| COMPOUNDING WEALTH ISN'T ROCKET SCIENCE, JUST ASK EINSTEIN |
Remember the quote by Albert Einstein who famously described compound interest as the Eighth wonder of the World by earning interest on both the initial principal and accumulated interest, and growing investments exponentially over time?
Well, that’s the theme punted by Old Mutual in its appeal to Finance Minister Enoch Gondongwana to lift the limits of tax-free savings accounts (TFSA) ahead of next Wednesday's Budget presentation. Currently set at R36 000 per year and a life-time investment of R500 000, Old Mutual wants these caps raised to R40 000 annually and R600 000 respectively.
To realise the compounding benefits of a TFSA, the secret is regular payments and no withdrawals over a lengthy period. However, the existing thresholds, Old Mutual says, hamper long-term compounding as the lifetime cap is reached in about 14 years and that higher limits would extend the investment horizon and shine up long-term outcomes. It would also pay heed to the founding principle of a TFSA, back in 2015, to incentivise South Africa’s poor savings culture that has actually deteriorated over the past 10 years.
And yet, data from Ninety One show that TFSA withdrawals have decreased to suggest that savvy investors are capitalising on the advantages of these instruments, not least that growth in these accounts are not taxed. The converse is also true, that not nearly enough South Africans are taking up the TFSA offer. Perhaps more education is needed, not only about TFSAs in general, but that regular contributions - some platforms don’t have minimum stipulations - will trigger the compounding effect. It's not rocket science, just common sense. Derek Alberts (editor)
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| HATS OFF TO FUN, FASHION AND FORTUITOUS BETTING AT RACE DAY |
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(ltr) Resplendent under their hats, Kate Watts (iOCO Limited), Kirsten Marwick (Emergent Energy), Caitlyn Nothard (Capitol Caterers), Merrill King (Capitol Caterers), and Jeremy Dewkaran (Willowbrew Coffee Merchants) having a festive time. Pic by Lethiwe Zondi.
The annual Race Day, a highlight on the Pietermaritzburg and Midlands Chamber of Business calendar, lived up to its billing, drawing serious punters and fun-seekers alike for an afternoon of turf action, fashion and networking.
Hosted at the Scottsville Racecourse, the event yesterday blended competitive racing with festive hospitality. Corporate backing added prestige, with races sponsored by Valverite, Nashua PMB, Aberdare, Austen Smith, Liberty Midlands Mall, Diya Valves and Key PMBurg. Their support ensured a polished experience, quality stakes and vibrant atmosphere. From studied form guides to fluttery bets, the day was all about camaraderie, colour and classic racing excitement.
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| PROGRAMME TO PREPARE YOUTH FOR THE WORKPLACE |
Investec has launched Invest-ED, a national initiative supporting grade 8–12 learners and their parents to make informed education and career choices. The programme builds on national youth skills priorities, offering guidance on future careers, entrepreneurship, and emerging technologies. The pilot reached over 4 000 participants, aiming to boost confidence, adaptability, and long-term workforce readiness across South Africa. Click here for more information.
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1980: The SADF takes over security from the SAP in northern Natal to prevent infiltration by liberation movements.
Elsewhere, in 1878, Thomas Edison patented the phonograph, the first machine to reproduce recorded sound.
