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VMware aims to ‘Virtualize Africa’

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VMware has launched a Virtualize Africa initiative as an extension to the VMware IT Academy, which works with a global network of educational institutions to provide students access to high-quality learning certification opportunities and hands-on lab experiences.

VMware, a leading innovator in enterprise software, has signed a memorandum of understanding with Strathmore University’s @iLabAfrica Centre in Kenya to address the skills gap and support innovation and entrepreneurship across the continent.

The African labour market is experiencing significant disruption due to fast-paced technological advances. With the emergence of new fields such as artificial intelligence (AI), machine-learning, Internet of Things (IoT) and cloud computing, business models have radically changed and so have the skill sets required by individuals to thrive in this new environment. Through the VMware IT Academy: Virtualize Africa programme, VMware is collaborating with key stakeholders across academia, government and industry to equip African students with the technical skills and certifications required to succeed in the digital economy.

Strathmore University in Kenya has built an international reputation for its world-class academic teaching, professional training, and research in technology. Working with VMware IT Academy: Virtualize Africa, the University has already begun integrating a range of VMware developed courses into its curricula that cover topics like virtualisation, cloud computing, AI and IoT. This is facilitated through subsidised software licenses and certification vouchers from VMware.

@iLabAfrica, a centre of excellence in research and innovation in information and communication technology at the university, is spearheading the rollout with 20 trainers and over 100 students at the University participating. The students will be able to benefit from access to high-quality learning online resources, hands-on lab experiences to develop technical skills, and the opportunity to achieve industry-recognised VMware certification to complement their chosen fields of study.

“We are delighted to be part of VMware IT Academy: Virtualize Africa,” says Dr Joseph Sevilla, director of @iLabAfrica at Strathmore University. “It provides a wonderful opportunity for our students to gain technical skills and industry-recognised VMware certifications, helping to jumpstart their careers with the best knowledge and skills of international standards. Our shared goal with VMware is to become the VMware IT Academy regional lead for East Africa, training lecturers and students from Strathmore and other universities plus facilitating their participation in the programme. Increased access to this type of education and training for students is a critical part of Africa realising the potential of its youth and a prosperous Africa.” 

Thomas MacKay, senior director for global strategic programs at VMware, says: “Skills development is recognised as a key component for economic growth and prosperity. VMware IT Academy: Virtualize Africa helps educational institutions align curricula with the skills needed for the labour market, thereby building talent for Africa’s jobs of today and tomorrow. Our discussions to form a strategic collaboration with Strathmore University is a significant milestone in this programme, and will bring new skills and opportunities to its students, and in the future to many more young people in East Africa.”

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The shape of the SME future

What does the future of technology look like for South Africa’s SMEs? COLIN TIMMIS, general country manager of Xero SA and a professional accountant, looks into the tech crystal ball

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Over the past decade, technology has radically changed the way businesses operate. Now, even small businesses have access to powerful tools that were previously expensive or complicated.

The pace of change has been rapid – and it’s unlikely to slow down. Businesses must keep up with technology to stay competitive. According to research conducted by Citrix, 92% of companies across South Africa’s key industries agree that digital adoption directly affects company profits. However, 54% still feel unprepared for the future.

So, what does the future of technology look like for South Africa’s small businesses? How can the other 46% of companies prepare?

5G and WiFi 6 – faster internet speed

In the foreseeable future, we will see a rapid increase in the use of fibre across South Africa. According to Xero’s State of Small Business Report produced with World Wide Worx, 49% of small businesses surveyed used ADSL connections and only 37% used fibre. When asked to describe their internet connections, 45% said they were ‘great’, while 43% said they were ‘okay but not 100% reliable’. 57% of those who said their connection was ‘great’ were fibre users.

South Africa is still playing catch-up in terms of internet connectivity and speed. However, WiFi 6 is set to improve the way routers distribute traffic to connected devices and increase the transfer speeds by around 30%. For when you’re on the go, 5G is the next generation of mobile data standard. It’s already being trialed by South African carrier Rain, and a broader rollout is expected in 2020.

Machine learning and Artificial Intelligence – more efficient software

Even if you aren’t aware of it, you’re probably already using smart software which leverages machine learning (ML) and artificial intelligence (AI) in your business. While only a tiny proportion of respondents (0.25%) from Xero’s State of Small Business Report say they are using them, most businesses are aware of how important they are.

AI and ML are great at taking large amounts of data and spotting patterns that humans might miss. They help businesses cover some of the more routine tasks so they are freed-up to focus on the most important priorities. For example, tedious tasks like bank reconciliation, can now be completely automated.

Blockchain – safer, more secure transfers

If you hear ‘blockchain’ and think ‘cryptocurrency,’ you’re not alone. However, the technology also has something to offer when it comes to existing payment technologies. Through its complexity and high level of encryption, integration with blockchain can make transferring valuable assets more secure. It can also be used for more effective fraud prevention and other security-focused tasks.

The cloud – access data everywhere

Cloud computing is starting to become a standard part of life for many small businesses in South Africa today. According to Xero’s State of Small Business report, 19% of respondents surveyed make use of cloud technology. Of these respondents, 98% reported a significant increase in profit thanks to adopting this technology – and 99% identified an increase in efficiency.

The trend towards cloud adoption is likely to continue as we see the development of technologies, like faster speed through fibre, WiFi 6, 5G, and machine learning powering it.

