Most people think of Uber as disrupting the taxi industry, but I don’t think this is the case at all. In fact, it’s manufacturing that stands to be most disrupted. And the question is: are we ready for this?
Here’s why. Who are the users of Uber? I’m one occasionally but I don’t use it all that much because I already have a car of my own. Theoretically speaking, on the road, with my car, I’m not competing with taxis. Hold that thought because it’s an important one in understanding how this works. When I’m off to the office in the morning, I hop in my car and I drive &#8211; I don’t have to call anyone, stand outside, or wait. My car is clean (well, generally!) and I know it’s pretty consistent. Every day I’m going to be using the same car. I don’t wake up in the morning and wonder if my car is going to make me late or if I’m going to have a driver that doesn’t know the roads and the blocks and the shortcuts on the way to my work.
But a taxi is generally a shotgun approach. You keep your fingers crossed, hoping that you’re going to have a pleasurable ride this time. This is one of the reasons why Uber competes with your car, not the taxi. It emulates a similar experience to using your car — the driver asks you what music you want, he makes sure it’s quiet when you take a call and will keep the conversation on the down-low when you’re not in the mood for any talk. He doesn’t even need to ask you for directions, he just follows the shortest route as instructed by his GPS.
Taxi drivers often think that since Uber is in the market it means more people are using taxis. No. It just means more people are using fewer cars. And this is why ultimately Uber will disrupt the manufacturing industry and not the taxi industry.
Travis Kalanick, co-founder of Uber, hit on this last year February in a TED talk about Uber’s plan to get more people into fewer cars. He starts off by speaking about a service in Los Angeles in 1914 called the “jitney”. It was actually a very similar idea to Uber. People were basically hiring out their cars as a lifting service for a ‘jitney’ (slang for a nickel). The idea became so popular that by 1915 there were 150,000 jitney rides per day in Los Angeles. Uber only hit 157,000 rides per day in L.A. last year. Think about that for a second.
So what happened to it? The existing transportation industry got in a huff and starting shutting it down through getting certain regulations put in place. But 1919, the whole thing was no more.
Uber still likes this idea, however. So here’s where it’s going next. Kalanick explains that in 2010 when Uber started they didn’t have grand ambitions for it &#8211; they just wanted to push a button and get a ride. “But,” he continues, “it just turned out that lots of people wanted to push a button and get a ride, and ultimately what we started to see was a lot of duplicate rides. We saw a lot of people pushing the same button at the same time going essentially to the same place. And so we started thinking about, well, how do we make those two trips and turn them into one. Because if we did, that ride would be a lot cheaper — up to 50 percent cheaper — and of course for the city you&#8217;ve got a lot more people and a lot fewer cars.”
In other words, Uber started noticing that you and I stay in the same area and leave around the same time for work, which is also in the same area. So what if we carpooled? Hence Uber launched its UberPOOL service, which connects you and me together on the same ride. The result? Since launching the service in Los Angeles late 2015, Uber has created 100,000 new carpools every week and taken 7.9 million miles off the roads, the result being 1.4 thousand metric tons of CO2 out of the air. They didn’t expect that their small idea would result in less pollution. Watch what’s happening in China: 15 million uberPOOL trips per month, which amount to 500,000 per day. This will only grow.
And here’s the clincher: more people carpooling with Uber means fewer cars on the road. Fewer cars on the road mean fewer cars are being sold. Fewer cars sold means fewer cars are being manufactured. See who is most affected by this?
When you think about it, cars are very resource-heavy products. They need parking space, idle half the time, create pollution, create noise, and so on. Carpooling or using the original Uber service means fewer cars, less traffic, more productivity or more rest (as we get to work in less time) as more people use the service. If this is a viable alternative to using my own car, especially if the costs are halved via carpooling, wouldn’t you use it? Of course, you would. It’s not like in Africa that there usually much choice when it comes to public transportation or alternatives to having your own car.
So we see as this becomes more viable to the masses it’s manufacturing &#8211; not the taxi industry &#8211; which suffers the most. The problem with this, however, is manufacturing is one of the big pillars of the African economy (certainly the South African economy). Even China and America will face the same problem. Trump’s “America first” policy is all about boosting (or in many cases, rebooting) the car manufacturing industry in America. One of his main constituencies has been those towns and States where car manufacturing was a booming industry — middle-class towns that have collapsed under the “new economy” and silicon valley innovations.
Even the financing side of things will be affected by this. So the big question, again, is are we ready for this?
In my view, manufacturing (broadly) have to do three things: (1) They must realise this is happening or is about to happen. This needs to be taken seriously. (2) They must find a way to partner with Uber — not just focusing on manufacturing cars but also getting those cars to Uber drivers, providing training, and creating a new service industry on their side. Then, (3) manufacturing, along with financing, need to create the right kinds of protection and regulation. Uber has been quite open to the fact that it sees the need for regulation — it just speaks of having the right kind. Rather than work against the innovation, an innovation that clearly has other positives for us all (less pollution, congestion etc.), there needs to be a new way forward.
In my view, now is the time for Africa to find ways to work with the disruptors coming in &#8211; before the carpet is swept completely under our feet.

Op-Ed: Will Uber disrupt manufacturing?

