The financial services, products or investments referred to on this website are not available to persons resident in jurisdictions where their availability or distribution would contravene local laws or regulations and the information on this website is not intended for use by these persons. This website is for information only and does not in any way constitute a solicitation or offer by Nedgroup Investments Proprietary Limited, Nedgroup Investments (IOM) Limited or any of their associates or subsidiaries (collectively “Nedgroup Investments”) to buy or sell any financial products or to provide any investment advice or service.
Nedgroup Investments uses third party cookies to improve website users online experience. By looking at and understanding users browsing preferences we are able to provide content that is most relevant.
By clicking the ‘I agree’ button below I hereby confirm that:
(a) I have read and understand the above; and
(b) The laws of my home jurisdiction does not prohibit the communication of the information contained in this website; and
(c) I am not acting for the benefit of any such persons mentioned in (b); and
(d) Any investment with Nedgroup Investments is based on my own initiative and not due to any offer or solicitation by Nedgroup Investments.
(e) I have read and accept the use of all cookies in accordance with Nedgroup Investments Privacy Policy and Cookie Policy.
Cookie Policy
This policy describes the type of information collected by cookies used on the Nedgroup Investments public website (www.nedgroupinvestments.com) ‘the website’ and what that data is being used for. By continuing to browse the website you are agreeing to use our cookies.
What about cookies?
A cookie is a small data file that is essential for the proper functioning of the website. Cookies do not retrieve information about you stored on your hard drive, or corrupt or damage your computer or computer files.
How do we use cookies on this website?
The cookie settings on the website are set to “allow all cookies” to give you the best user experience. When you visit the website cookies will be transferred to your computer's hard drive through your browser. These cookies are completely safe and secure and will never contain any sensitive information.
We use the following cookies:
Session cookies (or ‘strictly necessary’ cookies) are automatically generated and we do not have control over it.These cookies are needed to make the website service work and include, for example, cookies that enable you to log into secure areas of the website.
Analytical cookies. They allow us to recognise and count the number of website users and to see how visitors are using the website. This helps us to improve the way the website works, for example, by ensuring that users are finding what they are looking for easily.
We use Google Analytics and Adobe Analytics to monitor website usage. Data collected via Adobe Analytics are used to generate internal reports. These reports are for internal purposes only and are not shared with external parties.
Demographic data cookies. Regional information about the user such as country code and city are collected. The IP address of the website user is used to check location but we don’t store it in the cookie.
Demographic cookies are also used to generate internal reports to better understand user behavior. These reports are for internal purposes only and are not shared with external parties. Examples of demographic data cookies include isoCode, urrentCity and Preflocation.
Social Media data. We use a facebook page to promote campaigns. In order for this service to work, a script, in other words a line of code has been included within the website as requested by our 3rd party vendor Flume.
Site security data. These cookies are used as an anti-forgery method to prevent cyber attacks. An example of anti-forgery cookie is RequestVerificationToken.
Site performance data. These cookies are used to monitor the performance of the site and detect anomalies. An example of a site performance cookie is ai_user, c_user.
Privacy Policy
This privacy policy tells you about the information we collect from you when you use our website (www.nedgroupinvestments.com).
The website is shared by Nedgroup Investments Proprietary Limited and Nedgroup Investments (IOM) Limited (collectively “Nedgroup Investments”) and is administered from South Africa by Nedgroup Investments Proprietary Limited.
Nedgroup Investments Proprietary Limited are considered to be the data controller of information generated by the website except in the instances where you register and use Nedgroup Investments (IOM) Limited’s secure portal or submit enquiries to them via the website. In these cases only, Nedgroup Investments (IOM) Limited will be the controller of your data.
This policy provides you with information about why and how we use your data, and about the rights you have over your data.
If you have any questions about this policy or do not agree with it, please contact us before using the website.
By using any part of the website or providing personal information to Nedgroup Investments you acknowledge the processing of your personal information as set out in this policy.
General principles
Nedgroup Investments is committed to keeping your information private. By 'your information' we mean any information about you that you or third parties provide to us. This policy relates to the privacy of your information at the website.
