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But Losi says the tasks ahead do not scare her. After all, she has been smashing glass ceilings all her life.
She says she had to live with being the only black and only woman during her time as an aircraft maintenance technician for the South African Air Force.
“I was among Afrikaans-speaking males and there was resistance and racism,” she says. “I experienced all of that.”
Leadership is something that comes natural in Losi. She born into a family of political activists in the Eastern Cape’s black townships that surround the country’s auto hub Port Elizabeth.
She cut her teeth in the student politics of the Congress of South African Students (Cosas) and also served in the ANC Youth League structures in the Eastern Cape.
Her activism would later take her into exile where her brothers had gone into.
In Cosatu, she has served as deputy president before being elected unopposed last week to head the federation that turns 33 in December.
Losi is well aware of what her responsibilities are in a country that is also battling depressed economic conditions.
She describes her election as a quite humbling feeling and experience and commends the work done by her predecessors in taking Cosatu to be where it is today.
However, she is quick to point out that she was not elected to the powerful position on the basis of her gender.
“One has to appreciate and understand that it is not just an election of a leader but there is a group within the working class that expects that the voice shall be heard even louder because we have a woman at the helm,” says Losi, adding that with her at the helm, workers should expect a more grounded Cosatu.
“We can expect a Cosatu that is going to be on the ground. We have started to hit the ground running. There are low hanging fruits we are going for them.”
She says the federation’s constitution, which was amended at the congress, gives its central executive committee (CEC) more teeth.
“We are going to make leaders to account. It’s our mandate from the congress. The constitution has now been amended. It gives us powers to make interventions.”
Cosatu, she says, also wants to work closely with its alliance partners, ANC and SA Communist Party.
“But we are not going to shy away where we disagree,” says Losi, who is a member of the ANC national executive committee.
That some Cosatu unions have been accused of unlawfully expanding their scope by poaching members from other sister unions could soon be a thing of the past, if things go according to Losi’s plans.
She is considered an ally of President Cyril Ramaphosa after she unsuccessfully ran for the position of ANC deputy general secretary under Ramaphosa’s slate.
Losi says she will not go easy on Ramaphosa either.
“I appreciate the fact that she appreciates that. I supported President Ramaphosa towards the Nasrec conference because it was the mandate of the federation. It was not a personal campaign. It was driven by the CEC. We are here now, Nasrec is gone. We want to work now.”
Losi says Cosatu’s call for one industry, one union, one country, one federation, is possible, and quickly points out to the wage agreement achieved by metalworkers’ union Numsa, Solidarity and National Union of Mineworkers at Eskom. All three unions belong to different federations.
“As long as we separate our personalities from the issues that our confronting workers, workers will be united,” she says.
– BUSINESS REPORT
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https://www.iol.co.za/business-report/careers/meet-the-new-cosatu-president-17285951https://www.iol.co.za/business-report/careers/meet-the-new-cosatu-president-17285951
Mon, 01 Oct 2018 17:00:00 GMTMon, 01 Oct 2018 17:08:00 GMTIOL
12018-10-01T17:00:00.000Z:00+02002018-10-01T17:08:57.000Z:00+0200Newly elected Cosatu president Zingiswa Losi is the first woman to lead the country’s largest trade union federation last week
JOHANNESBURG – South Africa’s rand retreated early on Monday, in line with falls in local bonds and stocks, as investor appetite for riskier assets was muted.
The rand was 0.27 percent weaker at 14.1950 per dollar at 07:02 GMT, having closed in New York at 14.1500.
The currency is expected to trade between 14.0500 and 14.3500 to the dollar on Monday, NKC African Economics wrote in a note.
The rand had been supported on Friday by upbeat trade data showing a surplus of R8.79 billion in August.
South Africa-focused investors were awaiting the release of the Absa/BER manufacturing Purchasing Managers’ Index (PMI) for September, as well as new vehicle sales, on Monday.
In fixed income, the yield on the benchmark government bond due in 2026 rose 2 basis points to 9.020 percent, reflecting weaker bond prices.
Stocks were also weaker, with the top-40 index down 0.4 percent in early trade.
-REUTERS
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https://www.iol.co.za/business-report/markets/south-african-assets-weaker-in-early-trade-17284605https://www.iol.co.za/business-report/markets/south-african-assets-weaker-in-early-trade-17284605
Mon, 01 Oct 2018 08:00:00 GMTMon, 01 Oct 2018 08:49:00 GMTIOL
12018-10-01T08:00:00.000Z:00+02002018-10-01T08:49:44.000Z:00+0200South Africa’s rand retreated early on Monday, in line with falls in local bonds and stocks.
INTERNATIONAL – The African Development Bank said it’s working with Zimbabwe’s government to find a “sustainable solution” to settle its debt arrears and enable the state to start borrowing again.
Zimbabwe owes multilateral lenders about $1.8 billion. President Emmerson Mnangagwa has said he plans to prioritize the repayment of the loans as he sets about rebuilding an economy destabilized by almost two decades of mismanagement under his predecessor Robert Mugabe. Central bank Governor John Mangudya said last week he expects the arrears to be cleared by September 2019.
The AfDB, which Zimbabwe owes $600 million, has reached a consensus with other lenders including the International Monetary Fund and World Bank about how the state should settle its dues, country manager Damoni Kitabire said.
“The emphasis for us is let’s find an option that will ensure at the end of the day Zimbabwe’s debt is sustainable,” Kitabire said. “You don’t want to pay us or pay whoever and you are in a worse-off condition.”
Zimbabwe began defaulting on its debt obligations in 1999, resulting in lenders cutting off further loans. The state also owes debt to the Paris Club of creditors, which Finance Minister Mthuli Ncube said this month the government will also hold discussions with.
Growth Target
An IMF delegation began a week-long visit to Zimbabwe this week and will meet officials including Mangudya and Ncube, Kupikile Mlambo, deputy governor of the Reserve Bank of Zimbabwe, said in an interview Friday in the southern city of Bulawayo. He declined to discuss the agenda of the meetings.
Mnangagwa’s government is targeting an annual economic growth rate of at least 6 percent over the next five years, attracting $5 billion in foreign direct investment and $10 billion in domestic investment annually. The president has pledged to revive agriculture, mining and manufacturing to accelerate economic growth, which the International Monetary Fund forecasts will be 2.4 percent this year, compared with 3 percent in 2017.
The president has said he also plans bonds to finance the development of infrastructure, the decay of which contributed to an outbreak of cholera in the capital, Harare, this month that killed at least 45 people.