Who benefits from South Africa&#8217;s proposed ICT Policy? Is it “radical economic transformation” or something that will benefit “white Capital”?
The introduction to the National Integrated ICT Policy White Paper refers to The National Development Plan: 2030: “By 2030, ICT will underpin the development of a dynamic and connected information society and a vibrant knowledge economy that is more inclusive and prosperous.”
Seemingly it is geared to achieve an “inclusive and prosperous society” where “opportunity is determined not by birth but by ability, education and hard work”. Therefore, it regurgitates all the usual rhetoric.
However, who is being branded as the evil industrial giant stepping on the underprivileged and downtrodden? The lowest BEE rating of the major cell phone companies comes in at Level 3, which amounts to a 110% Procurement Recognition Level. The largest of those companies have BEE ratings of level 2, amounting to a Procurement Recognition Level of 125%. This is hardly a reflection of an Apartheid era draconian business model. In fact, it is a reflection of big business achieving the goals of a free and prosperous economic society to the benefit of everyone.
Furthermore, the growth patterns of these companies are clearly being steered in the direction of better BEE ratings and economic empowerment. A good example is MTN’s Zakhele Futhi R9.9bn black economic empowerment transaction. So, when the ICT White Paper wants to make the above-said company’s services more “inclusive”, and to “the prosperity of all”, what are they proposing? Simply put, the nationalisation of the company’s assets through a forced mandatory role out of an open access network.
Is this statement accurate or just sensationalistic in nature?
If the proposals in the White Paper are acted upon, this is exactly what will happen. The specific proposal referred to on page 68 of the paper, states “The regulator will be required to publish a list of deemed open access networks”.
This will entail the following: An access provider will be “deemed” an open access network if it displays any of the following characteristics:
<ul>
<li>It has significant market power in the relevant infrastructure market, or</li>
<li>It controls an essential facility; or</li>
<li>It has a network that constitutes more than 25% of the total infrastructure in that market; or</li>
<li>It has a scarce resource, such as frequency spectrum, assigned to it for its exclusive use.</li>
</ul>
This mandatory implementation of an open access network will enable the government to control and dictate inter alia pricing, active infrastructure sharing, specific network and population coverage for providers deemed to be an open access network.
More importantly, all providers deemed to be an open access network must comply with “all of the general open access principles, and to the extent that an operator is vertically integrated, the principles applicable to vertically integrated entities, will apply as well” as dictated by the regulator (page 70 of the white paper).
The White Paper is clear that participation will be unilaterally imposed on those SPs that meet the required characteristics regardless of the will to participate or not. The regulator will also be obliged to publish a list of deemed open access networks as soon as possible after the finalisation of the White Paper.
If it works, it works. Right? The fact is, though, mandatory participation in an open access network simply does not meet the goals it sets out to achieve.
Per international studies (Wolfgang Briglauer: The Impact of Regulation and Competition on the Adoption of Fibre-Based Broadband Services: Recent Evidence from the European Union Member State 2013- to name but one of many studies) it is common cause that forced mandatory participation in an open access network results in stunted economic growth and stagnates technological development. The scope and length of this piece does not allow me to further expand on case studies, however, it is out there for all to read and learn from page 68 of the paper.
It is counter-intuitive to potentially stunt the growth of an industry that has arguably contributed the most to sustained economic development and transformation. According to the ICT Satellite report published in 2015, ICT contribution to the gross domestic product (GDP) amounted to 2,9% in 2012.
It is important to note that cell phone SP’s economic contribution is not confined to the ICT sector. Industrial and real estate development, for instance, would fall outside the scope of the GDP contribution analysis for cell phone SPs.
In summary, mandatory participation in an Open Access Network does not constitute “radical economic transformation” in the positive. In the negative, it certainly does constitute “radical economic transformation” because it will harm the socio-economic development of South Africa and undermine the very goals set by the NDP.
Thinly Veiled Disguise 
“Through the noise and the poisonous words 
That lead us to believe otherwise 
I can hear the bells, they&#8217;re ringing out 
Through a thinly veiled disguise” (Ron Sexsmith)

Op-Ed: S.A’s telecoms policy will stunt economic growth and stagnate technological development

Imagine that you go to your 20-year school reunion and are catching up with old school friends. You speak to John who says that he got a three-year qualification in mechanical engineering and now owns an engineering workshop. You also speak to Steve who studied for 14 years and is now a specialist physician with his own medical practice. John was an average scholar and Steve was the Dux in your matric year. Who is likely to be the wealthier of the two by the time you see them at the 20-year reunion?
Studies have shown that John, with his mechanical engineering workshop, is likely to be the wealthier of the two. There are a number of reasons for this interesting situation. The first is that John, after getting his three-year technical qualification, started generating an income while Dr Steve still had another 11 years to go before he started generating the income of a fully qualified specialist physician. While John saved money during those 11 years, Dr Steve spent most of what he earned as he worked and studied to complete his qualification.
Let’s say that, once fully qualified, Dr Steve ultimately generates an income three times the income of John the engineer and they both save 10% of their respective incomes. Once he starts working, it would take Dr Steve 10 years to catch up to John with the engineering business. They would have been out of school for 24 years before Dr Steve caught up to John the builder’s wealth position.
In reality, though, it would probably take longer. Dr Steve would not be able to save 10% from the start of his career because of student debt and he would probably incur even more debt to set up his private practice. Ultimately, in this story, Dr Steve’s superior income would give his wealth the potential to catch up and overtake John the builder’s wealth. But there is another obstacle lurking out there for Dr Steve to overcome before he achieves that.
This hurdle has to do with the status ascribed to Dr Steve. Doctors and others with advanced degrees are expected to fulfil the role of an upper-class citizen. John the builder would not be out of place in a modest home with a non-descript bakkie or sedan. The cost of setting up and maintaining his domestic situation is much lower than servicing the high status lifestyle that Dr Steve would expect.
Professionals often say that society expects them to live in expensive homes, dress in expensive clothes and drive expensive cars. We judge a book by its cover, often judging professionals by their outward appearance rather than their net worth. And unfortunately for them, the pressure to maintain an impressive outward appearance can restrict the growth of the professional’s wealth.
Another disadvantage of living in affluent neighbourhoods is that you are bombarded with cold-calls from so-called investment experts. In a survey by the authors of “The Millionaire Next Door”* some professionals said they had bad experiences with these cold-callers to the point where they will no longer invest in equity investments, thus further impeding their wealth.
Research shows that people who spend on luxuries tend not to be price sensitive to most things, but they ironically become very price sensitive to paying for good legal and financial advice that would help them get ahead.
Successful wealth accumulators on the other hand are price sensitive to most things but interestingly less price sensitive when it comes to buying services that will help them control their family’s consumption behaviour. They will also happily spend good money on legal and financial advice which they know will help them.
Surveys show that the more time you spend on the purchase of luxury items the less likely you are to become wealthy. The reason is that time and energy are finite resources and research has shown that when you allocate a lot of that resource to the activities of researching and purchasing big ticket items you have less time available to plan your investments. This sounds obvious but what is not so obvious is the inverse correlation between time spent purchasing luxury items and wealth accumulation.
Many purchasers of luxury cars spend a disproportionate amount of time researching (sometimes for months at a time) a particular vehicle before buying it. If they had spent even 25% of that same time planning their investments they could be much wealthier today.
Such buyers often argue that they got the vehicle at cost or even below cost but when they talk about paying as much for a car as you do for your house they are still massively out of pocket despite the discount.
It’s all a question of focus.

