South African companies’ profits growth has waned. Using net operating surplus (gross operating surplus adjusted for consumption of fixed capital), calculated from South Africa’s national accounts data, as a proxy, shows the advance in total companies’ profits (financial plus non-financial companies) weakened markedly in recent years, following a temporary bounce in the immediate aftermath of the “Great Recession”. Indeed, in 2013, profit growth was the weakest since 1998.
Major banks in South Africa are partnering with Fintech start-ups to drive productivity in the financial sector and capture new markets. With the spotlight on the role of SMEs in the local economy, collaborations between Fintech and conventional banking can develop financial services that are highly personalised and more affordable to small businesses. In this article, Daniel Goldberg – co-founder of Bridgement – provides commentary on the potential impact of collaborations between fintech start-ups and established banking institutions.
On the 21st of February 2018, the former Minister of Finance Malusi Gigaba delivered the 2018/2019 national budget speech. The article looks briefly at the key highlights of the 2018 National Budget speech, and provides links to the full speech, tax guide, and a comprehensive summary of the budget speech highlights to allow for a more in-depth analysis of the speech.
On the 20th of February 2019, the Minister of Finance Tito Mboweni delivered the national budget speech for 2019. As Mboweni highlighted in his speech, the aim of the 2019 budget is to achieve a higher rate of economic growth; increase tax collection; establish reasonable, affordable expenditure; stabilise and reduce debt; reconfigure state-owned enterprises; and manage the public sector wage bill. Find out more about the budget and the impact it will have on your life as a citizen and entrepreneur.