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Finweek - English

10/08/2021

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.

Country:
South Africa
Language:
English
Publisher:
Media 24 Ltd
Frequency:
Biweekly
R 28,80
R 608,40
25 Issues

in this issue

3 min
from the editor

as I opened my emails before writing this, one (of the many) press releases that awaited my attention was about the “dawn of a cashless future”. I have some deep reservations about this utopia where money is transferred through watches, cards, taps and whatnot. Please hear me out. In this edition’s Collective Insight, the many facets of debt are explained succinctly by experts. An article that wasn’t submitted, and a topic which was brought up during an advisory committee meeting of Collective Insight last year, refers to a simple psychological notion of humans: seeing and touching is believing. What one of the committee members mentioned back then was that people are disconnected from their money due to the ease of paying for stuff and services. The premise is simple: If you…

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4 min
the battle between active and passive

the Index Card is a popular personal finance book, first published in 2017. Its thesis is simple: Buy an index fund – like the ALSI Top 40 – rather than paying the fees of asset managers, who in the long run rarely outperform the market. I asked Nico Katzke, head of portfolio solutions at Satrix, why we should not all follow The Index Card’s advice and go for passive rather than active investing. “The debate has often been framed, wrongly in my opinion, as either active or passive. In reality, both have their place. Active managers have an important price discovery role to play and preserve the ability to outperform indexes. Index-tracking funds, often referred to as passive funds, provide investors with a low-cost alternative, while tracking indices that have proven…

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5 min
in brief

“THEY NEEDED TO GET INVOLVED MUCH EARLIER.” – Tshifhiwa Tshivhengwa, CEO of the Tourism Business Council of South Africa, criticised the SA government for not acting swiftly on the UK’s decision to keep SA on its red list for travel. The UK said it kept SA on the red list due to concerns over the Beta variant of the coronavirus. Tshivhengwa told Business Times that the High Commission should have immediately initiated negotiations with the relevant government departments in the UK and organised a coordinated SA response. Had this been done from the start, SA would not have been blindsided by the UK’s “ill-informed fears”, he said. “China … will not build new coal-fired power projects abroad.” – China’s president, Xi Jinping, announced that the country would not build new coal-fired power projects…

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4 min
interviewing with bots

imagine that your next job interview is with an artificial intelligence (AI) recruiting platform. It is a virtual meeting and the computer-generated person on your screen looks as life-like as you could imagine. It displays all the emotions and facial expressions that you would expect from a real person. You feel comfortable as it expresses empathy and even laughs at your jokes. If it only knew that you crack jokes when you are very nervous. For all you know it already does. During the interview, a vast number of data points are being analysed. Facial recognition technology scrutinises your micro-expressions to determine potential signs of deceit. The algorithms in the background determine a baseline on your behaviour – like with a polygraph – to figure out how much anxiety and tension…

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3 min
exxaro’s new strategy

the last time Exxaro Resources publicised a shift in strategy, it provided so little detail that the market heavily punished the firm’s shares. That was in 2018 when CEO Mxolisi Mgojo articulated plans to move into food and water security – a major shift for one of SA’s largest coal producers. The company later clarified the strategy would be backed by only modest investments, but Mgojo remembered the criticism he received. He subsequently told finweek that pronouncements on strategy would only be disclosed when fully fleshed out. That day arrived on 20 September. During a “capital markets” presentation (that the press was unable to attend live), Exxaro CEO-designate Nombasa Tsengwa said the group would target acquisitions in bauxite, manganese and copper, potentially involving “lumpy” (big capital expenditure) investments. In fact, Exxaro was so…

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3 min
will taxing chrome ore backfire?

government has been silent about a proposed export levyon chrome ore since hatching the idea in October last year. According to proponents of the levy, making chrome ore more expensive for Chinese ferrochrome producers will benefit the local ferrochrome sector, which is struggling to make money owing to Eskom’s prohibitive, above-inflation energy tariff increases. The chrome ore industry, through ChromeSA, has hit back forcibly. It first described the proposal as “egregious” but failed to win exemption from theCompetition Commission that would have enabled it to discuss alternatives to the export tax. All eyes now fall on the country’s medium-term budget policy statement, which has been tabled by newly appointed finance minister Enoch Godongwana for 4 November. The hope is that Godongwana provides more clarity, although ChromeSA is hoping it can yet have its…

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