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  3. The new Satrix MSCI China ETF is due to be launched on 22 July (STXCHN). This is long overdue. Are you going to buy this? I certainly am! https://satrix.co.za/news/article?name=New!_Satrix_MSCI_China_ETF
  4. Tito Titus Mboweni, MP Minister of Finance… Today, I hereby table for the consideration of the House: The Division of Revenue Amendment Bill Adjustments Appropriation Bill Supplementary Budget Review Disaster Management Tax Relief Bill Disaster Management Tax Relief Administration Bill 1. INTRODUCTION Madam Speaker, We are in the midst of a fast-evolving pandemic. In South Africa and around the world, we have made the decision to protect each other. We have quickly adapted. We all now wear masks. We wash our hands more often. We maintain a safe social distance. As a result, millions have stayed safe. We remain deeply concerned about the path of the virus. But, in common with several other countries that adopted a stringent, early lockdown, we have “flattened the curve” and saved lives. As the wise farmer will tell you, when the tempest is raging you must protect your plants from damage. Our Aloe Ferox, like our people, is protected. Mr President, you are the wise farmer, caring for this Aloe Ferox. The storm is not over. But, if we follow the health guidelines and make the right decisions to prepare for a new global reality then, soon enough, the days will grow calmer and our national Aloe Ferox shall go into the new day healthy and strong. Liduma lidlule! The storm shall pass! 1.1. THE PURPOSE OF THE SUPPLEMENTARY BUDGET Honourable members, The Public Finance Management Act, read together with the Money Bills Amendment Procedure and Related Matters Act, empowers me, as the Minister of Finance, to table an adjustments budget when necessary. The historic nature of this pandemic and economic downturn has made it necessary to table such an adjustment. we will table a second adjustments budget in October together with the Medium-Term Budget Policy Statement. This Budget does two things. First, it brings an Adjustments Appropriation Bill and a Division of Revenue Amendment Bill to the House. It also formalises the two tax bills to give effect to our response. These Bills ask Parliament to approve the response package for COVID-19. Second, Mr President, it lays a path for the direction you gave us on 21 April to: “not merely return our economy to where it was before the coronavirus, but to forge a new economy in a new global reality” This Supplementary Budget sets out a roadmap to stabilise debt, improve how we spend our money, and grow the economy. All of our energies and resources have been focused on the COVID-19 pandemic. We have quickly adopted temporary countercyclical fiscal and monetary policy measures. After the storm ends, we must work just as quickly to emerge with a sustainable fiscus. We have many strengths. Our young and ambitious people. Our institutions, a robust and vibrant democracy, independent judiciary and our commitment to social progress. And our economic strengths: a diverse industrial base, the free-floating rand, low and stable inflation, and deep domestic capital markets that allow us to borrow mainly in rand. But debt is our weakness. We have accumulated far too much debt; this downturn will add more. This year, out of every rand that you pay in tax, 21 cents goes to paying the interest on our past debts. This indebtedness condemns us to ever higher interest rates. If we reduce debt, we will reduce interest rates for everyone and we will unleash investment and growth. So today, with an eye on the future, we set out a strategy to build a bridge to recovery. Our Herculean task is to close the mouth of the Hippopotamus! It is eating our children’s inheritance, and we must stop it now! Our Herculean task is to stabilise debt. 2. IN-YEAR ADJUSTMENTS THE ECONOMIC OUTLOOK Let me begin by outlining our updated fiscal and economic forecasts for the current fiscal year. COVID-19 has turned the global economy upside down. In the February Budget, we expected that the global economy would expand by 3.3 per cent in 2020. We now expect a global contraction of 5.2 per cent this year. This will bring about the broadest collapse in per capita incomes since 1870. Throughout the world, tens of millions of workers have lost their jobs. South African unemployment increased by one percentage point, reaching 30.1 per cent in the first three months of this year. The South African economy is now expected to contract by 7.2 per cent in 2020. This is the largest contraction in nearly 90 years. Inflation will likely register 3 per cent in 2020, in line with the outcome of this morning. Commodity price increases and a weaker oil price have softened the blow, but as a small open economy reliant on exports we have been hit hard by both the collapse in global demand and the restrictions to economic activity. 