15 Jan 2013

Finance & Insurance

 

Welcome back

Well, Mangaung has come and gone - as has the end of the world, the festive season and New Year, and we've survived them all and now we're back on stream with our newsletters.

Taking centre stage has been the violent protests by farmworkers in the Western Cape. These protests need to be brought to an end; they're damaging Brand SA and have the potential to seriously curb exports (and hence foreign earnings) as customers overseas turn to more reliable suppliers.

On the education front, the Matric pass rate increased to 73.9% but critics are asking whether a requirement of 30% to pass is enough to equip school-leavers with an adequate standard of education. Many employers reckon not - they're prepared to train new staff in the roles the new recruits will have to take up in the company - but those recruits need to be literate and enumerate to a level that will enable them to acquire and apply their new knowledge properly.

If you're in business, you're in IT... perhaps not directly, but every time you use a computer, you're operating within the IT world. So what are the 23 business attitudes to IT security you should be looking at? Kaspersky Lab research has some answers for you.

Finally, for all you petrol heads out there, our scorchingly good-looking motoring editor Henrie Geyser takes you for a drive in the Mercedes SL 500 and shows off his tough, rugged side with the Land Cruiser 70 double cab.

Rod Baker: Content Director

Submit your company news to financenews@bizcommunity.com. Exclusive contributions may be sent to contributors-finance@bizcommunity.com.

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Editorial news

Finance & Insurance

Top 10 New Year's resolutions for employers
[Johan Botes] Here are some resolutions for 2013 for you that you, as an employer, may well find useful. Get them right now - and avoid any unpleasant surprises during the year. Read more >>

Labour unrest may shut Harmony mine
Harmony Gold may shut its Kusasalethu mine, where violent labour strife killed at least two workers last year and mine managers have received death threats, the South African firm announced on Monday (7 January). Read more >>

Fruit boycott is irresponsible says Cape Chamber
Calls for an international boycott of export fruit from South Africa are irresponsible‚ the Cape Chamber of Commerce and Industry said on Monday (7 January). Read more >>


Insurance

Bail granted for insurance fraud accused
An Isipingo home affairs official accused of participating in an insurance fraud scam was granted bail of R2,000 in the Durban Commercial Crimes Court on Monday (14 January). Read more >>

Road accidents 'injure' SA's GDP
[Linda Ensor and Edward West] Apart from the tragic cost to lives‚ South Africa's high accident rate has an economic cost estimated by Transport Minister Ben Martins at R306bn a year - about 10% of gross domestic product (GDP). Read more >>

Astrapak investigating fire at its factory
[Mark Allix] Astrapak confirmed on Wednesday (9 January) that its East Rand plastics operation was damaged in a fire on Tuesday afternoon (8 January). It said full investigations were already underway by the company and its advisers. Read more >>

1Life changes name to reflect new direction
1Lifedirect recently changed its company name to 1Life, which will be the umbrella brand for a host of existing and new financial services products that the company will offer clients. From inception in the local market, it has focused on shaking up the industry and, with this name change, MD, Laurence Hillman, shares more. Read more >>

Insurance brokers confident for coming year
[Sure Kamhunga] A new survey on insurance brokers has revealed high confidence levels of retaining and attracting new business even though SA's economic and political uncertainty remains high. Read more >>


Accounting & Auditing

More accountants write evaluation exams
[Amanda Visser] More than 1 000 candidates wrote the South African Institute of Professional Accountants (Saipa's) professional evaluation exam last year, marking an increase of 20% on the previous year, says Navin Lalsab, accreditation, compliance and development executive of the organisation. Read more >>

Madonsela recruits 100 new trainees
One hundred new trainee investigators officially joined the Public Protector's ranks on Tuesday (8 January). Read more >>


Banking

December boost in ATM withdrawals show consumer confidence
The average cash withdrawal values across South Africa for December 2012, was R485.07, a 5.99% year-on-year increase from R457.67, as measured by the Spark Cash Index (SCI). In addition, the month-on-month growth of 9.57% is the second highest month-on-month growth ever recorded, indicating that consumer spending was more robust at the end of 2012 compared with the previous year. Read more >>

Parking cost car owner R42,000
A businessman owes the OR Tambo International Airport about R42,000 for parking his car there for over 12 months, The Star reported on Monday (7 January). Read more >>

Zambia takes three zeros off notes
LUSAKA, ZAMBIA - Zambians on Tuesday (1 January) woke up to a new year and new bank notes, which lop off three zeros in a bid to address high inflation that made the currency cumbersome to work with. Read more >>

Poor local marketing 'fails mobile apps'
[Alistair Anderson] Mobile device applications (apps) are not marketed well enough in South Africa to make substantial money for their developers or companies, according to World Wide Worx. Read more >>