“Given the challenges we are seeing as a country, when you see cholera it’s just telling you that you are not paying attention to your water and health,” Kitabire said. “If you are paying your debt at the cost of lives, then something is wrong.”
Over the past three years, the AfDB has given Zimbabwe $223 million in grants, but is unable to provide new loans until the outstanding ones are repaid, he said.
“Our problem in Zimbabwe is entirely with the arrears that Zimbabwe owes us,” he said.
– BLOOMBERG
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https://www.iol.co.za/business-report/international/afdb-favours-sustainable-solution-to-zimbabwe-debt-arrears-17256722https://www.iol.co.za/business-report/international/afdb-favours-sustainable-solution-to-zimbabwe-debt-arrears-17256722
Sun, 30 Sep 2018 05:00:00 GMTSun, 30 Sep 2018 05:08:00 GMTIOL
02018-09-30T05:00:00.000Z:00+02002018-09-30T05:08:04.000Z:00+0200The African Development Bank said it’s working with Zimbabwe’s government to find a “sustainable solution” to settle its debt arrears.
A net importer of crude, Africa’s most industrialised economy wants biofuels initially to meet two percent, or about 400 million litres, of the country’s annual fuel consumption to wean itself off oil imports and improve the trade balance.
However, regulatory uncertainty centred on financial support incentives to manufacturers has choked investment since the approval of a national biofuels strategy in 2007.
“The department will be tabling this biofuel framework to cabinet for its consideration and approval before end of March 2019,” said Jeff Radebe in a speech prepared for an energy conference in Cape Town.
The framework deals with, among other things, the mandatory purchase of biofuels by licensed manufacturers and feedstock plans that do not compromise food security, said Radebe.
– REUTERS
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https://www.iol.co.za/business-report/energy/south-africa-looks-to-kickstart-its-biofuels-industry-17287805https://www.iol.co.za/business-report/energy/south-africa-looks-to-kickstart-its-biofuels-industry-17287805
Mon, 01 Oct 2018 13:30:00 GMTMon, 01 Oct 2018 13:34:00 GMTIOL
12018-10-01T13:30:00.000Z:00+02002018-10-01T13:34:30.000Z:00+0200South Africa hopes to finalise its biofuels regulatory framework by March next year, the energy minister said on Monday.
Returning home to Cameroon from Libya two months before, gaunt, weak and clutching her baby girl born just days after she had bought her freedom from a Tripoli detention centre, she burst into tears at the memory of what she had been through.
On top of beatings, the trauma of witnessing rapes and her friends sold off as slaves, her most haunting recollection was seeing her boyfriend Douglas falling into the dark waters of the Mediterranean during an attempted crossing to Europe.
But that night in January, it was his voice on the line.
“He’s not dead!” she told the Thomson Reuters Foundation by text message after Douglas called to say he had survived. “He was kidnapped, sold, and thank God, soon he’ll be in Cameroon.”
Timdi, 33, and Douglas are among thousands of African migrants who, after failing to reach Europe in search of a better life, have been flown home from North Africa by the International Organization for Migration (IOM), with funding from the European Union.
In the past two years, the IOM and the EU have ramped up support for Africans to return to their countries, driven by the deaths of thousands on sea crossings to Europe and some governments there seeking tighter rules to stem the influx.
But seven to 10 months after going home to Cameroon, returning migrants interviewed by the Thomson Reuters Foundation are struggling to get their lives back on track.
Many are battling alone the trauma of the torture, sexual violence and slavery they endured in Libya.
In addition, they face harsh discrimination from fellow Cameroonians, and are struggling to repay family debts owed to their Libyan jailers and torturers.
BUSINESS SUPPORT
In late 2016, the EU and the IOM launched their biggest repatriation project yet: a 174 million-euro ($204 million) fund to help bring back migrants and jump-start their lives in a way that would remove the need to head for Europe. [nL1N1S91CU]
The programme has so far returned more than 45,000 people to 14 African countries. Of those, 37,000 have received basic post-arrival assistance, and about 7,000 support to start a business.
Since June 2017, the IOM has helped almost 2,200 Cameroonians go home, providing health check-ups on their return and equipment to set up small businesses.
More than 800 have received livestock, tools and other assistance, worth about 700,000 CFA francs ($1,264) each, for farming and other new ventures, the IOM said.
IOM’s Cameroon office head Boubacar Seybou hopes the scheme will show migrants they can make a living at home and smooth their integration back into their communities.
Timdi, for example, has set up a small fashion boutique and a grilled fish stall. Without the IOM help, “life would have been very hard, if not impossible here”, she said.
But for now the couple still live with their parents in separate cities, as neither earns enough to move out.
Timdi’s family spent 1 million CFA francs – collected from relatives and neighbourhood savings and loans groups – to free her from her captors in Libya.
The debt left her parents in a precarious financial position, and she is trying to help them slowly pay it back.
“I feel guilty, really guilty,” she said.
SOLD AS A SLAVE
After Timdi’s partner disappeared under the waves, he was fished out by human smugglers who held him for ransom of about $800 in a detention centre in Tripoli.
Once back in Cameroon, Douglas spent two months in and out of hospital to treat the illnesses and injuries he suffered in Libya. “This only increased the costs my family had to pay for me,” he said.
He applied for IOM business assistance in February, but by late September had yet to receive a response.
In the meantime, he started running a small chicken, duck and fish farm with his uncle and brother.
But business is slow, and the cost of living high.
“Here the salaries are pathetic,” he said. In Cameroon, labourers earn about 150 euros a month compared with 150 euros a week for a seven-hour day in Morocco, he said.
At night, he sleeps badly, disturbed by his experiences in Libya, where he was kidnapped twice and auctioned off as a slave, then forced to work for two months building homes.
“Your days are spent working without pay,” he said. “Often you just think: ‘I wish I was dead’.”
Since coming home, he has also been ridiculed and shunned by some locals. “People say that you’ve become like a rebel, since in Libya there are only rebels,” he said.
Other returnees spoke of discrimination and being pointed at in the street.
“They call us ‘slaves’. They tell us: ‘You’re worthless to society’,” said Fabrice, a 27-year-old construction worker, who returned from Libya in February.
Some are too traumatised and ashamed to face their families and friends, preferring to live on the street.
Many need psychological help, said Fabrice, who like others interviewed only wanted to give his first name.
“They’ve seen so many horrors… They’ve seen drugs, they know how to shoot a gun. If nothing is done to help them, they could become a danger to others, because they have nothing left to lose. It’s a ticking time-bomb,” he said.