2.2. FISCAL, MONETARY AND OTHER MEASURES South Africa has responded to this economic shock with an unprecedented set of measures. Never before has government worked together so closely with the private sector, labour, community and the central bank. With one goal, it is clear we can achieve anything. Government’s COVID-19 economic support package directs R500 billion straight at the problem. This is one of the largest economic response packages in the developing world. The South African Reserve Bank has cut interest rates and made it easier for banks to lend money. The Reserve Bank has supported liquidity in the domestic bond market. The Bank has stated that it stands ready to take additional action, should the need arise. More than 2 million customers have received around R30 billion in relief from their commercial banks. Insurers and medical aids have provided premium holidays. Landlords have provided rental relief. All in 100 days. 2.2.1. REVISED FISCAL FRAMEWORK FOR 2020/21 Turning to the emerging fiscal framework for 2021/22. Honourable members, projected total consolidated budget spending, including debt service costs, will exceed R2 trillion for the first time ever. Gross tax revenue collected during the first two months of 2020/21 was R142 billion, compared to our initial forecast for the same period of R177.3 billion. Put another way – we are already R35.3 billion behind on our 2020/21 target. As a consequence, gross tax revenue for the 2020/21 fiscal year is revised down from R1.43 trillion to R1.12 trillion. That means that we expect to miss our tax target for this year by over R300 billion. Part of this revision is because the measures announced earlier this year give taxpayers outright relief of R26 billion and delays in tax collection of approximately R44 billion. These proposals are contained in the Disaster Management Tax Relief Bill and the Disaster Management Tax Relief Administration Bill that I table today. Taken together the measures and adjustments we present translate into a consolidated budget deficit of R761.7 billion, or 15.7 per cent of GDP in 2020/21. This is compared to the deficit of R370.5 billion, or 6.8 per cent of GDP projected in February. This increase is mainly due to the revised revenue projections and pay-outs from the Unemployment Insurance Fund. The narrower measure, known as the main budget deficit, is projected to be 14.6 per cent of GDP. Our early projection is that gross national debt will be close to R4 trillion, or 81.8 per cent of GDP by the end of this fiscal year. This is compared to an estimate of R3.56 trillion or 65.6 per cent of GDP projected in February. Without external support, these borrowings will almost entirely consume all of our annual domestic saving, leaving no scope for investment or borrowing by anyone else. For this reason, we need to access new sources of funding. Government intends to borrow about US$7 billion from international finance institutions to support the pandemic response. We must make no mistake, these are still borrowings. They are not a source of revenue. They must be paid back. 2.2.2. HEALTH AND FRONTLINE SERVICES The Supplementary Budget proposes R21.5 billion for COVID-19-related health care spending. It also proposes a further allocation of R12.6 billion to services at the frontline of our response to the pandemic. Allocations have been informed by epidemiological modelling, a national health sector COVID-19 cost model and our experiences over the past 100 days. This money partly supports increased screening and testing, allowing us to open up more and more of the economy. We have successfully increased our COVID-19 bed capacity to above 27 000; identified 400 quarantine sites with a capacity of around 36 000 beds across the country and deployed nearly 50 000 community health care workers to screen millions of South Africans. We have tested over 1.3 million people. Provinces will add at least R5 billion for the education catch-up plan, social welfare support for communities and provision of quarantine sites by Public Works departments and responses in other sectors. we salute all the brave health care and essential service workers who are leading this fight. Tariffs have been agreed with private hospitals to supplement public sector capacity. The Solidarity Fund has augmented government’s efforts to procure medical and personal protective equipment. We thank all those who have made much needed contributions to the Fund. These examples show that working together with the private sector with a common purpose we can get stuff done. We will use these lessons to re-energise public-private partnerships. 2.2.3. PROTECTING THE MOST VULNERABLE Madam Speaker, Over 18 million South Africans have received a temporary COVID-19 grant. The roll out of the short-term Special Relief of Distress grant will temporarily support those without an income. An additional 1.5 million people have received these already. To support vulnerable households an additional allocation of R25.5 billion to the Social Development department is proposed, for a total relief package of R41 billion. All these measures will come to an end in October. We have implemented health and hygiene measures in 7 000 early childhood development centres, and appointed about additional 1 800 social workers. 