TECHNOLOGY NEWS

New York tech company partners with AlphaCode

12 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    

Envestnet | Yodlee, a data aggregation and data analytics platform for digital financial services, has announced a strategic partnership with AlphaCode, a collaborative club for next generation financial services entrepreneurs in South Africa. AlphaCode is an official Envestnet | Yodlee International Partner, which provides startups three months of production level access to Envestnet | Yodlee APIs, developer forums and support services.

Envestnet | Yodlee will provide AlphaCode with data aggregation and account verification services, as well as access to FastLink, to enhance the end-user experience. The Envestnet | Yodlee offerings let users in Africa link external bank accounts into a single dashboard. AlphaCode entrepreneurs will also be able to leverage the offerings to create services providing more affordable background checks when applying for loans. 

“The fintech landscape, combined with Africa’s entrepreneurial spirit, is driving innovation in Africa, with tools like M-Pesa becoming a part of everyday life,” said Jason O’Shaughnessy, SVP of International Markets and managing director, EMEA at Envestnet | Yodlee. “We are excited to support the development and evolution of financial services by providing access to our platform and solutions within AlphaCode. We believe that emerging entrepreneurs often shape the future of fintech."

The strategic partnership between Envestnet | Yodlee and AlphaCode aims to improve the quality of financial tools available to the African startup economy working on creating powerful financial solutions. Mobile payments have grown enormously over the years in Africa. In 2014, the marketgenerated $656 million and is expected to double to $1.3 billion in the next four years. Africa’s financial technology adoption rate for e-wallets is also three times faster compared to the United States. The hope is that with this partnership, African entrepreneurs can provide a better financial experience and decision making process for consumers, helping financial applications evolve alongside Africa’s embrace of new technologies.

MANAGEMENT NEWS

Six steps to help staff retire more comfortably

20 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    

As of 1 March 2016, the tax laws around retirement fund contributions have changed significantly, with the main changes affecting how much employees can contribute and deduct from their taxable income.

Romeo Msipha, Senior Consultant of Old Mutual Corporate Consultants

These changes enable most employees, who are members of a company retirement fund, to make bigger tax deductible contributions into their fund every month, which will ultimately boost their retirement savings. 

Romeo Msipha, senior consultant at Old Mutual Corporate Consultants, says, “Employers should make it as easy as possible for employees to take advantage of this opportunity in order to maximise their retirement outcomes. 

“Employers’ contributions to employees’ retirement funds will now be taxed as a fringe benefit. However, employee members do not need to be overly concerned about this because the taxman now views these employer contributions, as employee contributions, for the purposes of claiming deductions. Employees’ contributions are now tax deductible up to a maximum of 27.5% of the greater of taxable income or remuneration, with a maximum fund contribution of R350,000.”

For most employee members of pension and provident funds, the fringe benefit inclusion in respect of employer contributions is more than offset by the newly increased deductions claimable by these members. 

Example

Where the employer contributes 10% and the employee member contributes 7.5% of pensionable salary; this amount is now seen to have been contributed by the employee member. The maximum contribution deduction from 1 March 2016 is 27.5%, therefore, the member is able to claim the full 17.5% (10% employer contribution + 7.5% employee member contribution) as a deduction. This offsets the fringe benefit inclusion. Assuming the member makes no other contributions to any other retirement fund, the member may contribute a further 10% to the pension fund and still enjoy a deduction (17.5% + 10% = the maximum yearly limit of 27.5%). 

Six steps to achieve maximum outcomes

Making it easy for employees to contribute more towards their retirement savings is one of the best ways an employer can help their employees save more towards their retirement in the most tax efficient manner.

To achieve maximum retirement outcomes, employers can offer employees the opportunity to change the amount of money that they can contribute towards their retirement funding through six simple steps. 

1. Assess current minimum contribution

   
   Assess the current compulsory minimum contribution and look at the total contribution of both the employee and employer. Consider whether this minimum contribution will realistically ensure the majority of employees will be saving enough to enjoy a comfortable retirement. Fund members should invest a minimum of 15% of their monthly income over their working lifetime from the age of 25. This amount will however vary depending on each person’s personal circumstances and the age they started saving for retirement. 
   

2. Define a flexible contribution scale that works for the business and its employees

   
   Choose a range of contributions that allows employees the flexibility to contribute more to their fund, without it becoming an administrative challenge for the HR department. To do this, choose manageable contribution increments (for example 2.5%) to prevent too wide a spread of options. The maximum total contribution should be more than the tax-deductible amount of 27.5% of income because members close to retirement may find this attractive, as they will be able to deduct any un-deducted amounts when they access their retirement benefits. In this regard, these un-deducted contributions will firstly be applied to reduce the taxable amount of any lump sum accessed and thereafter be applied to any compulsory annuity income received by the member.
   

