Finance & Equity

In the heart of South Africa's vibrant township economy, valued at an estimated R750 billion, a transformative shift is taking place. Small to medium-sized businesses are flourishing as the adoption of cashless transactions grows. Despite the widespread availability of banking services, with eight out of ten South African adults having a bank account, cash remains the dominant form of payment.

Sustainable change does not occur in one giant leap. We all make plans, set goals and enthusiastically imagine a better future. Unfortunately, most people never achieve their goals, whether they be personal or financial.

After over a decade of Bitcoin, which has now moved beyond lore and hype into an increasingly robust star in the firmament of global assets, a new and more important question has arisen. What happens beyond Bitcoin? 

Both the South African government and its citizens are forced to allocate more of their resources towards debt rather than to education or housing. This creates a challenge to maintain healthy finances, leading to empty pockets and frustration.

With South Africa being added to the Financial Action Task Force's (FATF) grey list, we do not believe markets will continue to react over negatively due to the greylisting, especially since a lot of this unwelcome news has already been priced in by markets.

Proposed changes to the Pensions Funds Amendment Bill, currently before Parliament’s Standing Committee on Finance, which will allow retirement fund members to access a portion of their retirement savings in cash before retirement as a guarantee for a loan, should be viewed with caution.

Know Your Customer. This phrase is a focal point of modern financial regulations, particularly concerning anti-fraud and anti-money laundering requirements. But KYC is even more valuable for managing risks with bad customers, speeding up transactions, and getting more business on the books.

In the wake of the pandemic, many face the reality of their meticulous credit records being negatively affected by the whirlwind of last year’s economic instability. Landlords and tenants alike have been affected due to income loss, leading to missed bond payments, downsizing and, unfortunate, if unavoidable evictions.

In order for a representative to be debarred, there must be non-compliance by the representative or the key individual of the financial services provider with, amongst other things, the 'fit and proper' requirements of the FAIS Act.

From January 2018, the new revenue recognition requirements come into effect. The new revenue requirements may require additional investment to ensure compliance.