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Treasury’s new regulations for retirement funds, which come into full effect in March next year, require funds to, among other things: have default investment strategies in place for pre-retirement savings, with members also able to select “non-default” investment options; offer clear communication and counselling to members, particularly when they join a fund and when they leave it; provide trustee-endorsed “default” options for preserving their savings when they exit a fund on changing jobs; and provide trustee-endorsed annuity options when they retire.

Although it is too early to tell for sure, the signs are that, among funds that already have trustee-endorsed strategies in place, members are more likely to preserve their savings than take cash when changing jobs.

This is the view of John Anderson, group head of client solutions at Alexander Forbes, who spoke to Personal Finance on the launch of the company’s 2018 Member Watch survey of members in the retirement funds under its administration.

The survey was based on data collected from the about onemillion active retirement fund members.

It shows that contribution rates have remained relatively constant over the past six years. The average rate for 2018 is 14.11% of pensionable salary (with the employer contributing 9.15%, on average, and the employee contributing 4.96%) with a net contribution (after group risk cover and costs) of 12.17%.

This is well below the savings rate of 20% of your income typically recommended by the industry.

Anderson says the recommended rate has been increased from the original rule-of-thumb figure of 15% because the industry expects the current low-return investment environment to continue, your savings need to keep pace with salary inflation (in most cases higher than normal inflation) and people are living longer in retirement.

If you save 20% of your income over a working career of 35 to 40 years, you will probably be able to retire with a pension of about 75% of your final salary.

This percentage of salary is known as your replacement ratio.

Along with not saving enough, the biggest factor affecting outcomes is the widespread lack of preservation: people wiping out their savings when they change jobs by taking their retirement benefit in cash.

The Member Watch survey shows that replacement ratios and preservation rates remain dismally low in South Africa. The average projected replacement ratio of the active members surveyed was 40.5%, while the actual ratio achieved by retiring members was 28.8%.

And of the people exiting funds in the 2017/2018 year under review, only 8.7% preserved their savings. This is down from 11.5% in 2012 (see graphs above).

But there are signs of a turnaround, largely because of Treasury’s interventions, but also through system improvements and innovations effected by players such as Alexander Forbes.

Anderson says that contrary to widespread belief, many people take cash when they exit a fund simply because it’s the easiest, least cumbersome thing to do, rather than because they actually need the money. In the past, he says, it has often been more of a hassle to preserve than to take the cash, because of the extra work involved for the member in the way of filling in forms and arranging the transfer into a preservation fund.

But funds, particularly the larger ones, are now making it far easier for people to preserve. In fact, preservation is the stipulated default option under the new regulations, and you will have to make a more active decision to take cash.

Anderson says there is evidence that where funds have put solutions in place to make it easier for exiting members to preserve their savings, preservation has gone up, and by March next year this trend should be more visible. He says Alexander Forbes has tried various means to encourage people to preserve, including improving communication and fostering member education, “but this is the first time in 10 years we are seeing something that tangibly improves preservation”.

Another player in the retirement fund space, Momentum, is seeing improved outcomes after implementing its Smart Exit strategy. Regard Budler, head of product solutions at Momentum Corporate, says: “The Smart Exit strategy created for Momentum FundsAtWork helps employees to digitally manage their financial wellness when they leave their employer and helps members approaching retirement to understand the different annuity options available and make an informed decision.

“Since implementing Smart Exit, we have seen the preservation rate increasing to 22%, more than five times higher than other claim types, which average 4%,” he says.

PERSONAL FINANCE 

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https://www.iol.co.za/personal-finance/retirement/retirement-benefits-a-new-era-17867876https://www.iol.co.za/personal-finance/retirement/retirement-benefits-a-new-era-17867876

Mon, 12 Nov 2018 18:55:00 GMTMon, 12 Nov 2018 19:54:00 GMTIOL

12018-11-12T18:55:00.000Z:00+02002018-11-12T19:54:07.000Z:00+0200The signs are that, among funds that already have trustee-endorsed strategies in place, members are more likely to preserve their savings.

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JOHANNESBURG – The rand ended the week on the back foot against the US dollar. The South African currency traded weaker during Friday’s European trading session due to a resurgent US dollar and weaker emerging market sentiment. The rand was one of the worst-performing emerging market currencies. At the close of local trade, the rand quoted 0.8 percent weaker at R14.27/$, after trading in the range of R14.11/$ – R14.35/$. The rand traded slightly weaker this morning. Expected range today R14.15/$ – R14.45/$.

South African bourse

The JSE All Share (-1.4 percent) ended lower yesterday dragged by losses in large consumer goods (-4 percent) and mining (-2.2 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index traded higher/lower. In local news, Gold Fields (-2.6 percent) came under pressure after the company announced that its Q3 production declined by 3 percent, because of lower output at its last remaining South African asset, South Deep mine.

Brent crude oil 

The Brent oil price slumped further on Friday, due to concerns over the impact of lower economic growth and trade disputes on global fuel demand. Meanwhile, US sanction against Iran left a smaller-than-expected impression on markets due to exemptions from Washington. At the close of local trade, the Brent oil price quoted 1.2 percent lower at $69.85/pb. Crude prices jumped higher during Asian trade this morning on news that Saudi Arabia could cut production.