When you use our website
When you use our website a number of cookies are used by us to allow the website to function, to collect useful information about visitors and to help to make your user experience better.
Some of the cookies we use are strictly necessary for our website to function, and we don’t ask for your consent to place these on your computer.
However, for those cookies that are useful but not strictly necessary we will always ask for your consent before placing them.
For more information about our use of cookies, please see our cookie policy.
In general, you can use the website without giving us any information. Any domain name information that we collect is not used to personally identify you but is instead aggregated to measure the number of visits, average time spent on the website and pages viewed. We use this information to measure the use of our website and to improve its contents.
When you submit an enquiry via our website
When you submit an enquiry via the ‘Contact Us’ sections of our website, you supply us with your name, your email address and the detail of your enquiry.
We use this information to respond to your query, which includes providing you with any requested information about our products. We may also email you several times after your enquiry in order to follow up on your interest and ensure that we have answered it to your satisfaction.
Your enquiry is processed via your chosen office being the Isle of Man (International), Cape Town, Durban or Johannesburg and they will be retained in the same location.
We do not use the information you provide to make any automated decisions.
When you subscribe to our newsletter
Where you have subscribed to our newsletter for quarterly updates on the investment industry, we will use this information only for the intended purpose. We will not use it for additional marketing purposes, nor will we share it with any other third parties.
You may unsubscribe from this newsletter at any point online or by contacting our Cape Town office who are responsible for its administration.
When registering and using the secure websites
When you register to use our online secure site investment services (South Africa – https://nww-nedgroupinvestments.nedsecure.co.za or International - https://ngi.nedsecure-int.com) we will ask you to provide standard identification information about yourself for security, identification and verification purposes.
When completing our online forms
When completing any online forms, we will tell you how your information will be used in relation to the product or service you’re applying for, within the form and in any associated terms and conditions.
Where you provide information about others (for example, for joint accounts or if you are ‘recommending a friend’) you must ensure that you have their authorisation or are otherwise entitled to provide this information to us.
Security
We will ensure we have appropriate physical and technological security measures to protect your information regardless of where it is held.
We will ensure that when we outsource any processes, the supplier has appropriate security measures in place and will contractually require them to comply with these privacy principles.
We will ensure that suitable safeguards are in place before personal information is transferred to other countries.
Retention
We will only retain your information for as long as we need it, given the purpose for which it was collected, or as required by law and any other statutory obligations, including anti-money laundering, counter-terrorism, tax legislation. Your information may be retained for a maximum of 6 years from the end of our relationship; however some of it will be retained for less than this. We will take all reasonable steps to destroy or erase the data from its systems when it is no longer required.
Your right to complain
If you have a complaint about our use of your information, we would prefer you to contact us directly in the first instance so that we can address your complaint.
Updates to this privacy policy
We regularly review and, if appropriate, update this privacy policy from time to time, and as our services and use of personal data evolves. If we want to make use of your personal data in a way that we haven’t previously identified, we will contact you to provide information about this and, if necessary, to ask for your consent.
Disclaimer
The financial services, products or investments referred to on this website are not available to persons resident in jurisdictions where their availability or distribution would contravene local laws or regulations and the information on this website is not intended for use by these persons. This website is for information only and does not in any way constitute a solicitation or offer by Nedgroup Investments Proprietary Limited, Nedgroup Investments (IOM) Limited or any of their associates or subsidiaries (collectively “Nedgroup Investments”) to buy or sell any financial products or to provide any investment advice or service.
Nedgroup Investments uses third party cookies to improve website users online experience. By looking at and understanding users browsing preferences we are able to provide content that is most relevant.
By clicking the ‘I agree’ button below I hereby confirm that:
(a) I have read and understand the above; and
(b) The laws of my home jurisdiction does not prohibit the communication of the information contained in this website; and
(c) I am not acting for the benefit of any such persons mentioned in (b); and
(d) Any investment with Nedgroup Investments is based on my own initiative and not due to any offer or solicitation by Nedgroup Investments.
