The people behind a rash of bomb threats made across the United States and Canada on Thursday demanded a $20,000 ransom to be paid in bitcoin. Authorities said none of the threats – emailed to hundreds of businesses, public offices and schools – appeared credible.
Frankly, the perpetrators would have been better off asking for Turkish lira.
Bitcoin and other cryptocurrencies have long been a favorite ransom tender for cyber criminals thanks to the currencies’ anonymous nature. U.S. cyber security firm Chainalysis estimates that from 2012 through 2017, global ransom payments using bitcoin totaled at least $31 million.
Anonymity aside, of course, the big appeal was an incredible run-up in bitcoin’s value over that time. It shot from $5 a coin at the start of 2012 to nearly $20,000 at this time last year, according to data from Bitstamp, one of the larger bitcoin exchanges.
Today? Not so hot.
Bitcoin on Thursday was trading at around $3,250, down more than 80 percent from its record high. In the last three months alone it has plunged 50 percent.
Even the currencies of some crisis-hit economies like Turkey have done better: The lira is up 30 percent since August. -Reuters
Snapshots of the outrage against foreign nationals and
protests against sexual offenders in South Africa in recent weeks, captured by
FORBES AFRICA photojournalist Motlabana Monnakgotla.
As the continent’s second-biggest economy, South Africa
attracts migrants from the rest of Africa. But mired in its own problems of
unemployment and political instability, September saw a serious outbreak of
attacks by South Africans on foreign nationals and foreign-owned businesses.
And they have been ugly.
The spark that fueled the raging fire was in Pretoria, the
country’s capital, when a taxi driver was shot dead by a foreign national who
was selling drugs to a youngster in the central business district (CBD).
The altercation caused a riot and the taxi industry brought
the CBD to a standstill, blocking intersections. It did not stop there; a week
later, about 60 kilometers from the capital in Malvern, a suburb east of the
Johannesburg CBD, a hijacked building caught fire, leaving three dead. As
emergency services were putting out the fire, the residents took advantage and
looted foreign-owned shops and burned car dealerships overnight on Jules
Street.
A burned shop on Jules Street is one of the many shops that were looted. Picture: Motlabana Monnakgotla
A cashier’s window smashed during a looting spree in Katlehong. Picture: Motlabana Monnakgotla
The lootings extended to the CBD and other parts of
Johannesburg.
To capture this embarrassing moment in South African
history, I visited Katlehong, a township 35 kilometers east of Johannesburg,
where the residents blocked roads leading to Sontonga Mall on a mission to loot
the mall and the foreign-owned shops therein overnight.
Shop-owners and workers were shocked to wake up to no
business.
Mfundo Maljingolo, a worker at Fish And Chips, was among the
distressed.
“This thing started last night, people started looting and
broke into the mall and did what they wanted to do. I couldn’t go to work today
because there’s nothing to do; now, we are not going to get paid. The shop will
be losing close to R10,000 ($677) today. It’s messed up,” said Maljingolo.
But South African businesses were affected too.
Among the shops at the mall is Webbers, a clothing and
footwear store. Looters could not enter the shop and it was one of the few that
escaped the vandalism.
Dineo Nyembe, the store’s manager, said she was in disbelief
when she saw people could not enter the mall.
A worker cleans up after a liqour store was looted by Katlehong residents overnight. Picture: Motlabana Monnakgotla
Car dealerships were among the businesses set alight on Jules Street. Picture: Motlabana Monnakgotla
“We got here this morning and the ceiling was wrecked but
there was no sign that the shop was entered, everything was just as we left it.
Now, we are packing stock back to the warehouse, because we don’t know if they
are coming back tonight,” lamented Nyembe, unsure if they would make their
daily target or if they would be trading again.
Across the now-wrecked mall are small businesses that were not as fortunate as Webbers, and it was not only the shop-owners that were affected.
Emmanuel Nhlane’s home was robbed even as attackers were
looting the shop outside.
“They broke into my house, I was threatened with a petrol
bomb and I had to stand outside to give them a chance; they took my fridge,
bed, cash and my VHS,” said Nhlane.