2.2.4. DRIVING JOB CREATION The figures from yesterday show that unemployment is our single greatest challenge. The Economic Support Package sets aside R100 billion for a multi-year, comprehensive response to our jobs emergency. The President’s job creation and protection initiative will be rolled out over the medium-term. It will include a repurposed public employment programme and a Presidential Youth Employment Intervention. In this year, an amount of R6.1bn is already allocated, and a further R19.6 billion has been set aside mainly for this purpose. 2.2.5. UNEMPLOYMENT INSURANCE As of mid-June, the Unemployment Insurance Fund (UIF) has provided R23 billion in COVID-19 relief to over 4.7 million workers affected by the pandemic. This has required a huge upgrade and repurposing of the UIF system to deal with the increase in mostly online applications, and to build in protections against fraud. We thank all involved for the upgrade, there were many individuals from the private and NGO sector who volunteered their time to assist the UIF. There are still challenges but we are confident that the team is working tirelessly to iron them out. 2.2.6. CHANGES TO THE DIVISION OF REVENUE Honourable members, the division of revenue presented in the 2020 Budget is revised as follows: the national share for 2020/21 increases from R758 billion to R790 billion, the provincial share decreases from R649 billion to R645 billion and the local government share increases from R133 billion to R140 billion. Local government is at the heart of our response to the pandemic. Accordingly, an additional R11 billion is allocated to local government through the equitable share. A further R9 billion will be reprioritised within allocated conditional grants to fund additional water and sanitation provision and the sanitisation of public transport. Municipalities will adjust their budgets to take into account the sharp decline in revenue as a result of the pandemic. We urge communities to hold councils accountable for the spending of COVID-19 funds. National Treasury will also monitor the spending through monthly and quarterly reports. 2.2.7. COVID-19 LOAN GUARANTEE SCHEME Madam Speaker, after a slow start, including all the detailed and technical legal preparations, the loan guarantee scheme is expanding rapidly. In its first month, the scheme lent over R10 billion. Many more applications are being processed, and lending is expected to rise significantly. Now that we have moved to an advanced Level 3, most of the economy is “open for business”. We must help businesses to get moving! The loan guarantee scheme also includes a business restart option, for businesses who need support to get up and going after the lockdown. We are also finalising amendments to the repayment holiday and turnover limit, and relaxing terms and conditions to support lending. The South African Reserve Bank and the commercial banks are finalising the revised legal arrangements and will make announcements shortly. Work is also continuing to expand the scheme to non-bank lenders. 3. BUILDING A BRIDGE TO THE FUTURE Madam Speaker, I now turn to the second part of this Supplementary Budget, which is to lay before the House the blueprint of the bridge we are building to the MTBPS, and our future. 3.1. THE PATH FORWARD The gospel according to the Apostle Matthew, chapter 7 verses 13 and 14, springs to mind: Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it. 14 But small is the gate and narrow the road that leads to life, and only a few find it. We are faced, as a nation with a choice between these two gates. Even as South Africa responds to the current health and economic crisis, a fiscal reckoning looms. The public finances are dangerously overstretched. The wide gate is a passive country that lets circumstances overwhelm it. If we remain passive, economic growth will stagnate. Our debt will spiral inexorably upwards and debt-service costs will crowd out public spending on education and other policy priorities. We already spend as much on debt-service cost as we do on Health in this financial year. Eventually the gains of the democratic era would be lost. The wide gate opens to a path of bankruptcy. A sovereign debt crisis1 is when a country can no longer pay back the interest or principal on its borrowings. We are still some way from that. But if we do not act now, we will shortly get there. The results are devastating. Interest rates sky-rocket. Spending has to stop. Inflation takes hold and people grow much poorer. This is what happened to Germany in the 1920s, to Argentina and to Zimbabwe in the early 2000s, and to Greece in the past few years. Argentina had its ships attached. Greek civil servants and pensioners had their salaries and pensions slashed. In short it is doom and despair. We have been there before: in its closing days, the Apartheid government had to declare a debt standstill. We firmly reject this gate! The narrow gate on the other hand opens to a path of prosperity. Through this gate, we reduce our reliance on borrowing. We feed the hungry. We look after the sick. We educate our people. We build for the future. We spend with wisdom, and we jail those who loot. The narrow gate is an active approach – a nation that takes active steps to rapidly stabilise debt and grow the economy. By doing this we will create jobs, reduce the cost of doing business and build a competitive economy. 