EUROPEAN DREAMS
Despite their ordeal, returning migrants have ambitions for the future – and most still want to leave their country.
Of eight young returnees interviewed by the Thomson Reuters Foundation, nearly all said they would still like to try reaching Europe, but would not attempt the overland route again.
Only Adjeumo, 28, wanted to stay put permanently. He crossed five countries, getting kidnapped and spending seven months in a Libyan prison before returning to Cameroon in February.
Today, he works as a nightclub bouncer in Douala while waiting for his farming project to be approved by the IOM.
“If my business takes off, why would I go to Europe?” he said. “All the obstacles I’ve been through and survived – it means I can succeed against the odds.”
Douglas, on the other hand, plans to continue looking for a different path to Europe for himself and Timdi.
“We’ll go back. And we’ll build a life there for our children. We won’t survive here. She’ll work in construction – I’ll work as a mechanic. We’ll be fine in Germany,” he said.
– REUTERS
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https://www.iol.co.za/business-report/international/cameroon-migrants-grapple-with-libya-trauma-prison-debt-17256746https://www.iol.co.za/business-report/international/cameroon-migrants-grapple-with-libya-trauma-prison-debt-17256746
Sun, 30 Sep 2018 06:00:00 GMTSun, 30 Sep 2018 06:07:00 GMTIOL
02018-09-30T06:00:00.000Z:00+02002018-09-30T06:07:43.000Z:00+0200In late 2016, the EU and the IOM launched their biggest repatriation project yet, a €174m fund to help bring back migrants and jump-start their lives.
CAPE TOWN – The Cape Chamber of Commerce and Industry on Monday said it was disappointed, but not surprised with the expected increase in fuel prices, which will be reaching its most expensive level yet on Wednesday.
Chamber president Janine Myburgh said: “Unfortunately this is to be expected with the weakened rand and the crude oil increase – a situation that we predicted early September that might result in a shock increase.”
Myburgh said this shocking increase has now finally become a reality, coupled with a shrinking economy which now makes this increase particularly heavy on both businesses and domestic users.
“Much of the damage has unfortunately been self-inflicted with widespread corruption, mismanagement of our State Owned Enterprises and the looming expropriation issue not engendering any confidence in investors. South Africa has so much potential, yet we seem to be pushing down on the accelerator, hoping to go faster, yet pushing as hard as we can on the brakes at the same time. The result is that we are going nowhere – fast,” said Myburgh.
– African News Agency (ANA)
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https://www.iol.co.za/business-report/economy/cape-chamber-of-commerce-disappointed-with-fuelpricehike-17289624https://www.iol.co.za/business-report/economy/cape-chamber-of-commerce-disappointed-with-fuelpricehike-17289624
Mon, 01 Oct 2018 13:51:00 GMTMon, 01 Oct 2018 13:54:00 GMTIOL
02018-10-01T13:51:00.000Z:00+02002018-10-01T13:54:06.000Z:00+0200The Cape Chamber of Commerce and Industry on Monday said it was disappointed, but not surprised with the expected increase in fuel prices.
JOHANNESBURG – South Africa’s rand weakened on Monday as a recent rally gave way to a resurgent dollar boosted by climbing US treasury yields and a dip in risk demand, as trade war concerns resurfaced.
Stocks began the week marginally higher, buoyed by general retailers.
At 07:00 GMT the rand was at 14.27 per dollar, having traded as firm as 14.0675 yesterday in the session before dollar bulls came online in New York and were lured into long positions.
In late trade yesterday, the greenback was up 0.2 percent against a group of major currencies. A poor purchasing managers’ index print also put the skids on the rand as worries about the economy after its recent slide into recession kept buyers on the sidelines.
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell slightly in September, to 43.2 from 43.4 in August, a 14-month low.
Bonds were weaker, with the yield on the benchmark government bond due in 2026 rising 2 basis points to 9.045 percent.
On the bourse, the blue chip top 40 index was 0.13 percent higher at 49,587 points and the all share index was 0.15 percent firmer at 55,789 points.
Aspen Pharmacare rose 3.1 percent, a slight recovery from its share price tumble of more than 35 percent last month after it posted full-year results and announced the baby milk disposal to French dairy group Lactalis.
“I did say it was probably overdone and the market reacted a bit harshly. It is still down 40 percent in the last month so it’s hardly a bounceback,” said Ricco Friedrich, portfolio manager at Denker Capital.
-REUTERS
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https://www.iol.co.za/business-report/markets/rand-dips-as-dollar-dominates-stocks-inch-up-17305540https://www.iol.co.za/business-report/markets/rand-dips-as-dollar-dominates-stocks-inch-up-17305540
Tue, 02 Oct 2018 05:45:00 GMTTue, 02 Oct 2018 05:49:00 GMTIOL
02018-10-02T05:45:00.000Z:00+02002018-10-02T05:49:10.000Z:00+0200The rand weakened as a recent rally gave way to a resurgent dollar boosted by climbing US treasury yields.
The DA said in a statement on Monday that they were aware of a memo circulated to South African Broadcasting Corporation (SABC) staff indicating a freeze on salary increases and the hiring of new staff.
Van Damme said it was bizarre that this part of the SABC’s turnaround strategy was not presented to Parliament.
“While it may save costs, the DA challenges the SABC’s management to take the lead in demonstrating austerity by reviewing their salaries and taking cuts, where necessary”,
Van Damme said.
“It is no secret that the SABC’s top management receive extraordinarily high salaries, a legacy of former COO, Hlaudi Motsoeneng’s overly inflated annual increases. At one stage Motsoeneng earned more than the State President.”
The SABC’s 2016/17 annual report reveals that at March 2017, the SABC’s top management basic salaries were:
- GCEO: R6.5 million
- CFO: R4.1 million
- COO: R2.7 million (including R11 million bonus for the “Multichoice deal”)
- Group Executives: salaries range from R3.8 million (GE: Head of Television) to R3.5 million (GE: Risk and Governance).
Van Damme went on to add that it was
unclear what packages the new top management was offered and whether they still continue to be paid Motsoeneng’s salaries.
She called for an independent body to review all SABC top management salaries and place them at market value.
“To demonstrate goodwill and unity with staff, top management ought to commit to not only freezing in their own salaries, and not resist any advice to reduce their salaries after the review is undertaken”,
Van Damme said.
“This will demonstrate to SABC staff, many of whom must be under severe stress, worried that they may be retrenched and not receive their annual inflation-related salary increases, that management is taking the lead.”