Credit Services

High cost of tertiary education in SA
Cash-strapped parents are turning to financial institutions to get study loans so that their children can go to university as the costs for tertiary education continue to rise sharply Read more >>


Finance, Accounting & Banking

SA joins the online shopping boom
[Zeenat Moorad] By global standards, the e-commerce platform in South Africa is small, but online retail sales have shown a steady increase over the past five years as the one-time timidness of shoppers takes a back seat and a growing number of time-poor and techno-savvy consumers turn to the Internet. Read more >>

Weaker rand boosts manufacturing
[Mariam Isa] Manufacturing is likely to have extended a modest revival early in the year, supported by a pick-up in exports, the weaker rand and the effects of the end of a wave of strikes in the mining sector. Read more >>

Farmworkers 'burn' investor confidence
[Paul Vecchiatto and Bekezela Phakathi] The Western Cape farm strike took a dramatic turn on Thursday (10 January) as the Congress of South African Trade Unions (Cosatu) said it had "exhausted its social and political capital" in trying to find a solution to the upheaval and that the protests were now effectively "out of its hands". Read more >>

Slight rise in jobs in December says Adcorp
Employment in South Africa increased by an annualised rate of 0.8% in December‚ showing there were 12‚556 new jobs according to the latest Adcorp employment index that was published on Thursday (10 January). Read more >>

Safari ranches a target for Zimbabwe land grabs
HARARE, ZIMBABWE: Germany warned that takeovers of foreign-owned safari ranches by Zimbabwean politicians could jeopardise the country's co-hosting of this year's United Nations tourism conference. Read more >>

Not 'business as usual' says SAA's Kona
[Nicky Smith] South African Airways (SAA) acting CEO Vuyisile Kona is preparing plans to increase revenue and improve efficiency in a bid to boost the performance of the ailing state-owned carrier. Read more >>

Car sales like to remain steady in 2013
[Alexander Parker] Motor industry executives believe that the local vehicle market will continue to grow - perhaps at a reduced rate - this year as customers and car manufacturers encounter various challenges in a changing environment. Read more >>

Bumper 2012 for vehicle sales
[Alexander Parker] Motor vehicle manufacturers, retailers, sales and marketing executives in South Africa will look back on 2012 with some satisfaction after sales levels recorded about 10% growth this year. Read more >>


Financial Services

Avoid over-indebtedness, borrow wisely
[Louisa Hetisani] Although interest rates have come down over the past few years, consumers' credit health remains unchanged. This was revealed by the Credit Bureau Monitor and the Consumer Credit Market Report, released by the NCR. This basically implies that a significant number of consumers are still battling to pay off their debts. Read more >>


Investment Management

High returns on property may be over
[Nick Hedley] The days of high returns on property portfolios may be over - although analysts and industry leaders believe the sector is still investor friendly, with indices which provide more exposure to smaller, faster-growing property companies tipped to provide the best returns. Read more >>

Arrowhead buys 15 properties
[Nick Hedley] Arrowhead Properties‚ which listed on the JSE 13 months ago‚ said on Monday (14 January) it will buy 15 quality and yield enhancing office‚ retail and industrial properties, as part of a plan to grow its portfolio to R660m in the current financial year. Read more >>

SA November manufacturing production up 3.4%
Manufacturing production increased by 3.4% year on year (y/y) in November after an upwardly revised 2.7% (2.5%) year-on-year rise in October‚ data released by Statistics SA on Thursday, 10 January 2013, showed. Read more >>

Manufacturing output up in final quarter of 2012
Manufacturing production increased in November suggesting that its contribution to fourth quarter economic growth might be better than expected. Read more >>

Ardor SA seeks R359m from investors
[Roy Downing] New property development company‚ Ardor SA‚ announced on Wednesday (9 January) that it was still in the process of securing cash from various subscribers in order to provide guarantees to enable the transfer of various properties to the company. Read more >>

Listed property returns likely to fall in 2013
[Nick Hedley] The South African listed property sector is unlikely to maintain recent annual returns of more than 30% this year‚ as the office market remains subdued and the possibility of significant interest rate cuts is low‚ according to industry representatives. Read more >>

Modest growth for manufacturers this year
[Ntsakisi Maswanganyi] Manufacturing the economy's second-biggest sector, should perform much better this year but is unlikely to contribute meaningfully to employment, given the difficulties that still plague it, says Stewart Jennings, chairman of the Manufacturing Circle, an industry body. Read more >>

Year of reckoning for ailing Telkom
[Thabiso Mochiko] This year could mark the beginning of a major turning point for Telkom as if faces tough competition from mobile service providers and more people ditch their landlines. Read more >>

Two new Sun International hotels opened
Hotels and gaming group Sun International has‚ in the past three weeks‚ opened two new hotels with an overall capacity of 420 rooms‚ strengthening its position in the key commercial and tourism markets. Read more >>

Cutifani welcomed by industry but NUM moans
The Chamber of Mines and its mining company members have welcomed the appointment of Mark Cutifani as chief executive of Anglo American but the National Union of Mineworkers says it is disappointed because it's an "old boys club" appointment. Read more >>

Kirin to sell Tokyo building to reduce debt
TOKYO, JAPAN: Japanese beverage giant Kirin has decided to sell its Tokyo headquarters in order to reduce debts as it aggressively buys foreign firms in a bid to expand its global reach, a report said Sunday (6 January). Read more >>

Retail shares do well in 2012
[Zeenat Moorad] Retail shares had a stellar run in 2012 as the seemingly insatiable appetite of foreign investors continued to drive valuation‚ boosted by hype around Africa's growth prospects. Read more >>

Avis buys Zipcar for US$500m
NEW YORK, USA: Car rental giant Avis will buy the popular car-sharing service Zipcar in a deal valued at $500m. Read more >>

Kingfisher Airline loses licence
MUMBAI, INDIA: India's troubled Kingfisher Airlines has lost its permit to fly after a deadline to renew its suspended licence expired, the national aviation regulator said on Tuesday (1 January). Read more >>

JD Group swaps properties for shares
[Zeenat Moorad] JD Group has taken over 19 properties and leases from Steinhoff International in exchange for shares worth R447m. The deal will diversify JD's asset base. Read more >>


Taxation

Taxpayers plan to retire in poverty
How many South Africans will be able to afford to retire? Here are some numbers based on the recently released SA Revenue Service statistics for 2012. Read more >>

No room for government to cut taxes
[Helmo Preuss] Slowing domestic growth‚ a shortfall in the collection of individual and company taxes and strike action in key economic sectors will prevent government introducing tax cuts to provide some economic stimulus and could leave the South African Revenue Service (SARS) having to adapt their tax collection focus in 2013‚ Nazrien Kader‚ Deloitte's national taxation service line leader said on Wednesday (9 January). Read more >>

New penalty regime welcomed as 'more predictable'
[Amanda Visser] The new penalty regime under the Tax Administration Act is far more understandable and objective and creates more predictability than the previous regime‚ according to tax consultants who have welcomed the new system‚ saying it offers a large incentive for all taxpayers. Read more >>

Tax penalties "are being imposed"
[Amanda Visser] Several favourable changes have been introduced by the Tax Administration Amendment Act to ease the burden on provisional taxpayers, but tax practitioners say that penalties of up to 50% of undeclared income are being imposed. Read more >>

Outa goes ahead with appeal against tolling
The Opposition to Urban Tolling Alliance (Outa) will appeal a court ruling that thwarted its bid to have e-tolls in Gauteng scrapped, it said on Monday (7 January). Read more >>

Lower tax collection may hurt companies
[Amanda Visser] The warning bells for tax collections had already rung in October when Finance Minister Pravin Gordhan announced collections for the 2012-13 tax year were expected to be R5bn less than budgeted. Read more >>

Nestle remains a target in Zimbabwe
[Tawanda Karombo] International refined foods manufacturer Nestle invested US$12m into its Zimbabwean operations in 2012 despite the uncertainty surrounding its future in Zimbabwe as the government has not yet decided upon its indigenisation compliance plans. However‚ the Swiss company has reiterated its commitment to its operations in the country. Read more >>


International
Sophisticated cybercrime unit for EU
BRUSSELS, BELGIUM: In a bid to seize the initiative from increasingly sophisticated online criminals, the European Union unveiled a new cybercrime centre on Wednesday (9 January). Read more >>

Garlic smugglers make millions
STOCKHOLM, SWEDEN: Two British men are believed to have made millions of euros in just over a year by smuggling Chinese garlic from Norway into Sweden, a prosecutor in Gothenburg said. Read more >>

Lagarde says global uncertainty limits Africa growth
[Ntsakisi Maswanganyi] Continued global uncertainty‚ coupled with internal factors such as drought and associated food shortages‚ threaten Africa's economic growth prospects‚ warns International Monetary Fund's (IMF) managing director Christine Lagarde. Read more >>

Mergemarket Insight: Quarterly Report 2012
LONDON, UK: Global M&A (US$2174bn) has pivoted on the fear of a eurozone break up due to the Greek bailout. This has been the lowest in deal values since 2010. Read more >>

More International...


Government
Endemic financial challenges face SAA
[Setumo Stone] A survey conducted by Public Enterprises Minister Malusi Gigaba may hold answers to the endemic financial challenges facing South African Airways (SAA)‚ Gigaba's spokesman‚ Mayihlome Tshwete‚ said on Sunday (6 January). Read more >>

More Government news...


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