Joining CNBC Africa to speak about Capitec’s lending practises and its multi-loan facilities is Clark Gardner, CEO of Summit Financial Partners, Kokkie Kooyman, Director and Portfolio Manager at Sanlam Global Financial Fund and Denker Sanlam Collective Investments Financial Feeder Fund and Richard Böttger, Portfolio Manager, Tower Capital Management.


  1. Viceroy is a short seller that has an undisclosed short position in Capitec. Their leader refused to declared it to the Bloomberg interviewer. Therefore Viceroy are not real investors in Capitec. This means they make money when the shares of a company go down in price. The bigger the drop in price, the more money they make. They essentially borrow shares from a dealer who has shares if they believe the shares are going to drop in price. They sell them at the current price and buy the shares back if the price drops sufficiently to cover the fees and commissions they have to pay. After buying the shares at the lower price they give the shares back to the shares lender. Therefore the bigger the drop in price, the bigger their profit will be. In the case of Capitec, the South African Reserve Bank has confirmed that Capitec is financially sound with sufficient reserves etc. The Capitec management has refuted their claims. The Viceroy report was written without interviewing any current staff or executives of Capitec and helps drive the price down. The panic selling by Capitec shareholders drives the price down thus increasing profits for Viceroy.

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