3.2. DEBT STABILISATION THROUGH ZERO-BASED BUDGETING Cabinet, under the leadership and guidance of the President, has found the narrow gate. Government shall go through it. Government will narrow the deficit and stabilise debt at 87.4 percent of GDP in 2023/24. Cabinet has also adopted a target of a primary surplus by 2023/24. This is about the same time that our Aloe Ferox will flower for the first time. As any farmer will tell you – patience and focus are required! The Medium Term Expenditure Framework process will be guided by the principles of zero-based budgeting which will be applied as a series of overlapping evaluation exercises targeted at large programmes. Our current system of Public Expenditure Reviews is a step towards zero-based budgeting. This means that we will try to reduce all expenditure that we thought we can no longer afford. After all, we are not as rich as we were ten years ago. The upcoming MTEF will pilot this approach. In the review accompanying this budget we set out our initial proposed fiscal path for the period ahead. We need to find spending adjustments of about R230 billion over the next two years. Tax measures of R40 billion over the next 4 years will also be required. We will announce details to these tax proposals in the 2021 Budget. Honourable members you have already appropriated R16.4 billion to service SAA’s guaranteed debt. Any additional money for SAA will follow the principle of zero-based budgeting approach. The recent proposal by the business rescue practitioners will be put into the budget process and evaluated against our other priorities. Government will also be allocating R3 billion to recapitalise the Land Bank. This Bank holds 29 per cent of South Africa’s agricultural debt. The National Treasury is supporting the Land Bank find a solution to its default and craft a long-term restructuring plan. Details on this recapitalisation are provided in the Supplementary Budget Review. 3.3. ALIGNING SPENDING TO THE STRUCTURAL REFORM AGENDA A firm policy basis has been laid by Towards an Economic Strategy for South Africa, which was considered by Cabinet and accepted last year. While some of the measures have been delayed by the virus, we are now ready. Deputy Minister Masondo will coordinate implementation as the head of the Vulindlela office. One of these is to shift away from the electricity supply system that was introduced in 1923, when George V, the Queen’s grandfather, was the King of what was known as the Union of South Africa. The last few years have shown the inefficiency of this archaic system. Provisional allocations to Eskom were made on the understanding that Government’s Electricity Roadmap would be implemented.2 Progress is slow. The principle of zero-based budgeting is that we must see demonstrable value for money: Eskom will need to show progress in meeting the milestones as laid down in the Roadmap. This is non-negotiable. Progress on the other reforms will be given in the MTBPS. 3.4. FAIR AND FISCALLY SUSTAINABLE PUBLIC SECTOR COMPENSATION This year nearly half of consolidated revenue will go to pay civil servants. I value the important work public servants do, but we are guaranteed a painful reckoning if we continue in this way. Minister Senzo Mchunu is negotiating with our partners in the labour movement to find a balanced solution that sets compensation at an appropriate, affordable and fair level. We wish him well. 3.5. PUTTING INFRASTRUCTURE AT THE CENTRE OF GROWTH Finally, Honourable members, building a bridge to a post-lockdown future will require that we build high-quality physical bridges, roads, railways, ports and other infrastructures. Infrastructure will be the fly wheel by which we grow the economy. Just as we have toiled together to manage the pandemic, let us harness this same unity of purpose and build the infrastructure our nation needs. Our efforts to reduce consumption expenditure will also change the composition of spending in the direction of investment. Yesterday, the Presidency hosted a successful Sustainable Infrastructure Development Symposium, drawing in sector specialists, technical and financial structuring experts and policy departments that have considered 177 infrastructure projects across public and private sectors. In light of these and other important initiatives, the Government has already committed R100 billion over ten years toward the Infrastructure Fund. Together with the Development Bank of Southern Africa, we have identified projects that will be funded through the Budget Facility for Infrastructure. We have recently released a paper on Sustainable Finance, and we are working closely with the private sector to green our economy. But our enormous investment needs cannot be delivered by government alone. The private sector accounts for most of the investment spending in the economy. We must reduce long-term interest rates to allow business and households to drive faster economic growth. 