New data from Yoco shows small business sector has swung into recovery mode
Yoco describes itself as the Number 1 partner for small business in South Africa.
And the local payments platform shared its data with The Money Show that indicates business is starting to return to normal for the country's beleaguered SSMEs (small, medium and micro-enterprises).
Bruce Whitfield talks to Matt Brownell, VP Commercial at Yoco.
"We are really seeing some positive signs" reports Brownell, although he points out that this time of year makes it difficult to differentiate between the effects of seasonal change and the easing of lockdown.
As we head into summer a lot of the retail sectors in particular do benefit from seasonal increases in spending...Matt Brownell, VP Commercial - Yoco
... but what the data is showing us is a very consistent and significant improvement which really happened at the end of July when we moved from Level 4 to Level 3, and has improved again since the move further down to Level 2.Matt Brownell, VP Commercial - Yoco
It's about - in total - a 30% improvement from that point at the end of July to where we are today.Matt Brownell, VP Commercial - Yoco
Brownell goes into detail about the two data points that stand out.
The one is the food and hospitality sector (sectoral) and the other the growth in domestic tourism in the Western Cape (geographic).
The food and beverage or hospitality sector have clearly benefited the most from the easing of lockdown... to such an extent that food and drink is now at its highest level since pre-pandemic.Matt Brownell, VP Commercial - Yoco
There is a lot of domestic tourism activity which is definitely kicking off in the Western Cape and we've now, for the first time since March last year, seen the Western Cape get back to its pre-pandemic level specific to this SME sector.Matt Brownell, VP Commercial - Yoco
For more detail, listen to the conversation on The Money Show: