5 Mar 2013

Finance & Insurance

 

The taxman cometh

Of course, the big news over the past few days has been Pravin Gordhan's budget speech, which has been dissected and analysed, as usual. Not least of these analyses is that by Nedbank Private Wealth, which provided its observations on the 2013-14 Budget Speech.

Gordhan's budget, as usual, was somewhat of a balancing act, but what taxpayers everywhere would like to see is action, not just words, on corruption, mismanagement and waste. After all, we all realise we have to pay taxes, but we want to see our tax monies being used where it matters - and properly, across the board.

Our planet is our only home, so we'd better do better in looking after it. One way of doing so is through protecting and nurturing biodiversity, which, says minister of water and environmental affairs, Edna Molewa, contributes to economy - she says the benefits derived from biodiversity or ecosystem services are estimated at R73bn, contributing to 7% of South Africa's GDP per annum.

We've heard it all before... this plan and that plan to create jobs - or "job opportunities" - and this time it's the KwaZulu-Natal provincial government that says it will assist in creating 11m jobs by 2030.

Job creation is absolutely vital for the future of this country; some fear the levels of frustration and despair among the unemployed could rise to such levels as to lead to civil unrest. Hence, any plan to create jobs is to be welcomed... but how many have there been, and what successes have they achieved? Governments - provincial and national, need to be wary of over-promising and under-delivering.

Is it the end of the land line? Mitchell Barker says that landline users in South Africa are cutting the cord.

Finally, our not so frugal, but fast and fancy motoring editor Henrie Geyser reckons that the new Ford Fiesta is just that... frugal, fast, fancy.

Rod Baker: Content Director

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Editorial news

Finance & Insurance

More Marsh acquisitions to come in 2013/14
In 2012 Marsh acquired Alexander Forbes' insurance broking businesses in South Africa, Namibia and Botswana, adding Uganda, Malawi and Zambia towards the end of the year. Further African acquisitions are likely during the course of this year and in 2014. Read more >>

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Insurance

Old Mutual puts billions into Africa
[Phakamisa Ndzamela] Old Mutual will invest R5bn in Africa over a three to five year period as part of its strategy to expand its footprint on the continent. Read more >>


Banking

Mobile money could encourage savings
[Helmo Preuss] Research in northern Ghana funded by SWIFT (Society for Worldwide Interbank Financial Telecommunication) showed that mobile money can help foster a savings culture and address financial exclusion. Read more >>

Brics development bank on the cards
The feasibility of establishing a Brics development bank will be an agenda item prominent in the upcoming fifth summit. Brics comprises five member states: Brazil, Russia, India, China and South Africa. Read more >>


Finance, Accounting & Banking

New TVC for Absa
Absa has launched its new TVC with four advertisements, a 60 sec generic ad and three 30 sec ads focusing specifically on its sponsorship of the Absa Cape Epic, rugby, soccer and the arts respectively. (video) Read more >>

Panel unpacks Budget's impact on NDP
The KPMG in-depth panel discussion - Budget Watch 2013 - looked at the Budget speech's implications for delivery on the National Development Plan (NDP), which was referred to by Minister Gordhan who said, "The 2013 Budget takes the National Development Plan as its point of departure." Read more >>

GDP growth up in final quarter of 2012
Economic growth quickened more than expected in the last quarter of 2012‚ as agriculture and manufacturing industries supported growth while mining was a drag‚ Statistics SA figures released on Tuesday (26 February) showed. Read more >>


Financial Services

Comair challenge may have wider ramifications
[Nicky Smith] The legal challenge brought by Comair against the government's two-year R5bn guarantee of South African Airways (SAA) could have consequences for how the government chooses to fund parastatals. Read more >>

World rankings for SA companies, but CEO pay at odds
South African companies enjoy top rankings on the international stage yet remuneration of their CEOs is incongruous. This is according to Peter Aling, director of quantitative analysis of Prophet Analytics, which recently released its latest Labour Market Navigator report. Read more >>

Survey finds that graduate professionals favour compulsory saving
The majority of South Africa's graduate professionals are concerned about the low level of savings among consumers and support the idea of some form of compulsory preservation vehicle to foster a greater savings culture, according to a survey conducted by PPS. Read more >>


Investment Management

Vividend wants Access Park, Kenilworth
Listed property loan stock company Vividend Income Fund said last week it had entered into agreements which, if successfully concluded, would result in it buying 90% of Access Park, in Kenilworth, Cape Town, for R483m. Read more >>

Grindrod in new SA joint venture
[Mark Allix] Oiltanking‚ Grindrod and Calulo Investments said on Friday (1 March) they had agreed to buy Grindrod Tank Terminals‚ a division of Grindrod SA‚ through their South African joint venture company. Read more >>

Super Group, Safika merger approved
The Competition Tribunal has unconditionally approved the Super Group and Safika merger. Read more >>

ARM looking to buy distressed mines
[Allan Seccombe] African Rainbow Minerals (ARM) is looking for opportunities in distressed mineral sectors such as platinum‚ while also casting an eye over the South African manganese mining business for growth. Read more >>


Taxation

Tax increase hurts brandy market
The 10% increase in excise duties on brandy will further hurt distillers who are struggling to win back the drink's market share from more attractively priced whisky and vodka brands, industry commentators said last week. Read more >>

Non-retirement savings plan from 2015
[Angus Macmillan] While tax-preferred savings and investment accounts were proposed in last year's Budget‚ this year's Budget has proposed that an amended system will be introduced from April 2015. Read more >>

HQ tax benefits for JSE companies
[Linda Ensor] The National Treasury has extended the benefits of its headquarter tax regime to companies listed on the Johannesburg Securities Exchange. Read more >>

Tax reduction in special zones
[Angus Macmillan] Tax incentives will be authorised in certain special economic zones after consultation between the Minister of Finance and the Minister of Trade and industry‚ the Budget Review document revealed on Wednesday (27 February). Read more >>

Budget reaction - Cliffe Dekker Hofmeyr tax team
The Cliffe Dekker Hofmeyr tax team have shared their individual reactions to this year's Budget Speech by Finance Minister Pravin Gordhan, covering share schemes, cross-issue of shares, retirement reform, VAT registration of foreign businesses, and more. Read more >>

Nedbank Private Wealth observations: 2013-14 Budget Speech
There is no doubt that this year's Budget was prepared and delivered during a difficult time for the South African economy, which is only achieving pedestrian growth in an environment where more robust growth is needed. Read more >>

Personal tax cuts of R7bn
[Angus Macmillan] Finance Minister Pravin Gordhan has unveiled personal tax cuts totaling R7.0bn across all income brackets in the National Budget for the 2013/14 financial year. Read more >>

Retirement changes: more delays
[Angus Macmillan] There is good news and bad news in the Budget on the retirement planning front. Read more >>

Carbon tax from 2015
[Angus Macmillan] Carbon tax‚ here we come. With effect from 1 January‚ 2015‚ a carbon tax rate of R120 per ton of carbon dioxide equivalent will be introduced‚ the National Treasury said in its Budget Review document released on Wednesday (27 February). Read more >>

VAT charged on foreign digital services
[Angus Macmillan] The government has proposed that all foreign businesses supplying e-books‚ music and other digital goods and services in South Africa be required to register as VAT vendors. Read more >>

Bad news for smokers and drinkers
[Angus Macmillan] It's bad news yet again for drinkers and smokers‚ but certainly not unexpected news as the annual rise in so-called "sin taxes" is as predictable as the sunrise. Read more >>

Carbon tax may hurt heavy industries
[Edward West] The introduction of a carbon tax is likely to have a great effect on the cost structures of South Africa's heavy industries‚ say analysts. Read more >>


International
NAB Show launches Sprockit to shine spotlight on start-ups
WASHINGTON DC, US: NAB Show has announced it is launching SPROCKIT, a new program that will give 10 market-ready start-up companies the opportunity to present their product or service directly to influencers in media and entertainment. Read more >>

Sony sells Tokyo building for ¥111bn
TOKYO, JAPAN: Sony said Thursday (28 February) it has sold one of its main buildings in Tokyo for US$1.2bn as the embattled Japanese electronics giant offloads assets to help repair its tattered balance sheet. Read more >>

Wave a phone and your bill's paid
BARCELONA, SPAIN: Credit card giant Visa announced a global alliance with Samsung to let shoppers make payments by waving their smartphones near a special reader. Read more >>

More International...


Government
N Cape finances on the mend
Northern Cape Acting Premier Grizelda Cjiekella says a positive picture is emerging from the province's financial books. Read more >>

Transport spending will rise to R74bn
[Paul Vecchiatto] Overall spending on transport will increase by 9.7% to R74bn according to the National Treasury's Budget Review. Read more >>

Moderate job creation expected
[Ntsakisi Maswanganyi] The National Treasury expects a moderate employment growth over the next three years‚ it said in its budget review 2013 released on Wednesday (27 February). Read more >>

More Government news...


Jobs offered
BI Business Analyst - Southern Suburbs - Cape
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Direct Marketing Manager - Southern Suburbs - Cape
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Direct Marketing Assistant - Southern Suburbs - Cape
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Business Analyst - Southern Suburbs - Cape
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Junior Software Developer - Southern Suburbs - Cape
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Copywriter - Southern Suburbs - Cape
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2013 Biz Trends Report


93 pages
49 contributors
41 contributions

New people on biz

Roxanne Wicomb
Financila Management graduate
Koketso Mokubedi
Receptioniost at Metropolitan Life
Lebohang Pitso
Bachelor of Economics Graduate from Rhodes University
mulalo seaga
financial consultant
Madeleen Pienaar
Funds Operations Administrator at JO Hambro Investment Management, London UK

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