(e) I have read and accept the use of all cookies in accordance with Nedgroup Investments Privacy Policy and Cookie Policy.
User Agreement Non-qualified Investor
Nedgroup Investment Funds PLC
The state of the origin of the Fund is Ireland. In Switzerland, the Representative is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zürich, whilst the Paying agent is Banque Heritage SA, route de Chêne 61, 1211 Geneva 6, Switzerland. The Basic documents of the Fund such as the prospectus, the key investor information document (KIID), the articles of association as well as the semi-annual and annual reports may be obtained free of charge at the office of the Swiss Representative. The current website is intended for information purposes only and shall not to be used as an offer to buy and/or sell shares. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming shares. Past performance may not be a reliable guide to future performance.
Cookie Policy
This policy describes the type of information collected by cookies used on the Nedgroup Investments public website (www.nedgroupinvestments.com) ‘the website’ and what that data is being used for. By continuing to browse the website you are agreeing to use our cookies.
What about cookies?
A cookie is a small data file that is essential for the proper functioning of the website. Cookies do not retrieve information about you stored on your hard drive, or corrupt or damage your computer or computer files.
How do we use cookies on this website?
The cookie settings on the website are set to “allow all cookies” to give you the best user experience. When you visit the website cookies will be transferred to your computer's hard drive through your browser. These cookies are completely safe and secure and will never contain any sensitive information.
We use the following cookies:
Session cookies (or ‘strictly necessary’ cookies) are automatically generated and we do not have control over it.These cookies are needed to make the website service work and include, for example, cookies that enable you to log into secure areas of the website.
Analytical cookies. They allow us to recognise and count the number of website users and to see how visitors are using the website. This helps us to improve the way the website works, for example, by ensuring that users are finding what they are looking for easily.
We use Google Analytics and Adobe Analytics to monitor website usage. Data collected via Adobe Analytics are used to generate internal reports. These reports are for internal purposes only and are not shared with external parties.
Demographic data cookies. Regional information about the user such as country code and city are collected. The IP address of the website user is used to check location but we don’t store it in the cookie.
Demographic cookies are also used to generate internal reports to better understand user behavior. These reports are for internal purposes only and are not shared with external parties. Examples of demographic data cookies include isoCode, urrentCity and Preflocation.
Social Media data. We use a facebook page to promote campaigns. In order for this service to work, a script, in other words a line of code has been included within the website as requested by our 3rd party vendor Flume.
Site security data. These cookies are used as an anti-forgery method to prevent cyber attacks. An example of anti-forgery cookie is RequestVerificationToken.
Site performance data. These cookies are used to monitor the performance of the site and detect anomalies. An example of a site performance cookie is ai_user, c_user.
Privacy Policy
This privacy policy tells you about the information we collect from you when you use our website (www.nedgroupinvestments.com).
The website is shared by Nedgroup Investments Proprietary Limited and Nedgroup Investments (IOM) Limited (collectively “Nedgroup Investments”) and is administered from South Africa by Nedgroup Investments Proprietary Limited.
Nedgroup Investments Proprietary Limited are considered to be the data controller of information generated by the website except in the instances where you register and use Nedgroup Investments (IOM) Limited’s secure portal or submit enquiries to them via the website. In these cases only, Nedgroup Investments (IOM) Limited will be the controller of your data.
This policy provides you with information about why and how we use your data, and about the rights you have over your data.
If you have any questions about this policy or do not agree with it, please contact us before using the website.
By using any part of the website or providing personal information to Nedgroup Investments you acknowledge the processing of your personal information as set out in this policy.
General principles
Nedgroup Investments is committed to keeping your information private. By 'your information' we mean any information about you that you or third parties provide to us. This policy relates to the privacy of your information at the website.
When you use our website
When you use our website a number of cookies are used by us to allow the website to function, to collect useful information about visitors and to help to make your user experience better.
Some of the cookies we use are strictly necessary for our website to function, and we don’t ask for your consent to place these on your computer.
However, for those cookies that are useful but not strictly necessary we will always ask for your consent before placing them.
