James

Another interest rate cut, slowing inflation, rising retail sales, cheaper petrol and electricity sockets that work all day boost consumer confidence and economic prospects. People believe things are going much better in SA than a year ago. Remember the dark days in November 2023, when everybody was literally sitting in a dark room for a few hours every day – probably stressing about high fuel prices, expensive food and a currency that made a holiday unaffordable? Listen to the full article here: https://www.moneyweb.co.za/news/economy/good-times-are-here-again/

10X investment consultant Michael Rossouw has spoken to thousands of investors over the past decade and all too often he hears the words: “I don’t believe in retirement annuities.” Which is strange, as Rossouw and others in the industry will tell you an RA is one of the best long-term investment options. So why the dissonance? Why is it that investors feel this way about retirement annuities? Rossouw’s take is that it boils down to four key issues. Read the full article here: https://www.moneyweb.co.za/in-depth/10x-investments/i-dont-believe-in-retirement-annuities-say-investors/

People who use non-custodial crypto wallets may soon find it more difficult to transfer their tokens to local exchanges to sell back to fiat currency or trade for other cryptocurrencies. The Financial Intelligence Centre (FIC) recently issued Directive 9, which implements a version of the Financial Action Task Force (FATF) “travel rule” in South Africa. It will enter into force on 30 April 2025 and essentially requires crypto platforms in South Africa to identify the parties to a cryptocurrency transaction and verify the data. Read the full article here: https://mybroadband.co.za/news/cryptocurrency/571044-warning-to-people-who-use-their-own-crypto-wallets-in-south-africa.html

The South African Banking Risk Centre’s (Sabric) latest fraud report indicates South Africans are as vulnerable as ever, and banks have warned those shopping online to be extra careful. Sabric revealed in its Annual Crime Statistics report for 2023 that digital banking fraud had increased by 45% and related financial losses by 47%. Interestingly, the report found that the most significant vulnerability within digital banking fraud was the banking app, which accounted for 60% of all digital banking crimes. However, card fraud was found to still be a major issue, especially during online transactions. Read the full article here: https://mybroadband.co.za/news/black-friday/568456-black-friday-warning-from-south-african-banks.html

The third quarter of 2024, to the end of September, produced bumper returns for South African investors, with the JSE having its strongest third quarter in 11 years and local bonds also performing strongly. Returns from global equities and bonds, however, were muted. The quarter also saw the rand strengthen against the US dollar, inflation continue its downward trend and, to the relief of consumers paying high interest on their loans, a reversal in the interest-rate cycle in September. The drop of 0.25% in the repo rate, although not making a big difference by itself, signalled more rate cuts to come. Read the full article here: https://www.iol.co.za/personal-finance/financial-planning/words-on-wealth-3rd-quarter-brings-bumper-rewards-for-sa-investors-5e1da9f8-f5f2-4c4f-a4e2-08f4a3bb86e9

As cyberattacks continue to surge, increasingly targeting small businesses, the need for robust cybersecurity risk management has never been more critical. This October, marking International Cybersecurity Awareness Month, serves as a timely reminder that businesses can adopt simple yet effective measures to safeguard their online presence and protect the sensitive personal data of employees and clients. According to the World Economic Forum, cybercriminals often target smaller companies that serve larger clients. SMMEs that serve critical infrastructure providers and global corporations are particularly at risk, as are those with systems that integrate into regulated industries such as insurance, healthcare, banking, and credit monitoring. Read the full article here: https://www.moonstone.co.za/cybersecurity-awareness-month-small-businesses-must-prioritise-protection-as-cyberattacks-surge/

Economist Dawie Roodt warned that South Africa’s significant debt burden and the fast rate at which it is increasing mean the country is heading for a financial crisis. Roodt told The Phumlani Majozi Show that public debt is around 75% of South Africa’s gross domestic product (GDP). However, if the debt from the state-owned enterprises and local authorities is added to public debt, which it should be, the debt burden is closer to 90% of GDP. Read the full article here: https://businesstech.co.za/news/finance/794265/south-africas-money-is-finished/

At the beginning of September, the Supernatural Stocks podcast was themed around blossoming stocks – a nod to spring, and I turned out to be early on the weather. That’s a theme that will come through in this show! It is finally summer here in Cape Town, at least. The top comment on the article from a Moneyweb reader was “Too late she cried” – a reference to how I was covering stocks that had already run so hard. Sure, that might be true, but there’s not much point reading about the markets if you believe all the good stuff has already happened to other people. Listen to the full article here: https://www.moneyweb.co.za/moneyweb-podcasts/supernatural-stocks/heres-why-its-never-too-late-to-catch-market-winners/

