MET Collective Investments (MetCI) plans to appeal the Financial Sector Conduct Authority&#8217;s (FSCA) decision to fine it a R100 million for contravening various sections of the financial sector laws. 



Watch: <a href="https://www.cnbcafrica.com/videos/2019/10/02/why-the-regulator-has-slapped-met-collective-investments-with-a-record-r100mn-fine/">Why the FSCA slapped MET Collective Investments with a record R100m fine</a>



We are aware of the findings made by the FSCA regarding administrative issues with the Third Circle MET Target Return Fund and are considering the determination and reasons thereof. 



In an emailed statement to CNBC Africa, MetCI said it: &#8220;will appeal this decision given that we disagree with the content of the report. The quantum of the penalty is entirely disproportionate with the alleged breaches. It is also inconsistent with previous industry penalties.



We would
like to specify that this fund was managed by Third Circle Asset Management, an
independent financial services provider, under a co-naming agreement with
MetCI. MetCI immediately took action in December 2015 when we became aware of
problems with Third Circle&#8217;s management of the fund. We subsequently took over
the management of the fund from Third Circle and closed the fund.&nbsp; 



We take
our fiduciary responsibility very seriously and will always act in the best
interest of our clients and financial advisers.



At this
stage however we cannot go into more detail, since we have started the appeal
process.

MET Collective Investments to appeal R100m fine

Tobacco giant British American Tobacco plans to cut 2,300 roles in the group in a bid to simplify its business. See its full stock exchange news service statement below.



<pre class="wp-block-preformatted">British American Tobacco p.l.c. announces an important step in a programme to simplify its business and create a more efficient, agile and focused BAT. This will ensure the company is better placed to meet ever evolving consumer needs and deliver savings that can be reinvested in the growth of its portfolio of new categories such as vapour, tobacco heating products and oral tobacco.

To enable better focus on key growth areas; faster decision making; greater management
accountability and the elimination of duplicative activities, the proposals will:
 - reduce management layers;
 - create fewer larger more accountable business units;
 - better leverage its Global Business Services activities; and
 - simplify all key business processes and “ways of working.”

The programme, which is planned to be substantially complete by January 2020, envisages a reduction of around 2,300 roles globally. With the focus on simplification and removal of management layers, it is expected that over 20% of the senior roles in the organisation will be affected.

A consultation process is now underway with all staff who will be impacted.

Jack Bowles, Chief Executive said:

“Since taking on the role of Chief Executive five months ago, I have been clear that I wanted to make
BAT a stronger, simpler and faster organisation and ensure a future fit culture. My goal is to oversee
a step change in New Category growth and significantly simplify our current ways of working and
business processes, whilst delivering long-term sustainable returns for our shareholders. This is a vital
first move to help achieve these goals.

A programme of this significance involves decisions that will be difficult for our people, but ultimately
it is the right thing for our business.

As a result, BAT will be better placed to deliver on our target of generating £5 billion of revenues in
New Categories by 2023/24.”</pre>

British American Tobacco plans to cut 2,300 roles

South Africa’s Finance Minister Tito Mboweni, wearing a
fiery red tie and full of energy was at pains during a press conference with media
, ahead of his maiden Budget, to say that Treasury is not giving troubled-state
owned entity Eskom a bailout or taking on its debt but rather funding it to the
tune of R69bn over the next three years or R23bn a year. This is to financially
support it during its reconfiguration.



In the State of the Nation Address, President Cyril
Ramaphosa announced that Eskom will be reconfigured into three independent
components: generation, transmission and distribution. 



Mboweni warned that the fiscal support to Eskom is
conditional. 



In his Budget speech he states that “pouring money directly
into Eskom in its current form is like pouring water into a sieve.&nbsp; 



“I want to make it clear: the national government is not
taking on Eskom’s debt. Eskom took on the debt. It must ultimately repay it. We
are setting aside R23 billion a year to financially support Eskom during its
reconfiguration.&nbsp; 



“The fiscal support is conditional on an independent Chief
Reorganisation Officer (CRO) being jointly appointed by the Ministers of
Finance and Public Enterprises with the explicit mandate of delivering on the
recommendations of the Presidential Task Team. We will make announcements in this
regard in the coming weeks.”



The minister described this process as essentially placing,
what many see as the biggest risk to South Africa under curatorship.&nbsp; 



“We are not just loaning Eskom money, we want to look after
every rand and cent we give them” he said. 



Staunchly the minister warned other state owned enterprises
seeking funding from Treasury that the days of bailouts are over. If they want
funding we will appoint a CRO and essentially place them under curatorship.
This will make them reluctant to come to Treasury, he said. 



Labouring the point in his speech he said “We must tighten
the guarantee rules. If a state-owned enterprise applies for a government
guarantee for operational purposes, it will be required to appoint a CRO in
concurrence with the National Treasury and its bondholders. The CRO will
undertake a full operational and financial review. When banks need state
support, we appoint a curator. When provincial and municipal finances are in
disarray, government can take over the running of the administration. These
rules should also apply to all SOEs.&nbsp; 



“Cabinet is considering a proposal to end the issuing of
guarantees for operational purposes. Expiration dates on guarantees will also
be strictly enforced. As the President announced, strategic equity partners
will be found where possible. “



The minister in his speech also said the time has come for the
country to ask “do we still need these enterprises? If we do, can we manage
them better? If we don’t need them, what should we do?”



Asked why he posed this question and what his answer would
be, he said he wanted to agitate a conversation.



“We need to move with the times. We need to establish what
our priorities are. Should R10bn be put in a loss-making airline or the taxi
and railway industry?



“Who are we serving by the decisions we take?”



He added that we need a forum to discuss these questions, in
Eskom’s case with the trade unions, bondholders, management and the relevant
ministers.



“The status quo is not working, we have to cross the Rubicon
on the other side of Rome.”

#Budget2019: Government not taking on #Eskom’s debt but will provide funding, place it under curatorship

Treasury sets out plans to render on to Caesar what belongs
to Caesar. 



<hr class="wp-block-separator"/>



Revenue collection remains a bugbear for government due to weak economic growth and tax administration concerns, which were self-inflicted, South Africa’s Finance Minister Tito Mboweni told journalist in a Budget press conference.



The revised tax revenue estimate for 2018/19 is R15.4 billion lower than anticipated by the 2018 Medium Term Budget Policy Statement (MTBPS) estimate. Thus the projected revenue shortfall of R27.4 billion is now R42.8 billion compared with the 2018 Budget estimate. 



This sombre news was revealed by Mboweni in his maiden Budget on Wednesday. To address this shortfall, tax changes designed to raise R15 billion in additional tax revenue in 2019/20 have been introduced.