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BUSINESS REPORT ONLINE

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https://www.iol.co.za/business-report/economy/watch-rand-trades-weaker-due-to-resurgent-dollar-17865651https://www.iol.co.za/business-report/economy/watch-rand-trades-weaker-due-to-resurgent-dollar-17865651

Mon, 12 Nov 2018 07:41:00 GMTMon, 12 Nov 2018 09:52:00 GMTIOL

02018-11-12T07:41:00.000Z:00+02002018-11-12T09:52:44.000Z:00+0200Get the latest market update and top stories from our newsrooms across South Africa, Africa and the world.

DURBAN – KwaZulu-Natal is gearing up for a tourism boom in December from both domestic and international sources. 

A large cut in the petrol price of R1.50 or thereabouts per litre should encourage more people from Gauteng and the Free State to make the trek to KZN’s beaches, while the British Airways direct flight between London and Durban that started at the end of October will bring in more Britons to tan in KZN.

The over-recovery in the petrol price on November 6 was 156.896 cents per litre, so there is a good chance that the December retail price adjustment could be larger than R1.50 per litre. The adjustment will be announced on November 30 and take effect on December 5. 

The large drop in the petrol price will make KZN more accessible to a larger number of people from inland provinces.

King Shaka Airport passenger data from the Airports Company of South Africa (Acsa) has continued to show growth in the number of passengers handled with a 6 percent y/y increase in September after an 8.4 percent y/y gain in August following a slowing to a 3.1 percent y/y rise in July from June’s 10.8 percent y/y jump and that is expected to continue into December and January with the probability that growth numbers could exceed double digits given the easing of visa restrictions on overseas tourists.

At the World Travel Market in London this week, Tourism Minister Derek Hanekom was at pains to stress that South Africa was open for business and willing to welcome more overseas tourists.

Hanekom predicted 2019 would be a stronger year for tourism following last year’s drought, which nearly led to Cape Town almost running out of water. “We know we’ve been growing, but tourism is vulnerable to various types of shocks,” he said.

In recent months, King Shaka outperformed other airports, as the increase in passenger numbers for all Acsa airports was 2.6 percent y/y in September after a 2.4 percent y/y gain in August. At the beginning of the year there was a decline in international arrivals, which was more than offset by strong gains in domestic and regional passenger volumes, but a turnaround started in August, when there was a 8.7 percent y/y increase followed by a 13.6 percent y/y jump in September.

The 6.5 percent y/y increase in domestic passenger arrivals to 245 361 in December last year also shows that the domestic economy is reviving.

BUSINESS REPORT 

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https://www.iol.co.za/business-report/economy/kzn-gearing-up-for-a-tourism-boom-17839760https://www.iol.co.za/business-report/economy/kzn-gearing-up-for-a-tourism-boom-17839760

Mon, 12 Nov 2018 04:00:00 GMTMon, 12 Nov 2018 05:16:00 GMTIOL

12018-11-12T04:00:00.000Z:00+02002018-11-12T05:16:38.000Z:00+0200KwaZulu-Natal is gearing up for a tourism boom next month from both domestic and international sources.
JOHANNESBURG – Hotel and gaming group, Tsogo Sun, on Monday ditched its proposed disposal of seven mixed-use casino properties to Hospitality Property Fund, and the subsequent distribution of the group’s entire holding of Hospitality shares to Tsogo shareholders after some investors did not support the transaction.

In July, Tsogo Sun said it would sell a portfolio of seven of its casino and hotel businesses to Hospitality Property Fund in a shares-and-subscription deal worth R23 billion, in line with the board’s strategy to restructure the group into three separate and distinct operating divisions: a property division, a gaming division and a hotel management division. 

A general meeting held last month to pass the special resolutions in September was adjourned by the chairman and a new date was set for November 12.

Tsogo Sun had proposed to sell 100 percent of the issued share capital in Cassava and Listed — owners of the Casino Precinct Properties — to Hospitality while subscribing more than one billion Hospitality shares which would leave Tsogo Sun holding about 87 percent of the shares in Hospitality. 

At a reconvened general meeting on Monday, shareholders were advised that it had become apparent that the transaction and the unbundling did not enjoy the support of sufficient shareholders for their implementation, following engagement with certain Tsogo investors.

“Accordingly, the Tsogo board of directors had withdrawn the resolutions that were to have been considered at the reconvened general meeting and the sale of shares and subscription agreement was terminated by agreement between Tsogo, Hospitality and the remaining parties to that agreement. As such, no resolutions were proposed for consideration at the reconvened general meeting and the meeting terminated.”

Tsogo Sun revealed earlier this year that its investment spending in the year to March had declined to about R3.25 billion, including the purchase of Gameco in exchange for shares and R1.7 billion in cash.

– African News Agency (ANA)

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https://www.iol.co.za/business-report/companies/tsogo-sun-dumps-r23bn-casino-and-hotel-sale-17871555https://www.iol.co.za/business-report/companies/tsogo-sun-dumps-r23bn-casino-and-hotel-sale-17871555

Mon, 12 Nov 2018 12:44:00 GMTMon, 12 Nov 2018 13:23:00 GMTIOL

02018-11-12T12:44:00.000Z:00+02002018-11-12T13:23:08.000Z:00+0200Hotel and gaming group, Tsogo Sun, on Monday ditched its proposed disposal of seven mixed-use casino properties to Hospitality Property Fund.

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https://www.iol.co.za/business-report/economy/tito-mboweni-postpones-his-q-and-a-at-the-11th-hour-17867086https://www.iol.co.za/business-report/economy/tito-mboweni-postpones-his-q-and-a-at-the-11th-hour-17867086

Mon, 12 Nov 2018 09:05:00 GMTMon, 12 Nov 2018 11:27:00 GMTIOL

12018-11-12T09:05:00.000Z:00+02002018-11-12T11:27:55.000Z:00+0200South Africans will have to wait a while longer for answers on the economy after Tito Mboweni postponed his live Q&A session.

