BUSINESS TECH

SABC to censor “violent” protests in South Africa

By Staff WriterMay 27, 201616 Comments

State broadcaster the SABC says it will no longer show violent protests on any of its channels in a bid to “educate the population”, and send a message that violent action will not get them the attention they seek.

SABC chief operating officer Hlaudi Motsoeneng called it a “bold move” and said that it was in line with the broadcaster’s mandate of educating the nation.

Motsoeneng said that the broadcaster will show that violent protests are not necessary, saying that “as a responsible public institution, we will not assist these individuals to push their agenda that seeks media attention”.

The SABC did not detail what constitutes “violent” protest, but said that it will not show any footage of public property being destroyed.

The broadcaster said that it upheld citizens’ rights to protest, but maintained that the decision to not air destruction of state property would encourage citizens to protest peacefully.

Destructive protests in South Africa have been increasing in number – notably in various districts unhappy with service delivery or the changing of municipal boundaries leading up to the 2016 local elections.

In the past few weeks, 17 schools in Vuwani municipality in Limpopo were burnt to the ground, reportedly in protest of a High Court decision in a demarcation matter involving the integration of the Vhembe District.

Other protests by students on campuses across South Africa also involved actions which would presumably now be deemed “violent” by the SABC, and not be covered by the broadcaster.

The SABC has in the past been accused of censorship, with opposition parties claiming that it has become a propaganda machine for the government. Citizens have reacted to the decision by calling it a move towards state censorship.

The full SABC statement:

The SABC has noted with concern the recent turmoil arising from violent service delivery protests in various parts of the country.

As a public service broadcaster, the SABC condemns the burning of public institutions and has made a decision not to show footage of people burning public institutions, like schools, in any of its news bulletins with immediate effect.

The SABC acknowledges fact that citizens have constitutional rights to protest and voice concerns on various issues that they are not happy with, but the SABC doesn’t believe destruction of property is best way to voice grievances – and promoting them might encourage other communities to do same.

The SABC would like to stress that it’ll continue to cover news without fear or favour, but it will not cover people destroying public property.

The SABC appeals to other broadcasters and media to stand in solidarity and not cover violent protests that are destroying public institutions.

HIGHER EDUCATION NEWS

Standard Bank Youth Expo provides students with tools for future

19 APR 2016 | SAVE | EMAIL | PRINT |  PDF    

Branded Youth, with headline sponsor Standard Bank, has developed the Standard Bank Youth Expo to provide South African matriculants and university students with the tools needed to navigate the volatile economic environment. It will be held on 6-7 August 2016 at the Sandton Convention Centre.

© maridav – 123RF.com

Currently in South Africa, only about 15% of high school students make it to university and the youth unemployment rate rests at 63.1% - no doubt with the former influencing the latter. 

“There’s a greater need for brands and organizations to engage with the youth of South Africa to ensure that they are educated and empowered for the future, we therefore designed the Expo, as a platform that will fully cater to this,” says Bradley Maseko, MD of Branded Youth.

The Expo will run as a career exhibition and youth conference with the aim of inspiring and assisting South Africa’s future leaders, entrepreneurs and all-round ambitious value-seekers by offering them access to networks, organisations and information that will have a valuable impact on their professional journeys. 

“Our research and the current political climate show that South African youth are concerned about their future outlook,” says Motlatsi Mkalala, senior manager for youth customer financial solutions at Standard Bank South Africa. “They are afraid of becoming another unemployment statistic, failed entrepreneurs or being unable to afford their tertiary tuition. The Expo will show them that this does not have to be the case. It will provide the resources necessary that can help turn dreams of future success and prosperity into reality.”

Furthermore, through the expo, Standard Bank and Branded Youth aim to raise R3 million through sponsorships, exhibitor contributions, donations from the public at large including private businesses. Once achieved, the money will be donated to various tertiary institutions, so they can award bursaries to deserving students. 

“The fund isn’t reliant on the expo, however,” Mkalala continues. “The public are welcome to join us in changing lives and building a better South Africa together by contributing to our crowd-funded ‘Pay It Forward’ fund on the ADDaBIT - Simple Social Saving platform. For contributions to the fund, go to www.ADDaBIT.com, search fund and insert fund code ‘ACHNZAAHUw’.

“The need to provide young South Africans with opportunities and access to quality tertiary education is now urgent and paramount to our nation’s success. If our youth move forward, the country moves forward, meaning prosperity for all in all spheres – the Expo is a step in the right direction in facilitating a better future for all,” concludes Mkalala. 

