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Finweek - English 6/25/2021

Finweek is South Africa’s leading financial weekly magazine focusing on investment. With its brisk, creative and authoritative analysis of business and investment issues, it’s an essential business tool in the daily battle for competitive advantage. Today's business decision-makers have to cope with increased pressure on their time and are expected, more than ever before, to succeed in the face of stiffer competition. Finweek provides relevant information in quick bytes, along with award-winning investment advice.

South Africa
Media 24 Ltd
25 Issues

in this issue

4 min
from the editor

there is something to be said for momentum – social and economic. It is a concept that has special bearing on human behaviour and expectations. Where a trend has firmly become established and enough people have come to expect that it will continue, momentum will accelerate. And it will dissipate just as fast. There have been many examples of momentum that have played out recently. The buzz around cryptocurrencies – although I am still very sceptical about the rationale behind its existence – is one example. Momentum in the world of cryptocurrencies is like the tides of the oceans, although it may feel that more are being affected by spring tides than through the normal working of market cycles. There is also more fundamental and tangible momentum to save the world…

4 min
tech incubators and accelerators

if there’s one lesson we’ve learned from economic history, it’s that innovation is key to human flourishing. One would think, therefore, that innovation is at the forefront of government policy. But sadly, that is often not the case. In fact, as Deidre McCloskey and Alberto Mingardi argue in their book, The Myth of the Entrepreneurial State, a response to Maria Mazzucato’s popular The Entrepreneurial State, the state is often a barrier rather than a boost to innovation. It is this lack of innovation that has contributed to the rapid growth of a relatively recent institutional innovation: the tech incubator and accelerator. Josh Romisher is CEO of the Nedbank Stellenbosch University Launchlab, an incubator for new start-ups. Having lived and worked in the US, Europe, Africa and Australia, he has seen many…

4 min
absa’s bee headache

the goal of building an inclusive, demographically representative economy will for an exceptionally long time remain a challenge that many South African corporates will have to grapple with. What some perceive as inclusion can easily be viewed as exclusion by others, often creating a climate of distrust, fear, loathing, and sometimes serious corporate bust-ups. While corporates always must find a balance between bringing previously excluded people (black people) onto their boards and executive teams, they equally must be careful of not being seen as engaging in reverse racism by people (white people) who historically benefitted from apartheid policies that economically disempowered black people. Even though as a country we have employment equity laws to guide companies on implementing transformation in their workforces, from top to bottom, the task of implementing transformation is…

1 min
“saa could be built into an efficient, customer-focussed and innovative airline.”

– Gidon Novick, Kulula founder and now CEO of Takatso, a consortium formed by Harith General Partners, an investor in African infrastructure and airports, and airline management firm Global Aviation, expressed confidence in relaunching SAA into a driver for tourism and economic growth in South Africa. The consortium was announced as the long sought-after equity partner and will take a 51% stake in SAA, while the government retains 49%. Listing the airline in the future was cited as one of the proposed ways of addressing SAA’s future funding requirements.…

1 min
“persuade the company not to leave lichtenburg.”

– Tsholofelo Moreo, mayor of Ditsobotla local municipality in the North West, said the provincial government set up a task team of MECs to persuade Clover from closing SA’s biggest cheese factory in Lichtenburg. The dairy group announced that ongoing poor municipal service delivery, such as poor infrastructure, and water and power outages in the area, led to its decision to shut down and move production to Durban at a cost of around R1.5bn. Clover said despite numerous efforts to engage with the municipality on these matters, the issues have not been resolved.…

1 min
“[however], lack of sufficient electricity and slow reforms will prevent a faster recovery.”

– Johann van Tonder, economist at Momentum, noted that SA’s first quarter economic growth rate of 4.6% (on a seasonally adjusted and annualised rate), including the opening of the world economy, which created more demand for exports, among other factors, will contribute significantly to this year’s growth rate. Should the current international and domestic economic environment continue for the rest of the year and Covid-19 vaccinations accelerate henceforth, the economic growth rate may well exceed 4% in 2021, Van Tonder said.…