For more information about our use of cookies, please see our cookie policy.
In general, you can use the website without giving us any information. Any domain name information that we collect is not used to personally identify you but is instead aggregated to measure the number of visits, average time spent on the website and pages viewed. We use this information to measure the use of our website and to improve its contents.
When you submit an enquiry via our website
When you submit an enquiry via the ‘Contact Us’ sections of our website, you supply us with your name, your email address and the detail of your enquiry.
We use this information to respond to your query, which includes providing you with any requested information about our products. We may also email you several times after your enquiry in order to follow up on your interest and ensure that we have answered it to your satisfaction.
Your enquiry is processed via your chosen office being the Isle of Man (International), Cape Town, Durban or Johannesburg and they will be retained in the same location.
We do not use the information you provide to make any automated decisions.
When you subscribe to our newsletter
Where you have subscribed to our newsletter for quarterly updates on the investment industry, we will use this information only for the intended purpose. We will not use it for additional marketing purposes, nor will we share it with any other third parties.
You may unsubscribe from this newsletter at any point online or by contacting our Cape Town office who are responsible for its administration.
When registering and using the secure websites
When you register to use our online secure site investment services (South Africa – https://nww-nedgroupinvestments.nedsecure.co.za or International - https://ngi.nedsecure-int.com) we will ask you to provide standard identification information about yourself for security, identification and verification purposes.
When completing our online forms
When completing any online forms, we will tell you how your information will be used in relation to the product or service you’re applying for, within the form and in any associated terms and conditions.
Where you provide information about others (for example, for joint accounts or if you are ‘recommending a friend’) you must ensure that you have their authorisation or are otherwise entitled to provide this information to us.
Security
We will ensure we have appropriate physical and technological security measures to protect your information regardless of where it is held.
We will ensure that when we outsource any processes, the supplier has appropriate security measures in place and will contractually require them to comply with these privacy principles.
We will ensure that suitable safeguards are in place before personal information is transferred to other countries.
Retention
We will only retain your information for as long as we need it, given the purpose for which it was collected, or as required by law and any other statutory obligations, including anti-money laundering, counter-terrorism, tax legislation. Your information may be retained for a maximum of 6 years from the end of our relationship; however some of it will be retained for less than this. We will take all reasonable steps to destroy or erase the data from its systems when it is no longer required.
Your right to complain
If you have a complaint about our use of your information, we would prefer you to contact us directly in the first instance so that we can address your complaint.
Updates to this privacy policy
We regularly review and, if appropriate, update this privacy policy from time to time, and as our services and use of personal data evolves. If we want to make use of your personal data in a way that we haven’t previously identified, we will contact you to provide information about this and, if necessary, to ask for your consent.
The Nedgroup Investments website utilises cookies. By closing this message, you consent to our cookies in accordance with our Cookie Policy.
It is now 23 months since President Ramaphosa was elected president of the ANC and 21 months since he took over from Jacob Zuma. He set himself two tasks: rebuild the ethical foundations of the state (reclaim it from state capture) and revitalise the economy.
In this note, we look at Ramaphosa’s other priority, the economy.
Sept 2018
In his seventh month in office (Sept 2018), Ramaphosa announced an economic recovery package. The package consisted of 25 actions. In our evaluation 11 of these have been done; 5 are in process; 3 have not been done (all 3 to do with extra money); and on 6 we could not obtain hard data.
The recovery plan was clearly not strong enough. Growth remained anaemic and unemployment got worse. Growth this year will be 0,5% against 0,8% in 2018. As Danie Craven liked to say, look at the scoreboard. The first attempt to ignite growth has not worked. Clearly the country needs a strong dose of structural reform to get growth going. What is the score on that?
(Some people argue the Reserve Bank should lower interest rates radically and Treasury should increase the budget deficit further to ignite growth – neither of those will be done by this administration so we will not discuss these arguments further.)
1. Structural reform
Labour relations
The requirement for unions to hold a secret strike ballot amongst their members before engaging in a strike is now part of labour law. It was fiercely resisted by unions and some even threatened a constitutional challenge, which has not happened.