These among others include:



<ul><li>Increasing the tax-free threshold for personal income taxes from
R78 150 to R79 000. No changes will be made to personal income tax
brackets.&nbsp; </li><li>Increasing the fuel levy by 29c/litre, consisting of a 15c/litre
increase in the general fuel levy, a 5c/litre increase in the Road Accident
Fund (RAF) levy and the introduction of a carbon tax on fuel of 9c/litre.&nbsp; </li><li>Increasing excise duties on alcohol and tobacco products by between
7.4 per cent and 9 per cent. The targeted excise tax burden for wine, beer and
spirits is 11 per cent, 23 per cent and 36 per cent respectively.</li><li>No change in the monthly medical tax credit for medical scheme
contributions.</li><li>Increase in health promotion levy from 1 April from 2.1c to 2.21c
per gram in excess of 4 grams of sugar per 100ml. </li><li>Limiting the RAF levy diesel refund for primary production
industries to ensure that diesel users in these sectors equitably contribute
towards their RAF indemnity.</li><li>The implementation of carbon tax on 1 June 2019. </li><li>Government proposes to align the tax treatment on ad valorem
excise duty on motor vehicles Because of the way ad valorem excise duty is
calculated, vehicles produced locally are taxed at a higher rate than imported
vehicles. </li><li>Government intends to publish draft legislation for public comment
during 2019 on a gambling tax. </li><li>Urban development zone tax incentive to be reviewed. </li><li>South Africa reviewing its oil and gas tax regimes in 2019. </li><li>Taxing electronic cigarettes and tobacco heating products. </li><li>Definition of fuel levy goods for tax purposes to be reviewed may
include mineral ethanol, illuminating paraffin, aviation kerosene, liquefied
petroleum gas, compressed natural gas – as well as biofuels such as bioethanol
and biogas</li><li>Tax on “single-use” plastics including straws, caps, beverage cups
and lids, and containers to curb their use and encourage recycling will be
considered. </li></ul>



READ MORE : IN FULL | <a href="http://cnbc.africa/news/2019/02/20/in-full-budget2019-tito-mbowenis-maiden-speech/" target="_blank" rel="noreferrer noopener" aria-label="#Budget2019: Tito Mboweni’s maiden speech (opens in a new tab)">#Budget2019: Tito Mboweni’s maiden speech</a>



Although few, government has also introduced a number of tax incentives. These include: 



<ul><li>From 1 March 2019, employers participating in the Employment tax
incentive will be able to claim the maximum value of R1 000 per month for
employees earning up to R4 500 monthly, up from R4 000 previously. The
incentive value will taper to zero at the maximum monthly income of R6
500.&nbsp; </li><li>From 1 April 2019, the list of items for zero-rating for VAT will
include white bread flour, cake flour and sanitary pads.&nbsp; </li><li>Energy-efficiency savings tax incentive to be extended to 31
December 2022. During 2019, government will review the design and
administration of the incentive to improve its ease of use, effectiveness and
economic impact.&nbsp; </li></ul>



Treasury has also recognised that to render on to Caesar, what belongs to Caesar it needs to restore the efficiency of SARS. To do this it plans to:



<ul><li>Appoint a new SARS Commissioner in the coming weeks.</li><li>It has established a new Illicit Economy Unit to fight trade in the illicit economy.  </li><li>Officially launch the Large business Unit in early April 2019.  </li><li>Strengthen SARS IT team &amp; systems. </li><li>Establish information sharing agreements with allies to help fight cross-border tax evasion schemes.</li><li>Set up an inspector-general for tax administration.</li><li>Through internal processes, SARS will implement recommendations concerning inappropriate actions, fruitless and wasteful expenditure, unfair labour practices and maladministration.  </li><li>SARS will review contracts that breached public procurement regulations and will act to recover funds spent.  </li><li>SARS is normalising refund payments. </li></ul>

#Budget2019 | Tax changes highlighted: little tax relief

By Olivia Ngou, Deputy Director, Africa, Malaria No More
Like most African countries, my native Cameroon has made great progress in fighting malaria, <a href="http://apps.who.int/iris/bitstream/handle/10665/252038/9789241511711-eng.pdf;jsessionid=4D6B82F4AF2242FBAA1D44F71813CEAE?sequence=1">halving the number of malaria deaths</a> in just a decade from 2005 to 2015.
This significant achievement was made possible by ramping up access to and use of proven, cost-effective tools such as insecticide-treated bed nets, anti-malarial drugs and diagnostic tests. Crucial to this was raising awareness about these tools and adapting them for use in malaria-affected communities.
So it is alarming that malaria cases – particularly in Africa, which accounts for approximately 90 per cent of the world’s malaria – are on the rise again for the <a href="http://www.who.int/malaria/publications/world-malaria-report-2018/en/">second year in a row</a>. Unless we stay focused on fighting malaria, especially in the highest burden countries, our hard-earned gains could be lost.
Cameroon, along with 10 of the highest burden countries, is taking action as part of a coordinated effort called The <a href="https://app.box.com/s/oyoqz31le3uyu876s0ecjwvfkkl21l3w/file/350122141461">High burden to high impact: a targeted malaria response</a> launched November 19. This response requires several actions to be fully supported by all parties involved.
First, we need greater investments to deliver the right set of tools and services to all those who are vulnerable to malaria. It is no coincidence that progress on malaria has flat-lined at the same time that investment in malaria control has barely increased and remained at 2013 levels.
In Africa, around half of people at risk for malaria are still not sleeping beneath insecticide-protecting bed nets. Current tools are helping to save hundreds of thousands of lives, and they could save even more if we fill gaps in key countries.
Second, we need to increase investments in researching and developing new ways to treat and prevent the spread of malaria.
And third, we must ensure that any new malaria control methods serve the most affected communities, who have the most at stake to end this preventable but deadly disease.
Community engagement was key to introducing <a href="https://www.who.int/malaria/areas/diagnosis/rapid_diagnostic_tests/en/">Rapid Diagnostic Test</a>s – an easy-to-use but transformative innovation – that drastically improved our ability to diagnose and treat malaria cases.
These tests use a finger prick of blood to quickly confirm if someone has malaria and help a health worker determine the <a href="https://www.bmj.com/content/356/bmj.j1054">appropriate action to take</a>. Before these tests were widely available, getting a diagnosis was a lengthy and difficult process: people had to travel many kilometers to a clinic with a microscope and a lab technician. Many simply took anti-malarial drugs they may not have needed instead.
The Rapid Diagnostic Tests were a game changer only because community health workers learned how to use them for better diagnosis and treatment, and educated community members to <a href="https://www.malariaconsortium.org/media-downloads/323/Integrating%20mRDTs%20into%20the%20health%20system%20in%20Uganda:%20Preparing%20health%20workers%20for%20routine%20use%20of%20malaria%20rapid%20diagnostic%20tests">accept the test results</a>.
To replicate this success and to get ahead of malaria once and for all, we need new technologies. Emerging solutions such as a <a href="https://www.malariavaccine.org/">malaria vaccine</a> or <a href="https://targetmalaria.org/">genetically modified</a> malaria-carrying mosquitoes hold the potential to help significantly reduce malaria cases and deaths in the future. No one innovation will be a silver bullet, but taken together they make the end of this disease possible.
A malaria vaccine is in development and being rolled out in <a href="https://www.who.int/malaria/media/malaria-vaccine-implementation-qa/en/">three African countries</a> next year, while emerging <a href="https://genedrivenetwork.org/">gene drive</a> research is advancing, but still many years away from field tests.
The <a href="https://www.malariavaccine.org/">PATH Malaria Vaccine Initiative</a> and <a href="https://targetmalaria.org/">Target Malaria</a> are working in African countries and supporting African researchers to explore these new potential tools. Both make concerted efforts to involve communities and are taking phased approaches in their research and development.
Those of us who face the threat and consequences of malaria daily are eager for greater access to existing tools, and continued commitment and funding to developing powerful new tools. We want them to have the best chance at succeeding, and this happens when communities are actively involved. This must continue to be a best practice.
In global health, we often hear about potential new, transformative tools. Tools are truly transformative when they get to the people who need them most, and communities have a voice in the process of shaping and accepting these technologies. This is what will help us achieve a malaria-free world.

