Trade and industry Minister, Ebrahim Patel says inclusion of black industrialists and increasing the participation of youth and women in the manufacturing will expand the talent pool of the industry.
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Some good news is that sovereign analyst at Moody’s ratings agency, Lucie Villa says South Africa’s credit outlook remains stable and a change in the short-term is unlikely.
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Orlando Pirates interim coach Rulani Mokwena last lamented the lack of opportunity given to young coaches in South Africa. The 34-year-old is widely regarded as one of the brightest young minds in local football.
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Free State police say an intelligence-driven operation has helped curb sporadic attacks on shops owned by foreign nationals. Several shops remained closed on Tuesday in Thaba-Nchu east of Bloemfontein, after Ethiopian nationals reportedly received a threat for attack on their businesses on Monday.
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The family of renowned traditional healer, Credo Mutwa has requested additional renovations to his Kuruman home. The Northern Cape Department of Arts and Culture says the upgrade on top of the initial work was delayed.
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Johnny Ferreira admits that a club like Uthongathi FC have to live with the fact that they are a selling club rather than one that can readily buy new players.
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The South African Broadcasting Corporation has suspended three employees and unscheduled one freelancer after what it calls a “sabotage of president Ramaphosa’s speech” on gender violence and xenophobic attacks.
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Johannesburg – In a show of outrage against the spate of violence against women in children, many South Africans took to social media to share their fears of what was happening in their environments under the hashtags #EnoughIsEnough and #AmINext.
In recent weeks women have expressed how unsafe they feel, and late on Sunday, an Eastern Cape woman wrote on Twitter about her horrifying experience of having a bushknife-yielding man try to attack her after she got off a minibus taxi on Sunday night.
Motorists came to her rescue after they saw her crying hysterically on the road after running for her life.
The Sunday Independent spoke to five women who said they constantly looked over their shoulders in private and public spaces – living in fear of being attacked by men.
Sowetan resident Zola Zingithwa, 27, from said being raped was her biggest fear.
“When you are at home, you are suspicious of your relatives. When you are out or using public transport you are always suspicious of strangers around you. At school you are suspicious of teachers and anyone who is in a position of authority. When at work you are suspicious of your bosses and your male your co-workers. Basically, we are always suspicious that men around us are out to hurt us and we can never let our guard down,” she said.
Sowetan mother, Zamahayise Hlatshwayo, 28, said she was a survivor of domestic violence. The mother of a four-year-old girl said being a woman had become a curse, because of men who had sick fantasies. She said she lived in a constant panic for her daughter and herself.
"My ex-boyfriend was physically abusive towards me, he even hit me while I was pregnant. That made me paranoid and angry towards men. I don’t know who to trust anymore and it is so sad," she said.
Ladysmith’s Londiwe Ndlovu, 25, said women in her community lived in constant fear of syndicates that kill women to harvest their body parts.
The killers, she said, walked freely in the communities and caused a lot of tension.
“There is a brothel not far from my home and I am constantly scared that I could be kidnapped, drugged and trafficked. I fear all men – even my family members and neighbours – because there is not one that I look at and not think the worst of them. I am constantly worried," she said.
Zuurbekom’s Lydia Molelekoa, 18, said men were acting in contravention to the ideals she had understood men to represent in society.
"Growing up I was taught that men should protect us but it is scary that we now fear them the most. Being a woman in South Africa is a curse. I am constantly paranoid and worry that someone will rape or kill me," she said.
North Riding’s Melissa Shabala, 27, said fear had led her to fear being targeted, as a woman.
"You are forced to be aware of your surroundings, to downplay who you are. I have taken measures of how I dress and how I look so that I don’t ‘entice’ men. I feel trapped," she said.
For Bloemfontein Celtic midfielder Lucky Baloyi leading Celtic from the front with three of his teammates is something the player enjoys.
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Former South African Broadcast Corporation (SABC) COO Hlaudi Motsoeneng has confirmed to the State Capture Commission that he has met with the Gupta brothers on numerous occasions at their Saxonworld compound.
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Joburg’s Dennis Masilo, aka Prxfnd, was named South Africa’s hottest up-and-coming producer on Friday night at Kwa Ace in Khayelitsha, Cape Town.
This history in the making result comes just three months after premium cognac brand Rémy Martin partnered with award winning music star Riky Rick to search for South Africa’s next big beat maker.