4. CONCLUSION This is my presentation to the House and to South Africa, an extraordinary Supplementary Budget that saves lives, protects livelihoods and actively builds a bridge to a prosperous future. Madam Speaker, the Gospel tells us: Small is the gate and narrow the road that leads to life, and only a few find it. Let me pay tribute to the South Africans who through their actions have protected the health and lives of their fellow citizens. They show resolve to go through the narrow road. Their government is ready to follow their lead. To quote the President, in his letter to the nation on Monday: Let us put shoulder to the wheel and turn this adversity into opportunity. Let us reimagine and repurpose our economy and put it firmly on a solid and sustainable path. In conclusion, Mr President and Deputy President, thank you for your leadership. Thank you to the Deputy Minister of Finance, the National Treasury Director General and his team for their insightful contributions! My thanks to the Commissioner of the South African Revenue Service, to the Governor of the South African Reserve Bank, to colleagues in the Cabinet and in the Ministers Committee on the Budget. My gratitude for the Parliamentary Committees who work tirelessly to process the legislation accompanying the Speech. Fellow South Africans, Matthew chapter 7 closes as follows: “Everyone who hears these words of mine and puts them into practice is like a wise person who built their house on the rock. 25 The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. Let us listen, let us practice and let us build! I thank you.
  5. The good news for capitec users is that my app is free and does not overcharge. https://simcloud.co.za/ simcloud_presentation.pdf
  6. BIG NEWS: #AfriForum & #GerrieNel have officially been appointed by the #Botswana government to represent them in a high-profile money-laundering & fraud case, in which businesswoman Bridgette Motsepe-Radebe (sister-in-law of @CyrilRamaphosa & wife of Jeff Radebe) is implicated. Motsepe-Radebe was identified as a cosignatory of at least 2 bank accounts holding some of the more than $10 billion allegedly stolen from the #Botswana government to finance a “coup” before the national election in this country.
  7. Covid-19 impact on car rental business is brutal. Motus is reducing car rental fleet by 40%, reducing workforce by 50%-60% and closing 20 branches.
  8. Seven men accused of defrauding VBS Mutual Bank have told the Palm Ridge Regional Court they are innocent, each pleading not guilty to the multiple charges they face. Four of the men were arrested during early morning raids on Wednesday, while three others handed themselves over to police later. An eighth accused is in quarantine due to Covid-19. Magistrate Brian Nemavhidi put his foot down on Thursday when he refused to hear the case until court orderlies ensured that the packed public gallery was cleared and physical distancing regulations, aimed at preventing the spread of Covid-19, were strictly implemented. Nemavhidi said he would not continue until the orderlies ensured that physical distancing was maintained and that those who were standing were removed. State prosecutor Hein van der Merwe told the court that there were seven accused present and the eighth person was absent. Source: News24
  9. Discovery said on Monday its full-year profits could fall by up to 90%, hit by a R3.3 billion ($191 million) provision to cover the potential impact on claims and policy lapses due to the coronavirus. It also said it would not pay an annual dividend, with the payouts to be considered when appropriate, sending its shares down 5.5% before recouping some losses. The company said the hefty provision covered the potential impact on claims and anticipated policy lapses as stretched customers stop paying, while the outlook also covered the impact of long-term interest rates. It warned its headline earnings per share – the main profit measure in South Africa – for the year to June 30 were expected to be between 70% and 90% lower than the 789 cents reported a year earlier, though it said the final outcome was subject to a high degree of volatility. “Discovery is confident that the group is strong under high stress scenarios, with sufficient liquidity and solvency to weather uncertain conditions,” it said, adding capital ratios and cash buffers were expected to remain within or above target. The provision, Discovery