JOHANNESBURG – Despite the gaming or casino industry growing its gross gambling revenue (GGR) by 3.5% to R18.5 billion in the year to end March 2018, the recession in the first half of this year has increased the number of illegal gambling operations. 

A growing uncertainty regarding the gambling regulatory framework is making it harder for the industry to realise its full potential as a generator of jobs and tax revenue.

This gaming industry provides roughly 38 000 jobs. 

The Casino Association of South Africa (Casa) warned this week that the challenges that led to the previous decline in GGR were worsening. 

The 3.5 % increase in GGR was below consumer inflation, so in real terms it continued to contract after a dismal 2017 when nominal GGR fell by 1.8% for the first contraction in nominal terms since the industry’s inception in 1997.

Casa said it paid 37% of GGR or R6.1bn in taxes and levies at national, provincial and local levels in the year ending March 31, 2019. 

This made the government the largest recipient of value generated by Casa member casinos. 

According to a new report from auditors PwC, the gaming industry in South Africa is set to grow at a compounded rate of more than 5% a year to reach nearly R35bn by 2021. Casa chief executive Themba Ngobese said Casa members were committed to contributing to a better South Africa. 

“Casinos attract investment and tourism to the country, and the money members pay in taxes and levies is used to improve everything from education and healthcare to infrastructure and housing. 

“One of our biggest concerns is the exponential growth of illegal gambling operations. These illegal operators pay no tax or levies and contribute nothing to the South African economy. As an industry, we once again urge law enforcement to take a tougher stance on these illegal operations, which are essentially stealing from us all,” Ngobese said.

Casa has warned that recent proposed changes in legislation such as anti-smoking regulations, could put the casino industry under regulatory pressures on a number of fronts. Banning all smoking 
could see as much as an 18% drop in GGR nationally, Casa said. 

BUSINESS REPORT 

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https://www.iol.co.za/business-report/economy/sa-recession-sees-increase-in-illegal-gambling-operations-17839755https://www.iol.co.za/business-report/economy/sa-recession-sees-increase-in-illegal-gambling-operations-17839755

Sun, 11 Nov 2018 12:30:00 GMTMon, 12 Nov 2018 00:17:00 GMTIOL

02018-11-11T12:30:00.000Z:00+02002018-11-12T00:17:38.000Z:00+0200Despite the casino industry growing its gross gambling revenue by 3.5% to R18.5bn, the recession increased the number of illegal gambling operations.
PRETORIA – President Cyril Ramaphosa will this week lead a South African delegation on a working visit to the European Union (EU), International Relations Minister Lindiwe Sisulu said on Monday.

“President Ramaphosa will from 14 to 15 November 2018 lead a South African delegation on a working visit to the European Union (EU) in France and Belgium,” Sisulu said while addressing a media briefing in Pretoria.
 
“The visit will commence in Strasbourg, France on 14 November 2018 where President Ramaphosa will address the European Parliament and meet key figures, including the President of the European Parliament, Mr Antonio Tajani. President Ramaphosa will then proceed to Belgium, Brussels, where he will meet the King of the Belgians, His Majesty King Philippe Leopold Louis Marie, and the Prime Minister of the Kingdom of Belgium, Mr Charles Michel.”

Sisulu said Ramaphosa would also receive a courtesy call from the Minister-President of the Government of Flanders, Geert Bourgeois.

“On 15 November, President Ramaphosa will co-chair the Seventh South Africa-EU Summit with the President of the European Council, Mr Donald Tusk, and the President of the European Commission, Mr Jean-Claude Juncker. South Africa is the only African country, and one of 10 countries globally, that has a Strategic Partnership with the EU,” said Sisulu.

Later this month, Ramaphosa will also lead a South African delegation to Ethiopia
 
“President Ramaphosa will lead a South African delegation to Addis Ababa for the 11th Extraordinary Session of the Assembly of the African Union (AU) scheduled for 17 to 18 November. The main focus of the 11th Extraordinary Session of the Assembly will be on the AU institutional reform process,” she said.

“The session is also expected to take stock of progress made on the reform process, discuss outstanding issues and challenges, and consider various reform proposals and recommendations. South Africa supports the institutional reform of the AU and the creation of an efficient and cost-effective union.”
 
Sisulu said South Africa is looking forward to a very fruitful meeting, which will hopefully lead to a strengthened and revitalised AU “that will lead the continent on the road to unity and prosperity”.

– African News Agency (ANA)

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https://www.iol.co.za/business-report/markets/ramaphosa-heading-to-france-belgium-17872392https://www.iol.co.za/business-report/markets/ramaphosa-heading-to-france-belgium-17872392

Mon, 12 Nov 2018 14:04:00 GMTMon, 12 Nov 2018 17:25:00 GMTIOL

12018-11-12T14:04:00.000Z:00+02002018-11-12T17:25:09.000Z:00+0200President Cyril Ramaphosa will this week lead a South African delegation on a working visit to the European Union.
PRETORIA – Hundreds of National Union of Metalworkers of South Africa (Numsa) members marched to the department of public enterprises offices in Pretoria on Friday demanding government save state-owned arms manufacturer, Denel.

The union said it remains dismayed that no financial bailout package was allocated to Denel, putting at risk thousands of jobs.

Numsa spokesperson Phakamile Hlubi said the struggling state-owned arms company wanted to reduce hours in the work place and cut salaries by 20 percent on staff costs.