– BUSINESS REPORT ONLINE
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https://www.iol.co.za/business-report/companies/sabc-top-management-must-take-salary-cuts-da-17284645https://www.iol.co.za/business-report/companies/sabc-top-management-must-take-salary-cuts-da-17284645
Mon, 01 Oct 2018 08:30:00 GMTMon, 01 Oct 2018 08:29:00 GMTIOL
12018-10-01T08:30:00.000Z:00+02002018-10-01T08:29:11.000Z:00+0200The DA Shadow Minister of Communications, Phumzile Van Damme, said that top management within the SABC must lead the way in salary cuts.
This is the view of Janina Slawski, the principal investment consultant at Alexander Forbes Investments, and John Anderson, the regional coverage executive of the Alexander Forbes Group, who gave a presentation at the Alexander Forbes Investments Indaba in Sandton last week.
Their vision was of a world “where retirement fund members understand what their retirement will look like, and what they should be doing right now to ensure their income is protected later on; where members feel engaged and have the tools and information to meet their investment goals”.
Why are only 6% of retirement fund members in South Africa retiring with enough to be comfortable, Slawski asks. People are simply retiring with not enough money, and it’s not about poor investment decisions or investment performance. The investment environment may be tough at the moment and in the next few years. But that has not been the case in the past: the markets have provided excellent returns.
So whose fault is it for these poor outcomes? Is it the fault of pension fund trustees? The regulators?
No, she says, it is primarily the fault of the members themselves, who are not sufficiently engaged. They are not involved in their retirement decisions and are not taking responsibility for their retirement journey. They generally don’t read or understand their retirement fund benefit statements and, crucially, they are not preserving their savings when they change jobs, or increasing their contributions when they have the opportunity to do so.
With defined benefit retirement funds, the employer was responsible for providing the employee with a pension. In the migration to defined contribution funds, this burden shifted to the employee.
But Slawski questions whether employees have ever become fully aware of this responsibility and what it entails. In essence, they are not grasping the importance of “getting it right”, she says.
Where to from here?
In looking at possible solutions to the problem, Anderson says the defined contribution model has been an “experiment”, and much has been learned over the past few decades as to what works and what doesn’t work.
He says there are certain areas of the retirement landscape where South Africa has done well. Through regulation, effective investment strategies have been put in place for unengaged members, and costs are coming down in the industry, which is providing cost-effective solutions that include passive investments.
There are other areas where the industry has achieved some degree of progress. These include setting replacement ratio goals (the replacement ratio is your pension as a proportion of your final salary), matching investment risk relative to goals, and providing a seamless transition from pre-retirement to post-retirement investments.
He says what we really need to work on more are the “personalisation” of retirement funding; ensuring strategies can respond to both market changes and personal lifestyle changes; and improving communication.
Anderson says the current methods of communicating to retirement fund members have proved to be ineffective. People are often confused by the language used and the way information is presented to them.
Research by Alexander Forbes suggests a new approach is needed – one that combines the best of the defined benefit and defined contribution models, and could best be described as a defined outcomes model.
Such a model, Anderson says, would have the following features:
- It would focus on each individual’s goal, which would be to ensure an adequate, inflation-linked income stream in retirement, rather than blindly focusing on investment returns and a capital sum;
- Investment strategies would be personalised – in other words, custom-designed to a member’s unique needs, tracking his or her progress, and tailoring the investments accordingly; and
- Communication would be meaningful and provide practical, actionable information.
He says in cases where these strategies have been implemented, a significant increase in members reaching their income goals has been achieved.
Advances in technology have turned theoretical possibilities into reality, Anderson says. It is now possible for each member to have a customised investment strategy, with feedback in the form of a quarterly assessment, at which point the strategy is automatically adjusted to keep the member on track to meet his or her goal.
PERSONAL FINANCE
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https://www.iol.co.za/personal-finance/retirement/lack-of-adequate-pension-primarily-members-fault-17288280https://www.iol.co.za/personal-finance/retirement/lack-of-adequate-pension-primarily-members-fault-17288280
Mon, 01 Oct 2018 15:30:00 GMTMon, 01 Oct 2018 15:33:00 GMTIOL
02018-10-01T15:30:00.000Z:00+02002018-10-01T15:33:41.000Z:00+0200Retirement funding in South Africa is “just not working”.
The eight-year-old British online loan provider sold its shares at 440 pence-apiece, giving the company a market value of 1.5 billion pounds, it said in a statement on Friday. Funding Circle shares rose as much 4.6 percent in trading by professional investors at its open in London. Retail investors will be allowed to trade the stock next week.
London-based Funding Circle, formed in 2010 by three friends from Oxford University, was initially a peer-to-peer lender that matched individual retail investors with small companies. Unlike LendingClub, it never focused on consumers. As it grew, Funding Circle turned to other sources of funding, like big insurers and government agencies seeking to get more credit into the economy.
The initial public offering has been viewed as a measure of the strength Europe’s fintech sector after Dutch payment processor Adyen NV more than doubled on its first day of public trading in June, only to slide earlier this month when insiders sold more stock.
“We have always believed Funding Circle would be well-suited to the public markets,” Chief Executive Officer and co-founder Samir Desai said. “The UK is a great place to start and grow a Fintech business and we are proud of today’s accomplishment.”
– BLOOMBERG
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https://www.iol.co.za/business-report/international/funding-circle-raise-300-million-pounds-in-public-offer-17256432https://www.iol.co.za/business-report/international/funding-circle-raise-300-million-pounds-in-public-offer-17256432
Sun, 30 Sep 2018 13:00:00 GMTSun, 30 Sep 2018 13:10:00 GMTIOL
02018-09-30T13:00:00.000Z:00+02002018-09-30T13:10:28.000Z:00+0200Funding Circle Holdings sold shares at the bottom of the range, raising about 300 million pounds.
The matter, involving Akani Retirement Fund Administrators, the Municipal Employees Pension Fund (MEPF) and the Dr JS Moroka Local Municipality, pertained to a complaint brought by John William Masangu to the adjudicator, Muvhango Lukhaimane.
Masangu had approached the adjudicator about the value of his withdrawal benefit, arguing the MEPF should have used the original fund rule to compute his withdrawal benefit after his resignation in October 2013. The fund argued that the figures on the benefit statement were for illustrative purposes only – they did not represent a guarantee of any benefits due, noting the effects of volatile markets, rule amendments and investment returns.
Before April 1, 2013, resignation benefits were calculated as equal to a member’s contributions multiplied by three. After that, the board sought actuarial advice on the matter due to “sustainability concerns”, and resignation benefits were reduced to 1.5 times the member’s contributions. The fund argued that since Masangu had resigned after April 1, 2013, he was entitled to only the revised resignation benefit.