3. Negotiate and update employment contracts

   
   Have conversations with your employees that centre on the value of the new, flexible contribution structure and the way it allows them to take advantage of the new increased tax deductions to contribute more and grow their retirement savings. If the minimum contribution rate is going to be increased, employers should be sensitive to the possible impact on the take-home pay of some employees. If the previous contributions were part of employment contracts, these will need to be amended. In addition, the new higher contributions rates may only be implemented for new employees and are voluntary for existing employees to ensure smooth implementation.
   

4. Find out if changes need to be made to the fund rules

   
   Employers need to confirm if the Master Rules of their retirement fund make provision for additional voluntary contributions. This will remove the need to make any changes to their Master Rules or Special Rules. 
   

5. Partner with employees to help them make the right choices

   
   There are a few ways to make this process easier for employees:
   
   • Give employees easy-to-understand guidelines on the contribution rates that would lead to a comfortable retirement. This could include face-to-face workshops and presentations so members understand the impact of contributing more.
   • Use ‘triggers’ to prompt them to take the right actions. This could involve reminders about the value of increasing their contributions accompanying their benefit statements or increases or bonuses. 
   • Make sure every employee fully understands the default contribution rate and that they will be paying that minimum if they do not specifically choose another rate. 
   • Make it easy for employees to communicate with HR or payroll about how much they want to contribute. Also, ensure that they know when they can change this rate and the frequency.
   • Give employees easy access to financial advice, through workplace advisers or consultants.

6. Adjust the contributions on monthly payroll submission

   
   Employers will need to adjust their monthly payroll file submission to their pension or provident fund administrator, so that this includes any additional contributions chosen by the employees.

EDUCATION & TRAINING NEWS

Stop procrastinating - start your own business

7 APR 2016 | SAVE | EMAIL | PRINT |  PDF    ISSUED BY: QUICKBOOKS

Starting your own business can be daunting and the question of "Where do I start?" seems to be the one that stops entrepreneurs from taking this giant leap. QuickBooks understands the fears facing the first-time entrepreneur as many of the concerns that new business owners face are ones of a financial nature. How will I fund my business? How will I keep a handle on my cash flow? I don't understand accounting - surely that is a barrier to starting my own business?

Being the accounting software of choice for the start-up and small to medium business sector worldwide, QuickBooks Accounting Software are putting their money where their mouth is and have come up with the perfect new business starter pack for fledgling business owners that will ensure that the transition into starting their own business is not as scary as they might think. 

The EasyBiz Business in a Bag includes:

• QuickBooks Pro software package 
• Bizshift CD – a practical guide to starting your own business that includes everything from A-Z – from compliance to management, labour to marketing and everything inbetween 
• An Ubuntu Business Bootcamp Voucher – Ubuntu Business Bootcamp is an action-packed half-day event that empowers entrepreneurs with everything that they need to start and grow their business 
• An Ubuntu Business Strategic Analysis Discount Voucher – the Ubuntu Strategic Analysis Questionnaire has been designed to give a snapshot of your business in order to provide the best advice on how to improve your current effectiveness and profitability 
• R2,000 worth of accounting services by a Southern Africa Institute of Business Accountants (SAIBA) Business Accountant in Practice in the new subscriber’s region 
• QuickBooks Essentials Training Manual 
• 50% off training on QuickBooks Pro to ensure the best possible start for your business (Johannesburg/Cape Town and Durban) 
• The QuickBooks Entrepreneurs Guide Books containing pertinent information for every new business owner

The EasyBiz Business in a Bag costs only R3,999.00, making it a very affordable package for budding entrepreneurs. Conditions of purchase are that the business is not older that one year and this offer is for new QuickBooks users only – customer registration forms will need to be submitted. 

One thing is certain, without a good financial understanding and a feature-rich accounting package, most new ventures fail. QuickBooks believes in assisting start-up and growing business and have come up with this package to help ensure that the entrepreneurial spirit of South Africa stays alive. 

For more information on QuickBooks’ new business starter pack, the EasyBiz Business in a Bag, visit www.quickbooks.co.za or e-mail: sales@quickbooks.co.za. 

EDUCATION & TRAINING NEWS

91% pass rate in latest professional accountant exam

7 APR 2016 | SAVE | EMAIL | PRINT |  PDF    

South Africa is richer by 457 professional accountants. The results from the latest professional evaluation exam regulated by the South African Institute of Professional Accountants (SAIPA) indicates that a record 91% of applicants passed and subsequently earned the designation of Professional Accountant (SA).

