Connect with us


How gig economy can boost jobs in Africa




The industries which are playing the greatest role in transforming the global economy all fall under what is termed the Fourth Industrial Revolution. Artificial intelligence, blockchain architecture, robotics, cryptocurrencies, virtual reality – these concepts are all going to disrupt the way humans work, live and interact. It turns out the 4th IR is also being driven by a redefined idea of the labour force.

The gig economy – a model of freelance agents performing short-term, on-demand work – already employs 64 million individuals in the US and European Union, according to research by McKinsey. And the highest-paid gigging jobs are all in 4th IR fields in these regions. The future is being created by people who have abandoned the idea of a regular job.

McKinsey estimates that 63 million people in Africa are involved in some type of self-employment, and in South Africa, 3.9 million people are already engaged in temporary work instead of a traditional “career”, according to Stats SA.

Georgie Midgley, CEO of M4Jam

Whether gigging, or taking on short-term jobs, is a “side hustle” or part of a choice to be a permanently freelance operator, this type of work is beginning to augment or even replace salaried employment around the world. The idea of making a living as an Instagram marketer has moved from quirky novelty to accepted reality, and such opportunities are opening doors for millions of people – and not just in developed markets.

Unsurprisingly, millennials are adapting to the gig economy the fastest. Such work arrangements almost always depend on a digital platform for creating a network of sufficient breadth for companies to find and employ giggers, as well as to make payment. Whether running over an app or internet site, networks are being created around the world to harness the potential of on-demand work which has revolutionised the way companies view human resources.

In South Africa, M4Jam is such a company, with some 220 000 Jobbers (giggers) registered to take on short-term jobs when opportunities to use their skills arise. M4Jam not only connects companies to the unemployed and underemployed , but provides all necessary training to undertake micro-jobs through the platform.

Research by Upwork and the US-based Freelancers Union has shown that temporary, freelance jobs completed by more than 57 million Americans contributes nearly $1.4 trillion to the country’s economy every year.

In the South African context, the Centre for Development and Enterprise has said the official unemployment rate of 29.1% (38.5% if one counts those classed as discouraged workers, who have all but given up hope of finding a job) is the world’s most severe unemployment crisis. The CDE cited labour laws as a major barrier to absorption of workers into the formal economy, on account of the cost and risk associated with hiring full-time employees.

Retrenchments are in the news regularly in the last year, and we believe that companies who find themselves in a position of struggling to employ people permanently should try to make use of a platform like M4Jam so that workers who have to be retrenched can continue to pick up part-time work from their former employers but also from other companies.

Registered M4Jam Jobbers can complete micro-jobs that could take anything from a matter of seconds to a few minutes at a time. Such work has proved valuable in creating or augmenting income – in both rural and urban areas. Since January 2020, M4Jam has paid out more than R532 879 to jobbers.

Naturally the potential for exploitation exists, given that contracted jobbers do not have the rights or benefits of a regular, salaried employee. But we believe legislation will catch up to protect both temporary employees and contractors, and will take account of the changing nature of the workforce.

What we must realise is that the gig economy holds so much potential for economic growth We envision our jobbers evolving into business owners. The jobber will start off as a gig economy worker, performing micro-tasks on the M4Jam platform. The more tasks the jobber completes the more they will learn and experience. Our model allows for jobbers to advance into a Master Jobber whereby he/she is enabled to build and manage their own team of jobbers, as well as increase their own earning potential. Having their own teams will enhance their leadership abilities and provide them with the necessary business acumen to make their ecosystem profitable.

Furthermore, as the teams and product offerings grow and change, he/she will evolve into a nano-entrepreneur, acquiring buying and selling techniques, negotiation skills, etc. Our vision is to see these nano-entrepreneurs evolve into small business owners who are able to contribute positively to the economy and improve the lives of the people around them.

Automation is decimating permanent employment and the pace of disruption is accelerating. The gig economy provides flexibility that may provide one of the solutions to widespread layoffs and unemployment. Take the example of Jumia, Africa’s largest e-commerce platform: present in 16 countries in which internet penetration is low and online shopping is in its infancy, Jumia has overcome obstacles to its services by employing more than 10 000 part-time, commission-based sales agents in Nigerian communities to educate would-be shoppers and deliver goods.

Jumia provides all training required and its jobbers are earning money comparable with those in good jobs in the formal sector. We should not forget that over time, a jobber can pick up a multitude of skills from such training – not to mention becoming digitally savvy – and become a valuable service provider for a broad range of clients.

Continue Reading


How retailers must respond to life under lockdown



As businesses settle into lockdown, South Africa’s largest second-hand retailer, Cash Crusaders offer other retail businesses – that have also been forced to close, some advice and recommendations on preparing for, and managing through the lockdown. The group that have been operating for over 20 years with over 220 stores nationwide, also offer advice on considerations retail store owners – and other businesses, should make as the country makes their COVID-19 economic recovery.

Follow the rules

Ensure that you follow the rules set out by our President for the lockdown. As bitter as this pill may be to swallow, the longer-term benefits for our country and our businesses far outweigh the frustration and anxiety you may be feeling now. This is not a time to break the rules. #StayAtHome. It is a time to practice human responsibility, not complain about Human Rights being compromised. Countries who initially implemented loosely managed lockdowns, have had to extend to get the pandemic under control, so strict rules from the get-go will prevail in the fight against the virus. 

Secure your stores

By now you should’ve secured your valuable goods and should have ensured all your security systems are in good working order. If you haven’t already, make sure your security companies have your correct contact information. Make sure your necessary insurance cover is up to date.

Keep your staff informed

They are and continue to be your most important asset!