said, was intended so that all of the currently expected impact of the novel coronavirus as far ahead as 2022 was carried in this financial year. Changes to interest rates in South Africa after the government lost its final investment-grade credit rating earlier this year, and historically low interest rates in the United Kingdom where it has a unit, were expected to have a further substantial impact on performance. Discovery’s profits have been falling in recent years as it ploughed money back into new businesses including a hefty investment in launching a digital bank, which it said now has 177 000 clients and R2.1 billion in retail deposits. So far, lapses in most of its businesses had been low, it said, while new business annualised premium income was up 4% for the 11 months to May 31. Source: MoneyWeb
  10. The rationality of the government's regulations for the Level 4 lockdown was challenged in court on Monday due to the short time allowed for public participation. The controversial regulation continuing the ban on smoking, which was announced by Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma, is among those questioned. Dlamini-Zuma said the decision was reached after public consultation. Last month, Mpiyakhe Dlamini, Duwayne Esau, Tami Jackson, Lindo Khuzwayo, Mikhail Manuel, Neo Mkwane, Scott Roberts and Riaan Salie asked the Western Cape High Court in Cape Town to declare the lockdown regulations invalid and the National Coronavirus Command Council inconsistent with the Constitution and Disaster Management Act. On Monday, judges Rosheni Allie and Elizabeth Baartman listened to arguments via a virtual platform. They reserved judgment. Advocate Anton Katz SC, for some of the applicants, said: "The process chosen by the government to make the regulations failed the rationality test in the process stage." He added they were in dispute with the respondents on whether or not public participation was required - he said yes, they said no. However, there was a public participation process, but the process was not rational, Katz argued. On 25 April, he said, a notice that there was a process for public comment appeared on the Department of Cooperative Government and Traditional Affairs' website, and Dlamini-Zuma mentioned it during a press conference on the same day. Source: News24
  11. One Hong Kong businessman moved $10 million to Singapore and plans to transfer more. Another is eyeing London property, worried that prices in Hong Kong are too high. Well-to-do families across the city are opening offshore bank accounts and applying for alternative passports. While it doesn’t add up to an exodus just yet, Hong Kong’s rich are increasingly hedging their bets as the financial hub suffers its worst economic and political crises since at least 1997.Many high-net-worth investors are either reducing their Hong Kong exposure or taking steps to ensure they can withdraw assets at a moment’s notice, underscoring the challenge for Chief Executive Carrie Lam as she tries to maintain the city’s status as magnet for Asian wealth. Rich individuals are major players in Hong Kong’s equity and real-estate markets as well as big buyers of Chinese corporate bonds issued in the city. Private bankers say their clients accelerated contingency planning efforts after China announced last month it would impose controversial national security laws on Hong Kong. The legislation threatens to erode the former British colony’s judicial independence, provoke sanctions from the U.S. and revive street protests that battered the tourism and retail industries even before the coronavirus outbreak plunged the economy into its deepest recession on record. “What we’re basically seeing is a bit like a slow-moving train wreck,” said Richard Harris, chief executive of Port Shelter Investment Management in Hong Kong. “People who haven’t moved their money out may be tempted to think: ‘Well, maybe I should be moving my money out.’ That process is likely to continue.” To be sure, there’s little evidence so far of widespread capital flight. Hong Kong bank deposits increased to a record in April and the city’s currency has continued to trade at the strong end of its permitted band against the dollar, a sign of persistent inflows. Lam’s government has said the security laws will help make Hong Kong a “safe, stable and welcoming city” and won’t affect the “legitimate rights and freedoms enjoyed by Hong Kong residents and international investors under the law and independent judicial power.” Hong Kong’s wealthiest billionaires have publicly endorsed the legislation and expressed confidence in the city’s future. In private, however, many Hong Kong entrepreneurs and high-earning professionals are sounding a more pessimistic note. Cheng, the businessman who moved $10 million to Singapore, also secured his permanent resident status in the city-state this year and has been selling his Hong Kong properties. He has no concrete plans to emigrate yet, but is considering his options. He