© Andriy Popov www.123RF.com123RF.com

Project Achiever

Rashied Small, education, training and membership executive: SAIPA explains the record result was due in large part to the Project Achiever intervention funded by the financial & accounting sector education and training authority (FASSET).

“Project Achiever was implemented for the first time during August 2015 in preparation for the professional evaluation examination written in November 2015.”

Transformation strategy

“If forms part of SAIPA’s transformation strategy and therefore targeted black candidates. SAIPA however provided an opportunity to its total constituency by funding 20 candidates who did not meet the fund requirement,” he says.

According to Small, 90% of the total candidates who registered for Project Achiever were unsuccessful in attempting the professional evaluation examination previously. A large proportion of the candidates attempted the examination more than once and gave up their goal of earning the professional accountant (SA) designation.

“Through the intervention, 107 out of 129 candidates – approximately 83% – now managed to qualify as a professional accountant. The project increased the number of black candidates writing the examination from an average of 24% over the past 10 years to 37% for the November 2015 examination.”

Competency-based assessment

Part of the premise of Project Achiever was to prepare the candidates for a more competency-based assessment, as recommended by the International Federation of Accountants (IFAC). 

To achieve this, SAIPA commenced with the phasing in of application-based assessments incorporating practical and real live case studies and scenarios. 

The focus of the assessment also shifted from computations and recall of theoretical knowledge to discussion based questions. This took the form of providing advice and contextualising the theoretical framework, and integrating questions combining the core academic knowledge areas into a case study.

“The benefit for future employers or clients of the shift towards competency-based assessments place greater emphasis on the thinking and analytical skills of the profession. The employer or client will benefit sooner from the combined competence and expertise of the professional accountant beyond the preparation of financial statements for compliance purposes,” he says.

EDUCATION & TRAINING NEWS

Women entrepreneurs geared for success with "Imbokodo Iyazenzela" initiative

12 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    ISSUED BY: ITHALA DEVELOPMENT FINANCE CORPORATION

A development programme targeting women entrepreneurs in mainly rural areas across KwaZulu-Natal will see thousands of them getting closer to realising their dreams of achieving better socio-economic conditions.

“Imbokodo Iyazenzela”, an isiZulu phrase which means “Women doing it for themselves”, is a unique enterprise development journey which seeks to acknowledge dynamic women making a positive impact in their communities on a public platform. 

Ithala Development Finance Corporation develops and supports programmes that create an enabling environment for women entrepreneurs based on three key priority areas, viz. rural development; township revival; and youth and women empowerment. 

The programme which involves a series of informative breakfast workshops across the KZN province over a three-month period, was piloted in 2015 and reached 1041 women in 16 towns. 

The majority of women who attended the workshops were 38 years and older, thus pointing to the enterprising nature of this group. 

“The 2015 workshops provided key insights into the challenges experienced by women when starting, sustaining and growing their businesses which gives us leverage to be able to change the status quo,” said Thuli Galelekile, Ithala Group Communications and Marketing Divisional Manager.

“The four broad categories of concern were access to markets; access to finance; access to business support; and marketing and sales. 

“This year, we are taking a stance against poverty and inequality and have partnered with several stakeholders to develop strategies for revitalising rural businesses. The aim is to see more businesses that are thriving, sustainable and successful.” 

She said the programme was aimed at delivering on Ithala’s brand promise which is underpinned by three pillars – Hope, Access and Opportunity. 

Several workshops will be held from May to August, the details of which will be made available in the local press and aired on community radio stations. 

Delegates who attended the first workshop in Pietermaritzburg on 10 May were positive about their experiences. 

Pretty Madela, a business owner in the fashion industry, said: “Among some of the challenges I experience are access to markets, competitors and finances. The workshop was very helpful. Representatives from SEDA have answered some of the problems that we encounter.” 

Dudu Zulu, who is in the concrete manufacturing business, said: “Access to markets is a particular challenge for my business. The workshop was very informative and I benefitted greatly by coming here.” 

Strategic partners on board include the Small Enterprise Development Agency (SEDA); The South African Revenue Service (SARS ) KZN Economic Development Tourism and Environmental Affairs (EDTEA); Small Business Growth Enterprise (SBGE); Durban Business Chamber of Commerce and Industry; Companies and Intellectual Property Commission (CIPC); Business Women’s Association South Africa; KZN Treasury; and District Municipalities’ Local Economic Development offices. 