A second measure, the youth wage subsidy, that the unions also opposed aggressively has been extended for another ten years.
A third fiercely opposed measure, the evaluation of teachers, has been agreed. On 3 September an agreement was signed with the education union, SADTU, for a quality management system in schools. The system is detailed and comprehensive, will begin on 1 January 2021 and teachers will be evaluated twice a year.
So much for the conventional wisdom that government can’t introduce policies the unions disagree with…
Energy and Eskom
The Integrated Resource Plan (IRP) was finalised and gazetted. This must be read with the government’s plans for Eskom. These are truly ground-breaking policy initiatives as an entire sector (electricity) currently dominated by a government monopoly (Eskom) will be turned on its head. Some dismiss these policies as insufficient and ‘it-will-not-happen’, partly based on the ‘unions-will-not-allow-it’ argument. Government has signalled a strong political desire to implement these initiatives and I am happy to place my bet that this will happen.
The IRP and Eskom proposals will together unlock massive investment, expand the role of the private sector considerably and significantly expand sectors like gas and wind power.
The short-term issues outstanding here are the appointment of an Eskom CEO, authorising 2 000 MW of new capacity to plug Eskom load-shedding and the finalisation of 17 applications for own-generation licenses sitting on the minister’s desk.
Telecommunications
Government has finalised its policy on spectrum-licensing and handed it over to ICASA for implementation. ICASA released its guidelines on how 4G and some 5G spectrum will be allocated, and the public now has 90 days to comment. At the Investment Summit last week telecommunications executives were very enthusiastic about the possibilities the new spectrum will bring.
Collaboration in sectors
The success of the South African automotive industry is well known and continues. Already auto exports are 19% up on 2018. The success of the motor industry is the product of government and private sector collaboration, resulting in an industry or sector plan. The motor industry support plan was recently extended from 2020 to 2035, providing policy certainty. Similar sector plans have now been developed for the clothing, textile and leather, and poultry industries. There is also one underway for the sugar farming and production industry.
The PPGI (public private growth initiative) is led by Roelf Meyer and Toyota’s Johan van Zyl, with full support from government. It covers 19 sectors with 43 projects where the private sector has committed to invest R843 billion over five years, provided identified obstacles are removed.
The relevance of these agreements is that they bring business and government together in the same room to work on what investment is needed to grow a sector and what impediments should be removed. It is the secret behind Japan’s success, where Van Zyl is currently working and from where he brought the idea to South Africa.
2. Visas
Seven countries were added to the list of countries from where travellers can enter South Africa without visas, making it a total of 99 countries that don’t require South African visas. South Africans enjoy visa-free travel to 75 countries. To reach the president’s target of doubling tourist arrivals, arrivals from India and China will have to be tackled even more. This can happen through e-visas and South Africa’s first e-visa facility will go live this November.
The birth certificate requirement has been abolished for foreigners and South Africans, but South Africans must show ‘parental consent’ when travelling with children.
Tourism envoy Derek Hanekom observes that the changed visa regime has not yet ‘filtered to international airlines and embassies’. Presumably part of the work of the tourism envoy will be to make them aware.
The president set the target that visas for skilled applicants must now be finalised within a week and in due course he wants to get it down to one day.
3. Ease of doing business
South Africa has gained seven places in the Global Competitiveness Report (60th out of 141 countries) but lost two in the Ease of Doing Business Report (84th out of 189 countries). The president has set the goal of being amongst the top 50 for Ease of Doing Business.
At the Investment Summit he announced the launch of Biz Portal where a business can be registered, and at the same time also register for tax, a domain name, a BEE certificate, the Compensation Fund, the Unemployment Insurance Fund and open a business bank account. The goal is to be able to register a business in one day.
4. Investment
The President has hung his hat on increased investment. There is a quantitative target (R1,2 trillion by 2023) and an institutional target (establishing an Infrastructure Fund). Judging by last year and this year’s investment conferences, he will comfortably reach the target in two years more than R660 billion was mobilised. Still three years to go.