Rubble and dust on the streets of Katlehong after a night of looting at a local mall and its foreign-owned shops. Picture: Motlabana Monnakgotla
Nhlane had rented out his yard to foreign nationals to
operate a shop. He does not comprehend why his belongings were taken because he
doesn’t own a shop. Now, it means that the unemployed Nhlane will not be
getting his monthly rental fee of R3,700 ($250).
Far away, the coastal KwaZulu-Natal province of South
Africa, was also affected as trucks burned and a driver was killed because of
his nationality. This was part of a logistics and transport industry national
strike.
Back in Johannesburg, I visited the car dealerships that were
a part of the burning spree on Jules Street.
The streets were still ashy and the air still smoky, two
days after the unfortunate turn of events.
Muhamed Haffejee, one of the distraught businessmen there,
said: “Currently, we are still not trading.”
Cape Town, in the Western Cape province of South Africa,
which hosted the World Economic Forum (WEF) on Africa from September 4 to 6,
was also witness to protests by women and girls from all walks of life outside
the Cape Town International Convention Centre, demanding that the leadership
take action to end the spate of gender-based violence (GBV) in the country.
There were protests also outside Parliament. What set off
the nationwide outcry was the shocking rape and murder of Uyinene Mrwetyana, a
19-year-old film and media student at the University of Cape Town, inside a
post office by a 42-year-old employee at the post office.
According to Stats SA, there has been a drastic increase of women-based violence in South Africa. Picture: Motlabana Monnakgotla
Leader of the African National Congress Women’s League, Bathabile Dlamini, was also present outside the JSE. Picture: Motlabana Monnakgotla
There was anger against the ghastly crimes and wave of GBV
in the country that continues unabated. According to Stats SA, there has been a
drastic increase of women-based violence in South Africa; sexual offences are
up by 4.6%, from 50,108 in 2018 to 52,420 in 2019.
A week later, on a Friday, Sandton, Africa’s richest square
mile and one of the biggest economic hubs, was shut down by hundreds of angry
women and members of advocacy groups from across Johannesburg. They congregated
by the Johannesburg Stock Exchange (JSE), the cynosure of business, singing and
chanting, to demand “a 2% levy on profits of all listed entities to help fund
the fight against GBV and femicide”.
Among the protesters was Cebi Ngqinanbi, holding a placard
that read: “I’m not your punching bag.”
“We came here to disrupt Sandton as the heart of
Johannesburg’s economic hub. We want to make everyone aware that women and
children are being killed every day in South Africa and they [Sandton] continue
with business as usual, sitting in their offices with air-conditioners and the
stock exchange whilst people on the ground making them rich are dying. That is
why we are here, to speak to those that have economic power,” said Ngqinanbi.
She added that if women can be given economic power, they
will be able to fend for themselves and won’t fall prey to abusive men, since
most women stay in abusive relationships because men are more financially
stable.
Amid the chanting and singing of struggle songs, Nobuhle
Ajiti addressed the crowd and shared her own haunting experience as a migrant
in South Africa and survivor of GBV. She spoke in isiZulu, a South African
language.
“I survived a gang rape; I was thrown out of a moving car
and stabbed several times. I survived it, but am I going to survive xenophobia
that is looming around in South Africa? Will I able to share my xenophobia
story like I can share my GBV story?” questioned Ajiti.
Addressing the resolute women outside was the JSE CEO Nicky Newton-King who received the memorandum demanding business take their plight seriously. Picture: Motlabana Monnakgotla
Women hold up placards stating their grievences against GBV. Picture: Motlabana Monnakgotla
She said as migrants, they did not wake up in the morning
and decide to come to South Africa, but because of the hardships faced in their
home countries, they were forced to come to what they perceived as the city of
opportunities. And as a foreign national, she had to deal with both xenophobia
and GBV.
“We experience institutionalized xenophobia in hospitals; we
are forced to pay huge amounts for consultation. I am raped and I need medical
attention and I am told I need to pay R5,000 ($250).