Pension funds cannot change the rules of the fund without approval from the Registrar of Pension Funds. The Registrar approved the amended rules only on April 1, 2014, retrospective from April 1, 2013.
The ruling is a blow to former municipal employees, who received lower withdrawal benefits due to rule changes by the fund. The fund has over 30 000 members, with assets under management worth more than R14 billion.
“What was at issue for us is whether the rule is applicable to members who left the fund in the period prior to April 1, 2014, its registration – which we believe we have authority to pronounce over; and not whether the rule is valid or not – which we do not have authority to pronounce over. The court dealt with the latter, instead of the former,” Lukhaimane told Personal Finance.
The application was heard in an unopposed motion court, during which counsel for the fund cited an earlier judgment, Joint Municipal Pension Fund v Grobler and Others (2007), in which the adjudicator was ruled as not having the authority to pronounce on the validity of rules once registered by the registrar.
“Our office is not allowed to defend its rulings once taken on appeal. Therefore this was an unopposed motion where the only party represented was the fund, as the member had no money for litigation,” Lukhaimane says. “We believe that the Financial Sector Conduct Authority should also be joined, to indicate whether indeed vested rights can be taken away retrospectively.”
She says there were conflicting judgments from the high court in Pretoria and, “with due respect, the court in this instance resolved an issue that was not before us because the issue of retrospective application of a rule amendment is well settled – it does not apply to vested rights.
“You can imagine what the implications would be if you retire today and wait for your benefit to be paid. Three months later, a fund tells you it has subsequently registered an amendment that will suddenly be effective from three months before you retired and you are now entitled to half your original benefit.
“The high court answers the question that is in front of it and, in this case, this was not the question in front of me.”
She says the rule amendment is valid, but it cannot be applied to vested rights because the benefits had accrued before its registration – “even if the effective date is retrospective”.
“This is also the registrar’s interpretation, as confirmed to us while investigating the complaint,” Lukhaimane says.
PERSONAL FINANCE
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https://www.iol.co.za/personal-finance/retirement/court-victory-for-pension-fund-a-blow-for-members-17288480https://www.iol.co.za/personal-finance/retirement/court-victory-for-pension-fund-a-blow-for-members-17288480
Tue, 02 Oct 2018 05:30:00 GMTTue, 02 Oct 2018 08:03:00 GMTIOL
010302720152602018-10-02T05:30:00.000Z:00+02002018-10-02T08:03:40.000Z:00+0200The high court has ruled in favour of a retirement fund and its administrator, overturning a determination by the Pension Funds Adjudicator.
JOHANNESBURG – A survey has identified FNB Life as the fastest growing life insurer in South Africa, achieving the highest growth in market share by sum insured for the 2017 calendar year, the banking group said on Monday.
In addition to leading overall growth, Swiss Re’s Individual Risk Market New Business Volume Survey 2018 found that FNB Life achieved the highest growth for the three main mortality products: risk only, credit life and funeral insurance.
FNB Life, which currently has over 3 million policies in its book, also had the number one market share for new risk products in the banks and digital direct channels.
The business’ consistent growth coupled with its recent contribution to FNB’s double digit earnings for the 12 months to June 2018, is consistent with the survey findings, FNB Life CEO Lee Bromfield said.
Insurance revenue increased by six percent, benefiting from strong volume growth of 20 percent, and eight percent in funeral and credit life policies respectively, which further resulted in annual premium incomes increasing by 35 percent year-on-year.
“Our success is largely attributable to our ability to understand and innovate across the entire insurance value chain,” Bromfield said.
“We have followed this strategy from onset and across all our products. Our approach is to leverage platforms and enablers across the bank to become the most innovative and digital insurance provider in the market.”
FNB Life has also been selected from hundreds of submissions as a leading innovator in the BAI Global Innovation Awards.
In addition, the insurance administrator was selected as a finalist for Robo-Advice Tool for Life Insurance in the category of best application of data analytics, AI and machine learning in a product or service.
– African News Agency (ANA)
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https://www.iol.co.za/business-report/companies/fnb-life-fastest-growing-life-insurer-in-sa-17286739https://www.iol.co.za/business-report/companies/fnb-life-fastest-growing-life-insurer-in-sa-17286739
Mon, 01 Oct 2018 10:30:00 GMTMon, 01 Oct 2018 10:34:00 GMTIOL
12018-10-01T10:30:00.000Z:00+02002018-10-01T10:34:37.000Z:00+0200A survey has identified FNB Life as the fastest growing life insurer in South Africa.
JOHANNESBURG – South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell slightly in September, weighed down by a fall in new sales orders and employment, a survey showed on Monday.
The index, which is compiled by the Bureau for Economic Research and gauges manufacturing activity in Africa’s most industrialised economy, was at 43.2 in September from 43.4 in August, staying below the 50-mark separating contraction from expansion.
The index fell to a 13-month low in August.
“As respondents still noted an improvement in export orders, the weakness is more than likely driven by poor domestic demand conditions, including from the South African mining and retail sectors,” Absa said in a statement.
“The employment index lost further ground in September and is now at its lowest level in more than four years.”
Q3 2018 PMI at 46 (43.2 for Sept 2018)
High frequency data from StatsSA suggest a recovery from recession but growth will remain weak.
Persistent low employment and domestic sales order indices are concerning.#ABSAPmi
— Heinrich Krogman (@Heinrich_TCG)
October 1, 2018
– REUTERS
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https://www.iol.co.za/business-report/economy/south-africas-absa-pmi-remains-in-contraction-in-september-17286150https://www.iol.co.za/business-report/economy/south-africas-absa-pmi-remains-in-contraction-in-september-17286150
Mon, 01 Oct 2018 09:33:00 GMTMon, 01 Oct 2018 09:34:00 GMTIOL
02018-10-01T09:33:00.000Z:00+02002018-10-01T09:34:44.000Z:00+0200South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell slightly in September
JOHANNESBURG – US multinational diversified hospitality company Marriott International on Monday announced expansion plans across Africa, saying strong demand for select-service brands and conversion opportunities are driving the momentum of growth.
Marriott said the expansion would be amplified by five new hotel signings, which would further consolidate its presence in Ghana, Kenya, Morocco and South Africa and mark the company’s entry into Mozambique.
“The signings put Marriott International on track to increase its portfolio by 50 percent with over 200 hotels and 38,000 rooms by 2023 estimated to generate 12,000 new job opportunities,” it said at the Africa Hotel Investment Forum in Nairobi, Kenya.
