues, and it sent the case back to the SCA for a fresh hearing before a new panel of judges.

The decision effectively delays any final resolution in a legal saga that has stretched nearly two decades. Vodacom hailed the outcome as a safeguard for future investment and innovation, noting that a large payout could have undermined network upgrade plans and community programmes. Makate, who has repeatedly rejected Vodacom’s prior R47 million offer, confirmed he will continue to seek fair compensation. In practical terms, the case will likely drag on further—but for now, Vodacom avoids a significant cash outlay, and the final legal chapter remains unwritten.

Peach Payments Enables Bitcoin Payments for South African Merchants

Peach Payments, the Cape Town–based payments platform, has unveiled a new payment feature in partnership with local crypto processor MoneyBadger. The integration allows customers to pay in Bitcoin and other supported cryptocurrencies at checkout, while merchants receive full settlement—guaranteed—in South African rand. The feature is now live across multiple shoppers, including TicketPro, which became the first online ticketing platform in South Africa to accept crypto backed by Peach Payments. Customers complete the transaction using a QR code or wallet app, and funds appear in the merchant’s bank account the next business day. Supported wallets include Luno, VALR, Binance, and even Lightning-native wallets—meaning the experience fits smoothly into an existing checkout flow.

Peach Payments says the first transactions via MoneyBadger included everyday purchases like hardware tools and homeline items—evidence that crypto usage is moving from speculation to retail spending. This reflects broader trends in South Africa, where over 68% of adults have bought or held Bitcoin, ranked among the world’s highest adoption rates. By offering crypto payment options while settling in rand, Peach Payments taps into a tech-aware consumer base—including tourists or expats lacking local bank access—without exposing merchants to volatility. The company plans to expand this feature to other African markets, aiming to position Peach Payments as a unified platform that bridges crypto and traditional commerce. 

Orange Money & JUMO Launch AI‑Powered Micro‑Loans via Mobile Wallets

Orange Money Group, the mobile financial arm of Orange telecom, has formed a strategic alliance with fintech leader JUMO to allow its customers to access small, collateral-free loans directly via their mobile wallets—without requiring a bank account or paperwork. The partnership leverages JUMO’s AI-led lending engine—which has already disbursed over US$8 billion to 31 million Africans—to deliver instant, data-driven credit decisions. Customers in the initial rollout markets (Burkina Faso, with plans to expand into Mali and Botswana) can request credit through the Orange wallet app or via USSD. Once approved, funds land instantly in the wallet and repayments are automatically deducted on schedule. 

This micro-credit rollout is built on a broader vision of financial inclusion: Orange Money serves over 100 million customers across 16 countries, while JUMO contributes a decade of experience in secure, low-risk mobile lending. The collaboration is expected to reduce credit risk to under 4% by relying on behavioral and transaction data rather than traditional collateral. For South African fintech innovation, this signals growing momentum in embracing mobile-first, AI-powered finance that meets informal and underserved demand. JUMO’s platform allows Orange Money to develop multiple credit products across markets—from consumer loans to merchant financing—creating a pan-African digital microfinance marketplace anchored in convenience and accessibility.

Western Union Teams With African Fintechs

Western Union has teamed up with Zambian fintech Zoona and pan-African mobile payments platform Chipper Cash to launch international remittance services within the Chipper Cash app in Zambia. This co-branded offering taps into Western Union’s extensive global network (covering over 200 countries and territories) and allows Zambian users to send and receive money directly from their Chipper Cash wallets, with options for mobile wallet credits or cash pickup. The announcement on 30 July 2025 expands Western Union’s reach and marks a significant shift toward fully digital cross-border finance, especially for users without traditional bank accounts.

This initiative is quippable for the mobile-savvy Zambian population of over 20 million, where smartphone adoption and mobile wallets are fast replacing cash and USSD services. International funds can now be sent or received via phone, without visiting agents or branches. Western Union gains access to a younger, app-native customer segment, while Zoona and Chipper Cash benefit from global compliance infrastructure and payout options. The partnership is a clear example of how legacy financial institutions and startups can collaborate to improve inclusivity and convenience in African remittances.

Takealot Launching International Unit

Takealot Group has officially launched Takealot Fulfilment Solutions (TFS), a new standalone logistics and supply chain division designed to support imports, exports, warehousing, freight and delivery services—both locally and internationally. By packaging its internal logistics infrastructure under one brand, including courier and on-demand delivery platforms, TFS aims to offer seamless global trade logistics to businesses that previously lacked reliable export and inbound logistics options. The move aligns with Takealot’s strategy to evolve into a tech-driven fulfilment partner rather than just an online retailer.

Launching at a time when Takealot faces competition from global players like Amazon, TFS represents a strategic pivot to generate new revenue streams while supporting local SMEs. The division plans to go beyond e-commerce fulfilment, offering global freight forwarding and order fulfilment services to retailers, manufacturers and startups. With over 4,500 contracted drivers and warehouses across Gauteng and the Western Cape, the company now positions itself as a logistics anchor for small businesses aiming to scale internationally. This initiative not only diversifies Takealot’s income model, but also empowers South African businesses to overcome export hurdles and access broader markets.

Conclusion

In summary, this week’s themes were innovation amid challenges. We saw South African firms embracing digitisation and partnerships – from banks teaming up with automakers, to fintechs enabling crypto and micro-loans – as they seek growth in a tough climate. Leadership changes and legal battles also featured, but underlying many stories is a drive to adapt: companies are streamlining, collaborating, and expanding into new markets (global e-commerce, AI, etc.) to stay competitive. Even as economic pressures like tariffs or currency swings pose hurdles, the overall sentiment is one of resilience and forward-planning. South African business leaders are actively pursuing fresh opportunities (and efficiencies) to navigate uncertainty.

Trends & Insights will continue to track these developments. Stay tuned for next week’s roundup of useful business updates – and remember to subscribe to our newsletter for your regular dose of South African trends and insights, delivered in a clear and helpful way every week.