Well educated people can lag behind in wealth

INTRODUCTION 
On 15 February 2017, the South Gauteng High Court awarded Comair R554-million plus interest at 15.5% on this amount, amounting to approximately R1.16-billion in total. This award related to a case initiated against SAA 14 years ago, over the national carrier’s anti‑competitive travel agent incentive schemes that were found to be in contravention of the Competition Act. Internationally, it has been accepted by competition authorities that anti‑competitive arrangements can have lingering effects on an economy and on market participants. Therefore, Comair sought compensation not only for the profits lost during the infringement period but also for the profits foregone after its termination.
But let us remind ourselves of what exactly SAA did wrong.
SAA’S ANTI-COMPETITIVE BEHAVIOUR
Over the period 2000 to 2005, SAA concluded and implemented so-called ‘override incentive schemes’ with travel agents. In terms of these incentives schemes considerable sums of money were paid to travel agents to book passengers on SAA rather than on rival airlines, such as Comair and Nationwide.
Prior to 1998 and consistent with international practice, SAA paid “base commissions” to travel agents over time for the sale of its tickets. Base commissions being standardised commissions paid to travel agents on each ticket sold.
However, during October 1999, SAA implemented agreements with travel agents significantly increasing the hurdle to earn commission both for override and incremental commission. In terms of this new arrangement, travel agents received a flat basic commission for all SAA sales up to a target figure that was set for them in their respective contracts with SAA. Also, each agent’s target was custom-made for that agent based on its previous sales figures, with a tailored percentage increment and if the agents exceeded these targets, they became eligible for two further performance-related payments (“overrides”) over and above the basic commission.
The first additional commission was an “override commission” payable on the total of all sales above and below the target, referred to as the ‘Back to Rand One’ principle. This meant that the additional percentage commission was applied to the total ticket sales made by the travel agent in the relevant time period, and not just to those sales made in excess of target sales.
The second category of commission was an “incremental commission”, which was much higher than the base and override commission rates, which was paid only on the amount in excess of the target. Therefore, and in itself, travel agents were induced to reach the base and then strive for maximum growth above that target because at that level they were handsomely rewarded. It is clear that without achieving similar compensation from a rival airline, the agent had little incentive to sell the rival airline’s ticket and a compelling incentive to sell SAA’s.
During the same time, SAA also ran the so‑called ‘Explorer scheme’, which incentivised individual travel agency staff to sell SAA tickets. The agency staff were rewarded with discounted or free international airline tickets based on the achievement of domestic SAA sales targets; and secondly, the entire staff of travel agencies were rewarded based on the sales of domestic SAA tickets by such agencies’ consultants in terms of a bonus pool arrangement.
This is the second time that a damages claim based on a finding by the competition authorities has been litigated in full.
The outcome of the second civil damages claim is a clear demonstration to all companies that the risk exposure, once found to have contravened the Competition Act, is significant. Not only will companies not escape prosecution by the competition authorities once found out, the cost of defending civil claims can take its toll let alone the award of a civil claim in itself.
Learning from the SAA history, it clearly highlights the importance of understanding, when considering pricing structures as well as incentive arrangements aimed at enhancing company performance, that competition law risks should be considered and not ignored.
SAA spokesperson Tlali Tlali stated post the Comair judgment and award that the airline has taken note of the judgment involving SAA’s anti-competitive behaviour from 1999 to 2005. He said this case related to legacy matters and that these arrangements by SAA were implemented by managers who have since left the company and “new business management processes were since introduced to ensure compliance with all relevant prescripts”.
CONCLUSION 
Let’s us live in hope that the newly implemented business processes at SAA will indeed bring about compliance with competition law and prevent further SAA financial exposure. Fines by competition authorities and civil claim awards can result in financial and credibility “poverty” for organisations. May all companies be diligent in their business practices in order for competition law misery not to awake executives in the morning and shame them at night.

Op-Ed: SAA’s civil damages burden piles up

Between 2009 and 2015, identity theft had increased by 200 percent in South Africa <a href="http://em2.medialist.co.za/wf/click?upn=hfiVmyxdZRIZhqX-2Br7xHk0OB5N755tozNZ7tK0kUMbcRWlmyeehTWLA9j-2FzLAxv3Paj4G2CWcJrTFi5kkoabpuaqmLR5-2BXevKAA0CSMiL0VCD-2BKac-2FUvtTsLgAI016Zp_tRf3qiqFWB3UmyMkmahQWiFzFW4cVq8txjkihMCQ1cgBv-2F7N0yTAZu1EIXCBirLPbJmQRl13WuNB0DKKLC7b-2FcATfoWo4xrI5wHmYEUaiQQXs2s-2F8gaHprzcdnWiLAA-2BHI-2Fnz6LlcRFaUa2eEcBat-2FYDHfowHSAEW07LkfkCxynbF-2FAcaTbep9QtgdffL-2BkvojhI4e2wXoXW-2F9rCtbW7Bg5e4pj6nUSqfzOJvX8zxwA-3D">according</a> to the South African Fraud Prevention Association. Men aged between 30 and 40 in Gauteng and KwaZulu-Natal are most likely to be targeted, it says.
&#8220;Identity theft can take many forms, but its impact can be devastating. Aside from the loss of cash, the consequences of identity theft can include stalking by sexual predators, damage to one’s hard-won reputation, and the traumatic discovery that one is wrongly suspected of a crime committed by somebody using one’s identity,&#8221; says David Loxton, Partner at law firm Dentons SA in Johannesburg. &#8220;In addition, there is something profoundly disturbing about the idea that somebody is assuming one’s identity.&#8221;
Identity theft occurs when an individual’s identity is used by a third party to gain some sort of unlawful advantage, usually financial. Identity theft can be used to rob the individual’s own accounts or to incur debt for the purchase of items. Medical identity theft is also on the rise. This is when fraudsters seek medical care under the identity of another person.
Worryingly, the theft of children’s identities is becoming more common. These are prized because they present a clean slate for the criminal to exploit.
Loxton says that identity theft requires the criminal to find out pertinent personal details about the target in order to assume his or her identity. Personal details are frequently obtained from banks and other paper records by so-called dumpster divers, or from redundant IT equipment and storage media disposed of carelessly at public dumps. Cell phones are a particular vulnerability as they are increasingly used to store sensitive information or transact, and yet can be easily lost or mislaid. Insecure public WiFi networks can also be exploited by hackers.
“People are incredibly careless about how they use electronic equipment in public. It’s easy for ill-intentioned people to take screenshots of sensitive spreadsheets on a laptop being used on a plane or any public space, and I have heard a job interview being conducted via a mobile phone on the Gautrain, with all sorts of personal and corporate information clearly audible to nearby passengers,” he says. “In addition, of course, using unsecured WiFi public networks also makes one’s device and data vulnerable.”
Phishing scams, aimed at conning people to reveal personal information, are also becoming even more frequent, and also more sophisticated.
Given the escalating risk of identity theft, Loxton suggests some common-sense precautions:
<ul>
<li>Shred or burn documents with sensitive, personal information on them. 
• Use strong passwords for digital devices and files. 
• Make sure that all devices are protected with anti-virus software and firewalls. 
• Use mobile devices wisely in public. 
• Guard against phishing. All digital correspondence, especially when attachments are used, should be treated with suspicion. 
• Don’t divulge personal information too readily—especially on social media. These channels are regularly trawled by criminals.</li>
</ul>
“Make sure you understand the concept of privacy, and why it is so important in the Information Age. Guard yours jealously,” Loxton concludes.
&nbsp;
&nbsp;