“As a mere migrant, where am I going to get R5,000? I get
abused at home and the police officer would ask me where I’m from because of my
accent, I sound Zimbabwean. What does my nationality have to do with my husband
beating me at home or with the man that just raped me?” she asked.
Women stop traffic while they hold up placards stating their grievences against GBV. Picture: Motlabana Monnakgotla
Addressing the resolute women outside was the JSE CEO Nicky Newton-King who received the memorandum demanding business take their plight seriously, from a civil society group representing over 70 civil society organizations and individuals.
The list of demands include that at all JSE-listed companies contribute to a fund to resource the National Strategy Plan on GBV and femicide, to be launched in November; transport for employees who work night shifts or work after hours; establish workplace mechanisms to provide support to GBV survivors as part of employee wellness, and prevention programs that help make workplaces safe spaces for all women.
Newton-King assured the protestors she would address their demands in seven days. But a lot can happen in seven days. Will there be more crimes in the meantime? How many more will be raped and killed in South Africa by then?
Nationwide outcry was setoff by shocking rape and murder of Uyinene Mrwetyana. Picture: Motlabana Monnakgotla
What set off the nationwide outcry was the shocking rape and murder of Uyinene Mrwetyana, a 19-year-old film and media student at the University of Cape Town Picture: Motlabana Monnakgotla
Francois Bonnici, Head of the
Schwab Foundation for Social Entrepreneurship, explains how African impact
entrepreneurs will continue to rise.
Does impact investment favor expats over African entrepreneurs? If so, how can it be fixed?
There is a growing recognition all over the world that
investment is not a fully objective process, and is biased by the homogeneity
of investors, networks and distant locations.
A Village Capital Report cited that 90% of investment in digital financial services and financial inclusion in East Africa in 2015-2016 went to a small group of expatriate-founded businesses, with 80% of disclosed funds emanating from foreign investors.
In a similar trend recognized in the US over the last
decade, reports that only 3% of startup capital went to minority and women
entrepreneurs has triggered the rise of new funds focused on gender and
minority-lensed investing.
There has been an explosion of African startups all over the
continent, and investors are missing out by looking for the same business
models that work in Silicon Valley being run by people who can speak and act
like them.
In South Africa, empowerment funds and alternative debt fund
structures are dedicated to investing in African businesses, but local capital
in other African countries may not also be labelled or considered impact
investing, but they do still invest in job creation and provision of vital
services.
There is still, however, a several billion-dollar financing gap of risk capital in particular, which local capital needs to play a significant part in filling. And of course, African impact entrepreneurs will continue to rise and engage investors convincingly of the growing and unique opportunities on the continent.
What are the most exciting areas for impact investing and social entrepreneurship today?
After several decades of emergence, the most exciting areas
are the explosion of new products, vehicles and structures along with the mainstreaming
of impact investment into traditional entities like banks, asset managers and
pension funds who are using the impact lens and, more importantly, starting to
measure the impact.
At the same time, we’re seeing an emergence of partnership
models, policies and an ecosystem of support for the work of social
entrepreneurs, who’ve been operating with insufficient capital and blockages in
regulation for decades.
Francois Bonnici, Head of the Schwab Foundation for Social Entrepreneurship. Picture: Supplied
The 2019 OECD report on Social Impact Investment mapped the presence of 590 social impact investment policies in 45 countries over the last decade, but also raises the concern of the risk of ‘impact washing’ without clear definitions, data and impact measurement practices.
In Africa, we are also seeing National Advisory Boards for
Impact Investing emerge in South Africa and social economy policies white
papers being developed; all good news for social entrepreneurs.
What role does technology play in enabling impact investing and social entrepreneurship?
The role of technologies from the mobile phone to cloud
services, blockchain, and artificial intelligence is vast in their application
to enhancing social impact, improving the efficiency, transparency and trust as
we leapfrog old infrastructures and create digital systems that people in underserved
communities can now access and control.
