August 2018

29Aug

Theresa May In Africa: The Future Of Fintech In South Africa, Nigeria And Kenya

A delegation of UK fintech specialists joined Prime Minister Theresa May on her first official trip to Africa and will visit South Africa, Nigeria and Kenya to meet with entrepreneurs to establish trading and export ties in these emerging markets. Representatives from Azimo, the Financial Conduct Authority, Standard Chartered, Farm.ink, the London Stock Exchange Group and the Prime Minister’s Ambassador for Fintech were just some of the 29 leaders that accompanied May on the trip in order to forge connections...

August 29, 2018
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22Aug

South Africa Labor Unions Push for New State Pension-Manager Law

South Africa’s main labor group is pushing parliament to adopt proposed changes to laws regulating the continent’s biggest money manager, which oversees state workers’ pensions, to make it more accountable and give unions representation on its board. Parliament’s finance committee is processing the Public Investment Corp. Amendment Bill, but the Congress of South African Trade Unions fears the state’s decision to appoint a commission to investigate the fund manager’s governance and operating model could derail its adoption. The commission will...

August 22, 2018
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15Aug

South Africa. World Bank: Contributory pension fund could help SA’s poor

A contributory pension system, subsidised for poor South Africans, will impact both poverty and inequality, Parliament has heard - driving "forced savings" and helping people build assets that can be invested. Speaking to Parliament's Standing Committee on Finance (SCOF) on Tuesday, Marek Hanusch, a senior economist for the World Bank's global practice for macroeconomics, shared the organisation's proposed model to address poverty and inequality. The model is based on research in the World Bank's book An incomplete transition: Overcoming the...

August 15, 2018
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July 2018

13Jul

South Africa. Public servants cash out pension then return to work: report

Public servants are resigning to cash out their pensions only to rejoin the public service, according to a report by the public service commission. The commission on Wednesday released its report on efficiency and effectiveness in the public service for the period between January 1 and March 31 2018. It observed a “lack of control” of resignations by public servants to cash out their pensions. The commission has recommended to the Department of Public Service and Administration and the Government...

July 13, 2018
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April 2018

11Apr

South Africa. Why income drawdown strategies in retirement do matter

Pensioners who buy a living annuity at retirement often consider their monthly expenses and draw an initial income that would cover these overheads. Thereafter, a common strategy is to increase the rand amount of the drawdown with inflation every year. By law, retirees are allowed to draw between 2.5% and 17.5% of their capital as income in these vehicles. But Jaco van Tonder, Advisor Services director at Investec Asset Management, argues that this is a poor income strategy. Read more @Moneyweb

April 11, 2018
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December 2017

28Dec

South Africa. Chequered past haunts new chair of multibillion rand pension fund

The Financial Services Board (FSB) has placed the control of the multibillion rand pension and beneficiary funds in the hands of, among others, a trustee with a chequered history. The FSB, which regulates the entire financial services sector except banks, has appointed Jan Mahlangu as one of the interim trustees of the SA Local Authorities (Sala) Pension Fund and the Municipal Councillors Pension Fund (MCPF). In 2010 Mahlangu resigned as Cosatu’s retirement fund policy coordinator after the union charged him following...

December 28, 2017
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19Dec

How South Africa’s Steinhoff, owner of Freedom Furniture, cratered in two days

It looked like Steinhoff International Holdings had reached escape velocity from South Africa's deepening economic gloom: A furniture retailer emulating Ikea's model and global ambitions, built by men with their own compelling rags-to-riches stories. Then the debt-fuelled rocket stalled and came crashing down. From her office overlooking Cape Town's waterfront, Sygnia Investment Management chief executive Magda Wierzycka watched on her computer screen on December 6 as Steinhoff's shares began a two-day plunge that cut the price by 80 per cent and lopped some €10 billion ($15.3 billion) from its market value. Read...

December 19, 2017
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14Dec

South African State Pension Fund Lost 0.6% on Steinhoff Plunge

The South African state pension fund said it lost the equivalent of 0.6 percent of its entire portfolio because of the collapse in Steinhoff International Holdings NV’s share price and will insist on representation on a board committee investigating irregularities. The Public Investment Corp. and the Government Employees Pension Fund remain “deeply concerned about Steinhoff,” the entities said in a statement emailed Wednesday from Pretoria. “Recent developments point to serious governance challenges.” In addition to board representation, the PIC and the GEPF will insist on...

December 14, 2017
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13Dec

Investigation launched into largest corporate scandal in South Africa’s history

An investigation has been launched by the government into the largest corporate scandal in South Africa's history, it was announced on Tuesday. The investigation will be led by the Department of Trade and Industry (DTI) and its affiliated organization the Companies and Intellectual Property Commission (CIPC), DTI spokesperson Sidwell Medupe said. The DTI and CIPC have noted with great concern allegations of governance failures and financial irregularities at South African retailer Steinhoff, which led to the resignation of its Chief Executive...

December 13, 2017
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12Dec

South Africa. Government pensions survive Steinhoff fraud

The Government Employee Pension Fund (GEPF) yesterday assured its more than 300 000 beneficiaries their money was safe and would still keep flowing following the fraud being investigated at Steinhoff Investment Holdings and the subsequent collapse of its share price. Trading in Steinhoff opened at about R6 yesterday morning from about R55 on December 1 when the scandal broke, and closed at R8.60. “As at March 31, 2017 the GEPF through PIC owned about R28 billion in Steinhoff International Holdings which...

December 12, 2017
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