Op-Ed: What Africa can do to reverse its recent rise in malaria

Leah Olson (42), CEO of SeedMaster, Mfg and DOT Technologies is not your typical woman CEO. She is a farmer, hails for Saskatoon, the largest city in the Canadian province of Saskatchewan, has an MBA, she is a level two certified rugby coach and is not afraid to apply the principles of rugby in her leadership style. Just like in rugby where you often have the right person in the wrong role and have to move them around, so she does this in the corporate world, Olson tells CNBC Africa during the 2018 Farms.com Precision Agriculture Conference, where she is speaking, a week after getting married. But what is most remarkable about Olson is she is heading up a revolution in farming that will likely have the same impact Ford Motor Company, had on the horse-drawn carriage. She is spearheading the charge into autonomous farming and Olson says she will do so safely.
With Africa on the precipice of its own agriculture revolution technologies like these could speed up the process of putting the continent’s 60 per cent of the world’s uncultivated arable land to use, watch the video for more on what Olson had to say on this.
<div style="width: 848px;" class="wp-video">
<video class="wp-video-shortcode" id="video-322569-1" width="848" height="480" preload="metadata" controls="controls"><source type="video/mp4" src="http://cnbc.africa/wp-content/uploads/2018/11/Canada-Farming-video.mp4?_=1" /><a href="http://cnbc.africa/wp-content/uploads/2018/11/Canada-Farming-video.mp4">http://cnbc.africa/wp-content/uploads/2018/11/Canada-Farming-video.mp4</a></video></div>
Olson’s startup DOT is the only autonomous equipment manufacturer in the world. It provides farmers with an autonomous mobile diesel-powered platform designed to handle a large variety of implements, see video. According to DOT’s brochure, the “U-shaped frame facilitates the direct loading of implements, so that once loaded the implements becomes one with the mobile powered platform”.
<iframe loading="lazy" src="https://www.youtube.com/embed/TQUZjldryZ8" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
One such implement that has already been designed is a 30’ air seeded 60’ spray with 1000 gallon tank, 41’ land roller and a 500 bushel grain cart.
Both will be commercially available by the first half of next year.
Africans have the opportunity to build their own implements that could be added to DOT.
Olson reckons DOT will help farmers reduce their soil compaction, CO2 emissions, use less fuel, and labour, reduce equipment capital costs, help them become more efficient and more profitable.
The daughter of an inventor, calls Dot the tip of the iceberg
She asks “When you take the farmer out of cab what decisions are you going to make?”
*Monique Vanek was hosted in Saskatoon by Global Affairs Canada