Infrastructure development plays a pivotal role in driving economic growth and improving living standards in developing countries, particularly in Africa. From transportation networks to energy systems and digital connectivity, strong infrastructure forms the backbone of thriving economies. Let's explore how infrastructure investments are transforming African nations and catalysing their economic advancement. Read the full article here: https://www.mondaq.com/southafrica/rail-road-cycling/1523782/infrastructure-africa39s-economic-catalyst

President Cyril Ramaphosa has called on US businesses to deepen their investment ties with South Africa, highlighting the country's renewed focus on economic recovery and structural reform. Speaking at the SA-US Interactive Business Forum in New York on Monday, the President emphasised the progress made under South Africa's Government of National Unity (GNU) and the vast opportunities available to foreign investors. He said this is a “timely intervention”, referencing his first visit to the US since South Africa's general elections in May, which led to a coalition government of political parties committed to inclusive growth and job creation. Read the full article here: https://www.sanews.gov.za/south-africa/president-ramaphosa-urges-us-business-invest-sas-growing-economy

Most readers would already be aware that Blue Label Telecoms' (JSE:BLU) stock increased significantly by 25% over the past three months. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Particularly, we will be paying attention to Blue Label Telecoms' ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits. Read the full article here: https://finance.yahoo.com/news/blue-label-telecoms-limiteds-jse-111047392.html?guccounter=1

A global organisation backed by Amazon Founder Jeff Bezos’ climate and biodiversity fund said it’s setting up a program to attract investment into South African municipal power grids, which need R319 billion ($18 billion) to prepare for the introduction of more renewable energy. The Global Energy Alliance for People and Planet, or Geapp, will work alongside partners to prepare projects for investment to repair and upgrade dilapidated grids, said Ziyad Cassim, the group’s South African country representative. See the full article here: https://www.moneyweb.co.za/news/international/bezos-backed-group-to-prepare-south-african-grids-for-investment/

Financial services group Discovery’s share price jumped by more than 4% on Thursday, following a trading statement on Sens in which it flagged an expected double-digit profit rise. The stock reached a new 52-week high and closed at R155.08 – up 4.46% from the previous day. The rally in Discovery’s share price is a welcome turnabout after healthcare shares weakened significantly after President Cyril Ramaphosa signed the controversial National Health Insurance (NHI) Bill into law. Read the full article here: https://www.moneyweb.co.za/news/companies-and-deals/discovery-hits-52-week-high-after-flagging-double-digit-profit-growth/

South Africa is on the path to decarbonisation – doing away with burning coal and other fossil fuels and moving towards renewable, clean energy, such as solar and wind power. However, the coal industry employs 91 000 people. If these workers lost their jobs and were not transferred to new jobs in renewable energy and other sectors, this would devastate entire communities. Read the full article here: https://www.moneyweb.co.za/news/south-africa/sas-coal-workers-face-an-uncertain-future/

South Africa intends to compel banks to disclose more information about their mortgage-lending practices to boost access to home loans among previously disadvantaged citizens, Human Settlements Minister Mmamoloko Kubayi said. The government plans to change the Home Loan and Mortgage Disclosure Act, a law promulgated in 2000 that requires lenders to provide details of home loans they’ve approved, Kubayi said at a briefing in Pretoria on Monday. The proposed amendments would enable the state to investigate consumer complaints about home loans and raise penalties for lenders over non-compliance, she said. Read the full article here: https://www.moneyweb.co.za/news/south-africa/sa-weighs-tightening-bank-disclosure-laws-on-mortgages/

The City of Cape Town has introduced a pump station control room that digitally tracks the live performance of its water and sanitation infrastructure. In a statement issued on Monday, the city says it has invested over R7.4 million in the digital system, with staff actively monitoring 401 sewer pump stations, 58 water pump stations, and 60 reservoirs. Listen to the full article here: https://www.moneyweb.co.za/news/south-africa/cape-town-invests-millions-to-keep-a-digital-eye-on-its-sewer-pump-stations/

South Africa’s new multi-party government has an opportunity to boost economic growth and sentiment, the country’s Chamber of Commerce said, as it announced a slight recovery in business confidence over the last two months. A measure of sentiment compiled by the South African Chamber of Commerce and Industry rose to 109.1 in July from 107.8 in May. The gauge, which is published every other month, averaged 111.2 during the first half of 2024, higher than the 109.8 recorded over the same period last year. Read the full article here: https://www.moneyweb.co.za/news/south-africa/south-africa-urged-to-lift-growth-as-business-confidence-rises/

