Finance

Finance

Why alternative currencies matter – and are the future of South Africa’s development

8 July 2017


When I began to teach in 2012, I decided to start my course with an analysis of how money affects social order. What my students found particularly fascinating was the then-nascent world of cryptocurrencies, which I described at length as a crucial feature in the future of money.

Some colleagues criticised my approach. They accused me of indirectly encouraging students to invest in what they saw as a shady, crime-ridden financial underworld. But I was simply exposing young minds to a fast-evolving, complex phenomenon that in my view would have a major impact on power distribution in the global economy.

Behind most cryptocurrencies is a simple technology known as “blockchain”, a system residing in multiple computers that allows for peer-to-peer financial ledger recording of all transactions occurring in a network. This results in a transparent open-access registry of monetary flows which […]

2017-07-27T14:05:57+02:00 Jul 27th, 2017|Conflict management, Finance, Recources|

South Africa in a recession

Govt ‘confident’ that it can address recession – Cabinet

Jun 22 2017 14:18    Liesl Peyper

Cape Town – Government is confident in its “systematic interventions” to address economic challenges and improve the performance of state-owned enterprises (SOEs).

In a statement released on Thursday, a day after the customary fortnightly meeting of Cabinet ministers, government said it reflected on the issues raised by three ratings agencies – Moody’s, Standard & Poor’s and Fitch – about the slow pace of growth-enhancing reforms, the performance of SOEs and political risks.

The Cabinet statement was released two hours before President Jacob Zuma is expected to answer questions in the National Assembly about government’s plan of action to address the recession and record high unemployment figures.

“Cabinet reiterates that the foundation for a higher growth path and socio-economic development has already been laid,” the statement read. “It focuses on improving investor and consumer confidence by fast-tracking the implementation of the […]

2017-06-24T13:17:57+02:00 Jun 24th, 2017|Environments, Finance, Recources, Syllabus Topics|

South African businesses downgraded as well

ALERT: Moody’s downgrades Eskom, Sasol, MTN, ACSA… and more

Jun 14 2017 06:01

Matthew le Cordeur

Cape Town – Moody’s downgraded the credit ratings of Eskom, Sasol, MTN, ACSA and has taken action on eight other South African corporates.

The downgrade follows their decision to downgrade the country’s long-term foreign and local currency debt ratings by one notch from Baa2 to Baa3 with a negative outlook on Friday.

On Monday, it downgraded the credit ratings of South Africa’s top five banks, three development finance institutions, certain City Power and Sanral credit ratings, and 10 regional and local governments.

On Tuesday evening, the downgrade axe continued to fall.

Commenting on Eskom’s downgrade, Eskom’s chief financial officer Anoj Singh said Eskom noted Moody’s rating action as primarily driven by the downgrade of the Sovereign credit rating.

“Eskom has secured 53% of this fiscal year’s funding requirement and we remain resolute that we will fully execute the required funding for the […]

2017-06-24T13:09:32+02:00 Jun 24th, 2017|Finance, Recources, Syllabus Topics|

FITCH DOWNGRADES SOUTH AFRICA TO JUNK STATUS

The ratings agency says that the recent Cabinet reshuffle is likely to result in a change in the direction of economic policy.

South African flag. Picture: Thomas Holder/EWN.

JOHANNESBURG – Fitch Ratings has announced the downgrade of South Africa to so-called junk status.

It changed its rating to ‘BB+’ from ‘BBB-‘, with the outlook stable.

The ratings agency says that the recent Cabinet reshuffle is likely to result in a change in the direction of economic policy.

This comes after S&P earlier this week downgraded South Africa, citing political instability.

Downgrades to junk from the two agencies could see South Africa drop out of some widely used global bond indexes and force international funds which track them or which are prohibited from holding sub-investment grade securities to sell.

Fitch’s move will almost certainly lead to […]

2017-06-24T13:06:02+02:00 Jun 24th, 2017|Finance, Recources, Syllabus Topics|

Current affairs

SA gets a reprieve after S&P delivers its verdict

South Africa’s economic fate now lies in its own hands after Standard & Poor’s (S&P) left the country’s investment largely unchanged last week.
Together with Moody’s and Fitch, these decisions must therefore be seen as friendly warnings, rather than as reprieves, about what South Africa is seen to be doing and implementing over the next few months. Although the S&P assessment also recognises the changes and improvements made so far in certain areas of policy, the reality is that the economy remains on the cusp of junk status. South Africa is still at only one notch above junk in both S&P and […]

2016-12-05T12:25:28+02:00 Dec 5th, 2016|Finance, Other|

The importance of financial planning

The Importance of a Financial Plan for a Small Business

by Brian Hill, Demand Media

 

Going through the process of constructing a financial plan is a valuable exercise for any business owner. The financial plan, or budget as it is also called, helps guide the day-to-day decision making of the business. Comparing forecast numbers to actual results yields important information about the overall financial health and efficiency of the business. Even a one-person …

 

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2015-11-30T13:18:01+02:00 Nov 30th, 2015|Finance|

How to plan your business’ finances …

How to Develop Business Financial Plans

by Victoria Duff, Demand Media

 

A financial plan that accurately anticipates variables, as well as the unexpected, is key to successful business management. Whether you are planning the launch of a start-up, or are estimating next year’s business and planning for any financing that might be needed, careful study of historical numbers and skillful estimation of future results …

 

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2015-11-30T13:14:28+02:00 Nov 30th, 2015|Finance|

Financial planning

About Business Financial Planning
by Brian Hill, Demand Media

 

The process of financial planning in business is designed to forecast future financial results and determine how best to use the company’s financial resources in pursuit of the organization’s short- and long-range objectives. Because planning involves looking well into the future, …

 

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2015-11-30T13:10:29+02:00 Nov 30th, 2015|Finance|