“We reject this because it’s not workers fault that Denel finds itself in this financial crisis. It’s because of poor decision making at the highest level, it’s because of allegations of corruption and looting at the highest level,” Hlubi said.

She said the union is demanding that the government injects the needed funds in the form of a bailout to save Denel from sinking deeper into financial crisis. 

Denel made a R1.7 billion loss during the last financial year.

The union wants the government to inject no less than R7 billion into the cash-strapped entity.

“Such an amount will go a long way, not just to pay Denel’s suppliers, but it will be sufficient enough to ensure a viable turnaround strategy,” said union general secretary, Irvin Jim, in a statement.

Jim said spending money on Denel is compulsory and it cannot be blocked or compromised by conservative, “right-wing” austerity measures.

– African News Agency (ANA)

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https://www.iol.co.za/business-report/economy/numsa-members-march-to-demand-government-to-save-denel-17840551https://www.iol.co.za/business-report/economy/numsa-members-march-to-demand-government-to-save-denel-17840551

Fri, 09 Nov 2018 13:34:00 GMTFri, 09 Nov 2018 14:14:00 GMTIOL

02018-11-09T13:34:00.000Z:00+02002018-11-09T14:14:53.000Z:00+0200Hundreds of Numsa members marched to the department of public enterprises offices in Pretoria on Friday

Air Zimbabwe, which owes foreign and domestic creditors more than $300 million, was in October placed into administration to try and revive its fortunes.

The troubled airline is among dozens of state-owned firms, known locally as parastatals, that are set to be partially or fully privatised in the next 9 months as the government seeks to cut its fiscal deficit seen at 11 percent of GDP this year.

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https://www.iol.co.za/business-report/international/zimbabwe-invites-bids-for-struggling-national-airline-17871562https://www.iol.co.za/business-report/international/zimbabwe-invites-bids-for-struggling-national-airline-17871562

Mon, 12 Nov 2018 18:30:00 GMTMon, 12 Nov 2018 19:04:00 GMTIOL

02018-11-12T18:30:00.000Z:00+02002018-11-12T19:04:42.000Z:00+0200Zimbabwe has invited bids for the state-owned airline as President Emmerson Mnangagwa’s government pushes ahead with a drive to privatise.
PORT ELIZABETH – A delegation of South African exporters heads to the Outward Selling Mission (OSM) in Sweden on Saturday in search of markets for South African natural and organic products, as well as for processed foods, drinks and cosmetics, the Department of Trade and Industry (dti) said in a statement on Friday. 

The OSM that will take place in  Malmo, Sweden, from November 12 to November 16, is organised by the dti in partnership with the Western Cape Investment and Trade Promotion Agency (Wesgro) and the Swiss Import Promotion Programme (SIPPO).

Minister of Trade and Industry, Dr Rob Davies, says that the mission will promote exports of South Africa’s natural and organic products and that the companies will showcase their goods and services at the Natural Products Scandinavia Show, also in Malmo.

“The trade mission is part of the dti’s efforts to achieve its objective of creating market access for South African products and services in markets with high export potential,” Davies said.

“We have particularly selected a group of exporters of natural and organically certified ingredients, processed foods, drinks and cosmetic products in alignment with the department’s market and product diversification strategy.”

The dti said that the programme included a business seminar, business-to-business meetings and site visits.

“The Natural Products Scandinavia Show is combined with the Nordic Organic Food Fair which is the leading organic food and drink trade show in the Nordic region,” the dti said.

“Last year, Natural Products Scandinavia attracted more than 480 exhibitors from 40 countries and more than 4,000 visitors from 60 countries.”

This gives the companies participating access to key trade buyers from leading health stores, supermarket chains, distributors, importers and exporters, among others, opening up an enormous market for their products, the dti said.

Davies also said that in the “long term the mission is expected to contribute in addressing the trade imbalance which has always been heavily skewed in favour of Sweden”.

South Africa’s exports to Sweden amounted to more than R2.4 billion in 2017 while imports from the Nordic country totaled over R12 billion in the same period the dti said.

– African News Agency (ANA), Editing by Lindiz van Zilla

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https://www.iol.co.za/business-report/economy/sa-companies-head-to-sweden-in-search-of-export-markets-17840076https://www.iol.co.za/business-report/economy/sa-companies-head-to-sweden-in-search-of-export-markets-17840076

Fri, 09 Nov 2018 18:00:00 GMTFri, 09 Nov 2018 18:15:00 GMTIOL

02018-11-09T18:00:00.000Z:00+02002018-11-09T18:15:21.000Z:00+0200A delegation of SA exporters heads to the Outward Selling Mission in Sweden in search of markets for South African natural and organic products.
PRETORIA  – Many business opportunities for South African companies are available in China, according to South African companies that exhibited at the 1st China International Import Expo (CIIE) from November 5 to 10 in Shanghai, the trade and industry department (dti) said on Sunday.

DesSoft business developer Mark Taylor said in a statement issued by the dti the trip to China CIIE had been very successful and the company had excellent leads to work on. Their participation had been a wonderful platform to engage other companies and countries as well and not just local Chinese companies.

“We got major opportunities to work into China. The leads that I have had, the feet that have come past here have been of high level. I would say this has been quite easily the best of pavilions that I have been to. We travel regularly with dti and some very focused trips that we have been to in other countries. This is the one that has proven to have the best opportunities for us that we could grab immediately. We really are truly blessed to have been here,” Taylor said.