Autonomous farming has arrived, what Africans should know

Considering that so many column inches in the media have been dedicated to questioning my integrity and my competency as the Chief Executive Officer (CEO) of the Public Investment Corporation (PIC), I feel compelled to respond to what I regard to be unsubstantiated, malicious and spurious allegations being made against me.
Having spent many years working in investment management, my professional career has mostly been defined by two: logic and reason.
Therefore, in defending my name, please allow me to take a dispassionate, logical and reasoned view of the allegations being made against me.
I want to begin by stating what some media publications have been remiss in mentioning: the undeniably successful performance of the PIC over the period that I have been at the helm. Performance highlights for the financial year ended March 2018 include:
<ul>
<li>Growth in assets under management to R2.083 trillion.</li>
<li>PIC profit in 2018 was R417 million.</li>
<li>Returns on investments over the last ten years for GEPF: 10.25%.</li>
<li>Returns on investments during the previous ten years for the UIF: 9.23%.</li>
</ul>
Moreover, under my leadership, the PIC has consistently achieved clean audits – a rare phenomenon in the public sector.
To add context to what we do at the PIC, the Government Employees Pension Fund (GEPF) makes up 87.12% of the funds that the PIC manages. Other clients include the Unemployment Insurance Fund (UIF), Compensation Commissioner Fund (CC), Compensation Commissioner Pension Fund (CP) and Associated Institutions Pension Fund (AIPF).
Some of the reports carried in the media seem to  infer that I &#8211; and I alone &#8211; determine which companies the PIC invests in or grants loans to. And that I personally manage the assets within the PIC’s portfolio. This is plainly irrational.
PIC has established and stringent investment management and approval processes, which involve several investment professionals and committees. Governance regarding risk management within the PIC is a stringent process that complies with regulatory requirements and best global and industry practices. In addition to ensuring that the legislations, laws, regulations, policies and best practice standards are all met, the Risk and Compliance division ensures that Portfolio Managers manage the investment portfolios to the benefit of clients.
Moreover, some media reports have implied that the PIC invests as it pleases. Again, a gross inaccuracy. We operate within the mandates granted to us by our clients, that prescribe strict parameters from which we never deviate.
Unlisted Investments
Let me start with the assertion that I have been reckless by investing R70 billion in unlisted companies, with the inference being that loans have been granted to companies that were irregular and thus under or non-performing.
First, while delivering healthy financial returns on our investments is critical, contributing to the county’s broader socio-economic development is also part and parcel of the PIC’s mandate. Through investments made in companies owned by black entrepreneurs, the overarching theme for our unlisted investments is transformation and inclusive growth. Our focus in this regard, therefore, has been to invest in sectors that have the potential to encourage employment and development, whilst generating the requisite financial returns.
These sectors have included energy, healthcare and affordable housing and student accommodation. The results of our efforts during my tenure as CEO include, amongst others, the following:
<ul>
<li>As many as 152 226 jobs created and sustained.</li>
<li>The construction of 22 new hospitals, that supplied an additional 3 049 beds for our public health system.</li>
<li>Some 45 349 affordable houses were constructed, as well as 11 900 student accommodation facilities.</li>
<li>Support and finance made available to 785 SMEs.</li>
</ul>
The multiplier effect of all our unlisted investments concerning future development? Incalculable.
At the PIC, we also practise what we preach. Since 2007, we have led the way with transformation in asset management. Today black asset managers are responsible for the management of more than R100bn of assets from the PIC.
I’m proud to say that transformation is also evident throughout the PIC. The  almost 400 employees at the Corporation fully represent the diverse demographics of South Africa, with the majority being youth who graduated from the country’s previously marginalized universities.
Steinhoff
Let me now move to another contentious issue, the losses incurred through our investment in Steinhoff. Yes, they were significant and deeply regrettable. However, in defence of the allegation of ineptitude with regards to our exposure in Steinhoff from those who seem to have 20-20 vision in hindsight, the question posed should not be “Why was the PIC duped by Steinhoff? However, rather, “Who wasn’t duped by Steinhoff?”
As a retail group with a global presence, Steinhoff was considered a sound investment and a darling of the JSE, as well as various other stock exchanges around the world. However, the fact remains that our exposure in Steinhoff represented less than 1% of the PICs assets under management, or one of over 300 securities in the PIC portfolio, so the loss was thoroughly cushioned.  Most importantly, Steinhoff was a constituent in the index that the PIC tracks in line with its investment mandate.
VBS 
As for my name being linked to the debacle that is VBS, this has to be the lowest of the low in allegations. The mere suggestion that I would accept a bribe – R5 million in cash is abhorrent to me.
This was the allegation made by one VBS executive, to another, before being relayed to Advocate Terry Motau SC, who along with Werksman’s Attorneys, authored the “Great Bank Heist” report on VBS.
Advocate Motau is on record as stating that he “Cannot make a definitive finding against me and that it warrants investigation.” I welcome any investigation regarding this allegation, which I consider to be a classic case of hearsay based on evidence of two people who according to the report are heavily implicated in malfeasance at VBS.
I also resolutely stand by my previous statement to the press in which I stated: “I emphatically reject any suggestion that I may have received R5m to facilitate further funding for VBS Mutual Bank. The portfolio management committee of the PIC turned down an application to put more money into VBS Mutual Bank, two days before VBS was placed under curatorship.”
Nepotism
Another allegation made against me is one of nepotism. According to some unknown (and I suspect disgruntled) whistle-blower at the PIC. He or she has been circulating anonymous emails, which infer that I used my position to arrange employment at the PIC for my son irregularly.
Not only is this utterly devoid of truth – it is malicious, spiteful and asinine.
Yes, there is a gentleman by the surname of Matjila who was appointed as a manager of a   canteen at the office park where PIC once occupied with other corporates. However, the gentleman in question is not my son, and he is not related to me in any way or form.
The spuriousness of this allegation is such that if we follow this reasoning to its logical conclusion, it would mean that no one by the name of Kganyago can be employed at the Reserve Bank. Also, no one by the name of Maseko can ever be hired by Telkom. It’s an allegation so deficient in logic that it’s laughable.
Many agendas
The accusation of impropriety, that I advanced loans to a woman with whom I was allegedly romantically involved has already been debunked through legitimate investigative processes.
First, it saddens me greatly that a black businesswoman, Ms Pretty Louw, who was seeking investment for her company would have certain people immediately jump to the cynical, sexist and sensationalised conclusion that sexual favours played a role in granting her the financial assistance she sought.
These allegations would have been deeply insulting to the lady in question, and to me as a dedicated husband and father.
Second, it was repeatedly mentioned as part of this disproven allegation that I was pressurised by the then intelligence minister, Mr David Mahlobo, to invest in Ms Louw’s company.
As the PIC CEO, I have on countless occasions been approached by many people of influence, bankers, financiers, businesspeople and politicians across the political spectrum &#8211; with requests to invest in various companies.
However, as very few of these recommendations have shown any merit from an investment point of view or have met our stringent compliance practices, the majority have not been considered by the PIC.
Managing the expectations of politicians and people of influence is a fine line that I continually have to negotiate – a tightrope if you will. Therefore, it is inevitable and logical that some individuals who have received a negative response to their suggestion would harbour disgruntlement and even enmity towards me.
I wish to categorically state, that I have never been  partisan nor leaned towards any faction of a political party where it concerns my work.
The only masters I serve are the 1 273 125 active members of the GEPF and the 450 322 pensioners and beneficiaries who, after a lifetime of toil, deserve a secure, prosperous and dignified retirement for the rest of their lives.  I am equally indebted to members workers and employers who continue to contribute towards UIF and CC, CP, as well as other clients who expect nothing more than return on their investments.
Competency
PIC’s ability to deliver returns on the investments under my leadership has also been questioned. Please forgive my immodesty here, but if I lack regarding competency, or if my performance has in any way been under par, then why is it that as recently as 2016, I, the PIC has received accolades such as:
<ul>
<li>CEM, a global benchmarking company, rated the PIC one of the best asset managers that has given the GEPF positive returns at a very low cost.</li>
<li>Responsible Investor (RI): Commended for the Best Responsible Investing Report by an Asset Manager of Large Funds.</li>
<li>European Magazine Awards: Best SOE &#8211; Africa European Magazine Awards: Best Corporate Governance &#8211; South African Business Leadership Awards: Africa Industry Personality of The Year.</li>
<li>European Magazine Awards: Asset Management Firm of the Year &#8211; South Africa.</li>
</ul>
Up to this point, I have spent 15 years at the PIC, first as Chief Investment Officer for nine years, and four years as CEO. During my latter position, I have had the honour of working alongside three Deputy Ministers of Finance who were appointed chairpersons of the PIC. These are Mr Nhlanhla Nene, Mr Mcebisi Jonas, Mr. Sifiso Buthelezi and the current chair, the Mr Mondli Gungubele. I am grateful for their assistance and support over the last four years.
I also would like to thank all  dedicated and committed employees at the PIC. Your dedication, diligence and commitment to serving our clients, who are our primary concern, is an inspiration to me.
I want to thank my family and friends who have stood by me and who continue to support me with so much faith and conviction during these trying times.
Finally, I am greatly encouraged that the South African legal system, in its inexorable quest for justice, has zero countenance for gossip, innuendo and hearsay. Also, I am eternally grateful that the McCarthyesque assertions that have been aimed at me – a rumour here, a whisper there, anonymous text messages and emails – will never be deciding factors in the challenges that I face.
I greatly welcome the Commission of Inquiry as instituted by President Cyril Ramaphosa, and believe the inquiry will present the PIC with a proper opportunity to present facts about its corporate governance standards, operations and investment decisions in order to restore public- and shareholder confidence in the institution.
I am 100% confident the stability and the security of the PIC will continue unabated.
I humbly thank you, for the opportunity of presenting my side of the story.
Sincerely,
Dr Dan Matjila
Chief Executive Officer of the Public Investment Corporation
&nbsp;

An open letter to South Africa from Dr Dan Matjila, CEO of PIC, addressing allegations against him