South Africa Reserve Bank numbers confirm the investment turnaround. In the second quarter of this year gross fixed investment increased by 6% after 5 quarters of decline. Gratifying is that public corporations and government invested less, whilst the private sector rebounded sharply. Could it be that the election had to be finalised before businesses started investing?
The Infrastructure Fund will leverage investments from foreign financial institutions like asset managers and banks. The president must be exasperated with the slow progress. True, a CEO was announced in the mini budget (the very competent Dr Sean Phillips), but legislation is required and Treasury has yet to submit that. Ambition also had to be toned down. Initially government would have contributed R400 billion to the Fund, but this figure is now R100 billion over ten years. The wheels of bureaucracy grind slowly; and Eskom is slurping up money that could have gone to investment.
5. Prescribed assets
On 4 November the finance minister made it clear in parliament that prescribed assets will not be introduced. It was always unlikely that prescribed assets would be introduced while government is trying to entice the private sector to participate in the Infrastructure Fund. It is also unlikely when there is a deep capital market that can provide loans to a money-starved government.
6. Structural reform must also be about inclusion, not just the formal economy
Structural reform cannot just be about big sectors and the formal economy. It must also result in more inclusion.
In the September 2018 recovery package, the president made a point of including informal, township and rural economies. Five of the 25 actions in this package relate to these economies. At the Investment Summit he reiterated again: ‘Our broader strategic vision (is) catalysing economic activity in our districts, municipalities and provinces.’
Textiles, poultry and sugar farming are labour intensive industries with big scope for emerging farmers.
Government’s policy directive to ICASA specifically makes provision for black-owned small enterprises in the telecoms sector through a WOAN (Wireless Open Access Network) mechanism. It will boost black participation considerably.
Government has released 167 000 units of land belonging to SOEs (totalling 14 100 ha) for redistribution to citizens. Thirty-year leases on 1 400 farms have also been signed with beneficiary farmers.
So what?
• The president has repeatedly made it clear that the government will not spend its way to growth and will maintain strict fiscal and monetary discipline. That has happened. The deterioration of South Africa’s fiscal position has to do with low growth and mismanagement/theft at the SOEs.
• Big structural reforms have been announced in energy and telecommunications. It will unlock many billions in investment and is considerably more growth friendly than anything in the Sept 2018 package.
• Growth is also being pursued through addressing constraints like visas and ease of doing business; and getting business, government and labour to collaborate in selected sectors.
• Specific steps are being taken to enhance inclusion and create black-owned businesses.
• The president summarised his administration’s approach at the investment summit: ‘Over the past 18 months we have made inroads. Our gains have been gradual, but they have been incremental and noteworthy. We are confident they will now gain further traction… ‘. He quoted a Confucian proverb: ‘The man who moves a mountain begins by carrying away small stones.’ This is how Ramaphosa governs.
Outstanding items on structural reform
It is useful to keep a check list of what still needs to be done. Readers’ views are welcome.
• There are the three Eskom/energy related issues referred to above; starting with the unbundling of the Eskom; and action on gas and wind power.
• The elephant in the room is stabilising the South Africa government’s debt. The finance minister set a goal of a primary balance by 2022/23. That will require R150 billion (R50 billion a year) in a combination of expenditure cuts and tax increases. By the February Budget in 2020 he will have to show a clear path to achieve his goal – about 100 days away.
• SAA, South African Express, SABC and Denel. Both the President and finance minister has intimated that a private equity partner is on the cards for SAA. South African Express must be dealt with decisively. The SABC management must show they can operate within budget.
• Judgement in the court case on the mining charter’s once-empowered-always-empowered dispute to finally clarify mining uncertainty.
• Finalisation of ‘expropriation without compensation’ to provide certainty about property rights.
• ‘Friction regulations’ like municipal approval for infrastructure roll outs and water permits as part of ‘Ease of doing business’.
• Acceleration of land reform in urban and rural areas.
• The 30% set aside for black businesses in the Public Procurement Bill.
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