Port Elizabeth-based company the Little Slipper co-CEO Kate Horne, who also represented the South African Footwear and Leather Export Council, said there was a phenomenal market for the sector in China. The Little Slipper manufactured footwear and specialised in children’s leather footwear. 

“Yes, every day we walk away excited by the contacts we have made each day. We’ve got a constant flow of people showing interest in our product as it is very unique and different. They can see the quality that we produce and we have definitely been approached by lots of E-commerce sites, lots of trading houses, government officials, and even an opportunity to mingle with other targeted countries that we could possibly export to,” Horne said.

Pioneer of Durability Engineering CEO Seponono Kekana said her effort in participating in the CIIE were not in vain as it had enabled her to meet not only Chinese but other potential clients from Africa. Kekana said she had contacts ready to be followed up.

“I have the contacts already that a have spoken to, a number of African countries. I have spoken to Ghana, Senegal that were [here]. I have spoken to Kenya who were also here. There is actually a number of Africa countries that are here. I have the contacts and have already spoken to them in terms of value add and I think Nigeria was very keen. I have spoken to them also. There’s a lot of infrastructure investment in Africa from China and I think these type of services is very good and necessary,” Kekana said.

South Africa’s current export basket to China consisted mainly of minerals and raw materials, hence the CIIE presented an opportunity to showcase the diversity of value added products South Africa was able to export to China, the dti said.

The South African delegation was made up of a mix of well-established companies and export councils representing the agro-processing, engineering, chemicals, rail, infrastructure, consumer goods, and ICT sectors. The CIIE event also provided an opportunity to showcase some export-ready black industrialist companies, it said.

– African News Agency (ANA)

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https://www.iol.co.za/business-report/economy/many-business-opportunities-for-sa-companies-in-china-says-dti-trade-delegation-17857254https://www.iol.co.za/business-report/economy/many-business-opportunities-for-sa-companies-in-china-says-dti-trade-delegation-17857254

Sun, 11 Nov 2018 09:54:00 GMTSun, 11 Nov 2018 10:11:00 GMTIOL

02018-11-11T09:54:00.000Z:00+02002018-11-11T10:11:01.000Z:00+0200Many business opportunities for South African companies are available in China.

The stock fell as much as 11 percent in London, destroying 8.4 billion pounds ($10.8 billion) of market value. U.S. Food and Drug Administration Commissioner Scott Gottlieb plans to pursue new restrictions on tobacco, the Wall Street Journal reported late Friday, citing senior agency officials. That could eliminate a loophole in a flavor ban that has allowed menthol cigarettes to continue to be sold.

“BAT is the most exposed name to the potential risk,” wrote Richard Taylor, an analyst at Morgan Stanley who estimates that U.S. menthol cigarettes account for 25 percent of total earnings.

The potential ban steps up the FDA’s campaign against youth smoking. Clove cigarettes were previously taken off the market, and now the agency is taking a tougher approach to alternatives, too. The FDA may impose limits on the sale of most e-cigarette products in the U.S., the Washington Post reported last week.

The FDA has been targeting flavored tobacco products as studies indicate that teens who smoke menthol cigarettes consumed close to twice as many weekly compared with non-menthol users. Not all analysts think a ban is likely. Jefferies analyst Owen Bennett said such a move is improbable and would take years to implement.

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https://www.iol.co.za/business-report/international/british-american-tobacco-plunges-on-possible-us-move-to-ban-menthol-cigarettes-17871119https://www.iol.co.za/business-report/international/british-american-tobacco-plunges-on-possible-us-move-to-ban-menthol-cigarettes-17871119

Mon, 12 Nov 2018 17:30:00 GMTMon, 12 Nov 2018 18:34:00 GMTIOL

02018-11-12T17:30:00.000Z:00+02002018-11-12T18:34:46.000Z:00+0200British American Tobacco Plc shares plunged to the lowest level in three years.
As parents, we tend to be quick to build our children’s social, academic and extra-curricular skills, but at best we see money management skills as a lesson to be saved for a later day or at worst hope it will be picked up at the “University of Life”.

The reality, however, is that children are far more capable than we, as parents, often give them credit for, and by delaying the introduction of money management, we are delaying their sense of financial savvy.

From as early as a child’s toddler years, parents can begin introducing the concept of exchanging money for goods or services. Use play scenarios to get the messages across, and look out for educational shows online.

Children as young as 4 or 5 years should begin receiving an allowance, which they can use to save up for a toy or treat, to encourage an understanding of the cost of immediate and future gratification. To teach them the value of work and accountability, you can link this allowance to accountability for household tasks or activities.

From about 8 years, you can introduce children to the basics of household budgeting. Give them a piggy bank (physical or virtual) so they can deposit part of their pocket money, and watch it grow.

Later, as teenagers, you can introduce additional financial responsibilities, such as paying for their clothing and entertainment. This should help them to differentiate between their “wants” and “needs”.

Priya Naicker is the head of strategic retail marketing at Old Mutual Personal Finance.

PERSONAL FINANCE 

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https://www.iol.co.za/personal-finance/my-money/how-to-raise-money-wise-kids-17871560https://www.iol.co.za/personal-finance/my-money/how-to-raise-money-wise-kids-17871560

Tue, 13 Nov 2018 06:55:00 GMTTue, 13 Nov 2018 08:37:00 GMTIOL

12018-11-13T06:55:00.000Z:00+02002018-11-13T08:37:46.000Z:00+0200When you become a parent, you take on the responsibility of supporting and protecting your child, but also raising them to one day be self-sufficient.