Identity theft: It can happen to you

The breaking news on the evening of the 07 March 2017, was that R24 million had been stolen from a plane at O.R Tambo International Airport.
The armed robbery occurred around 7:45 pm. The robbers had disguised themselves as uniformed police and carried fake ACSA permits.
The previous large heist at O.R Tambo happened in 2006, and involved R100 million in foreign currency. ACSA has
In the age of social media, Twitter was flooded with tweets about this tragic event. OR Tambo is the most important point-of-entry by air in Southern Africa and it is the regional hub for Southern Africa, with millions of visitors passing through it.
The World Economic Forum’s Travel &amp; Tourism Competitiveness Report always highlights that safety and security concerns as among the key reasons for a dampened demand for travel to South Africa.  Low levels of personal safety and security therefore lead tourists to consider other destinations, and this robs the country of the developmental potential of tourism.
The recent acts of xenophobia do very little to create confidence in the country for citizens and tourists. A country that cannot manage its internal affairs such as safety and security, and has Internally Displaced People (IDPs) because of xenophobic violence, becomes a failed state. Tourism is able to create labour intensive jobs because the growth of tourism leads to more jobs. The low barriers of entry for the majority of
On the other hand, tourism leads to more jobs and that in turn leads to economic growth. The low barriers of entry for the majority of tourism-related sectors means that it’s attractive for entrepreneurial activity for small and medium enterprises that create jobs at a faster pace. While the latest news is that the South African economy contracted in the fourth quarter of 2016, the tourism industry is oblivious to that reality as perennial growth is the order of the day. In 2016, tourism achieved a compounded growth of 13%, which is unheard of in a country that is struggling to achieve a mere 1% growth rate. Tourism has succeeded in a difficult enabling environment, whilst other sectors such as mining have experienced perennial decline further exacerbated by low commodity prices, and labour instability that had increased the cost of labour. Tourism has outperformed all
In 2016, tourism achieved a compounded growth of 13%, which is unheard of in a country that is struggling to achieve a mere 1% growth rate. Tourism has succeeded in a difficult enabling environment, whilst other sectors such as mining have experienced decline further exacerbated by low commodity prices and labour instability, which has also increased the cost of labour. Tourism has outperformed all
Tourism has outperformed all other economic sectors in South Africa for more than 10 years, and today is the number one foreign exchange earner, hence we call tourism the ‘’new gold’’. Our economy has changed, moving from production (mining, manufacturing) towards consumption (tourism, banking) which are services located in the tertiary sector of the economy, which are experiencing an upward trajectory in growth. South Africa must spend more time and resources in sectors of the economy that have more of a competitive advantage, and tourism is such a sector. South Africa is arguably the most beautiful country in the world, as we have the natural resource base above the soil to attract the world, as South Africa is basically a ‘’World in One Country’’. A favourable visa system remains a major stumbling block for tourists that wish to travel to South Africa. For many Africans, it’s much
However, an unfavourable visa system remains a major stumbling block for tourists who wish to travel to South Africa. For many Africans, it’s much easier to get an American visa than a South African visa, which means that business tourism events such as continental meetings are being taken to other African countries because South Africa is increasingly being seen as an impenetrable fortress.
Opportunities for shopping and leisure tourism are being missed. Just the previous week, the tourism industry had descended at Sandton Convention Centre for the business tourism exhibition #MeetingsAfrica17, where South Africa was showcasing its open for business tourism, a market that is high yield and not price elastic. The Department of Home Affairs must be commended for the 90 days visa-free travel between South Africa and Russia. This means that Russians can be actively attracted to destination South Africa.
Air access to bring more flights to South Africa would ensure that tourism increases its growth from 13% to possibly 50% if a more favourable environment is created for tourism. This crisis must not let us despair, it is pregnant with opportunities to demand a Commission of Inquiry into what happened at the OR Tambo International Airport. This is once again an opportunity for the tourism industry to indicate that the Tourism Safety Initiative (TSI) demands that we work closely to ensure safety and security for our tourist across the tourism value chain. An improvement in the safety and security for tourism primarily benefit the locals who will have better policing. The Tourism Crisis Management Plan must now kick-off as we seek to restore confidence in South Africa.
&nbsp;
Unathi Sonwabile Henama teaches tourism at Tshwane University of Technology and writes in his personal capacity.

Op-Ed: Will massive O.R Tambo heist affect tourism to South Africa?

The Minister of Finance announced that the dividend withholding tax will be increased from 15% to 20% with effect from 22 February 2017. One of the main reasons for this increase appears to be to close the gap between the effective tax rate for individual company shareholders who earn more than R1.5m per annum, as their top marginal tax rate has now been increased to 45%. The situation before and after the budget can be illustrated as follows:
&nbsp;
<table>
<tbody>
<tr>
<td width="138"></td>
<td width="222">Top marginal tax rate: local individuals</td>
<td width="239">Effective tax rate on dividends: local shareholder</td>
</tr>
<tr>
<td width="138">Before the budget</td>
<td width="222">41%</td>
<td width="239">39.8%</td>
</tr>
<tr>
<td width="138">After the budget</td>
<td width="222">45%</td>
<td width="239">42.4%</td>
</tr>
</tbody>
</table>
&nbsp;
This will mainly affect smaller companies whose shareholders can substitute between salaries and dividends. Listed and widely held larger companies have a variety of shareholders and the treatment of dividends differs for various categories of shareholders.
&nbsp;
<table>
<tbody>
<tr>
<td width="294">Type of shareholder (of larger companies)</td>
<td width="304">Withholding tax treatment</td>
</tr>
<tr>
<td width="294"></td>
<td width="304"></td>
</tr>
<tr>
<td width="294">Retirement  funds</td>
<td width="304">Exempt</td>
</tr>
<tr>
<td width="294">Unit trusts</td>
<td width="304">Taxable</td>
</tr>
<tr>
<td width="294">Non-residents in treaty countries</td>
<td width="304">Reduced withholding rates apply, where applicable *</td>
</tr>
</tbody>
</table>
&nbsp;
*Lower rates generally apply to South Africa’s main providers of capital
Tax on retirement fund distributions are deferred until members exit or receive pensions and unit trusts rely mainly on capital growth, so the increase in withholding tax may not be a big disincentive for investors in these vehicles.
The effective tax rate affects shareholders of smaller companies disproportionately compared to other categories of investors. The increase may limit tax arbitrage between salaries and dividends. However, small businesses owners may now be at a disadvantage compared to institutional investors and foreign investors. There does not seem to be an easy middle road here from a policy perspective, but it is possible that the negative effect of this on small businesses may have been underestimated.