By now, you may have needed to investigate UIF benefits to compensate for your employees loss of income. The Minister of Employment and Labour, T.W Nxesi has recently announced measures that the Department will put in place under the current special circumstance relating to the Corona virus (COVID-19) and its impact on UIF contributors.

The Temporary Employee/Employer Relief Scheme (TERS) has been set up under the auspices of the Unemployment Insurance Fund (UIF). Employers apply for the TERS on behalf of its employees. 

The TERS has two distinct advantages over UIF 

  • All employees qualify for up to 3 months of benefits, irrespective of how long they have contributed to the UIF and 
  • TERS will not pay any employee less than the minimum wage.

You can benefit from the TERS by sending an email to Applicants will then receive an automated response which outlines the steps you will need to take, as well as the details surrounding them – including the requirements to claim benefits. During the lockdown period, the Department of Labour will not accept manual applications (to reduce physical contact and risk of the virus spreading), this is to reduce contact between people to curtail the spread of the pandemic. A hotline number has been created by the UIF (012-337 1997) for Covid–19 TERS Benefit enquiries during the lockdown period. 

Be sure to be calm when addressing any concerns with your team – they are anxious and nervous of what the eventuality of this outbreak may be.

Communicate with your bank

Make sure you’ve been in touch with your bank (as they are still operational) and discuss any loan repayment relief or postponement over the lockdown period (the banks have termed this a “payment holiday”). Work with them on a cash flow plan as once the lockdown has lifted, trading businesses will need liquid cash.

Contact your landlord

Ensure you’ve connected with your landlord to discuss and agree on any possible repayment or rent relief/payment holiday they may be able to offer you. Keep the channels of communications open with your landlord and bank – rather over-communicate than not communicate enough.

Keep communication open with your customers

The country may be on shutdown, but the internet isn’t. Communicate with your teams and customers by whatever necessary and relevant communication channels you have available to you – website, social media, PR/Marketing teams, newsletter dissemination etc.

Use this time wisely

Amidst all the chaos this time brings, there is also a silver lining. We all have time at this stage, but how many of us make valuable use of that time? Particularly when it comes to family.  Business is demanding most times so with a forced shutdown of business it give you the time to spend with your family, catch up on outdated maintenance around the house and a period of rest. This lockdown period will also afford you uninterrupted strategy time. Take the time to reflect on areas of your business you can improve or evolve. Strategise ways to do things better or differently. Use the resource available via your own business network as well as the countless online content that is available, to work on a plan for the way forward. Consider your financial, loan and other business administration processes you have in place and look at new ways to optimise the channels and areas you’re working with or within. A host of online learning facilities offer short courses – perhaps consider upskilling yourself or members of your team by signing up for one of these too.

“These are some of the steps we’ve taken within our own organisation,” says Sean Stegmann, CEO of Cash Crusaders. “Having been in this business for as long as we have has afforded us the wealth of experience we’re able to share with our franchisees and other retail business owners to help navigate the next few weeks and recovery period,” he says. “Take it one day at a time and know that the decisions we’re being forced to make today will mean a future for us tomorrow, both in business and in health!,” he concludes

Continue Reading


Vodacom cuts cost of smallest bundle by 40%

The country’s largest mobile operator has kept to a promise made last month to slash the price of entry-level data packages



Vodacom has cut the data price of its lowest-cost bundle by 40%, reducing the price of a 50MB 30-day bundle from R20 to to R12. This follows from the operator’s promise in March, when it announced a 33% cut in the cost of 1GB bundles, to reduce prices of all smaller bundles by up to 40%.

Vodacom’s various 30-day data bundle prices will be cut across all of its channels, with the new pricing as follows:

30-day bundle size New Price Reduction
50MB R12 40%
150MB R29 33%
325MB R55 33%
500MB R79 21%
1GB R99 34%
3GB R229 23%
5GB R349 14%
10GB R469 22%
20GB R699 31%

Vodacom confirmed it will provide free data to access essential services through Vodacom’s zero-rated platform ConnectU with immediate effect. The value of these initiatives, it says, is R2.7-billion over the next year.

“Vodacom can play a critical role in supporting society during this challenging time and we’re committed to doing whatever we can to help customers stay connected,” says Jorge Mendes, Chief Officer of Vodacom’s Consumer Business Unit. “Since we started our pricing transformation strategy three years ago, our customers have benefitted from significant reductions in data prices and the cost of voice calls. Over the same period, we invested over R26 billion in infrastructure and new technologies, so our customers enjoy wider 2G, 3G and 4G coverage and vastly increased data speeds.”

The latest data reductions will complement the discounted bundle offers that will also be made available to prepaid customers in more than 2,000 less affluent suburbs and villages around the country. For qualifying communities to access further discounted voice and data deals, they need to click on the scrolling ConnectU banner on the platform via

ConnectU – which is a zero-rated platform – also went live this week. It will provide content aimed at social development and offers a variety of essential services for free. Learners and students enrolled in schools and universities can access relevant information for free, with no data costs. The ConnectU portal includes a search engine linked to open sources such as Wikipedia and Wiktionary as well as free access to job portals; free educational content on the e-School platform; free health and wellness information and free access to Facebook Flex, the low data alternative to Facebook that enables customers to stay socially connected.

Vodacom’s popular Just4You platform has been a significant contributor to the approximately 50% reduction in effective data prices over the past two years. Substantial cuts in out-of-bundle tariffs and the introduction of hourly, daily and weekly bundles with much lower effective prices have also driven increased value and affordability, resulting in R2-billion in savings for customers in 2019.

Continue Reading


Copyright © 2020 World Wide Worx