JOHANNESBURG – As we draw the international community’s attention to investment opportunities in our country, we observe that our planet’s oceans are trending – but not in a good, “hot spot for holidays” way.

There are raging debates over everything from plastic particles in the fish we catch to the degradation and pollution of the oceans that cover more than 70 percent of our planet’s surface.

Many companies realise they must direct funding to help protect this precious natural resource. Having already steered this course, we can offer some pointers.

Initially, growing custodianship of the ocean as one of our major social responsibility strands emerged as an authentic connection to our company heritage. Our corporate forebears merged entrepreneurship and the potential of ocean trade more than a century ago. 

Though Grindrod Shipping was spun off into a separate JSE listing last year, Grindrod Bank is still head-quartered in Durban, Africa’s biggest port. We realised we were ideally placed to support certain threads of the Phakisa Oceans Economy plan. It is estimated that South Africa’s increased use of this little tapped resource has the potential to contribute up to R177 billion to gross domestic product and create more than 1 million jobs by 2033.

We saw potential for us to give support to focus areas such as marine protection, research and tourism. 

We partnered with WildTrust, a leading South African environmental non-profit organisation. In 2015, we jointly founded The Blue Fund. 

We have succeeded in attracting other partners – and welcome more. 

A crucial factor in the appeal of WildTrust for us was the way it fosters human-environment nexus. Under its WildOceans banner, for example, the Ocean Stewards project supports the development of marine biology skills by offering everything from bursaries for tertiary studies to facilitating ocean research trips. 

The international focus on the oceans has helped boost the popularity of whale watching across the globe. The focus in South Africa has been in the Western Cape. But the reality of the long whale migration up from their Antarctic feeding grounds to the Cape coast and north around our coast, usually in June and July, to breeding grounds in Mozambique and Madagascar is becoming better known. 

At this time of year, the adults are returning south with their calves, with whales being seen off the KZN coasts often as late as year-end. 

David Polkinghorne is the managing director of Grindrod Bank.

The views expressed here are not necessarily those of Independent Media.

BUSINESS REPORT 

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https://www.iol.co.za/business-report/opinion/opinion-companies-need-to-direct-funding-to-protect-our-ocean-17839448https://www.iol.co.za/business-report/opinion/opinion-companies-need-to-direct-funding-to-protect-our-ocean-17839448

Sun, 11 Nov 2018 12:00:00 GMTSun, 11 Nov 2018 12:40:00 GMTIOL

02018-11-11T12:00:00.000Z:00+02002018-11-11T12:40:03.000Z:00+0200We observe that our planet’s oceans are trending – but not in a good, “hot spot for holidays” way writes David Polkinghorne.
JOHANNESBURG – An Africa energy conference next February will discuss international climate change policies that are transforming the industry and renewable energy implementation on the continent, organisers said on Monday.

“The role of renewable power in meeting Africa’s energy needs will form a focal point of the 11th African Energy Indaba which has proven to be the continent’s leading energy summit,” a statement said.

The African Development Bank (AfDB) is prioritising five elements to fast-track the continent’s economic transformation and has implemented an energy strategy which intends to ensure that the resource is more accessible, affordable, reliable and efficient.

Africa’s potential energy generation capacity is up to 1.2 terawatts excluding solar and above 10 terawatts including solar. 

By 2040, it is expected that over 25 percent of the region’s total energy will be derived from geothermal, hydro, solar and wind.

Research by the The International Energy Agency shows that by using attested technologies, renewable energy could realise up to half of Africa’s total electrical power requirements by 2030, although this would require a considerable investment injection of $32 billion per year.

Being expensive and technically complex, Africa’s energy infrastructure projects have demanded outside assistance from large international energy players such as contractors from China.

Some 56 percent of the additional generation capacity developed, under construction or scheduled by Chinese companies in Africa this decade is from renewable sources, with large-scale hydropower forming the majority.

The continent is rich in natural energy sources such as oil, gas, coal, hydro, wind and geothermal, and inaccessibility to electricity offers governments, energy organisations and investors opportunities to provide millions of people with power.

– African News Agency (ANA)

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https://www.iol.co.za/business-report/energy/africa-energy-conference-to-focus-on-renewable-energy-17866519https://www.iol.co.za/business-report/energy/africa-energy-conference-to-focus-on-renewable-energy-17866519

Mon, 12 Nov 2018 11:00:00 GMTMon, 12 Nov 2018 12:28:00 GMTIOL

02018-11-12T11:00:00.000Z:00+02002018-11-12T12:28:10.000Z:00+0200An Africa energy conference next February will discuss international climate change policies that are transforming the industry.

Rather than fetching sandwiches from a nearby store, he’s cooking up two huge slabs of beef and sausages inside the three-foot-high bucket of a mechanical digger that serves as a makeshift barbecue.

“It’s a luxury we aren’t ready to give up,” says Carlos, one of the workers, who will pay 135 pesos ($3.80) for the meal served without salad or even a plate. “Without our end-of-the-week asado, we couldn’t survive.”

Argentines are prepared to sacrifice a lot amid the longest recession in 17 years — from buying stale bread to forgoing name-brand pasta. But they’re not about to skimp on beef.

In the sixth-largest ranching nation, grilled beef is so ingrained in culinary and social habits that consumption is proving resilient to belt-tightening. Argentines wolfed down their famed grilled cuts at an annualized rate of 57.7 kilograms (127 pounds) per person in the first 10 months, up slightly from the last two years, according to data compiled by industry group CICCRA. A dip in September proved short lived with consumption bouncing back in October.