Ithala, together with its partners, will be revisiting 10 areas in which workshops were held last year (2015) to help address the following grey areas that hinder business growth:

• Business Registration 
• Database Registration 
• SARS Registration 
• BBBEE compliance 
• Business Mentorship 
• Development of Marketing material 
• Business Skills Training 
• Funding information, etc.

The programme is a pillar of support to women entrepreneurs in KZN who require access to finance and the resources to grow. 

The KZN development agency’s suite of offerings includes, among others, business finance, properties, savings and investments, transactional banking, insurance and lending products. 

The initiative will culminate in a glittering awards ceremony to be held during Women’s Month in August and will recognise, acknowledge and celebrate women who have advanced in the small business category. 

For enquiries, call 031 907 8921 or email smayeza@ithala.co.za. 

EDUCATION & TRAINING NEWS

Giving entrepreneurs a head start

18 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    

With 5,7 million South Africans of working age unemployed, teaching budding entrepreneurs the skills they need to grow their business is becoming a necessity.

So a programme aimed at teaching financial and customer proficiencies to between 600 and 800 entrepreneurs and SMMEs between now and December this year provides a valuable springboard towards economic growth and greater employment opportunities down the line.

Front Simphiwe Buthelezi (Siyayenzalenlo Tourism), Nonhlanhla Poswa (Fitness Class), Tsholofelo Ntuli (Fitness Class) and Mlungisi Shabalala (Siyayenzalenlo Tourism).  Back Ray-ann Sedres (head: transformation at Santam), Karl Bishop (head: niche business at Santam) and Martine Solomon (Phama Media Marketing and Solutions).

Insurance company, Santam has partnered with The Box Shop, a recently established retail outlet and business incubator situated within the Vilikazi Street precinct in the heart of Soweto, where it has setup a learning hub. 

A consumer education training partner, Phama Media Marketing and Solutions, also an SMME, has come on board to deliver the training, which started at the beginning of May. The focus is on interactive teaching covering concepts such as: the basics of financial planning, business budgeting and insurance dos and don’ts, and the risks faced by entrepreneurs.

“Equipping entrepreneurs with the right skills and appropriate training could prove the difference between a failed enterprise or that of a sustained and successful start-up with the potential to expand and grow.” 

“With South Africa’s jobless rate at an eight-year high, imparting greater support to the establishment and development of small businesses and the active promotion of a broader entrepreneurial culture is just one of the ways in which the economy can be stimulated and additional jobs created,” says Ray-ann Sedres, head of Transformation at Santam.

African Entrepreneurship Award

BMCE Bank of Africa closes registration for the 2016 African Entrepreneurship Award and prepares to announce the candidates for its second round

8800 entrepreneurs from 105 countries registered with 3900 business ideas

CASABLANCA, Morocco, May 17, 2016/ -- The Group BMCE Bank of Africa announces the closing of Round 1 of the second edition of the African Entrepreneurship Award (https://AfricanEntrepreneurshipAward.com). The AEA is dedicated to inspire talented African entrepreneurs, or originating from Africa, by funding businesses using technologies that transcend borders to create jobs and improve lives. Round 1 opened in mid-February and closed May 6th 2016, attracting about 8800 entrepreneurs from 105 countries submitting 3900 business ideas, that is an increase of +33% in applications volume compared to the Award’s first edition in 2015. From now until May 31st, 130 Regional African mentors are mentoring each business idea to decide who continues to Round 2 “Most Likely to Succeed Across Africa” in each category: Education, Environment and Uncharted Domains. Entrepreneurs from all 54 African countries plus 51 countries in the diaspora competed in Round 1 for “Most Needed In My Region”. Round 1 winners will be announced on May 31st for the opening of Round 2, lasting from May 31st to July 31st 2016. During Round 2, entrepreneurs will benefit from the Pan-African mentors' expertise to improve their business’ ability to meet customer needs and compete effectively across Africa. Following this second round, the best ideas will qualify for the third round of the AEA competition, where Global Mentors from the three continents will mentor African entrepreneurs to improve their businesses and rank “The Most Significant and Sustainable Businesses” for Africa. Initiated in November 2014 by the Chairman of the Group BMCE Bank of Africa, Mr. Othman Benjelloun, the African Entrepreneurship Award illustrates the commitment of this group to inspire entrepreneurship across all of Africa. Each year, this initiative funds 1 million USD for the best African entrepreneurs, thus supporting their efforts to create jobs and improve lives for every African region. In 2015, the 1 million USD Award was shared among 10 winners from five economic zones across Africa.