The South African debit order landscape has undergone significant transformations to enhance security and efficiency. Central to this evolution was the introduction of the DebiCheck debit order system. The South African Reserve Bank (Sarb) dictated the implementation of a new payment stream in the early morning processing window where authentication by the payer occurs prior to presentment against the bank account. This required the industry to find authentication solutions suitable for the non-authenticated early debit order (NAEDO) non-face-to-face industries, with authentication being possible using USSD as the minimum standard for all banks. Listen to the full article here: https://www.moneyweb.co.za/moneyweb-opinion/soapbox/the-shift-from-rms-to-rm-what-it-means-for-south-africas-debit-orders/

Jason Quinn – the new Nedbank Group CEO – is banking on a better South African economy in the second half of 2024 and over the medium-term on the back of the new Government of National Unity (GNU). Quinn in his first results briefing as Nedbank boss, noted in the group’s interim results release on Tuesday, that the bank is set to benefit from better local economic prospects. read the full article here: https://www.moneyweb.co.za/news/companies-and-deals/new-nedbank-ceo-quinn-expects-better-sa-economy-environment/

South Africa is changing its pension laws. The new system is designed to give individuals the opportunity to access only a portion of their retirement funds before they retire in the case of dire need – or even in case of desire. To an extent, this makes sense, given the low savings rate in the country. It forces individuals to save at least some of what they have in their pension fund instead of being able to spend it all when they change jobs, but it also allows them to spend some of what they couldn’t save by other means or on their own. Listen to the full article here: https://www.moneyweb.co.za/moneyweb-opinion/soapbox/saving-for-retirement-in-south-africa/

I’ve been encouraged by the brisk pace at which legislation is being approved – and that it is continuing post-elections after the President signed numerous bills just before the elections on 29 May. This is a welcome change from the lethargy we’ve been used to in the past. New appointments in key government departments are also generating a sense of excitement with many announcing new plans or measures to accelerate implementation of existing ones. Listen to the full article here: https://www.moneyweb.co.za/moneyweb-opinion/soapbox/new-legislation-appointments-and-investor-confidence-drive-sas-economic-recovery/

Twenty-seven percent of South Africans regard their family, friends and colleagues as the most valued channel for personal financial advice. This is according to the latest FNB Retirement Survey, which captures the viewpoints of more than 1 000 people across age groups, including retirees. The research delves into various aspects of the retirement sphere, including the different sources of advice people consult for their finances. These are social circles (family, friends, colleagues), online media (like Google), banks, social media, investment companies, financial planners, newspapers and magazines, human resources at employers, insurance brokers, and retirement fund consultants. Listen/ Read the full article here: https://www.moneyweb.co.za/news/south-africa/south-africans-most-trusted-source-of-financial-advice/

The proposed expansion of the range of zero-rated value-added tax (Vat) items offers an opportunity for the government of national unity (GNU) to be innovative in its efforts to positively impact the lives of economically struggling taxpayers. Vat plays an important role in South Africa, being one of the two largest income-generating taxes for the state at R445 billion for the 2023/24 tax year. However, it is also seen as a regressive tax, affecting the poorer segment of society harder than the rest. An analysis for the Davis Tax Committee in 2018 indicated that the poorest 40% of South African households spend roughly a third of their income on food, whereas the richest 10% of households spend only 5%. Read the full article here: https://www.moneyweb.co.za/mymoney/moneyweb-tax/big-opportunity-to-provide-relief-from-vat-on-food-products/

South Africa’s economy is strained, unemployment and crime are extremely high, policing is ineffective and the public service is dysfunctional. Francois Venter was involved in drafting the country’s transitional 1993 and final 1996 constitutions. Since then, he has researched comparative constitutional law and theory. He believes the outcome of the 2024 general election, which culminated in a multiparty government, provides an opportunity to address the country’s problems through applying the constitution properly. South Africa’s constitution is highly regarded. What’s wrong with its implementation? Find the article here: https://theconversation.com/south-africas-new-unity-government-must-draw-on-the-countrys-greatest-asset-its-constitution-232999

Twenty-seven percent of South Africans regard their family, friends and colleagues as the most valued channel for personal financial advice. This is according to the latest FNB Retirement Survey, which captures the viewpoints of more than 1 000 people across age groups, including retirees. The research delves into various aspects of the retirement sphere, including the different sources of advice people consult for their finances. These are social circles (family, friends, colleagues), online media (like Google), banks, social media, investment companies, financial planners, newspapers and magazines, human resources at employers, insurance brokers, and retirement fund consultants. read the full article here: https://www.moneyweb.co.za/news/south-africa/south-africans-most-trusted-source-of-financial-advice/