From Sproxil (addressing pirated medicines and goods), to Zipline (drones delivering life-saving donor blood to remote areas of Rwanda) to Silulo Ulutho Technologies (digitally empowering women and youth), exciting new ways of addressing inclusion, education and health are possible, and applications are being used in many other areas such as land rights, financial literacy etc.
While we have seen a great mobile penetration, much of
Africa still suffers from high data costs, and insufficient investment in
education and capacity to lead in areas of the fourth industrial revolution,
with the risk that these technologies could negatively impact communities and
further drive inequality.
With every day that passes by it becomes more apparent that the Earth is deteriorating and time is running out to save it. Scientists have estimated that we have less than a decade to save the planet before it is irreversibly damaged, mainly due to climate change.
Businesses claim the largest percentage of global emissions (at approximately 70% since 1988, according to The Guardian) which is an alarming statistic, especially in a time when the planet’s well-being is being compromised.
Many large business corporations are hastily coming on board with operating sustainably by transforming their practices and placing business ethics at the forefront of their priorities.
Last week, a round table discussion was held at the Fairlawns Boutique Hotel, Sandton hosted by Environmental Resources Management (ERM) – the world’s largest sustainability consulting firm. Their aim was to discuss how imperative it is for African businesses to get on board with sustainability.
“We have been talking about how to be
sustainable for a long time but now it is time for us to do sustainability,”
says Thapelo Letete, Technical Director of ERM.
An engaging and thought-provoking panel
discussion ensued with representatives from ERM and mining companies, Anglo
American and Gold Fields. They emphasized the importance of sustainability
being recognized by investors, especially in mining and oil companies that rely
solely on Earth’s natural resources.
Civil society has a colossal role to play in ensuring the sustainability of businesses. Due to the law of supply and demand in production, consumers are being urged to be mindful of their buying habits and to make sustainable decisions. These are as simple as minimizing the utilization of plastic straws by replacing them with metal or paper straws and reusable shopping bags and by recycling selected items.
“Research
suggests that socially and environmentally responsible practices have the
potential to garner more positive consumer perceptions of (businesses), as well
as increases in profitability,” according to an entry in Sage Journals published in May.
The advancement of science, artificial intelligence and the rapid growth of the technological industry make it an undeniable fact that the Fourth Industrial Revolution is underway. Many businesses across the globe seem to be well prepared for this change. However, businesses in Africa seem to be vulnerable.
“It is difficult to say that all
businesses in Africa are prepared for it. It is not a country specific thing
but it does vary across corporations. There will be businesses that are well prepared
and businesses that are not so well prepared,” says Keryn James, CEO of ERM.
A large part of
sustainability also relies on empowerment and equality. Sub-Saharan Africa has
the highest number of female-owned businesses who contribute a large amount of
money towards their respective countries’ GDPs. However, most of these
businesses struggle with the issue of scaling.
“Women sometimes underestimate their ability and they don’t necessarily have the confidence that they should have about the value that their businesses present. Women often take less risks than men,” says James.
“The issue of scaling is one that we see globally. One of the issues are access to funding to support in the investment and growth of their businesses.”
Going forward, the availability of mentorship programmes and skills development opportunities for women, especially black women in business should be encouraged.
According to a study done by the UN Women’s organization, an average of 3 out of 7 women score higher in performance when they are placed in senior managerial positions. Additionally, if more women work, the more countries can exponentially maximise their economic growth.
Women will be empowered
when given the correct skills and opportunities to be able to run their own
businesses independently which would ultimately lead to the scaling of
female-owned businesses in Africa and sustainable development.
The Nedbank Capital Sustainable Business Awards aim
to recognize the efforts of businesses that operate sustainably and to encourage
other corporations who intend to adopt more sustainable strategies into their
practices. Initiatives such as these prove that business value also depends on
how sustainable they are.
It is clear that the prioritization of sustainability and accountability in businesses is the only way forward in the midst of this global crisis. With a combination of will and the rigorous work that African businesses have put into sustainability initiatives and strategies, it is easier to be optimistic about our planet’s wellbeing.