Backing Africa's boldest ideas: A conversation with Launch Africa VC's Zach George
Zach George isn't your average venture capitalist. A former Wall Street banker who swapped New York for Cape Town in 2010, Zach is now one half of the powerhouse behind Launch Africa VC, the continent's most active early-stage fund, cofounded with Janade du Plessis.
Together, they've backed more than 150 start-ups across 22 African countries, helping turn ambitious ideas into high-growth businesses.
But VC funding isn't just about raising a cheque, it's about understanding timing, traction, and what investors are really looking for. In this honest, no-frills conversation, I sat down with Zach to unpack how founders should be thinking about raising capital, what red flags keep investors at arm's length, and why Launch Africa believes the continent's next wave of opportunity is just beginning.
If you're a founder, operator or someone curious about what makes African start-ups fundable, this one's for you.
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IOL News
21 hours ago
- IOL News
The real story behind South Africa's unemployment figures
South Africa's unemployment rate has risen to 32.9%. Image: File SOUTH Africa's unemployment rate is a lightning rod for political debate, economic anxiety, and public frustration. In the wake of Capitec CEO Gerrie Fourie's claim that the 'real' unemployment rate is closer to 10%, far below Statistics South Africa's official 32.9%, the national conversation has reignited. Critics of Statistics South Africa (StatsSA) suggest that the official figures are not just technical measures but political artefacts that erase the economic activity of millions in the informal sector. But does this criticism stand up to scrutiny? The answer is more nuanced than the headlines suggest. Capitec CEO, Gerrie Fourie. Image: Supplied Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Why Would Anyone Overstate Unemployment? Let's start with the most provocative claim: that StatsSA and the government have a motive to overstate unemployment. This accusation defies both political logic and institutional practice. High unemployment is a political liability, not an asset. It invites criticism, undermines investor confidence, and puts government performance under the microscope. If there were any incentive, it would be to understate the problem, not exaggerate it. A trend we see in a number of African countries where the official unemployment rates are so low they defy logic and reality. StatsSA is an independent institution that, while not perfect, has a lot of credibility. Its data is scrutinised by economists, international agencies, and the media. Any manipulation or systematic bias would be quickly exposed by these watchdogs. In reality, the agency's credibility depends on its objectivity and adherence to global standards. Does StatsSA Ignore Informal Work? The Evidence Says No A central argument in the current debate is that StatsSA's methodology 'renders millions invisible' by failing to count informal work. This is simply not true. StatsSA's Quarterly Labour Force Survey (QLFS) is designed to capture all forms of work, including informal jobs, self-employment, and unregistered businesses. The QLFS asks about any activity, formal or informal, that brings in income, whether it's selling vetkoek, running a backyard salon, or hustling as a car guard. If you worked for at least an hour in the reference week, you're counted as employed. Both current and former statisticians-general have clarified that informal work is counted, as required by the International Labour Organisation (ILO) standards. Recent Stats SA research confirms that the informal sector employs about 19.5% of the workforce, nearly one in five jobs. This includes street vendors, home-based businesses, and unregistered enterprises, all of which sustain households and fuel local economies. Comparing Apples and Oranges: International Context The arguments supporting Fourie's claims point to countries like India, Brazil, and Zimbabwe, where unemployment rates are low despite massive informality, and suggest South Africa is an outlier. But this comparison ignores key differences: Economic Structure: South Africa's informal sector is smaller than in many developing countries, partly due to regulatory and historical factors. In India, almost any economic activity, no matter how marginal, is counted as employment, even if it's not enough to survive on. Definitions Matter: Some countries use looser criteria for employment, counting sporadic or survivalist activity as work. South Africa's approach is more rigorous, aiming to distinguish between meaningful employment and mere survivalism. Policy Hostility: South Africa's informal sector faces regulatory barriers, policing, and licensing bottlenecks that suppress its growth, unlike in countries where informality is the norm and often the only option. Is the Quarterly Unemployment Report Flawed? StatsSA's quarterly unemployment report is not methodologically flawed. There is also no evidence that it is politically manipulated. The agency publishes detailed methodological notes, welcomes peer review, and its data aligns with other indicators of economic hardship, like sluggish GDP growth, high poverty, and social grant dependency. If millions of informal workers were being missed, we'd see glaring inconsistencies elsewhere, which we do not. The QLFS is transparent about its limitations and is constantly evolving. For instance, the latest data shows that while formal sector employment decreased, informal sector employment actually increased by 17,000 in the first quarter of 2025. This demonstrates that informal work is not only counted but also tracked over time. The Real Issue: Structural Barriers, Not Statistical Tricks The real challenge is not statistical invisibility but structural exclusion. South Africa's informal sector is not as robust as in other developing countries. Regulatory barriers, monopolistic competition, and a lack of support mean that informal work is often precarious and low-paid. The country's economic structure is dominated by large corporations, making it hard for micro-enterprises to thrive. Even where state policy recognises informal activity, it rarely dismantles the barriers that prevent informal traders from scaling up. The shift in informal enterprises toward home-based operations and the stagnation of licensing reveal a sector that is surviving under constant threat, not thriving. Hybrid Measurement: A Welcome Innovation, Not a Silver Bullet Calls to supplement survey data with financial transaction records and digital platform data are valid and should be explored. Capitec's own data on township transactions could offer valuable insights. But these are refinements, not fundamental corrections. The current statistics are not a 'mirage'; they are a sober reflection of a society where too many are locked out of meaningful work, formal or informal. Let's Fix the Economy, Not the Messenger It is true that black South Africans face disproportionately high unemployment rates and that the legacy of apartheid continues to shape economic opportunity. But this is not the result of statistical erasure; it is a reflection of structural realities. StatsSA's data exposes these inequalities; it does not create them. Nco Dube a political economist, businessman, and social commentator. Image: Supplied