The data show Argentina is still much more carnivorous than much richer nations on a per capita basis. To be sure, that may not be surprising considering how tender and flavorsome the country’s grass-fed beef is.

But it’s coming as the economy is predicted to shrink 2 percent this year, inflation is running at about 40 percent, unemployment is nudging 10 percent and the peso is down almost 50 percent, the most among emerging currencies. It’s little surprise then that consumer confidence is the lowest since President Mauricio Macri took office in late 2015.

Other staples are getting hit hard.

Bread consumption was down 40 percent in September from August, according to a organization representing 300 bakeries, partly because of a surge in costs as Macri winds back energy subsidies. Some bakeries have stopped giving away bread at the end of the day and instead are selling it at a 50 percent discount.

“This crisis is the worst I have seen in my 76 years,” Daniel Insua, an adviser and former president of the Western Bakeries Association, said by telephone. “A lot of our members are going back to wood ovens as it’s cheaper than using natural gas.”

Premium gasoline consumption has also slumped as people switch to cheaper regular fuel, while shoppers are going down market in products such as pasta, rice and sodas. But there’s little to show they’re seeking out cheaper proteins.

“Some, mainly pensioners, are buying less beef, but they keep buying,” said Delfina Porcel, a butcher and grocer in the Buenos Aires neighborhood of Constitucion. “Most of them have stopped buying tomatoes or lettuce rather than beef.”

BLOOMBERG 

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https://www.iol.co.za/business-report/international/cash-strapped-argentines-wont-give-up-their-beloved-beef-17871117https://www.iol.co.za/business-report/international/cash-strapped-argentines-wont-give-up-their-beloved-beef-17871117

Mon, 12 Nov 2018 14:30:00 GMTMon, 12 Nov 2018 17:15:00 GMTIOL

02018-11-12T14:30:00.000Z:00+02002018-11-12T17:15:31.000Z:00+0200Four blocks from the presidential palace in downtown Buenos Aires, a construction worker organizes lunch for his 25-person crew.

Six hundred employees of Hari Krishna Exporters, a diamond trading company run by Savji Dholakia, received cars made by Indian manufacturer Maruti Suzuki, while around a thousand more staff were offered gifts of cash deposits and apartments in a huge outdoor ceremony in Surat, Gujarat.

Indians often give each other gifts in the run-up to Diwali, a major Hindu festival celebrating the triumph of good over evil that this year falls on Nov. 7.

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https://www.iol.co.za/business-report/international/indian-diamond-merchant-makes-gift-of-600-cars-to-staff-with-modis-help-17871564https://www.iol.co.za/business-report/international/indian-diamond-merchant-makes-gift-of-600-cars-to-staff-with-modis-help-17871564

Mon, 12 Nov 2018 19:30:00 GMTMon, 12 Nov 2018 21:25:00 GMTIOL

02018-11-12T19:30:00.000Z:00+02002018-11-12T21:25:05.000Z:00+0200India’s Prime Minister Narendra Modi helped a diamond merchant hand over hundreds of cars as gifts to his employees on Thursday.

Lee was arguably the most famous comic book writer of all time, however, not much was known about his wealth. 

According to reports, Lee’s net worth was often estimated to be between $50m (R718 million
) 
to $80m (R
114 million). 

Lee himself said that he had made many unwise business decisions over the years which resulted in him leaving lots of money on the table. 

Lee is credited for creating many of the characters in the popular Marvel universe 
movies, which grossed over $24 billion at the box office.

As a writer and editor, Lee was key to the ascension of Marvel into the comic book titan it became in the 1960s.

Lee, in collaboration with artists such as Jack Kirby and Steve Ditko, created superheroes who would enthrall generations of young readers.  

HE EVOLVED CHARACTERS 

Lee was widely credited with adding a new layer of complexity and humanity to superheroes. 

His characters were not made of stone – even if they appeared to have been chiseled from granite. 

They had love and money worries and endured tragic flaws or feelings of insecurity.

“I don’t have $200 million. I don’t have $150 million. I don’t have $100 million or anywhere near that,” Lee told Playboy magazine in 2014. Having grown up in the Great Depression, Lee added that he was “happy enough to get a nice paycheck and be treated well.”

In 2008, Lee was awarded the National Medal of Arts, the highest government award for creative artists.

WATCH: 8 Expensive things that Stan Lee owned: 

BUSINESS REPORT ONLINE / REUTERS 

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https://www.iol.co.za/business-report/international/watch-stan-lee-had-a-surprising-net-worth-18096075https://www.iol.co.za/business-report/international/watch-stan-lee-had-a-surprising-net-worth-18096075

Tue, 13 Nov 2018 08:55:00 GMTTue, 13 Nov 2018 09:00:00 GMTIOL

02018-11-13T08:55:00.000Z:00+02002018-11-13T09:00:34.000Z:00+020085e6afe9-3f24-44b4-a4a5-ff8bce2d612fAPComic book icon, Stan Lee, passed away at the age of 95 on Monday, we take a look at his net worth and his prolific career.

JOHANNESBURG – South Africa’s 
rand and equity market plunged more than 1 percent
on Friday as the US mid-term elections knee-jerk reaction ran out of steam after the US Federal Reserve indicated it will pursue policy tightening.

The dollar strengthened after the US Federal Reserve kept interest rates steady, but reaffirmed its monetary tightening stance, setting the stage for a rate hike in December. 

The local currency weakened to R14.33 against the greenback, while the all share index shed 2.14 percent
on the day as emerging markets came under pressure.