For more information, go to www.brandedyouth.co.za.

BANKING & FINANCE NEWS

New device enables SMEs and start-ups to process card payments cheaply

11 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    

A partnership between home-grown fintech-preneurs and one of South Africa's largest discount retailers is set to help small businesses by allowing them to transform their phone into a secure mobile Point of Sale (mPOS) terminal. They will be able to process debit and credit cards, cash and mobile payments with an iKhokha device.

This low-cost payment system, developed by three Durban-based entrepreneurs, the father-and-son team Matt and Clive Putman, and close friend Ramsay Daly, rolled out into flagship Game stores across the country this week. 


Jody Forrester, cellular executive of Game, said: “Ordinary South Africans with a business idea can now walk into one of our stores and walk out with everything they need to start trading: equipment, tools, consumables, internet connectivity, and a safe, cashless customer payment device.”

iKhokha's MD, Matt Putman, said that iKhokha emerged from their realisation that small and start-up businesses were often overlooked by larger institutions providing financial products and services. “We also recognised the challenges that people starting a business faced when it came to collecting cash and digital payments from customers.” 

Only a cellphone signal

The iKhokha device is a mobile card machine that allows anyone with a small business to accept debit and credit card payments. The only requirement is a cellphone signal; the buyer then enters his PIN on the device. It is being sold in 11 Game stores nationwide and will be rolled out into 35 stores over the next few months.

“We are empowering entrepreneurs in South Africa by offering them all they need to start or grow their business using the Game Store Card, which gives them the cash-flow flexibility required as a start-up. They can then simply buy what they need, walk out of the store, and immediately start earning and trading using the low-cost, mobile iKhokha device. They can buy the unit, or purchase it along with a SIM card and a smartphone as part of a Vodacom contract or a prepaid option,” said Forrester. 

iKhokha’s pricing is far below that of mainstream SME-focussed financial services products, with transactions charged at only 2.75% (excluding VAT) instead of the standard 3.5% that banks typically charge. But Putman said that their device is far more than just a cheap payment device. “It provides the merchant with powerful information on their sales over time and empowers them to track and properly manage the finances of their growing enterprise. 

“While cash payments can also be accepted, iKhokha eliminates the need for actual cash, which is expensive to handle, is a security risk, and is harder to track because it quickly gets ‘lost’ with day-to-day purchases not directly related to the business.”

Rigorous international testing

This South African developed and manufactured solution has been through rigorous international testing with regulatory bodies and card schemes to ensure world-class security. “The security certifications were an important factor in our decision to partner iKhokha,” said Forrester.

iKhokha is a gold member of AlphaCode, a Rand Merchant Investments (RMI) club for fintech start-up entrepreneurs. 

RMI’s senior investment executive and head of AlphaCode, Dominique Collett, said: “We believe that the SME segment has been largely under-served by South African financial institutions. Yet the market is a significant one. Research shows that only an estimated 17% (+/- 1 million) of SMEs are formal and registered and, therefore, can access formal financial services. This number is even more significant when one sees that the average annual turnover of registered SMEs is around R1.3m with an average annual net profit of R500,000.

“There is very low point-of-sale (POS) penetration in the SME segment (10%), yet there is growing demand from consumers to transact in a cashless manner. This creates an opportunity to close the gap by offering POS solutions to about one million SMEs that do not have card facilities, yet most likely have a need for them. SMEs demand simple, low-cost, convenient product offerings and we believe iKhokha delivers this with its simplified pricing structure and plug-and-play offering. Distribution is always a key element in the success of any financial services business, so the partnership with Game is an exciting one.”

Aligned with Game’s positioning

Forrester added that the incorporation of iKhokha into Game’s product offering is completely aligned with Game’s positioning as a leading South African discount retailer. “It underlines our strategy continuously to bring innovation into our stores, specifically around our in-store cellular offerings. We also like that Game’s genesis was in Durban, KwaZulu-Natal, and iKhokha is a ground-breaking innovation that comes from young Durban-based entrepreneurs.”

Putman explained: “The name is derived from the isiZulu word iKhokha, which means they, pay, he pays, she pays. Our goal is to transform small businesses through mobile innovation and become the go-to brand for SMEs seeking key financial services in SA. We also realised that we needed a distribution partner to make our device accessible to the majority of SMEs in SA. This partnership with Game is a huge step towards realising that goal.”

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.