“I’ve enjoyed every minute of being part of this game-changing competition,” says Riky Rick. “South Africa has some mad talent and having the chance to discover so many gifted music makers on this journey has been dope. But I’ve got to give it to my man Prxfnd, he blew us away and deserves the top spot, no question. I couldn’t be more proud!”
Prxfnd was up against three other finalists on Friday night, and judges Riky Rick and Master A Flat did not make it easy.
The pressure was on from the start as contestants played multiple beats during four rounds, in front of an energetic live audience.
Things really heated up in the final round as Prxfnd and runner-up Sptmbr Yngstr battled it out for the winner’s title. But it was Prxfund who pulled out all the stops, bringing a diverse mix of genres to the stage and demonstrating discernible music talent, which saw him secure the number one spot.
Riky Rick performing at the Rémy Producers SA grand finale. Picture: Supplied
Rémy Producers, which has taken the US by storm for five seasons, has now made a firm name for itself in South Africa, and everyone in music circles around the country are looking forward to its second season.
Speaking about the competition and plans for next year, Jerome Adonis, Rémy Martin Marketing Manager said, “Watching our dream become reality has been incredible, and we couldn’t be more thrilled with the outcome. We’d like to congratulate our amazing winner Prxfnd and also say thank you to all of those who took the time to enter, we were overwhelmed by the support and enthusiasm. All I can say now is watch this space, we’ll be revealing more about season two soon.”
As the winner of Rémy Producers South Africa season one, Prxfnd walked away with a brand new Apple MacBook Air and the once in a lifetime and career making chance to collaborate on a track with Riky Rick.
Prxfnd and Riky will be heading to the studio shortly to record and more details on the track’s commercial release will be shared in due course.
Credit rating agency Moody’s has lowered South Africa’s economic growth outlook to 0.7% from 1% for the 2019-20 financial year.
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The seven year old girl who was raped in a toilet cubicle at a Dros restaurant in Pretoria will on Wednesday testify in the Pretoria High Court.
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EFF leader Julius Malema says the Heads of the National Prosecuting Authority and the Hawks should not be used by those Malema claims are out to score political points.
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JOHANNESBURG – We save in order to spend in the future. To do this effectively, we need to know that our future spending power will be at least equal to current spending power, that the savings will “store value”. In this article I argue that global central banks have eroded “store of value” characteristics from traditional financial markets, such as cash and bonds, leaving investors to rely on property and equity as quasi store of value instruments. Negative interest rates raise the attractiveness of the age-old store of value, gold, and the store of value for the digital age, bitcoin.
Central Bank fiat money doesn’t store value
Dollars and rands stored value in the past but, almost without exception, government-issued monies do not hold value today. Using the relevant Consumer Price Index (CPI) in order to adjust the purchasing power of 1972 US dollars and South African rands (ZAR). Inflation has eroded purchasing power to such an extent that money is worth a fraction of what it was in 1972.
Why? We create a lot of these currencies. South Africa has created many more rands than the United States has created dollars, hence rands have depreciated more than dollars. The less scarce, the worse an asset holds its value. If Apple created 10 trillion iPhones would they have the same value? No. If lots of iPhones were to flood the market, it would make them less valuable and reduce the price.
Interest rates aren’t great, particularly in developed markets
Rather than just hold cash, we could hold short-term interest instruments. If the instruments yield interest above inflation then we know that our savings can beat inflation. The chart below shows the way in which real interest rates (interest rate less inflation) in the US and South Africa have gradually trended lower, reducing the ability to store value in these short-dated interest instruments. SA investors could store value in rands but they assume currency risk in this scenario, i.e., the rand could depreciate and erode global purchasing power.
Bonds generate sovereign risk
Alternatively, we could purchase longer-dated debt instruments (bonds), issued by governments or corporates. If the real bond yields (yield less inflation) are positive, our value might be maintained relative to inflation. Makes sense… but the uncertainty and risk increases notably at this point. What if inflation rises? What if government credit risk deteriorates and the bond loses value?
Bond yields are close to record lows across the developed world despite record high debt levels, so the probability that these assets will hold their value over the coming years is incredibly low. South Africa isn’t in nearly as an extreme situation as the developed world but the trend is the same. Lower rates, lower growth, higher debt and deteriorating credit risk. The graph below shows real index returns on SA bonds (in rands) and US bonds (in USD). Real US bond returns have flat-lined, while SA bonds have managed to keep pace with SA inflation so perhaps SA investors are able to store value in bonds, if they’re willing to assume currency, volatility and credit risks of the government.