Marriott International’s planned growth reinforces its commitment to Africa and underscores the substantial emphasis that countries across the continent are placing on the travel and tourism sector. The company estimates that the five new projects signed will drive investment of over $250 million by the property owners and will generate substantial economic activity.
“Marriott International’s acquisition of Protea Hotels followed by the acquisition of Starwood Hotels & Resorts Worldwide has given an impetus to our organic growth on the continent,” Marriott International President and managing director for Middle East and Africa Alex Kyriakidis said.
“Today we are seeing strong owner interest in our brands, backed by our combined loyalty program, the collective strength of our global platform and our highly-experienced, local teams.”
He said African economies had sustained “unprecedented” rates of growth, mainly driven by a strong domestic demand, improved macroeconomic management and increased political stability.
“The continent is still under capacity as far as branded hotel supply is concerned, presenting us with a fantastic opportunity to grow our brands and enhance our footprint,” Kyriakidis added.
Marriott International is present in 21 African countries, including Algeria, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Kenya, Malawi, Mali, Mauritius, Morocco, Namibia, Nigeria, Rwanda, Seychelles, South Africa, Tanzania, Tunisia, Uganda and Zambia.
It is set to expand into new markets including Benin, Botswana, Ivory Coast, Mauritania, Mozambique and Senegal.
The company said it continued to see increased interest from owners looking to maximize the value of their assets quickly, with many conversion opportunities across Africa.
“The increasing demand for conversion deals from new and existing partners is a strong reflection of Marriott International’s powerful network, loyal customer base and commitment to deliver value for owners,” said Kyriakidis.
“We’ve developed a conversion-friendly strategy, which allows us to deliver value to our partners through a flexible, cost-efficient process that yields almost immediate results. That strategy gives our partners access to world-class reservation systems and our loyalty program.”
Recent conversions to the company’s brands include Four Points by Sheraton Nairobi, Hurlingham, Four Points by Sheraton Arusha, The Arusha Hotel, Tanzania and Mena House in Cairo which joined the Marriott Hotels and Resorts global brand portfolio earlier this year.
Amongst new conversion deals, Marriott International has signed the Marriott Marrakech hotel in Morocco which has over 360 rooms and is slated to be rebranded in 2020.
– African News Agency (ANA)
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https://www.iol.co.za/business-report/companies/marriott-international-reveals-250m-africa-expansion-plans-17285959https://www.iol.co.za/business-report/companies/marriott-international-reveals-250m-africa-expansion-plans-17285959
Mon, 01 Oct 2018 18:00:00 GMTMon, 01 Oct 2018 18:07:00 GMTIOL
02018-10-01T18:00:00.000Z:00+02002018-10-01T18:07:55.000Z:00+0200US multinational diversified hospitality company Marriott International on Monday announced expansion plans across Africa
INTERNATIONAL –
Dunkin’ Donuts is removing “donuts
” from its name starting next year, making it the latest in a string of companies aiming to breathe fresh life into their brands with a name change.
The company said Tuesday that it would retain its colors and font but start going by Dunkin’ in January. The shift is a nod to the chain’s beverage sales, which account for about 60 percent of its business, and the popularity of its longtime slogan, “America Runs on Dunkin’.”
In explaining the change in a statement and on a call with reporters, the company said multiple times that it was “on a first-name basis” with consumers and that, despite its new moniker, its focus on doughnuts remained intact.
Dunkin’ Donuts — as it is known for now — is one of many companies to declare a new name as part of a broader rebranding strategy.
Just this week, Weight Watchers announced that it was now “WW.” It is an attempt to emphasize a focus on wellness instead of weight loss, with the tagline, “Wellness that works.”
In 2016, Tribune Publishing — which owns the Chicago Tribune and other newspapers — became Tronc, to widespread ridicule.
IHOP even used a name change as a marketing gimmick this summer, when it temporarily changed its name to IHOb, for “International House of Burgers.”
“Sometimes companies change their names because the name limits them in the business that they’re in,” said Nik Contis, a senior partner at PS212, an agency that specializes in brand naming and helped Coach Inc. rename itself Tapestry. “Sometimes it’s a message to the Street that the company is taking a new direction. Most of the time, it’s either due to a merger, an acquisition or a spinoff.”
On Tuesday, for instance, Michael Kors announced that it would rename itself Capri Holdings Limited after its deal for the Italian fashion house Versace is completed.
But such shifts come with risks. David Srere, co-chief executive and chief strategy officer at Siegel+Gale, a brand consultancy, says he advises clients “to do everything they can do first before they change their name” to avoid losing any familiarity and emotional connection with consumers. He was skeptical about Dunkin’ and WW.
“I’d like to know what a ‘Dunkin’ is — what does it mean?” Srere said. “Dunkin’ is a verb, if anything, so it’s a clarity issue for me. And the same thing for WW — I don’t know what that is. The only WW that I know is World War or a website that forgot their third W.”
Dunkin’ Donuts got its name in 1950, when its founder renamed his original shop, which was known as Open Kettle. As of last year, the United States had more than 9,000 Dunkin’ Donuts locations.
The company tested the new name over the past year, and the response has been “overwhelmingly positive,” Tony Weisman, chief marketing officer of Dunkin’ Donuts in the United States, said on a call with reporters.
He said the relationship the company had built with customers was similar to the kind that people have with their friends, where they also use first names.
David Hoffmann, chief executive of Dunkin’ Brands, emphasized that the shift was about the chain’s broader growth strategy to sell beverages — primarily coffee — to people on the go. He called the move “a significant milestone” in that journey.
Like Srere, Contis was critical of Weight Watchers’ new name, noting that saying “W” out loud twice was a “linguistic mouthful.” But he was more optimistic about Dunkin’.
“There’s kind of a humanness to it and opens it up to not just being about doughnuts and probably not just about coffee,” he said. “I don’t have a problem with Dunkin’ meaning more than just dunking into a cup of coffee, any more than I’d have a problem with Crate & Barrel selling things that aren’t crates and barrels.”
– NEW YORK TIMES
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https://www.iol.co.za/business-report/international/time-to-take-out-the-donuts-17257065https://www.iol.co.za/business-report/international/time-to-take-out-the-donuts-17257065
Sun, 30 Sep 2018 10:00:00 GMTSun, 30 Sep 2018 10:10:00 GMTIOL
02018-09-30T10:00:00.000Z:00+02002018-09-30T10:10:31.000Z:00+0200ee4417c3-819a-47e3-8315-aef9b0ed0a63APDunkin’ Donuts is removing “donuts” from its name starting next year.
