SA Trade Minister Gazettes Financial Sector Transformation Code

Updated on 5 December 2017

Subscription Form (#66)

Today's Top Entrepreneurship And Business Stories (5 December)

Trade and Industry Minister, Rob Davies, has gazetted the Amended Financial Service Sector Code (FSC) after it received endorsement by Cabinet last week, his department said on Monday.

The FSC commits all participants to actively promote a transformed and competitive financial sector that reflects the demographics of South Africa, which contributes to the establishment of an equitable society by providing accessible financial services to black people and by directing investment into targeted sectors of the economy.

In a statement on Monday, Davies said that the Amended FSC was now a legally binding document on all entities and organisations operating in the financial sector.

Davies said that the financial sector in South Africa manages over R8 trillion assets, contributing 21.6 percent to the gross domestic product of the economy annually, and therefore transformation of the sector was vital for the country.

“Transformation of this sector is key because it is the life blood for all other sectors of the economy. The process to develop a charter emanated from the 2002 [National Economic Development and Labour Council] Nedlac Summit where stakeholders committed to a sector charter,” Davies said.

The Amended FSC has unique features and deviations that intent to address transformation peculiarities that exist in the sector.”

Davies approved and gazetted the FSC in terms of Section 9 (1) of the Broad Based Black Economic Empowerment (B-BBEE) Act.

It has also been agreed amongst stakeholders that post the gazette of the sector code there will need to be a review process taking into account the report of the recently held parliamentary hearings on transformation of the financial sector and other considerations.

The FSC has two unique elements called Empowerment Financing and Access to Financial Services, as a catalyst for empowerment.

The aim for Empowerment Financing is to ensure support for Black Owned entities (including Black Industrialists), Black Agriculture Funding necessary to assist with the land reform process, Transformational Infrastructure Financing (emphasis here is on funding of previously neglected areas such as townships and rural areas) and Low cost housing funding,” Davies said.

“In this regard no less than R122 billion shall be spend by the sector under Empowerment Financing to investment (black SMME finance, affordable housing, and infrastructure and Black industrialisation) and Risk Capital Finance and BEE transaction financing.” (via African News Agency)

Petrol, Diesel Price To Go Up This Week

South Africa’s energy department on Monday announced motorists will have to fork out 71 cents more per litre of petrol, while the wholesale price of diesel is set to increase between 57 cents and 60 cents a litre.

The department, in a statement, attributed the price hikes to the international prices of petrol, diesel and illuminating paraffin increasing, as well as currency fluctuations.

“The Rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period,” the statement said.

“This led to a higher contribution to the Basic Fuels Price on petrol, diesel and illuminating paraffin by 23.15c/l, 23.03c/l and 23.34c/l respectively.”

The wholesale price of illuminating paraffin will go up by 73 cents a litre, while the maximum retail price for Liquid Petrolium (LP) gas will increase by 204 cents per kilogramme.

The price increases take effect on Wednesday, December 6. (via African News Agency)

South African Black Business Group Suspends President Over Missing Donation

South Africa’s Black Business Council said on Monday it had suspended its president Danisa Baloyi pending an investigation into a missing R5 million donation.

The black business lobby group said last week that Airports Company South Africa had confirmed making the donation, but that the money was not deposited into BBC’s bank account.

On Monday it said a decision had been made on November 30 to suspend Baloyi.

Amongst other key conditions of suspension included (is) the requirement that Dr Baloyi not conduct any activities in the name of the BBC until the matter has been concluded,” it said. Baloyi’s deputy Gilbert Mosena would act as BBC president in the interim.

BBC is a key advocate of the government’s transformation programme aimed at giving blacks more control in an economy still dominated by minority whites as a result of South Africa’s racially divided past. (via African News Agency)

Heineken Lays The Foundation Stone Of Its First Brewery In Mozambique

Heineken today laid the foundation stone of its first brewery in Mozambique in the presence of His Excellency Mr. Max Tonela, Minister of Trade and Industry.

This new brewery, incorporating the latest technologies, represents a $100 million (€85 million) investment. Located in the province of Maputo, between the Marracuene and Manhiça districts, the brewery will have a production capacity of 0.8 million hectoliters and will brew high quality beers for the domestic market. The first bottle of beer is expected to come off the production line in the first half of 2019.

Heineken Mozambique started its activities in 2016 through a sales and marketing office, importing international beers including Heineken, AmstelAmstel Lite and Sagres in the country to offer more choice to Mozambican consumers. The construction of HEINEKEN’s very first brewery is a major step forward for the company’s presence in the country.

With this significant investment, Heineken Mozambique is expected to create 200 direct jobs and support additional indirect jobs through its entire value chain.

Aligned with the Heineken ambition of sourcing 60% of its agricultural raw materials in Africa by 2020, Heineken Mozambique will explore the possibility of locally sourcing the raw materials it will need to produce its beers. One of the objectives of this project will be to improve crop yields as well as the capabilities and living standards of Mozambican farmers, contributing to the economic development of the country.

Boudewijn Haarsma, Heineken International’s Managing Director East & West Africa, stated: “We are delighted to enter Mozambique, where we see promising long-term economic perspectives. The project is progressing well thanks to the support of the Mozambican Government and its commitment to bring investments into the country. Investing in a new market like Mozambique supports Heineken’s ambition to expand its footprint and be the number one or a strong number two in all markets in which it operates. With our extensive experience and existing business in Africa, we also aim to be a partner for growth today in Mozambique as we already are throughout the continent. I am convinced our presence will contribute to the economic and social development that is already under way in Mozambique.”

Nuno Simes, Heineken Mozambique’s General Manager said: “With Heineken’s passion for quality, our new brewery will deliver high quality beers to Mozambique according to the international standards of the Heineken Company. We look forward to continue to provide enjoyment to Mozambican consumers with our brands.”

Get Weekly 5-Minutes Business Advice

Subscribe to receive actionable business tips and resources.

Subscription Form (#66)

Feeling Stuck?