By Monique Vanek
In the forward to Medium Term Budget Policy Statement (MTBPS) it warns that South Africa finds itself at a crossroads and highlights the difficult economic and fiscal choices confronting government over the next several years. These are the key takeaways:
Economic
• The consolidated budget deficit narrows from 4.2% in 2019/20 to 4% in 2021/22. 
• Gross debt is expected to stabilise at 59.6% of GDP in 2023/24. 
• GDP growth revised downwards to 0.7 from 1.5% in 2018 following a recession in the first half of the year. 
• GDP growth is expected to recover gradually to 2.3% by 2021 
• Global economy expected to continue growing at 3.7% 
• Tax revenue has been revised down by R27.4 billion in 2018/19, R24.7 billion in 2019/20 and R33 billion in 2020/21 relative to the 2018 Budget. This mainly reflects higher-than-expected VAT refunds. 
• In 2017/18, for the first time since the 2008 global financial crisis, tax revenue growth did not exceed GDP growth. 
• The cost of servicing government debt is expected to exceed 2018 Budget estimates by R1 billion in 2018/19, R4.9 billion in 2019/20 and R7.9 billion in 2020/21. This reflects a larger main budget deficit, currency depreciation and higher interest rates. An estimated 15.1 per cent of main budget revenue will be used to service debt in 2021/22 compared with 13.9 per cent in 2018/19. 
• Main budget revenue is projected to increase from 25.7% of GDP in 2018/19 to 26% of GDP in 2021/22. Main budget expenditure is estimated to remain stable at 30.2% of GDP over the medium term
Where the money will go
• The Medium-term expenditure framework commits public resources of R5.9trn over the next three years. Of this amount: 
&#8211; R3.3trn or 56.2% t will be allocated to education, health, the provision of water and electricity services, and social grants. 
&#8211; 
• Government is proposing reprioritisation of R32.4bn over the next three years. Of this amount: 
&#8211; R15.9bn goes towards faster-spending infrastructure programmes. 
&#8211; R16.5bn will be allocated to various programmes, including recapitalising the South African Revenue Service (SARS), a minimum wage for community health workers, critical posts and goods and services in health, and streamlining the management of the justice system. 
&#8211; In addition, changes to grant structures amounting to R14.7 billion will promote upgrading of informal settlements in partnership with communities. 
&#8211; Housing subsidies amounting to R1 billion will be centralised to better support middle- and lower-income home buyers. 
• In the current year, R1.7 billion is added to infrastructure spending (including funding for fast-spending school building programmes) 
• R3.4 billion is allocated to drought relief, mostly to upgrade water infrastructure aside funding for this purpose. 
• R3.4 billion is allocated in 2018/19 to provide water, improve infrastructure and offset the economic costs of drought. Funding is also provided for the South African Isotope Facility at iThemba Labs and, following approval through the Budget Facility for Infrastructure, for the MyCiti Phase 2A bus programme in the City of Cape Town. 
• R800 million added to the school infrastructure backlogs grant to complete approved projects. 
• R3.4 billion is allocated to the education infrastructure grant. Funds are also allocated to the same grant to continue repairing infrastructure damaged by storms and floods in KwaZulu-Natal in 2017. 
• The Department of Women has developed a framework to provide free sanitary towels to learners from low-income households. The project rollout is funded through the provincial equitable share. 
• Local government equitable share, which finances free basic services to low-income households and some administrative costs for municipalities, is expected to grow by9.4 per cent per year to R82.2 billion by 2021/22. 
• Over the medium term, public transport expenditure is expected to increase to R101.1 billion as integrated public transport networks are built and operated in 13 cities.
State owned entities
• South African Airways will receive R5 billion through a special appropriation bill to settle debt redeeming between now and March 2019. This will help to prevent a call on the airline’s outstanding debt of R16.4 billion, which is guaranteed 
• R1.2 billion is allocated to South African Express Airways. 
• The South African Post Office receives R2.9 billion to reduce debt levels
National Health Insurance
• R166 million added to the national health insurance (NHI) indirect grant (health facility revitalisation) component to procure medical equipment and to design a new academic hospital in Limpopo. 
• R546 million reprioritised within the NHI indirect grant to address the critical shortage of medical professionals in the health sector, and to procure beds and linen for health facilities.
Tax changes
• In 2019 annual adjustments to personal income tax brackets, levies and excise duties in line with inflation are expected. 
• White bread flour, cake flour and sanitary pads will be zero-rated from 1 April 2019.
Students
• The Department of Higher Education and Training is developing a funding framework to clarify students’ food, book, transport and accommodation allowances, and the obligations required of bursary students during and after their studies. 
• Funds recommended through the Budget Facility for Infrastructure, and from educational institutions and the department, will support the Student Housing Infrastructure Programme. Over the next 10 years, it will provide 300 000 new beds at universities, and technical and vocational colleges. 
• Over the medium term, an estimated R61.5 billion in revenue from the skills development levy will continue to expand participation in learnerships, internships and skills development programmes.
Land reform
• Government is working with the Land Bank to accelerate land reform and maintain the productive use of transferred land. 
• Under the Land Reform Programme, government will provide 30-year leases, enabling the Land Bank to extend loans to emerging farmers. 
• The Land Bank will use a combination of loans and grants to increase production through the Black Producers Commercialisation Programme. Funding from the comprehensive agricultural support programme grant will be reprioritised to produce foot-and-mouth disease vaccines.

SA’s #MTBPS2018: Key takeaways

By Monique Vanek
The public servants wage bill remains the single largest component of expenditure in the Medium Term Policy Framework, but with elections approaching in 2019 the Medium Term Budget Policy Statement (MTBPS) provided no concrete plans to address this, only stating that government is working on an approach to manage these pressures over the medium term.
According to the MTBPS, public servants compensation, accounts for 34.7 per cent of consolidated expenditure, and forms the major driver of spending pressures. The MTBPS highlights that “it is one of the fastest-growing items in the budget, increasing at an average of 11.2 per cent a year”.
It adds that “the 2018 public-service wage agreement (see box) exceeded budgeted baselines by about R30.2 billion through 2020/21. National and provincial departments are expected to absorb these costs within their R1.8 trillion compensation baselines over the same period.”
The MTBPS also states that “over the long term, government and trade unions need to agree on an approach that ensures fair remuneration and a sustainable wage bill”. 
An annexure to the MTBPS deflects that issue of the amount of public servants to earnings growth, stating that “earnings growth, rather than headcount, has been the major driver of the public-service wage bill over the past decade”.
The annexure says an analysis of compensation spending since 2006/07 reveals the following trends:
• The main driver of increased spending is large increases in wages and other employee benefits, rather than increases in employment. 
• The increase in average real wages is partly explained by above-inflation agreements reached between government and unions, but wage progression and promotion policies account for a considerable proportion of the rise. 
• Wages have increased most rapidly in the lowest ranks of the public service, compressing wage distribution. 
• Overall, the number of public servants has increased since 2006/07. Employment peaked in 2012/13, after which personnel numbers have fallen by just over 1 per cent. This decline is insufficient to contain real spending growth due to continued growth in real wages. 
• There is a significant amount of turnover in the public service, with as many as 6 per cent of personnel leaving in a given year.

#MTBPS2018: Public servants’ wages balloon, but headcount is not to blame

By Monique Vanek
Despite an economy on the ropes, evident by slower than expected growth, South Africans can breathe a sigh of relief as forecasted increases in value added tax (VAT) and other anticipated tax hikes are not expected. The Medium Term Budget Policy Statement (MTBPS) states that “increases in major tax instruments will be avoided unless the economic environment requires it.
“At this stage, revenue projections assume no changes to tax rates, but provide for annual adjustments to personal income tax brackets, levies and excise duties in line with inflation”. 
Despite hopes that chicken would be made VAT free, no mention was made of this, instead the MTBPS states that as per the recommendations of a panel of experts which were commissioned to investigate mitigating the effect of the VAT rate increase introduced in April on low-income households, government proposes to zero-rate white bread flour, cake flour and sanitary pads from 1 April 2019.