Consequences of increase in dividend withholding tax for smaller businesses

World Bank Group President Jim Yong Kim issued the following statement on the devastating levels of food insecurity in sub-Saharan Africa and Yemen: Famine is a stain on our collective conscience. Millions of lives are at risk and more will die if we do not act quickly and decisively.
&#8220;We at the World Bank Group stand in solidarity with the people now threatened by famine. We are mobilizing an immediate response for Ethiopia, Kenya, Nigeria, Somalia, South Sudan, and Yemen. Our first priority is to work with partners to make sure that families have access to food and water,&#8221; he said.
&#8220;We are working toward a financial package of more than $1.6 billion to build social protection systems, strengthen community resilience, and maintain service delivery to the most vulnerable. This includes existing operations of over $870 million that will help communities threatened by famine. I am also working with our Board of Directors to secure the approval of new operations amounting to $770 million, funded substantially through IDA’s Crisis Response Window.&#8221;
The World Bank Group will help respond to the immediate needs of the current famine, but it is important to recognize that famine will have lasting impacts on people’s health, ability to learn, and earn a living. The World Bank will continue to work with communities to reclaim their livelihoods and build resilience to future shocks.
The Bank is working closely with the UN and other partners in all areas of its response. &#8220;We know that resolution to this acute crisis will not be possible without all humanitarian and development actors working together. We call on the international community to respond robustly and quickly to the UN global appeal for resources for the famine,&#8221; President Jim Yong Kim said. &#8220;To prevent crises in the future, we must invest in addressing the root causes and drivers of fragility today and help countries build institutional and societal resilience.”
Background
A famine means that a significant part of the population has no access to basic food, suffers from severe malnutrition, and death from hunger reaches unprecedented levels. Children under five are disproportionately affected. A famine can affect the well-being of a whole generation. Famine was officially declared on February 20 in South Sudan, impacting approximately 100,000 people, and there is a credible risk of other famines in Yemen, Northeast Nigeria, and other countries.
Ongoing conflicts and civil insecurity are further intensifying the food insecurity of millions of people across the region, and there is already widespread displacement and other cross-border spillovers. For instance, food insecurity in Somalia and famine in South Sudan are accelerating the flow of refugees into Ethiopia and Uganda. The UN estimates that about 20 million people in Nigeria, South Sudan, Somalia and Yemen are on the “tipping point” of famine. Drought conditions also extend to Uganda and parts of Tanzania. The last famine was declared in 2011 in Somalia during which 260,000 people died.

World Bank Group President calls for urgent action on hunger crisis

Women graduating from university in developed markets in 2020 could be the first generation to close the gender pay gap in their professional lifetimes, according to new research from Accenture that covers South Africa and other countries.
The report, “Getting to Equal 2017,” reveals that, within decades, the pay gap could close if women take advantage of three career equalisers and if business, government and academia provide critical support.
With these changes, the pay gap in developed markets could close by 2044, shortening the time to pay parity by 36 years. In developing markets, the changes could cut more than 100 years off the time to reach pay parity, achieving it by 2066 and for South Africa specifically by 2041 closing the gap at a faster rate than developing markets shortening the time to pay parity by 52 years.
“The future workforce must be an equal workforce. The gender pay gap is an economic and competitive imperative that matters to everyone, and we must all take action to create significant opportunities for women and close the gap more quickly,” said Gale Shabangu, Inclusion and Diversity lead at Accenture in South Africa.
<img loading="lazy" decoding="async" class="alignnone wp-image-91382 size-full" src="http://cnbc.africa/wp-content/uploads/2017/03/Accenture-gender-pay-gap.png" width="1262" height="626" />
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Accenture’s research found that, globally, a woman earns an average $100 for every $140 a man earns. Adding to this imbalance is the fact that women are much less likely than men to have paid work (50 percent and 76 percent, respectively). This contributes to a “hidden pay gap” that increases the economic inequities between men and women: for every $100 a woman earns, a man earns $258, the research shows while for South Africa this translates to: for every $100 a woman earns, a man earns $191.
The research also identifies several critical factors that affect a woman’s ability to achieve equal pay as early as university. Female undergraduates are currently less likely than their male counterparts to choose an area of study that they believe offers high earning potential (31 percent vs. 39 percent for South Africa) or aspire to senior leadership positions (53 percent vs. 64 percent locally). Additionally, only 53 percent of young women (vs. 71 percent of men) in South Africa adopt new technologies quickly and are also much slower in taking up coding and computing courses.
The report, which builds on Accenture’s 2016 research on closing the gender gap in the work place, offers three powerful accelerators to help women close the pay gap:
<ul>
<li>Digital fluency – the extent to which people use digital technologies to connect, learn and work</li>
<li>Career strategy – the need for women to aim high, make informed choices, and manage their careers proactively</li>
<li>Tech immersion – the opportunity to acquire greater technology and stronger digital skills to advance as quickly as men</li>
</ul>
Applying these career accelerators, combined with support from business, government and academia, could boost women’s income by 2030 by $3.9 trillion globally and $47.2b in South Africa enabling the country to reach parity in 2041.
“Gender equality is an essential element of an inclusive workplace, and this extends to pay,” said Pierre Nanterme, Accenture’s chairman and CEO. “Business, government and academia all have an important role to play in closing the gap. Collaboration among these organisations is key to providing the right opportunities, environments and role models to lead the way for change.”
Methodology 
Accenture surveyed more than 28,000 women and men, including undergraduates, in 29 countries. The sample included equal representation of men and women, representing three generations (Millennials, Gen X and Baby Boomers) across all workforce levels at companies of varying size. The margin of error for the total sample was approximately +/- 0.6 percent.
Survey data was analysed using econometric modelling to identify drivers of pay equality and career advancement and then combined with published data on education, employment, leadership and research from the World Bank, the OECD, World Economic Forum and the UN to then explore the potential impact of measures to improve equality. The pay gap calculations are based on Accenture’s economic model, which takes into account the lower percentage of women than men in paid work.
Countries included in the full study were Argentina, Australia, Austria, Brazil, Canada, Denmark, Finland, France, Germany, Greater China (includes Hong Kong and Taiwan), India, Ireland, Italy, Japan, Mexico, Netherlands, Norway, Singapore, South Africa, Spain, Sweden, Switzerland, United Kingdom and United States. Indonesia, Malaysia, Philippines, Saudi Arabia, and United Arab Emirates also participated in the survey.