Integrated financial software

When it comes to accounting in a small business, these new technologies will enable much smarter ways of working. Take bank reconciliation, for example, where cloud storage and machine learning will search through documents and expenses on your behalf to compile reports.

Eventually, we will be able to access everything we want in one integrated, seamless hub. We can see this development through the use of app integration. Xero has 800+ apps already compatible, which enables small businesses to automate, gain better insight and grow their businesses all through one ecosystem of partners.

Access to capital

Open banking, the process of banks and financial services opening their APIs to the market, will shape how businesses access funding. By sharing their financial data instantly, potential investors have immediate access to a company’s revenue, profits and cashflow – enabling them to make fast, informed decisions.

Platforms like Xero keep all of a company’s financial data up to date. That way, when the company needs to file for a loan their documents are ready to go. Xero is also continuously pursuing new partnerships to help fuel small business growth. Earlier this year Xero partnered with three new alternative lenders, to help improve access to funding.

Digital adoption offers an island of stability in the volatile South African economy. Technology allows businesses to run more efficiently, remain globally integrated, and maximise their profits. Companies which keep up with the latest technology, from incorporating it into their processes to training staff, will have a real advantage over their competitors.

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Cash is here to stay, and other trends shaping payments

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As we enter the next decade, local and African merchants should support payment methods that suit their customers, rather than following global trends just for the sake of it. Peter Harvey, MD of payment service provider, DPO SA, looks at five trends we can expect over the next few years.  

  • Cash is here to stay – for now

Despite common perceptions, South Africa still has more than 11 million unbanked individuals and cash remains the preferred payment method for these and many other customers. 

Harvey says: “As we enter 2020, we can expect a host of new digital payment technologies that sound like excellent options – and they may well be for some – but merchants need to carefully monitor their customer behaviour before they rush to try the latest gadget or fad.”

According to Harvey the banks and card companies like Visa and Mastercard will be placing a large focus on enticing consumers to move from cash to card-based payments in the coming years. 

“Overcoming the reliance on cash will take a fair amount of time and effort,” says Harvey. “For merchants trading in a cash-based community, depositing money into a bank that tracks your spending, charges you to store your money, and then charges you again to withdraw it can seem unattractive. At the end of the day consumers will make their decision based on convenience, cost and risk.” 

Card payments are expected to morph over the coming years. In South Africa the tap and pay method is becoming more commonplace. Harvey believes this and other near field communication (NFC) methods of card payments will continue to grow in use as shoppers become more trusting of the technology and retailers see the efficiency benefits of moving customers through their purchase cycle more quickly and easily. 

  • Mobile is still king 

There is no doubt that the means to facilitate most digital payments in Africa will depend on mobile technology. 

According to South African communications regulator, ICASA, South Africa has a smartphone penetration of 80%. In Sub-Saharan Africa meanwhile, the mobile phone penetration is 50% and the GSMA expects smartphone penetration to grow from around 40% to 66% in 2025. 

Harvey says smartphone technology and wearable technology will allow for the growth in some of the newer payment tech, like Apple Pay and Samsung Pay, but these payment methods will remain in the hands of the top LSMs and have little effect on the bottom of the pyramid customer base. 

“For the moment USSD technology will still underpin the majority of mobile payment methods. Until smartphones increase in penetration, payments like m-Pesa will continue to dominate. Customers know and trust the solution and its these types of offerings that will need to be beaten by any new entrant over the next two to three years at least.”

  • New decade, new banks 

Harvey is upbeat about the new digital-only bank offerings like Tyme Bank, Bank Zero and Discovery Bank. 

“It appears that 20Twenty was two decades too soon,” says Harvey. “The local markets are now finally ready for a new digital offering without the fuss and cost of the traditional offering. These banks stand a good chance of making an impact and making headway towards financial inclusion in the country.”

Harvey believes, that in order to boost the number of people using digital payments, the banking institutions, merchants and payment service providers need to start incentivising consumers to make the switch. Loyalty and Rewards will start playing an even bigger role in the near future.

  • New services for the payment ecosystem

Based on demand, Harvey believes forward thinking payment service providers will work closely with their banking partners to focus on providing their mutual merchants with a ‘fully managed service’. This service includes: instant sign-up; a full suite of payment products; risk screening; account reconciliation; anti money laundering checks; access to shopping cart plugins; and a variety of other value-added services in the online digital payment space.  

These services will enable digital retailers to quickly and easily start selling their services online, while protecting them from the associated risks.

The service benefits the banks as well as the broader digital ecosystem, as the payment service provider actively monitors and manages merchants and transactions, removing risk from the process and facilitating ‘good’ transactions.

  • Identity technology takes centre stage

Looking at newer technologies, Harvey believes biometrics will continue to be the key focus.  

Harvey says voice and facial recognition are set to take off in South Africa in 2020 and 2021 and he believes the key driver in this regard is the increasing use by the government. 

“Banks and Home Affairs teaming up for the renewal of ID documents and passports is a major win for the average citizen,” Harvey says. “This falls neatly into the ‘convenience’ motivator and as people use and trust the biometrics used by the banks for this service,  they will become less afraid to try it for payments.”

As technology rapidly improves, the payments ecosystem can expect some exciting advancements over the coming decade. Chat commerce and even augmented and virtual reality developments will almost all come with payment features. However, Harvey cautions against over exuberance. 

Harvey says “Make sure you cater for what your customer actually wants, not what you think they should want. If working closely with African merchants, banks and customers has shown us anything, it’s that the fastest way to drive away business, is to dictate how customers pay. Provide the options and let them choose.”

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