SA’s #MTBPS2018: These are the tax changes government is warning of

By Monique Vanek
The Medium Term Budget Policy Statement (MTBPS) has confirmed that the South African Revenue Service (SARS) under its former Commissioner Tom Moyane delayed paying tax refunds, which is now hurting revenue.
According to its current Commissioner Mark Kingon, whether this was intentional or not is up for debate but he believes it was not intentional.
Kingon in a closed media briefing said SARS is currently evaluating why refund payments slowed.
The MTBPS points a negative picture of what happened to tax revenues under Moyane’s tenure and the aftermath: “A backlog of VAT refunds at SARS, and an underestimation of refunds due, has led to an overly optimistic view of revenue growth. Net VAT collections account for about R20 billion of the in-year revenue shortfall. Two factors account for the revision in net VAT. The VAT refund estimate has been revised upwards by R9 billion, and about R11 billion will be paid out to clear the backlog in the VAT credit book (see table).
“The remaining R7.4 billion of the shortfall in the current year mostly reflects slower corporate income tax collections due to weak growth in wholesale and retail trade, manufacturing and transport. Personal income tax continues to be negatively affected by job losses, moderate wage settlements, lower bonus payments and a slower expansion of publicsector employment”.
The MTBPS also states: “In 2017/18, for the first time since the 2008 global financial crisis, tax revenue growth did not exceed GDP growth. Revenue shortfalls have widened over the past four years, with under-collections rising from R7.4 billion in 2014/15 to R49 billion in 2017/18. These shortfalls would have been larger were it not for increases in personal income, dividend withholding, capital gains and other taxes. Revenue collections in 2017/18 were R0.8 billion lower than estimated in the 2018 Budget. Revenue collection for the first six months of 2018/19 grew by 10.7 per cent compared with the same period last year. However, the technical recession experienced in the first half of the year has begun to feed through to revenue collection, which has slowed. Weaker economic growth, alongside a once-off payment of overdue VAT refunds, will result in an in-year revenue shortfall now estimated at R27.4 billion, relative to the 2018 Budget estimate.”

#MTBPS2018: SARS withheld tax refunds under former Commissioner Moyane, these are the consequences…

NYAME NNAE, Ghana (Thomson Reuters Foundation) &#8211; Since Emmanuel Agyekum took over a decade ago as chief of Nyame Nnae, a poor cocoa farming village in western Ghana, people’s incomes have fallen and his worries have increased.
The cocoa trees planted behind wood-plank houses are getting old, and produce only a fraction of what they used to.
Last year, money ran out between harvest seasons and people struggled to buy food.
“The cocoa trees are dying and it is a worry to us all,” said Agyekum, sitting in a plastic chair in a dirt yard.
Cocoa yields are declining across Ghana, the world’s second-biggest producer after neighboring Ivory Coast, where about 800,000 family farmers supply cocoa beans to chocolate companies such as Hershey’s and Nestle, according to the government.
The industry regulator, Cocobod, has encouraged farmers to clear away old trees and replant. But under the traditional agreements that govern rural land use, a farmer’s land rights are tied to the crops he is growing.
Cutting down the cocoa can mean losing your lease, said Paul Macek of the World Cocoa Foundation (WCF), which represents over 100 of the biggest companies.
“Land tenure is a risk for any smallholder farmer,” he told the Thomson Reuters Foundation.
“As a result of the customary arrangements, sharecroppers are very reluctant to make investments in rehabilitating old farms. Even if the situation is desperate, they really have no incentive to do that.”
In Nyame Nnae, The Hershey Company , cocoa supplier ECOM and the U.S. Agency for International Development (USAID) tested a possible solution.
Working with lawyers, tech companies and local chiefs, they mapped farms and documented customary land agreements that had never been put into writing before.
“What we found is that just the fact of documentation helped farmers increase their sense of security over that land,” said Robert O’Sullivan of U.S.-based non-profit Winrock International, which helped design the pilot project.
When they do not fear losing the land, farmers are more likely to make long-term investments to increase yields, he said.
MIGRANTS’ RIGHTS 
Hannah Adjei does not know what the document says, but she clutches it tightly in a plastic envelope in the rain.
“If anybody comes and tries to take my land from me, this will help me prove that the land is mine,” said the 54-year-old, who received a customary land title through the pilot project.
Like most cocoa farmers in Nyame Nnae, Adjei is not a native of the region.
According to the document, the land she farms was a gift from her husband, who inherited it from his father, who obtained it through an agreement with the late chief of the district.
North of Ghana’s cocoa-growing regions, the landscape changes from green to brown. For decades, people from this poorer zone have migrated south and made deals with locals who owned land but required labor.
In the typical arrangement known as “Abunu”, a migrant farmer plants crops on uncultivated land and, when the crops mature, divides the proceeds with the landowner.
But this scheme disadvantages farmers in the long run, said John Bugri, a land economist.
Migrants can toil for generations only to get a portion of the profits and still lose their farm at any time, Bugri said.
“They (landowners) see the people who come and farm the land for them as a cheap source of labor,” he added.
“If you are a tenant farmer who’s saying, ‘Let’s document the rights’, you are the one more likely to be booted out.”
<h3>DISPUTES</h3>
Ghana’s Cocobod estimates that 40 percent of the country’s crop needs replanting.
It started its own farm rehabilitation program this month, aiming to more than double productivity in the next 10 years, said Cocobod spokesman Noah Amenyah.
The government hopes raising yields &#8211; and therefore incomes &#8211; will convince farmers to stay in the sector at a time when many are abandoning cocoa for illegal gold mines and rubber plantations, said Amenyah.
“Land tenure is a significant problem,” he told the Thomson Reuters Foundation.
Cocobod will pay landowners to allow farmers to cut old cocoa without losing tenancy, he said.
Winrock and partners took a different approach in their pilot &#8211; holding discussions and trainings to persuade landowners to allow replanting.
Sitting in silver-backed chairs in their rustic town palace, the district chiefs of Asankragua have the final say over land decisions in Nyame Nnae and some 60 other villages.
Under customary law, land held by tenants normally reverts back to the landowner if the crops are removed, allowing him to negotiate a better deal or use it for something else, said Kwame Appiah, secretary of the chiefs.
But through the pilot, chiefs and landowners were persuaded that allowing farmers to replant would bring in more money, he said.
The land tenure documents drawn up during the project by Ghanaian startup Meridia do not meet the requirements of land deeds under formal, statutory law, said O’Sullivan of Winrock.
They enshrine traditional, or customary law, which is suitable for use in rural settings, he explained.
They also provide maps in places that have never had one &#8211; which prevents conflicts over property boundaries, the chiefs said.
<h3>REHABILITATION</h3>
Daniel Ntodi steps around knee-high cocoa seedlings interspersed with tree stumps in a wooded clearing.
He replanted last year, after a crop disease reduced his yearly yield from 20-25 bags of cocoa beans to less than 10.
Having a land tenure document motivated him to replant the farm, but he is not sure he could have afforded to do it on his own.
Farmers have difficulty accessing credit in Ghana, and most do not have the cash to pay for new seedlings &#8211; much less survive the three to four years it will take them to start producing, said cocoa supplier ECOM.
In the Nyame Nnae project, ECOM paid for the rehabilitation and planted plantains and maize among the cocoa.
The plan is for farmers to sell the food crops to pay back the investment and sustain themselves until the cocoa matures, said ECOM program manager Bismark Appiah-Kubi.
“It’s still a work in progress,” he said, adding that the company is working on ways to scale up the model.
The pilot project in Nyame Nnae saw 190 farms mapped and documented and 71 rehabilitated over a period of 11 months.
Meridia has done mapping and registration for thousands of farmers since it started three years ago and is in talks with companies to do more, said managing director Joseph Okyere.
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<div id="google_ads_iframe_/4735792/us.reuters/world/article_7__container__">The Asankragua chiefs have requested an extension of the pilot in their district, and farmers said they expect to see record harvests when the new trees mature.</div>
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“I am really happy about it because it will help me get my daily bread and look after my children,” Ntodi said.
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Reporting by Nellie Peyton, editing by Zoe Tabary. Please credit Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women&#8217;s rights, trafficking, property rights, and climate change. Visit www.trust.org
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<div class="StandardArticleBody_trustBadgeContainer">Our Standards:<a href="http://thomsonreuters.com/en/about-us/trust-principles.html">The Thomson Reuters Trust Principles.</a></div>

Ghana’s cocoa industry is under threat could this be the solution?