Three critical accelerators to closing the gender pay gap for Class of 2020

Democratization in Africa 
On Thursday, 19 November 1863, during the Gettysburg Address, US President Lincoln defined democracy as a “government of the people, by the people, and for the people”. The method in which the people take part in this form of government is at the ballot box by voting in elections. Therefore, elections serve as the hallmark (but not the only way) of the practice of democracy in democratic systems.
Democratization has swept across the African continent since the end of colonialism, in the late 1950’s – from Ghana’s first presidential elections on 27 April 1960, to South Africa’s in 27 April 1994, and then to Nigeria’s first elections in 27 February 1999.
The Economist Intelligence Unit has revealed, in a <a href="http://www.eiu.com/Handlers/WhitepaperHandler.ashx?fi=Democracy-Index-2016.pdf&amp;mode=wp&amp;campaignid=DemocracyIndex2016">report</a>, the different categories of democratic systems across the world for the year 2016. Of the 19 full democracies in the world, one of them is an African country &#8211; Mauritius; of the 57 flawed democracies in the world, 7 are from Africa and include Cape Verde, South Africa, Namibia; of the 40 hybrid democracies, 14 are from Africa and include Kenya, Tanzania, Nigeria. The United States went from being a full democracy to being categorized as a flawed democracy in the 2016 report.
Excerpts from an Interview with Professor Jega (former chairman of INEC)
In a recent interview with <a href="http://www.bsg.ox.ac.uk/people/attahiru-muhammadu-jega">Professor Attahiru Muhammadu Jega</a> the former chairman of Nigeria’s Independent National Electoral Commission (INEC), who oversaw the 2011 and the 2015 general elections in Nigeria. He is the current and the inaugural Africa Initiative for Governance Visiting Fellow of Practice at Oxford University’s Blavatnik School of Government. He had the following to say about overseeing what was considered a widely applauded electoral process in Nigeria’s elections in what is, arguably, Africa’s giant nation.
Jega said the key message he emphasised while being at the helm of INEC was, “credible elections are the business of everybody, not only the work of an electoral commission, and all hands had to be on deck in order to deliver credible elections”. He acknowledged that the 2007 Nigerian elections were considered to be “the worst elections in the history of [the] country”. He further said that INEC engaged with civil society organisations, who had previously advocated for electoral reforms in Nigeria after the 2007 elections. Jega recognized and credited “the partnership with credible civil society organisations [as being] to a large extent responsible for the success of the 2011 as well as the 2015 general elections”.
When asked about the backdrop upon which he executed his mandate at INEC – given the loss of public confidence in the electoral process following the 2007 elections as well as the general public’s cynicism towards the electoral system in the country, Jega said, “a lesson they learnt quite early at INEC was that success would only be predicated on open and transparent conduct and gaining the confidence of all stakeholders”. He said, “The INEC [they] came into in June 2010 had a very negative image of being an electoral commission that was not considered as transparent […] and too cosy with the incumbent government”. He emphasised that it was a “herculean task for [his team in INEC] to clean the [commission] of that negative image”.
Whether there is a relationship between democracy and economic growth in Africa’s context, Jega said, “Most African countries have embraced democracy. There is a clear link (by scholars and theorists of democratization) between democracy and development. But what is constraining development in [some countries in] Africa is the poor conduct of elections – the lack of integrity in the way in which elections are conducted. The multiplicity of irregularities that characterize the conduct of elections in countries like Nigeria, which are diverse, is obstructive of the desires of development […]”. His advice to African countries that will be conducting elections in 2017: Kenya, Liberia, Rwanda and Angola is to bring integrity to the conduct of elections.
To the incumbent governments, he said: “Electoral Commissions are not just any government agency that can be incorporated in the incumbent regime’s governing agenda – they should be relatively independent and well-financed and given the freedom to organize and conduct elections with integrity”. As regards Jega’s advice to Electoral Commissions, he advised on the importance of focus despite criticism from both incumbent governments and the oppositions. He also advised on the significance of careful planning and the “meticulous implementation of their plans as well as the creation of a level playing field for all contestants and all political parties involved”.
The tenure of Jega, as the head of INEC was not without public opposition and controversy, with some politicians questioning some of his decisions. When Jega was specifically asked about the public incident when he was called “tribalistic” and “partial”, this is what Jega had to say: “The work of chairman of an electoral commission in a country like Nigeria, which is diverse and large, and also has a lot of religious and ethnic mobilisation brought into the conduct of elections, is very challenging”.
He noted the significant opposition he faced when he announced the decision to make use of the card-reader technology into the elections, and said: “Having accepted the job, I had to prepare my mind as to how to withstand the challenges which came with the job. When politicians from both sides, the government side and the opposition side are criticizing you, then you know you must be doing something right”. He said, however, that he knew that elections with integrity were difficult to achieve but not impossible.
When he was asked on whether he would run for elected office in Nigeria, he responded with a “No”. He said, “For now he will continue his work as an academic”.
Conclusion: Democracy &amp; Economic Policy
Scholars have <a href="http://voxeu.org/article/do-elections-developing-countries-improve-economic-policy">shown</a> that there is a correlation between conducting credible elections and economic policy in developing countries. In a study by the same scholars, it was concluded that the extent to which economic policy serves to improve is based on the frequency of elections – the more the better; it was also noted, however, that if such elections are of low-quality the fewer the elections the better – as low-quality elections “<a href="http://voxeu.org/article/do-elections-developing-countries-improve-economic-policy">may actually worsen policy</a>”.
The importance of competitive elections with integrity serve as the crux of a functioning and healthy democracy, where the electorate can hold their governments to account and where governments are disciplined to develop economic policy and improve good governance.
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Is there a relationship between democracy and economic growth?

In response to today’s announcement that the South African government has decided to revoke its notice to the UN of its intention to withdraw from Rome Statute, Amnesty International’s Africa Director for Research and Advocacy, Netsanet Belay said: “This formal revocation of the notice of withdrawal from the ICC presents yet another opportunity for the government of South Africa to rethink its decision to thwart the pursuit of justice. While the international community appears indifferent to mass atrocities committed with impunity around the world, it is even more important today that South Africa reclaims its position as a champion of African victims of crimes under international law.
 
&#8220;It remains to be seen if this revocation means a shift in Government’s intention to withdraw from the ICC or rather a temporary step to comply with the High Court decision and exhaust domestic procedures before formalising its withdrawal.
 “If the Government’s revocation of its withdrawal becomes permanent, it means the nation follows the lead of Gambia which also revoked its withdrawal from the Rome Statute recently.
 