Andre Botha, a senior currency dealer at TreasuryONE, said emerging markets were on the front foot with an initial US election reaction, but the hype slowly died down.

“Another event that stuck to the script was the US Fed that kept interest rates on hold as was widely expected,” Botha said.

“The language from the Fed also did not waiver from the previous meeting with a December rate hike looking on the cards with gradual rate hikes next year.”

The local currency had rallied to R13.87 against the dollar on Wednesday following the US mid-term elections, breaking through the R14 long-term resistance level for the first time in two months, lifted by a return of global risk appetite. 

Analysts from Merchant West ,in
a research note, said the dollar gained on Friday as the US Federal Reserve kept interest rates steady, but reaffirmed its monetary tightening stance. 

“South Africa’s rand edged lower on Friday, giving back gains from earlier this week, as investors took profits and awaited the next market catalyst,” Merchant West said.

The local market was this week also hurt by poor activity data that indicated the moribund economy struggled to make headway in the third quarter of the year.  Statistics South 
Africa this week said that mining production in South Africa faltered in the third quarter, sparking fears that the country could struggle to lift out of the current technical recession. 

Production in the sector fell 1.8 percent year-on -year
in September following a 6.7 percent decline in August.

However, manufacturing production inched up 0.1 percent on a yearly basis in September to end two successive quarters of decline. The sector let go of 25 000 people in the third quarter alone.

Mamello Matikinca, FNB’s chief economist, said the retail sales to be released next week would provide a fuller gross domestic product (GDP) picture.

“We’ll get a better feel for the third quarter growth handle next week with the publication of the September retail trade sales numbers out on Wednesday,” Matikinca said. 

“Assuming September retail sales growths at roughly these levels, indications are that the third quarter GDP growth rebound could well be north of 2 percent
quarter on quarter, marking an exit from recession.”

BUSINESS REPORT 

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https://www.iol.co.za/business-report/economy/rand-and-equity-market-plunges-1-17839771https://www.iol.co.za/business-report/economy/rand-and-equity-market-plunges-1-17839771

Sun, 11 Nov 2018 04:30:00 GMTSun, 11 Nov 2018 04:38:00 GMTIOL

02018-11-11T04:30:00.000Z:00+02002018-11-11T04:38:26.000Z:00+0200South Africa’s rand and equity market plunged more than 1 percent on Friday as the US mid-term elections knee-jerk reaction ran out of steam.
The best investment returns are born in times of fear and uncertainty, says Mikhail Motala, assistant fund manager at PSG Asset Management, and there is a prevailing negative narrative on South Africa.

Business confidence is close to 40-year lows and recent financial results commentary from JSE-listed companies reveals just how tough the economic environment is. SA Inc businesses are experiencing some of their most testing times. The FTSE/JSE Mid Cap Index, which serves as a good proxy for SA Inc companies, is trading at lows last seen in 2002.

“Valuations closely follow business confidence, as both are proxies for investor sentiment,” Motala says. “Depressed valuations signal that the market has very low expectations for future earnings growth. “It is therefore not despite but because of the tough economic environment that local mid-cap shares present attractive opportunities. Many of the fears about South Africa’s economic woes appear to be priced into these shares. “So even if economic headwinds persist for longer than expected, shareholders can still expect to make decent returns. “If, however, a ‘normal’ cycle unfolds and some of the headwinds abate, the resultant earnings recovery could be dramatic.

“In this scenario, shareholder returns could be highly attractive.”

While it’s difficult to predict if or how an economic recovery may take shape, and market participants should by no means underestimate the challenges the local economy faces, Motala believes there are a few encouraging factors to consider.In some South African industries, such as infrastructure and energy, there is pent-up demand from the so-called “lost decade” – the economic stagnation experienced over the past 10 years.

Growth follows investment. Investment into emerging markets generally is at cyclical lows. Within emerging markets, South Africa has taken a bigger knock than many of our peers. Generally, South African corporate balance sheets are strong.

Key local institutions such as the National Treasury and the SA Reserve Bank have been thoroughly tested over the past 12 months and have proved their mettle. Despite a recession and an inquiry into state capture, there has been a peaceful and democratic change in the leadership of the ruling party.

Even some larger, more global South African companies are starting to look attractive. Nkareng Mpobane, chief investment officer of long-only fund management at Ashburton Investments, says that even though lacklustre South African earnings growth has been the main drag on equity returns over recent years, bargains are emerging in great stocks that have been “thrown out with the bathwater”. “We’ve had consistent downward revisions to earnings expectations, which explains the market’s relatively flat long-run performance.

“This poor performance has resulted in higher dividend yields, but lower earnings growth is likely to hold back any real improvement in price-earnings multiples on a forward basis. As it stands, price-earnings multiples remain at their long-term historical averages.”

For South African investors, however, valuations in some shares look very attractive, with some of the JSE’s leading names trading substantially below long-term valuations. “For patient investors, great stocks can be had at very attractive prices,” Mpobane says. Some of these companies are Vodacom, Aspen, Shoprite and Mr Price.

PERSONAL FINANCE 

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https://www.iol.co.za/personal-finance/guides/good-time-to-stock-up-on-sa-inc-17867710https://www.iol.co.za/personal-finance/guides/good-time-to-stock-up-on-sa-inc-17867710

Mon, 12 Nov 2018 16:55:00 GMTMon, 12 Nov 2018 18:04:00 GMTIOL

02018-11-12T16:55:00.000Z:00+02002018-11-12T18:04:54.000Z:00+0200This might be a good time to invest in South African listed companies whose primary business is here in South Africa.