On Wednesday Steinhoff’s former CEO Markus Jooste will give his side of the story as to what led to the demise of one of the world’s largest furniture retailers when he appears in front of parliament, see below. It will be the first time the man who has been described as a megalomaniac and was allegedly responsible for the accounting irregularities at the group will give public testimony since resigning on 5th December 2017. Events that precipitated <a href="http://cnbc.africa/insights/steinhoff/2017/12/22/steinhoff-scandal-knocks-12bn-off-value-blow-tycoon-wiese/">the wiping out of billions of dollars of Steinhoff’s market capitalisation</a>. Here are ten facts about Jooste you probably didn’t know revealed in Steinhoff: Inside SA’s Biggest Corporate Crash by James-Brent Styan, which was published this year:
		
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<ul>
<li>Jooste did not own Steinhoff shares in his own name when he resigned on the 5 December 2017. His wife Ingrid and son Michael, did.</li>
<li>The 68.9 million shares he owned in his name on the 30 September 2016 were transferred into other companies including Mayfair Speculators, his horse racing business, which is part of a holding company named Mayfair Holdings. The entities’ two directors are Jooste and his son-in-law, Stefan Potgieter. The holdings business is owned by Jooste’s personal trust.</li>
<li>In August 2017, just over three months before the collapse in Steinhoff’s share price, notes Brent Styan’s Steinhoff: Inside SA’s Biggest Corporate Crash Jooste and Potgieter declared a dividend in specie from Mayfair Speculators to Mayfair Holdings comprising houses, property developments, shares in other companies and about R200 million cash. The total value of the assets transferred was R1.5 billion.  After Jooste and Potgieter stripped Mayfair Speculators of the majority of its assets, mainly debt and Steinhoff shares remained in the company, that were practically worthless by December 2017. The debt was more than R1 billion and owed to various financial institutions including Investec, Absa and Sanlam Capital Markets. According to Steinhoff: Inside SA’s Biggest Corporate Crash, “At the end of November, just days before the Steinhoff collapse, Potgieter asked Investec for an increase in Mayfair Speculators’ credit facility. Investec extended an amount of R93.4 million and paid it to Mayfair Speculators in late November. This brought the total loan amount to R250 million. The collateral for the additional debt was Steinhoff shares”.</li>
<li>Jooste remains one of the major racehorse owners in the country through his stakes in Mayfair and the Klawervlei Stud farm.</li>
<li>Jooste is still a major shareholder in JSE-listed company, Phumelela. At the end of July 2017 he and Investec’s co-founder Bernard Kantor’s Kalamojo Trading &amp; Investments owned 9.19% of the horseracing company.</li>
<li>A consortium of which Jooste was part of purchased retail tycoon Christo Wiese’s historic farm Lanzerac in the Jonkershoek Valley.</li>
<li>For several years, Jooste worked for the South African Revenue Service specialising in taxation.</li>
<li>In 2011, Jooste received the Vice-Chancellor’s Gold Award from Stellenbosch University. According to Steinhoff: Inside SA’s Biggest Corporate Crash, the award is given to individuals or institutions who have donated more than R5 million to the university.” Only one other individual besides Jooste has been honoured with a Gold Award”, FirstRand’s co-founder GT Ferreira.</li>
<li>Jooste co-owned the farm formerly known as Bengale opposite PSG founder Jannie Mouton’s farm Klein Gustrouw in the Jonkershoek Valley.</li>
<li>Whilst studying at Stellenbosch University, Jooste stayed at the male residence Wilgenhof to which he later donated a black Jaguar.</li>
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Ten facts you probably didn’t know about Steinhoff’s former boss Markus Jooste

Corporate South Africa is at a high-tech watershed moment in how it uses technology to gain a competitive edge. This is according to Arthur Goldstuck, Managing Director of World Wide Worx, who in partnership with enterprise software company Syspro compiled a new study into the readiness of corporates to embrace the Fourth Industrial Revolution called The Mobile Corporation in South Africa 2018.
Telephonic interviews with 400 information technology decision-makers at large enterprises in South Africa were conducted for the report, which reveals that South Africa’s corporates are stuck in the third industrial revolution that took decades for new technologies to evolve but are ready to enter the fourth, where evolution is instant.
READ: <a href="http://cnbc.africa/news/special-report/2015/11/06/your-next-co-worker-could-be-a-robot/">Your next co-worker could be a robot </a>
According to the research, many South Africa companies are ready to embrace emerging technologies like robotics, the internet of things, big data and machine learning.
“The reason is simple,” says Phil Duff, CEO of Syspro. “They are all seeing their counterparts globally being disrupted by small, nimble newcomers or large companies that are willing to disrupt themselves.
“If they don’t respond as part of their own strategic direction, someone will force them to respond. The result will be that these companies will find themselves performing crisis management instead of strategy management.”
The six charts below show how South African companies are embracing these technologies.
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Six key charts that show how far SA is in embracing the Fourth Industrial Revolution