IOL News
a day ago
- IOL News
China to remove import tariffs on goods from South Africa and 52 Other African nations
South Africa's largest trading partner China has pledged to eliminate import tariffs on goods from all 53 African nations Image: Presidency South Africa's largest trading partner China has pledged to eliminate import tariffs on goods from all 53 African nations with which it has formal diplomatic ties. The announcement was made during the Ministerial Meeting of Coordinators for the Forum on China-Africa Cooperation (FOCAC), held in Changsha earlier this week. According to the official Changsha Declaration, China intends to expand zero-tariff treatment to cover 100 % of tariff lines for African countries. "China is ready to negotiate and sign the agreement and signing the agreement of China-Africa Economic Partnership for Shared Development, expand the zero-tariff treatment for 100 percent tariff lines to all 53 African countries having diplomatic relations with China, or all African countries except Eswatini, to welcome quality products from Africa to the Chinese market. "For the least developed countries in Africa, on top of the zero-tariff treatment for 100 percent tariff lines announced at the 2024 Beijing Summit of FOCAC, China will roll out measures on market access, inspection and quarantine, and customs clearance to boost trade in goods, enhance skills and technical training, and expand the promotion of quality products. The declaration also noted that the "the frequent occurrence of unilateralism, protectionism, and economic bullying has severely hindered economic and social development and improved livelihoods in African countries". Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Last month, US President Donald Trump announced a 10% tariff on all imports to the US, along with additional reciprocal tariffs for several countries, including a 30% tariff on South African goods. However, he later paused these higher tariffs for 90 days for most countries, except China, which faced a 145% tariff. IOL also previously reported that The future of South Africa's trade benefits under the African Growth and Opportunity Act (AGOA) remains uncertain, as the relationship between South Africa and the US continues to worsen. Wandile sihlobo chief economist of the Agricultural Business Chamber of South Africa (Agbiz), said the move by the Chinese government to lower tariffs would benefit the agricultural sector in the country. "We are yet to receive more details on China's intentions to lower import tariffs for various African countries. What is worth emphasising for now is that, from a South African agricultural perspective, this would be a welcome development," he said. "China has a profound importance in global agriculture. In 2023, China was a leading importer, accounting for 11% of global agricultural imports, with imports valued at US$218 billion,". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
a day ago
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'Is this real?': Culinary influencer Sinoyolo Sifo's reaction when named among Africa's 100 most impactful people in travel and tourism 2025
Award-winning content creator Sinoyolo Sifo has made headlines once again by being named one of Africa's 100 most impactful people in travel and tourism for 2025. Image: Supplied A beacon of inspiration in the South African food scene, award-winning content creator Sinoyolo Sifo has made headlines once again by being named one of Africa's 100 most impactful people in travel and tourism for 2025. This esteemed recognition comes from Ranks Africa, a platform dedicated to identifying and celebrating the influential figures and brands that shape the continent's narratives. The announcement heralds not only Sifo's achievements but also the potential of African talent on a global stage. In a heartfelt statement on Instagram, Ranks Africa highlighted, 'In recognition of Sinoyolo Sifo's remarkable contributions to African travel and tourism, we proudly celebrate him as one of Africa's 100 Most Impactful People in Travel & Tourism 2025. His passion and innovation continue to shape powerful narratives, inspire exploration, and drive growth across the continent.' This prestigious accolade is part of the Africa Travel & Tourism Awards 2025, which honours those contributing to the continent's travel legacy. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Upon receiving the news, Sifo candidly shared his shock and elation in an interview with Independent Media Lifestyle. 'I was shocked because I didn't believe it, but I do believe in myself and my craft. This was big in terms of coming from an African tourism point of view. It shocked me in a good way though, I was also happy about it. I remember showing my wife, running to her like 'Is this real?'' For Sifo, this recognition is more than a personal achievement; it signifies a beacon of hope for South Africans and aspiring chefs across the continent. 'It encourages me to push hard in terms of what I'm doing because what I'm doing sometimes is not easy - a husband who cooks in the kitchen encouraging other husbands to get going is not an easy task,' he reflected. 'It just took my motivation and encouraged me to work even harder.' Not only does Sifo feel the weight of responsibility for setting an example, but he believes this accolade also highlights SA's rich potential in the global culinary landscape. 'I think I'm one of the few South Africans who got to show the world that we have talent, and we are people that are pushing boundaries.' With an eye on the future, Sifo expressed hope that this achievement will motivate young individuals to pursue their dreams. Sifo's journey began in Mthatha in the Eastern Cape, where his culinary passion was sparked by his mother's kitchen and father's butcheries. It was motivated by his supportive wife, Nondumiso, that he started sharing his culinary adventures on Instagram in 2020. His easy-to-follow, flavourful recipes soon won the hearts of many, building a loyal following eager to embrace his mantra of dismantling gender stereotypes in the kitchen. As the 'cooking husband', Sifo is on a mission to get more men involved in cooking. 'The cooking husband is a movement that just encourages us guys to get active in the kitchen, help our partners out, eliminate the abuse, and build a love language,' he articulated during the acceptance of last year's Content Creator of the Year award at the SDSTV Content Creator Awards. With the recent accolade propelling him into the spotlight, Sifo is optimistic about the doors it will open. He's already received countless messages from followers expressing how his online content has inspired their partners to discover the joys of cooking. 'I was excited, and it just made me more motivated,' Sifo concluded.