Debt is increasing against a backdrop of weak economic growth and higher joblessness, a diminishing global-market presence and weakening investments, the NPC, which crafted the National Development Plan, the country’s economic blueprint, said in a Sept. 14 report. Higher debt could also reduce commitments to social spending, which can undermine social stability in Africa’s most-industrialized economy.
“The bad news is that we have stalled once again. The good news is that it is within our power to fix it,” it said. “It will not be possible to continue on this path. We will need to restore the country to a growth path with higher tax-collection rates, public-sector efficiency and improved service delivery per rand spent.”
The economy hasn’t expanded at more than 2 percent annually since 2013 and fell into a recession in the second quarter. More than one in four people in the workforce are unemployed and policy uncertainty has made companies reticent to invest in industries such as mining.
President Cyril Ramaphosa unveiled plans to revive the economy and create jobs last month. Before he re-entered politics, Ramaphosa was the deputy chairman of the NPC when it presented a plan in 2011 to cut unemployment to 6 percent by 2030, with economic growth of 5.4 percent.
In the new report, the commission said reducing the 27 percent
unemployment rate to 21 percent
by 2030 would require a gross domestic product expansion rate of about 3 percent
. The economy will probably grow 0.7 percent
this year, according to the Reserve Bank.
South Africa’s gross debt is projected to peak at 56.2 percent of GDP in 2023 and the cost of servicing this is the third-fastest growing expense in the budget, according to the National Treasury.
“South Africa has limited space to maneuvre, taking into consideration that the country is currently trapped in a low growth path, which implies less revenue being collected in the future,” the commission said.
BLOOMBERG
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https://www.iol.co.za/business-report/economy/south-africa-may-need-imf-help-if-debt-keeps-growing-npc-says-17287820https://www.iol.co.za/business-report/economy/south-africa-may-need-imf-help-if-debt-keeps-growing-npc-says-17287820
Mon, 01 Oct 2018 14:30:00 GMTMon, 01 Oct 2018 14:34:00 GMTIOL
02018-10-01T14:30:00.000Z:00+02002018-10-01T14:34:26.000Z:00+0200SA may be driven to the International Monetary Fund if its rising debt goes unchecked without the buffer of savings or new sources of tax revenue.
JOHANNESBURG – Financial advisory firm Alexander Forbes on Monday said it had appointed outgoing Sanlam executive Dawie de Villiers as group chief executive and a director from November 1, less than a week after announcing it had fired Andrew Darfoor due to loss of confidence and trust.
Dawie holds a BSc Actuarial Science and has completed the Advanced Management Programme, at the European Institute of Business Administration (INSEAD). He is also a Fellow of the Actuarial Society of South Africa.
Dawie joined Sanlam in 1993 and rapidly progressed into senior leadership and executive positions in various Sanlam business units, broadening his business acumen, while gaining an in-depth knowledge of the technicalities and markets served by each of these units.
Earlier on Monday, financial services group Sanlam said de Villiers was stepping down as chief executive of Sanlam Employee Benefits from October 31 “to pursue another growth opportunity in the industry”.
“Dawie has a wealth of experience in the employee benefits and investment management industry and believes that the employee benefits industry can have a huge influence in South Africa by really changing people’s lives through enabling financial peace of mind,” Alexander Forbes said in its own announcement.
It said Marilyn Ramplin would remain interim group chief executive until October 31.
African News Agency (ANA), BUSINESS REPORT ONLINE
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https://www.iol.co.za/business-report/companies/meet-alexander-forbes-new-chief-executive-17289222https://www.iol.co.za/business-report/companies/meet-alexander-forbes-new-chief-executive-17289222
Mon, 01 Oct 2018 13:52:00 GMTMon, 01 Oct 2018 13:54:00 GMTIOL
05552429402018-10-01T13:52:00.000Z:00+02002018-10-01T13:54:06.000Z:00+0200Sanlam executive Dawie de Villiers has been appointed the new group chief executive and a director effective from November 1.
JOHANNESBURG –
Poverty is an expensive exercise, whether economically, socially or politically. Yet we invest in it at nearly every opportunity and thus reduce the speed of its eradication
For a considerable proportion of the world, the Sustainable Development Goal train has left the station. But with one in every four seats empty. They were there when the train arrived. But they were not in it when it departed. They were left behind. Not because they were late or not seen. Their only sin was their status relative to others. They were only visible by their poverty. A whooping 1.3 billion of the population of 105 countries is poor. They live in deprived conditions with no clean water, sanitation, adequate nutrition, primary education. In short they are multidimensionally poor.
It is in this regard that the regular income and consumption figures are naked as measures of poverty if not located in the context of these profound dimensions that left one in every four behind when the SDG train took of.
Where are they? Who are they? How poor are they?
We need to know in case the SDG train finds reason to come back.
The multidimensionally poor live in all the developing regions of the world, with its face acutely prevalent in sub-Saharan Africa and South Asia with eight in 10 living in absolute poverty. They account for 82 percent of the burden of poverty. In other words they are home to 1.1bn of the 1.3bn who are multidimensionally poor. They are found in India, Nigeria, Ethiopia, Pakistan and Bangladesh,.
Renowned late artist Mahlathini once said in a song that children are the future. Yet they are the ones who bear the brunt of poverty with one in every two of the poor being children or a staggering 668 million. Two-thirds of children in Sub-Saharan Africa is multidimensionally poor.
The acutely poor are so because they are deprived in at least half of the three scores measuring multidimensional poverty. They are deprived in health, education and living standards.
They are a child living in Sub-Saharan Africa. That is the sad face of those the SDG train left behind.
India gives us hope that it is possible to raise the chances of moving out of multidimensional deprivation, moving more than, 271 million out of poverty between 2005-2015.
Put differently, imagine an equivalent of the entire population of China or India as poor. This is a staggering and brain numbing figure.
More than ever before, multidimensional measurement provides not only the simplified tools of description and observation of poverty, it also presents diagnostic and predictive tools to create an enabling policy and planning towards prosperity. Anybody left on the platform? No doors closing, let us all get in.
Dr Pali Lehohla is an associate at Oxford and he is the former statistician general of South Africa and former head of statistics South Africa. Pan African Institute for Evidence (PIE).