Property used as a bank account
Another alternative to store value is financial assets, like equity and property. These assets are directly linked to economic activity, through revenues, rentals and asset ownership, so extended periods when they underperform inflation are rare. Most people don’t view these financial assets as stores of their value. Clearly, there is a grey area but some people are definitely using these assets as growth generating investments AND stores of value because we cannot store our value in money or short-term interest rates. On reflection, many people use properties as bank accounts, dipping into their bond during periods of financial stress (dis-saving) and paying down the bond during better times (saving). Data (below) suggests that property was a prudent investment strategy prior to the sub-prime mortgage bubble in 2008 but that property markets have failed to beat inflation effectively thereafter.
With equity, there are times when real returns are negative, exposing savers to volatility and draw-downs, but they’re certainly positive through time. Property and equity generally benefit from lower interest rates because people tend to use debt to purchase these assets. Additionally, interest rates are the discount parameter used when valuing future corporate incomes. As interest rates fall and debt rises, the price of property and equity might continue to rise. It is, however, also important to note that these assets aren’t cheap today so the long-term return potential isn’t as wonderful as it has been. Low interest rates also hinder long-term sustainable economic activity by dissuading savings and encouraging capital consumption, which dampens the long-term return potential from these growth-centric asset classes.
‘Precious’ for a reason
Gold has been used as a pure store of value throughout history because it’s scarce, difficult to mine and has limited productive usage. There is a finite amount of gold in the world; approximately 190K tonnes above ground and supply only grows between 1% and 2% each year. Unlike government-issued monies, where the central bank can just create more, it’s tough to increase gold supply. Unlike most other commodities, gold is also not really used in production so it’s never destroyed. The stock of gold above the ground continues to grow, which implies that the ratio between the existing stock and the flow of newly available gold is incredibly high. In fact, gold’s stock-to-flow ratio is the highest amongst all commodities, which is exactly why the market chose gold as the monetary medium for thousands of years. It’s called a “precious” metal for a reason and it’s not because it’s yellow and shiny! Silver has similar characteristics to gold, but not nearly as high a stock-to-flow ratio, which is why silver has been called “the poor man’s gold” and used as a risky alternative to gold.
Clearly gold is more volatile than fiat currencies but, through the cycle, it has a superior ability to maintain purchasing power.
What does the future hold?
Since the 1980s, central banks have used low-interest rate policy to stimulate economic activity without considering the consequences of their actions. Post-2000 policies went full whack-a-mole with negative rates and Quantitative Easing. Bond yields are negative in Japan and Europe, which is extraordinary! Bondholders pay the government for holding their debt! The further central banks exacerbate this monetary corruption trend, the greater likelihood of negative interest rates on actual bank deposits – criminal!
Where people could historically store their savings in money, lower and lower rates implied that investors had to seek out alternative stores of value. Bonds, property, art, classic cars, or equity are options but they all come with their own risks and they aren’t the intended use-case for these assets. As central banks exacerbate the negative interest rate path and this pushes debt deeper into negative yields, investors will become increasingly interested in stores of value like gold. Bitcoin is a complex and unregulated technology with a host of risks but it holds similar constrained-supply-characteristics to gold. Continued global monetary corruption is the primary reason for increasing demand for store of value technologies.
Rob Price is an investor at an Asset Management firm in Johannesburg. The views expressed here are his own.
Toyota Cheetahs player Abongile Nonkontwana on Tuesday paid tribute to Chester Williams – the former Springbok wing who died last Friday. Williams was part of the Springboks 1995 Rugby World Cup winning squad. Nonkontwana, a versatile loose-forward who is equally comfortable on the side or the back of the scrum, has thanked Williams for the […]
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The Toyota Cheetahs are the 2019 Currie Cup winners who snatched the glory under the guidance of outgoing coach Franco Smith. Smith led the side to their sixth Currie Cup victory. This was the 47-year olds’ second cup triumph at the helm of the Free State franchise. After beating the Xerox Golden Lions 31-28 in […]
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Former SABC COO, Hlaudi Motsoeneng, has told the Commission of Inquiry into State Capture that he has never lied to the public broadcaster about having a matric certificate.
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