From June 19-29, 29 Africa-based entrepreneurs from 11 countries participated in a flagship programme hosted by Alibaba Business School and the United Nations Conference on Trade and Development (UNCTAD). The students were participating in an intensive eFounders Fellowship programme which is part of a pledge by Jack Ma, Alibaba Group’s Executive Chairman and UNCTAD Special Adviser for young entrepreneurs and small business. The aim? To empower 1,000 entrepreneurs from developing countries in five years. Two hundred of these entrepreneurs will come from Africa, demonstrating Ma’s personal commitment to supporting entrepreneurs from the African continent and empowering them to succeed in the digital world.
CNBC Africa spoke about the eFounders Initiative and Alibaba’s vision for Africa with Brian Wong, Vice President of Globalization Initiatives at Alibaba. Wong also serves as the executive director of the Alibaba Global Leadership Academy (AGLA).
What are Alibaba Group’s plans for Africa? 
When Jack Ma first visited Africa in 2017, he saw a continent facing many of the same challenges that Alibaba had managed to overcome in the last 20 years in China. As a Special Adviser to UNCTAD, Jack recognised that empowering young entrepreneurs with ideas and practical knowledge from China’s most innovative businesses could accelerate the development of inclusive ecommerce platforms and provide markets around Africa with a whole different approach to enabling entrepreneurs, small businesses, youth, women and more, all with the objective to provide access to prosperity for all.
As with other regions outside of China, Alibaba’s expansion strategy is one of ‘inclusive development.’ The company seeks to work with local partners who share our values and understand local markets. By partnering with local platforms in Africa and elsewhere, we believe we can better enable SMEs and create a more inclusive globalised trading network.
What is it currently doing in Africa? 
Some Alibaba services are available in Africa (Alibaba Cloud, for example) but as mentioned above, our focus is on enabling local partners to develop their own inclusive ecosystems.
Which regions does it operate in? 
Alibaba Cloud, Alibaba.com, and AliExpress are available to anyone with an Internet connection in all 54 African countries, while TMall Global facilitates African exports to China from around the continent.
What is Alibaba Group doing to help young Africa-based entrepreneurs succeed in the digital economy? 
The eFounders Fellowship is at the core of the Alibaba’s plan to empower young entrepreneurs in Africa by providing capacity building and access to insights and experience from Alibaba’s own journey.
The eFounders Fellowship is a two-week course for entrepreneurial founders in developing countries who are operating open, platform-based businesses in the ecommerce, logistics, big data, and tourism sectors. The programme provides first-hand exposure to and learning about ecommerce innovations from China and around the world that enabled growth and a more inclusive development model for all.
With a focus on highlighting breakthrough innovations that have transformed society in China, the programme seeks to inspire each participant to think of creative frameworks based on prior expertise and new learnings that can be applied to their own home markets.
Participating entrepreneurs are given the tools to improve their own ventures, but as ‘New Economy’ pioneers they are also expected to serve as network builders and champions of new ways to approach commerce in their own markets. UNCTAD and Alibaba believe these entrepreneurs can inspire others with powerful new ideas around the world by creating impactful communities and empowering their peers.
The course consists of a structured series of classroom workshops, lectures, meetings with business leaders, teambuilding exercises, site visits and a business hackathon at Alibaba Group Headquarters in Hangzhou with site visits to other cities in China.
Upon graduation from the programme the fellows make a 2-year commitment for how they will apply their learnings from their course to transform their businesses and make a positive impact on their societies.
We also invite ecosystem partners from local venture capital and incubators to observe during program and to participate in the hackathon portion in order to engage them and to work with Alibaba to provide the necessary support to the fellows during the subsequent two years.
Why is it doing this? 
The initiatives in Africa are consistent with Alibaba’s original mission. It is a platform-based business whose mission is to make it easy to do business anywhere by connecting SMEs around the world. Enabling platforms in other countries strengthens this worldwide network and “grows the pie” for all, rather than fighting over the same pie.
The more open, platform-based businesses there are in the world – the more opportunities there will be for all players (including Alibaba), and the more partnerships will be possible in the long term.
How many has it helped so far? 
There are 52 fellows from Africa who have completed the fellowship and are currently participating, but the expectation is that with their platforms there will be a multiplier effect in their impact.
From which countries? 
Our current fellows are from 14 different African countries: Botswana, Kenya, Nigeria, Ghana, Rwanda, Ethiopia, South Africa, Algeria, Cameroon, Chad, Egypt, Tunisia, Uganda, Zambia.

Chinese internet giant Alibaba shares its plans for Africa

Kevin Sneader, global managing partner of McKinsey &amp; Company speaking at a GIBS discussion entitled: McKinsey on Eskom: Learning from the past &#8211; looking to the future said the world’s largest management consultancy is open to interest discussions with Eskom on the R1 billion it was paid for its turnaround plan, which it will repay today.
		
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Sneader also apologised for McKinsey&#8217;s involvement in state capture and said Mckinsey would hand over all information it had to Judge Zondo to assist in his inquiry on state capture.
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On Friday Africa’s largest electricity supplier, <a href="http://cnbc.africa/zdnl-mc/2018/07/06/mckinsey-to-pay-back-r1bn-to-eskom-trillian-not-part-of-deal/">Eskom finalised a settlement agreement</a> with McKinsey for R1 billion ($74 million).
		
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Eskom asked McKinsey to pay back the R1 biilion, last year after an internal inquiry found that the state power utility’s decisions to make the payments were unlawful.
McKinsey together with Trillian were paid R1.6 billion for a “Turnaround Plan” carried out at Eskom between January and July 2016.

McKinsey is open to discuss interest repayments with Eskom

*Update with comment from the NCR 
The South African Reserve Bank (SARB) confirmed in an emailed statement to CNBC Africa that it has referred Capitec to the National Credit Regulator (NCR) over allegations by short-sellers Viceroy of continued use by the bank of multi loan products as it falls outside the central bank&#8217;s ambit. Capitec saw its share price tumble almost 4 per cent to close at R853 following the news.
<a href="http://cnbc.africa/category/insights/capitec/">Capitec</a> came under fire earlier this year by Viceroy, which alleged “Capitec is a loan shark with massively understated defaults masquerading as a community microfinance provider”. It called on SARB and the minister of finance to immediately place the bank under curatorship. The report sent the bank’s share price plunging but <a href="http://cnbc.africa/category/insights/capitec/">Capitec has since gone out of its way to rebuff these allegations</a>.
In SARB’s statement sent to CNBC Africa it said “In its update to Parliament on 30 May 2018, the South African Reserve Bank (SARB) reported that there are three main allegations in the Viceroy report. The first two allegations deal with scheduled loans and the provisioning models, both of which are prudential matters, while the third issue deals with the continued use of multi loan products. This third issue is a market conduct issue and falls within the responsibilities of the National Credit Regulator (NCR). The SARB met with the NCR and requested that the regulator take the matter forward.
“Based on the data available to the SARB, Capitec has adequate capital and adequate liquidity. The bank’s capital adequacy ratio of 34% and its liquidity coverage ratio was well over 1 000% compared with the required 100%. In addition, the SARB did not find any indication that rescheduled loans at Capitec were used to hide non-payment and boost new lending. The bank meets all prudential requirements.
“Regulators of financial institutions have the responsibility to investigate various aspects of the activities of these institutions to ensure proper risk management and sound practices are in place”.
The NCR declined to comment on the matter.
In response to an email from CNBC Africa about SARB’s referral of Capitec to the NCR it said it “is unaware of any investigations currently underway against it instructed by SARB as stated in the Bloomberg article. However, we operate in a robust financial services environment where regulators have the mandate and responsibility to carry out various investigations from time to time to maintain a sound financial services industry. Capitec Bank is committed to transparency and is always fully compliant with regulators in such instances.”
Viceroy had a field day over reports of an investigation:
<blockquote class="twitter-tweet" data-lang="en">
Capitec&#8217;s implied assertion that it is privy to the <a href="https://twitter.com/SAReserveBank?ref_src=twsrc%5Etfw">@SAReserveBank</a>&#8216;s communications &amp; regulator investigations is more concerning than its branding of <a href="https://twitter.com/business?ref_src=twsrc%5Etfw">@business</a> as &#8220;fake news&#8221;<a href="https://twitter.com/AntonySguazzin?ref_src=twsrc%5Etfw">@AntonySguazzin</a> <a href="https://twitter.com/rox_henderson?ref_src=twsrc%5Etfw">@rox_henderson</a> <a href="https://twitter.com/VernonWessels?ref_src=twsrc%5Etfw">@VernonWessels</a> <a href="https://t.co/y88ENa3V3T">https://t.co/y88ENa3V3T</a>
— Viceroy (@viceroyresearch) <a href="https://twitter.com/viceroyresearch/status/1014090386032111617?ref_src=twsrc%5Etfw">July 3, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Monique Vanek

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MET Collective Investments to appeal R100m fine

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