– BUSINESS REPORT
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https://www.iol.co.za/business-report/opinion/opinion-poverty-is-an-expensive-exercise-17216976https://www.iol.co.za/business-report/opinion/opinion-poverty-is-an-expensive-exercise-17216976
Sun, 30 Sep 2018 16:00:00 GMTSun, 30 Sep 2018 16:10:00 GMTIOL
12018-09-30T16:00:00.000Z:00+02002018-09-30T16:10:16.000Z:00+0200Poverty is an expensive exercise, whether economically, socially or politically writes Dr Pali Lehohla.
This sector now has more than R50billion in deposits with more than 400000 stokvels with close to 12 million members. The survey found that Nedbank was second with a 19percent share followed by First National Bank with a 13percent share and then Absa with an 11percent share.
The name stokvel originates from the term “stock fair,” which describes cattle auctions run by English settlers in the 19th century. These stock fairs were a platform for farmers and labourers to socialise and pool money together to purchase livestock according to African Response. In essence, they are savings clubs as members of a stokvel come together and make contributions of an agreed amount on a regular basis, usually monthly.
The club asks members to join and decides on how the pool of money is shared, whether it is a rotating lump sum payment to the members or saved and shared at the end of the stokvel period, which is commonly six months or a year. There is a large amount of trust involved.
The group structure helps individuals achieve their savings goals as they are encouraged by stokvel members to meet their monthly obligations to the stokvel. This may be one of the reasons why the personal saving rate became positive in 2017 for the first time since 2005, according to South African Reserve Bank data.
“We’ve seen continued good growth in our society scheme accounts with the value increasing by 9percent this year and the number of people involved rising by 4percent,” Standard Bank manager for savings products Malefetsane Michael Ramolahlehi said.
“We’ve had a great response to our monthly R5000 draw, while the annual draw prize of R50000 is also getting good traction,” Ramolahlehi added.
Last year, the Old Mutual Savings and Investment Monitor survey indicated that informal savings, of which stokvels comprise 53percent, were the most popular form of savings and investing, after funeral policies.
Although there is a perception that stokvels are savings clubs for “old women in poor communities”, the reality is that more than four out of five members with an almost equal gender split are gainfully employed with the majority of almost 60percent coming from the middle income group. As income rises with a fifth of stokvel members coming from the top income bracket, the more likely they will belong to more than one stokvel as they save for different purposes.
PERSONAL FINANCE
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https://www.iol.co.za/personal-finance/guides/standard-bank-leading-the-way-in-stokvel-services-17309148https://www.iol.co.za/personal-finance/guides/standard-bank-leading-the-way-in-stokvel-services-17309148
Tue, 02 Oct 2018 09:00:00 GMTTue, 02 Oct 2018 07:40:00 GMTIOL
12018-10-02T09:00:00.000Z:00+02002018-10-02T07:40:18.000Z:00+0200Standard Bank is the leader in providing banking services to the stokvel community with a 29percent market share.
“Getting divorced carries enormous financial implications, but by being proactive you will be able to avoid unnecessary, costly mistakes that could negatively impact your future financial well-being,” she says. “This means empowering yourself with knowledge, not being afraid to ask questions and making sure you understand all your financial options and their various implications in order to make the best possible decisions both during and after your divorce.”
With this in mind, Smit thus offers a simple financial survival guide with six key tips for women to successfully navigate the process of untangling their finances from a partner:
Check what marital regime you are married under. Your first step when embarking on the process of getting a divorce should be to check what marital regime you are married under, and how this will affect you financially should you exit the marriage – for instance whether you are married in or out of community of property, and whether the accrual system applies.
Carefully re-examine your financial information. Gather together the details of your and your spouse’s assets and liabilities, as well as your income and expenses. This will inform your financial strategy both during and after the divorce, so the more detailed and accurate the information you are able to obtain, the better.
If retirement benefits are part of the settlement, it is also important to make sure that you understand the legislation around the valuation of these assets when it comes to divorce, as they differ according to the type of retirement product. It is also critical to reinstate medical scheme in your own name if you will no longer be covered under your (ex) husband’s medical aid.
Cut back on your expenses. From a financial perspective, divorce not only entails a splitting of assets, but also the additional expense that comes with running two separate homes. This means, realistically, you will usually need to consider a cutback in lifestyle.
Work through your expenses carefully, looking for places where it will be the quickest and easiest to make cuts and savings. Habitual spending is often the hardest to change, but with a fresh perspective and an understanding of the importance of saving, making these tweaks will be easier.
You could also consider downscaling your home, as while there is often an emotional connection to a family home, it is important to remember that downscaling comes with immediate savings in terms of rates, insurance, staff requirements and utilities.
Make savings deliberate. Recent Statistics SA figures reveal that, on average, women are expected to outlive men by nearly a decade, meaning that your savings will need to last for longer. To ensure your comfort and financial security into your retirement, it is therefore critical to make saving and investing a top priority. The easiest way is to treat your savings as simply another monthly expense by setting up a debit order, rather than saving whatever is left in your bank account at the end of the month – if anything. If savings aren’t deliberate, they tend not to happen.
Check that your children will be adequately provided for. Make sure that your divorce settlement document deals with the potential death of a partner, especially if maintenance is involved. In many cases, a life cover policy is put in place for the period under which the spouse is obliged to pay maintenance.
It goes without saying that you will also need to amend your will to reflect your new marital status and change any previous bequests that no longer meet your wishes. Furthermore, it’s vital to ensure that both you and your spouse have nominated guardians in your wills.
However, it is worth noting that minor children may not receive inheritances, meaning that any proceeds from your estate would be paid into their guardian’s account. If this is not your wish, you could instead consider setting up a testamentary trust that is to be formed upon your death for the welfare of your children. Also consider setting an age of inheritance or making the request that trustees use some discretion in this regard, as in many cases 18-year-olds lack the maturity or sense of responsibility to manage their inheritance wisely.
Consult the professionals. Obtain the guidance of a specialist family law attorney to help you to obtain the best settlement possible, as well as a professional financial adviser to help you plan your long-term financial future and avoid costly financial mistakes. It is vital that you select an adviser with whom you feel comfortable and trust implicitly.
– Supplied/ PERSONAL FINANCE
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https://www.iol.co.za/personal-finance/guides/softening-the-blow-of-divorce-17284831https://www.iol.co.za/personal-finance/guides/softening-the-blow-of-divorce-17284831
Mon, 01 Oct 2018 16:30:00 GMTTue, 02 Oct 2018 08:08:00 GMTIOL
01252207123912018-10-01T16:30:00.000Z:00+02002018-10-02T08:08:25.000Z:00+0200How women can untangle their finances from those of their ex-partner.
Source: iol.co.za
