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Business / Telecoms & Technology

Stellar sells 51.1% Tellumat stake

BY MARC HASENFUSS ,  23 MAY 2016, 05:48

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INVESTMENT house Stellar Capital Partners (SCP), where retail tycoon Christo Wiese has an influential stake, has sold a 51.1% stake in unlisted electronics manufacturer Tellumat to empowerment group Masimong Technologies.

The R180m deal, announced on Friday, comes not long after SCP raised its controlling stake in Tellumat to 100%. SCP CEO Charles Pettit said it was critical for Tellumat to have the appropriate empowerment levels to win state tenders.

He stressed that SCP remained upbeat about Tellumat’s longer-term prospects and would not be selling down its remaining 48.9% stake in the company. Tellumat provides technology solutions and services to the information and communications technology, defence, energy, and transportation sectors.

In the year to end-September 2015, Tellumat generated revenue of R551m, and pretax profits of R30m. Its net assets were reflected as about R369m.

The Tellumat deal is the latest in a series of transactions initiated by SCP.

The company was formed about two years ago (via a reverse listing into the old ConvergeNet shell), but managed to raise R1bn in fresh capital via a scrip offering in October 2015.

SCP is working on a transaction to take over asset management firm Prescient, and is widely rumoured to be keen to buy out minorities at its industrial subsidiary Torre.

Masimong, headed by businessman Mike Teke, holds interests in mining, agriculture, energy, chemicals and financial services. SCP’s SENS announcement noted that Masimong’s R180m price tag could be subject to a proportionate downward adjustment if the entry valuation exceeded seven times the normalised earnings before interest, tax, depreciation, and amortisation of Tellumat for the 12 months ending June 2017.

The deal will be settled by a vendor-funding arrangement that will see SCP subscribing for 180,353 redeemable preference shares in Masimong Technologies. Masimong will then refinance the vendor funding.

Mail & Guardian

The twenty-fourth school in Limpopo has been damaged by arson, and teachers are too scared to report for duty at several of the affected centres.

Another school has been burnt in Limpopo amid the ongoing dispute over municipal demarcation areas, Cooperative Governance Minister Des van Rooyen said on Tuesday.

Mawela Primary School at Masakona, in Sereni village, was set on fire, apparently by residents opposing government plans to include them under a new Limpopo municipality.

Addressing a media briefing in Polokwane, van Rooyen said confirmed the latest incident of a school being torched but said government could not interfere with the decision of the Municipal Demarcation Board.

“We cannot tamper with the provision after the new establishment has been realised,” said van Rooyen.

“Last night we received another sad news of a school that was burnt at Masakona. This cowardly act set us backward as the country,” he said.

In recent weeks more than 20 schools have been torched or severely damaged by protesting residents in Vuwani in Limpopo amidst opposition to the new demarcation boundaries.

Van Rooyen claimed that people in the area are committed to return to school and were willing to ensure that schooling resumed, especially for the 2 500 matriculants who are preparing or mid-year examinations.

‘Burn the school, burn the future’“Everyone is committed to a peaceful solution to their problem, our learners we have met them on several occasions, they made it very clear that as we burn their school, we burn their future,” said Van Rooyen.

Van Rooyen and his team also presented a mediation team to help repair the psychological damage caused by ongoing violent protests.

Residents of Vuwani and neighbouring villages launched a protest against government plans to incorporate their villages under the new Malamulele municipality.

Last month, they lost a high court bid to overturn the demarcation board decision, and resorted to violent protests.

The Mawela Primary School which was burnt on Monday increased the number of schools affected by arson attacks to 24.

Grade 12 learner Mpho Rambau said it is frustrating that learners always came to school but that no teaching was taking place.

Rambau and other pupils at Vhudzani secondary school at Mashau village, about 25 kilometres from Vuwani, said their hope was fading that schooling would resume anytime soon.

Students: no teaching taking place“We returned to school hoping that teaching will happen, but nothing is happening,” Rambau said. “My concern is that we are going to write crucial examination soon, and we are not going to be given preferential treatment because there was protests.

“We will write similar exams with those who are not affected, and will be expected to perform equally.”

Others pupils also expressed concern that they were being left behind because of the unrest.

Shooling has not started despite at least 40 mobile classrooms and furniture being delivered to schools.

The protests have continued and certain areas remain volatile, with teachers fearing to report for duty.

Van Rooyen said the inter-ministerial had appointed Father Smangaliso Mkhathswa and Professor Mary MetCalfe to spearhead the intervention team.

However, it is not clear how long it will take intervention team to resolve and repair damaged relations between affected parties.

Community leader Nsovo Sambo said a decision to suspend schooling had been taken by community after they were not satisfied with meetings with government.

“They are insisting on taking us to a place we never desire, and we will insist on remaining in Makhado (municipality).”

Sambo said the community further resolved that no voting would take place in Vuwani unless government listened to their demands. - African News Agency

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The Citizen

national 25.5.2016 04:07 pm

Arrested Vuwani teacher’s court application dismissed

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Nyambeni Mandiwana

Picture: Thinkstock

The teacher is one of 21 people charged for burning schools in the troubled area.

The Thohoyandou High Court dismissed an urgent bail application brought by Edzisani Muthathe, a teacher from Madobi Primary School, who was among those arrested for arson, malicious damage to property and public violence during the recent protests in Vuwani, Limpopo.

Following the Malamulele Magistrates’ Court’s postponement of the case, his lawyer, Vhutshilo Nage, registered an urgent court application with the Limpopo High Court’s Thohoyandou branch on Friday, Capricorn Review reported.

Here, the court ruled the nature of Muthathe’s request was not urgent, and ordered him to rejoin the other 21 people charged for the burning of schools during the demarcation protests which enfolded recently.

Edzisani Muthathe. Photo: Capricorn Review.

Muthathe, 50, made headlines in February 2015 when he was shown the door by the school’s governing body, Sanco and the traditional authority, allegedly for being Venda and working in what was termed as Tsonga territory.

Since February, Muthathe, who was also a head of department, still reported to the Hlanganani Central School circuit office.

The spokesperson for the provincial department of education, Naledzani Rasila, said the department would make a decision on whether or not Mathathe would be retained as a teacher based on the outcomes of the court case.

Meanwhile, 28 schools have so far been set alight in the troubled area in the past three weeks.

The Citizen

Sanef condemns SABC’s ‘censorship’ of news

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Tshegofatso Ngobeni

The SABC on Friday announced it would no longer broadcast certain images of protests.

Editors have widely condemned the SABC’s decision not to show the burning of public institutions during protests.

According to the SA National Editors’ Forum (Sanef), this move by the SABC amounted to a form of censorship, Rekord Eastreported.

“The SABC’s request to prevent the public from knowing what is happening on the burning of public institutions is a form of censorship which is totally unacceptable,” Sanef said.

SABC chief operations officer Hlaudi Motsoeneng said the broadcaster was “educating citizens” and had taken a decision to show that violent protests were not necessary.

“It is regrettable that these actions are disrupting many lives and as a responsible public institution we will not assist these individuals to push their agenda that seeks media attention,” the body said.

Motsoeneng appealed to other media houses to do the same.

“The SABC appeals to other broadcasters and the print media to stand in solidarity with the public broadcaster not to cover violent protests that are on the rise”, he said.

Sanef deputy chairperson Raymond Louw rejected the SABC’s call.

“The appeal to other media houses to agree to its decision is unacceptable. We [the forum] recommend that they should not agree to this offer,” Louw said.

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

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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.”