and his family have passports from the U.S., Canada, Australia and France. Cheng, who was born in Hong Kong, said he worries about China’s tightening grip on the city and the prospect for more unrest. Like several of the people quoted in this story, he asked not to reveal his full name because of the political sensitivity of the subject. Sam, a senior investment banker in Hong Kong, has decided to leave the city. The 43-year-old is emigrating to Australia with his wife and two young boys in about three months, the second time he will have left Hong Kong during a period of political turmoil. Sam grew up in the city, but moved to Brisbane when he was 12 after his parents got spooked by China’s crackdown on protesters in Beijing’s Tiananmen Square in 1989. He came back to Hong Kong 20 years ago for his career but now sees no upside to staying. “Things are looking bad and deteriorating,” he said. “We may as well pack our bags and move to Australia so that the kids can have a better environment growing up.” Margaret Chau, a Hong Kong-based immigration program director for Goldmax Immigration Consulting Co., said inquiries at her firm have jumped about five-fold after news of the national security legislation. For now, most of her wealthy customers are more interested setting up an escape route than leaving right away. “They see this as a backup plan,” Chau said. Kerry Goh, chief executive officer of multi-family office Kamet Capital in Singapore, said his clients have shifted from asking generic questions about moving out of Hong Kong to making detailed inquiries about everything from schools to visas and bank accounts. “What’s happened in Hong Kong has really sped up the timing of 2047,” Goh said, referring to the expiration date of China’s 50-year pledge to preserve Hong Kong’s autonomy after the handover from Britain. “As Hong Kong’s troubles shoot up, the benefits of Singapore have become more self-explanatory.” A demonstrator shows a British National (Overseas) passport as another waves a colonial-era Hong Kong flag during a protest on May 29. Other more far-flung locales are also attracting increased interest from investors in Hong Kong. Puerto Rico’s Standard International Bank, a so-called International Financial Entity that expanded its footprint in Asia last year, has seen its deposits more than triple since December 2019, according to general manager Maria Diaz. “Turbulence in Hong Kong has changed the landscape,” she said. Dennis, a 34-year-old executive at a Hong Kong-based consulting firm founded by his parents, said his family and many of their friends have started moving cash out of the city. He’s looking to buy more properties in the U.K., where he spent almost a decade attending boarding school and university. “I could buy a much bigger flat in London, so why not?” he said. “I’m just trying to protect my money against any uncertainty.” Source: Daily Maverick
  12. I suppose that plays a role hey, it's airtime. So main business is the Airtime API (more a B2B use case) and then secondary is the bulk list and automated recharges so also B2B, but I can imagine schools, churches etc will be the large users of this service. Basically trying to figure out if Gumtree is useful for targeting people and businesses that has prepaid airtime requirements. Also just made me think in general if gumtree advertising has a good ROI, because the platform feels cheaper to get your product accross than say Google Adwords or Twitter/Facebook Ads.
  13. Hey guys. Any "value" shares we can look at ? Someone should start a telegram group, for "hot" tip
  14. What is your business selling/doing?
  15. I've mainly been advertising our business on Google Ads and Facebook Ads which is quite expensive, I understand the enhance targeting and I am sure if I spend more time to learn more about it I would get better value out of my money, but I'm just thinking of what other platforms there might be for a SA based business. Gumtree seems to do advertising and R250 to be on their home page sounds like a bargain. I wonder if they cap the impressions an advertiser can get, I mean there is only so much space on the home page and they have 10s of thousands of advertisers - so tying to figure out if a Gumtree paid for ad campaign is worth it.
  16. You'll want income, disability and severe illness cover regardless of how old you are. If something happens you want to be able to maintain your lifestyle. Life doesn't really care for your age or relationship status and after it's run a number on you and if you are still alive you'll want money. Life cover is for when you die (for the most part). Basically - make sure your debt is covered and nobody else gets stuck with it. If you have no family...well... yeah. It's not expensive though.
  17. Hi all. Would you say it’s advisable to get life insurance products, if you currently do not have any dependents. Does the whole argument about getting it while you’re still young and healthy for lower premiums actually hold water?