“We urge South Africa to align itself with the majority of African states that have unequivocally rejected calls for withdrawal and stood firm in their support for the ICC.”
 
Amnesty International has today submitted a briefing to the Portfolio Committee on Justice and Correctional Services in response to the call for public comment on the proposed Implementation of the Rome Statute of the International Criminal Court Repeal Bill. Click here to download the briefing.
 
Background
 
The news of South Africa revoking its notification of withdrawal from the Rome Statute follows a decision by the North Gauteng High Court two weeks ago which held, in a case brought by the opposition Democratic Alliance, that the government’s action in withdrawing from the ICC without consulting Parliament was unconstitutional and invalid, and which ordered the government to revoke its withdrawal.
The government had officially deposited its instrument of withdrawal from the ICC with the United Nations on 19 October 2016. 
On 16 February 2017, Gambia also revoked its withdrawal from the Rome Statute.
 
The Parliamentary Portfolio Committee on International Relations and Cooperation today received a briefing by the Department of Justice and Constitutional Development on the High Court ruling on the ICC withdrawal and subsequent revocation.

South Africa: Revocation of withdrawal from the ICC a chance to rethink thwarting pursuit of justice

On Monday, March 6, small protests about plans to change the rations system for bread broke out in Egypt. By Tuesday, the number of protesters had swelled to hundreds in multiple cities across the country.
Security forces were uncharacteristically calm in their dealings with the protesters – mainly, perhaps, because many were elderly women – and ended up handing out free loaves of bread in some areas rather than suppressing the demonstrations with force.
These are the first significant protests directly related to the recent surge in prices brought about by economic reforms. They had been expected and more could follow.
The main gripe of the protesters was a change to the number of loaves allocated to each family using ration cards.
According to Reuters, there are two cards issued to the public. The normal plastic smart cards allow each family to buy five subsidised loaves of bread each day. There are also temporary paper cards issued to people waiting to receive the smart cards.
Bakers are authorised to sell bread at subsidised rates to customers with these temporary cards, but the government announced last week that the ration for them would be decreased from five loaves to three.
This move was meant to reduce the misuse of the temporary cards – bakers saying they sell more than they really do in order to benefit off of the subsidy.
Supply Minister Ali Moselhy apologised to citizens who had not received their bread due to the change and assured Egyptians that “every citizen has a right to bread.”
Videos posted online showed crowds blocking tram lines and railway tracks in the cities of Alexandria and Desouk. Protests also took place in Giza and the Minya governorate.
Understandably, the protests mostly took place in working class neighbourhoods, where the rising price of goods has had the biggest effect on livelihoods.
These protests come at a critical time for Egypt. The International Monetary Fund (IMF) is in the process of appraising the progress made on the reform agenda as part of the decision to release a second disbursal of the $12bn loan.
Although the IMF’s delegation has been postponed until April, any adverse effects of further protests, such as the slowdown of further reform implementations, poses significant risk to the loan programme and may prompt the IMF to freeze the second loan tranche – as was the case with Tunisia where the IMF has usually been rather lenient.
With the country having limited room to manoeuvre, this is likely not the first episode of rationalising food subsidies or inflationary reform action.
This forms part of the government’s aim to replace poorly targeted subsidies with programmes that directly support poor households.
There has been declining trend in riots and protests during President Abdel Fattah Al-Sisi’s time in office.
Analysts have ascribed the decline to the ratcheting up of repression against civil society and a general disengagement with politics. However, as 2011 and 2013 showed, the situation can change rapidly.
Mr Sisi is undoubtedly aware of this. The prompt apology by Mr Moselhy and the soft approach taken by the police show that he knows to handle the situation with care.
The situation warrants close watching as Mr Sisi’s popularity is low and the effects of the austerity measures are likely to persist for some time yet.
In 2011, protesters chanted “bread, freedom, social justice.” Bread was their first demand.

Egypt – Bread, freedom, social justice

The Competition Commission of South Africa has referred car carrier company Kawasaki Kisen Kaisha Ltd for a prosecution to the Tribunal for colluding on a tender for transportation of Toyota vehicles.
The Commission referred Kawasaki Kisen Kaisha Ltd (“K-Line”), a Japanese company operating in South Africa, to the Competition Tribunal for price fixing, market division and collusive tendering involving the transportation of Toyota vehicles from South Africa to Europe, the Mediterranean Coast of North Africa and the Caribbean Islands.
This follows the investigation by the Commission which found that K-Line, Mitsui O.S.K Lines Ltd (MOL), Nippon Yusen Kabushiki Kaisha Ltd (NYK), and Wallenius Wilhelmsen Logistics AS (WWL) fixed prices, divided markets and tendered collusively in respect of the shipment of Toyota vehicles from South Africa to Europe, North Africa, and the Caribbean Islands.
This conduct contravenes section 4(1)(b)(i),(ii) &amp; (iii) of the Competition Act 89 of 1998, as amended. The Commission’s investigation found that from at least 2002 to 2013 K-Line, MOL, NYK and WWL colluded on a tender issued by Toyota South Africa Motors (TSAM) to transport Toyota vehicles abroad from South Africa by sea.
The Commission found that K-Line, MOL, NYK and WWL agreed on the number of vessels that they were to operate on the South Africa to Europe routes at agreed intervals or frequencies. It also found that K-Line, MOL, NYK and WWL agreed on the freight rates that they were to charge TSAM for the shipment of Toyota vehicles.
In 2015, NYK and WWL admitted to colluding on this tender and settled with the Commission. NYK, also a Japanese company, paid an administrative penalty of R103 977 927.00. WWL, a Norwegian company, paid an administrative penalty of R95 695 529.00. MOL, another Japanese company, was not fined as it was first to approach the Commission and cooperated. MOL, NYK and WWL will cooperate with the Commission in prosecuting K-Line.
The Commission is seeking an order from the Tribunal declaring that K-Line, MOL, NYK and WWL contravened section 4(1)(b)(i),(ii) &amp; (iii) of the Act as well as an order declaring K-Line to be liable for payment of an administrative penalty equal to 10% of its annual turnover.
“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping lines in this region results in inflated prices for cargo transportation. Cartels of this nature increase the costs of trading in the region and render the region uncompetitive in the world markets. Such cartels have the effect of significantly derailing the economic growth of the region”, said the Commissioner of the Competition Commission Tembinkosi Bonakele.