  18. Open an easyequities account and buy an ETF - that would be the safest way to invest your R500. You can read our e-book if you want to get some direction as to what to choose and how everything related to investing on the JSE works. E-book (How to invest - the beginner's guide) Download here: https://platinumwealth.co.za/forum/ebooks/ Important: Make sure you have an emergency fund first before you invest. https://platinumwealth.co.za/insights/finance/building-an-emergency-fund/
  19. Mazimandile


    I want to invest with R500
  20. I found this to be a very insightful interview with Sheldon Quarmby who is Founder and CEO of Interfile, the company behind solutions like uFiling and SARS eFiling. https://futurecitiesafrica.com/discussions/sheldon-quarmby-improving-service-delivery-to-citizens-and-digitising-cities-to-succeed-in-the-future.php
  21. Nothing with regards to their product offering. Biggest mistake I ever made though was "upgrade" to their Private Client suite which is a bunch of bs. Most of the time you have to phone the relevant department anyway. Bigger deposit can potentially mean better interest rate. If we put the interest rate aside, there should be no difference in repayments between having a R1 000 000 bond with R200 000 in an access facility vs a bond with R800 000 outstanding. The fundamental differences (and take it with a pinch of salt): Access facility means just that, you have access to any extra funds you put in your account. Great for an emergency fund, but easy to spend if you are "bad" with money Extra money in the access facility returns at the rate of your home loan interest but tax free. You pay tax on interest you gain but not on interest you save. Down side obviously is that the rate of return is pretty low compared to what equities are returning, so having too much in the access facility is potentially bad given the low interest rates. You cannot fix the interest rate on a bond with an access facility which is something people may want to do in a year or so's time Personally - I took the access facility to keep my options and access to funds open.
  22. What issues do you currently have with FNB? Thanks for the deposit lesson, I am tempted to just go for the 100% now with how the economy is, but putting up a deposit might be safer I suppose. How exactly does a deposit work, in other words lets say I want to get a bond for R1 000 000 what difference does it make if I put down R200 000 as a deposit VS asking for a loan of R800 000 instead?
  23. Uhm, no idea what my credit score was but it's good. Haven't checked in a long time but never missing a payment for over a decade does that. This was for a 100% loan so interest rates weren't as competitive, but I opted to rather put the deposit into the access facility. Told her I wanted FNB. So she went to ABSA, Standard Bank and Nedbank first. Nedbank responded with prime-0.15, ABSA with something like Prime+3 and Standard Bank somewhere in between. Then sent the Nedbank offer to FNB who immediately matched it. We didn't negotiate much further because of the 100% bond. Since then and with the interest rates that fell I moved to Investec and in the process of moving my bond to them as well. A bit early, have to pay bond attorneys again (although, Investec discount) and I get Prime-0.65% which means I'm now on 6.6%. Also move my vehicle finance to them at Prime-0.5%. So very happy. In the grand scheme of things the extra round of bond fees is not the worst and I just want to get away from FNB as a whole. Not advisable unless you've done the calculations and happy with the financial impact (you shouldn't be.... something wrong with me) Lessons: If you want to negotiate, put down a 20% deposit Make sure you're happy with whomever gives you the loan because moving too soon is not cost effective
  24. I think the bond originator gets paid by the bank so there should not be any costs to the seller, which is good - I just want to make sure that free service is not at my expense in terms of getting the best interest rate. IE, would a bond originator really be able to negotiate better than me, I mean I can sit with the banker and tell him if you give me a better rate I will swing my bank account or car loan over to you as well - I am assuming that is how negotiations with a bank works, and working on that assumption the question becomes; What leverage does the bond originator have over me going to the bank directly to ensure the best interest rate is given? For anyone else more experience reading the above, I am clearly out of my depth here and might be thinking about this all wrong. @Bandit what is your credit score and what percentage interest did you get? How was the experience using betterbond, assuming I go with them - any tips?
  25. I used Betterbond. But I bought from a developer and the estate agents made use of them. In other words - I don't remember paying for their services (not sure how they get paid).
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