S.A’s Competition Commission accuses Toyota carrier of collusion

The cool Highveld breeze snaps the corner of the neon-yellow safety waistcoat as she steps out of the office building into the yard, the white hard-hat sitting comfortably on her head.
Fortunate Mdanda takes confident strides in a traditionally male world of metal and machines. There are other women through the workshop doors, setting off sprays of sparks as they wield welders and grinders. Under Fortunate’s watchful eye as CEO of Smith Capital Equipment, there is an internship programme for women, and the company actively recruits female engineers.
Her background is not in engineering, but her corporate experience in business strategy, process and finance has amply equipped her for the position.
If you have a mind for business, there is no need to feel restricted to more traditionally female pursuits. “I’ve never looked at industries based on gender. I’ve looked at what one can contribute. So it is a consolidated effort of all the right skills within the business that makes it successful,” she says.
When Fortunate and Sipho Mdanda took ownership of Smith Capital Equipment on the 2nd of November 2015, the existing management and workforce were in for a major culture change.
After over two decades of democratic governance in South Africa, the company was still caught up in an apartheid time warp, with separate amenities for the races.
With racial and gender barriers swept aside, there was yet another sweeping change. The company’s 84 employees became shareholders.  
“We created a shareholding for both management and staff, across race, across gender, so it’s inclusive, it’s a very exciting space for all of us at Smith Capital,” says Fortunate.
But change always comes with some growing pains. “I must admit at the beginning it is a new concept when people are told they are shareholders. It comes with excitement, but they’re sort of sceptical. What does that bring? Is there money into our pocket immediately? So it took us a while to communicate the upside of being a shareholder and the responsibilities that come with being a shareholder,” she says.
“But now we’re at a space where we all really understand and are excited about being shareholders. People don’t just come in, do their work and walk out. There is transparency, there is excitement in terms of where the business is going, everyone shares in everything, the strategies of the business, the prospects, and we all share in the excitements and the challenges that we face as a business.”
The core business of this 43 year old company is the manufacturing of on-road aerial platforms and drilling rigs used for water well and hard rock surface drilling in the mining industry and pole planting for new infrastructure. Equipment is locally designed and manufactured, with drilling rigs and aerial platforms boasting over 90% local content.
Then there is the import side of the business, with truck mounted cranes brought in from Italy, as well as the ongoing service aspect of the business.
Through a recently introduced rental division, the company encourages local contractors, who experience financial barriers to entry and cannot afford upfront procurement the necessary capital equipment they need to deliver on contracts they obtain.
“This division is actually picking up very well,” Fortunate explains, “and also we are talking to other DFI’s in terms of coming up with a plan how we can support emerging contractors.”
Repairs and maintenance as well as regular load-testing are other important facets of the business.
More black industrialists are emerging with encouragement from the government. The biggest barrier to entry has been funding. “Now with the DFI (development finance institutions) being open to assisting entrepreneurs growing into being industrialists, I see endless opportunities being presented,” she says.
What is important here is that it goes beyond more than purely facilitating funding, but in providing support in skills training, and opening business opportunities and new markets.
“Sometimes you find you have the best product but you can’t put it out there, you can’t export it because you find every process when it comes to structured processes that you need to go through are actually barriers to making one successful.”
The Gauteng Provincial Government and the City of Ekurhuleni, where Smith Capital Equipment is headquartered, have made efforts to make it easier to do business.
Although the company had been exporting for years, it hadn’t been a major strategy. “Now we’re turning that around, we’re sending units into Africa, which is very impressive. We’re getting enquiries, a lot as well, because our products are African products, not South African products. They are designed for the African terrain. It is different to sending a product anywhere in the world. So we understand what Africa is about, we understand the terrain and we understand our neighbouring countries as well, so doing business with them is quite interesting and exciting and there is actually an increase in opportunities that are being presented.”
Smith Capital Equipment falls under the umbrella of Isipho Capital Holdings, which is wholly owned by Fortunate and her husband Sipho Mdanda. Their first acquisition was Kholeka Engineering, a manufacturer of truck bodies and trailers, based in KwaZulu-Natal.
“We funded it from our own savings. All we wanted to do was to have the skin in the game and to ensure that we can prove to ourselves that we can work hard and turn the business around. That happened and then came the Smith Capital deal. A few other deals are in the pipeline, so it’s quite exciting,” Fortunate says.
Because Smith Capital Equipment required considerable investment, the Mdandas secured a loan of R41 million (around $3 million) through the National Empowerment Fund. The company has since been identified as one of the 100 Black Industrialists by the Department of Trade and Industry, has established strong BEE credentials and is ISO 9001 registered.
Looking at the day-to-day operations of Smith Capital and the commitment and enthusiasm of their 84 shareholders, the dreams and plans for an expanding Isipho Capital Holdings seem bright and achievable. The future will tell if this is the birth of a new African business dynasty.
While there is much to do in running the business and creating and building an inclusive culture, there is much industry networking to be done as well.
“Sadly, engineer-run businesses are inward looking, that’s how Smith Capital was. But, with our experiences from corporate, you learn that business doesn’t come to you, you go look for business. You go make your presence felt and you get known what your offering is, which makes a world of difference. There is no platform that doesn’t exist in growing and advancing your business and creating the network that it might not be for the now, but next time around you thought that I met a certain person at dinner, and then you can just pick up with them and you make business,” Fortunate says.
While Fortunate has achieved much in the business arena, she defines as her biggest achievement her and Sipho’s two teenage children – 18-year-old son Luyanda and 15-year-old daughter Noluthando.
No doubt she is a great role model to Noluthando, as she actively supports the development of women in her industry. Her advice for young women wanting to break into any previously male dominated industry is to be positive and prepared to learn. “Open yourself to learning and embrace the opportunities. With anything you do there will be challenges, but if you’re open minded and positive about it and put in the hours in terms of the hard work, it works out well.”﻿

Jill De Villiers

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Egypt – Bread, freedom, social justice

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Jill De Villiers

Op-Ed: Will Uber disrupt manufacturing?

Op-Ed: S.A’s telecoms policy will stunt economic growth and stagnate technological development

Well educated people can lag behind in wealth

Op-Ed: SAA’s civil damages burden piles up

Identity theft: It can happen to you

Op-Ed: Will massive O.R Tambo heist affect tourism to South Africa?

Consequences of increase in dividend withholding tax for smaller businesses

World Bank Group President calls for urgent action on hunger crisis

Three critical accelerators to closing the gender pay gap for Class of 2020

Is there a relationship between democracy and economic growth?

South Africa: Revocation of withdrawal from the ICC a chance to rethink thwarting pursuit of justice

Egypt – Bread, freedom, social justice

S.A’s Competition Commission accuses Toyota carrier of collusion

Lifting hurdles even a crane can't

News Tips

Advertise With Us

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