Today is dedicated to the humble rope and those pulling it in opposite directions, on International Tug-of-War Day. |
INFLATION EASES ON BACK OF 4-YEAR LOW FUEL PRICES
Consumer inflation slowed to 3.5% in January from 3.6% in December, remaining comfortably within the Reserve Bank’s 3%-6% target range. Monthly CPI rose 0.2%, unchanged from December, as lower fuel costs helped offset sharp meat price increases. Fuel prices fell 3.7% year-on-year, with inland 95-octane petrol averaging R20.75 per litre - the lowest since February 2022. Food inflation held at 4.4%, though meat surged 13.5%, with beef steak up 31.2%. By contrast, eggs were 7.6% cheaper year on year. (SOURCE: BDLive)
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... AS RATE-CUT HOPES DIM ON STUBBORN PRESSURES
Traders have scaled back expectations of a South African Reserve Bank rate cut after recent data showed inflation remains above forecasts. While price growth pressures are easing in some sectors, persistent uncertainties in the economy and financial markets have led investors to adopt a more cautious stance on monetary policy. Forward rate agreements now indicate a smaller likelihood of a March 2026 cut, reflecting market caution. Analysts say the central bank may wait for clearer signals on economic growth and consumer demand before adjusting rates. The focus remains on interest-rate guidance amid evolving domestic and global conditions. (SOURCE: Bloomberg)
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RISING BLACK HOUSEHOLD SPEND RESHAPES MIDDLE CLASS
Rising earnings among black South Africans are reshaping the country’s middle- and upper-income tiers, narrowing historic racial income gaps. A study by the University of Cape Town’s Liberty Institute of Strategic Marketing found that 41% of Black households earned more than R75 000 a month in 2024, up from 29% in 2012. Over the same period, the share of white households in that bracket fell to 41% from 61%. The number of black earners making above R22 000 monthly quadrupled to over seven million, contributing to more than 11 million South Africans in middle- and top-income groups. While the shift signals meaningful transformation since apartheid, researchers caution that poverty remains widespread and inequality at the lower end persists. (SOURCE: Bloomberg)
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... AS B-BBEE IMPLENTATION COMES UNDER FIRE
Nearly two decades after the Broad-Based Black Economic Empowerment Act, a joint study by the Black Management Forum and Henley Business School Africa finds strong support for transformation in principle but deep scepticism about implementation. Surveying 527 managers, researchers found perceptions of BBBEE’s impact on competitiveness, productivity and financial performance fell below neutral. Corruption, fronting and weak tender verification were widely cited as undermining confidence. Highly compliant firms and historically disadvantaged managers reported more positive outcomes. The study urges tighter governance, stronger enforcement and structured dialogue, warning that incentives alone will not fix systemic weaknesses. (SOURCE: BDLive)
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PRIORTISE DAIRY HERD VACCINATION, URGES KWANALU
KZN farmers are urging swift action in the rollout of the national Foot-and-Mouth Disease (FMD) Mass Vaccination Strategy, with the provincial agricultural union flagging dairy herds as a top priority. These high-producing, stressed animals need protection to maintain performance, says Kwanalu president PJ Hassard. Key interventions include a broadened vaccination campaign, zoning, improved surveillance, diagnostics, and digital movement permits. The union warned that vaccine availability, logistics, communication, and clarity on protocols remain major concerns. Without immediate and coordinated implementation, the strategy risks failing, threatening livelihoods and economic stability across KwaZulu-Natal’s livestock sector. (SOURCE: KZN Industrial Business)
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CHANGE OF GUARD AT KZN GROWTH FUND
The KZN Growth Fund Agency (KZNGFA) has announced a new board to strengthen provincial development finance and drive inclusive economic growth. The agency, under the provincial Department of Economic Development, Tourism and Environmental Affairs, aims to stimulate investment and develop infrastructure. Jabulani Walter Khanyile was appointed chair, with Dr Usha Roopnarain as deputy, joined by members Bongani Mzwakhe Mhlongo, Dr Sakhile Keith Mpungose, Linda Ngcobo, Dr Sihle Ndlovu, and Linda Mpumelelo Sidaki. Acting CEO Tshidi Ikaneng serves ex officio. (SOURCE: Engineering News)
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URBAN REVIVAL TO DRIVE STATE'S R155 BILLION PROPERTY PLANS
Public Works Minister Dean Macpherson outlined plans for a ringfenced State Property Company to unlock value from government’s R155 billion property portfolio. Many buildings are vacant, decaying, or underused, while the State spends R6 billion annually on private leases. The entity will professionalise management, digitise the asset register, and separate ownership, management, and development roles to attract private investment. Projects include mixed-use precincts, housing for nurses, police, and teachers, and redeveloping Telkom Towers. Macpherson said the initiative mirrors successful urban regeneration examples like Tshwane’s Government Precinct Programme, aiming to generate jobs, capital, and sustainable urban development while optimising State property. (SOURCE: Bizcommunity)
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US-LISTED AIMIA SET FOR SECONDARY JSE LISTING
TSX-listed conglomerate Aimia has received JSE and SARB approval for a secondary listing under the Chemicals: Diversified subsector, effective February 24. The move allows South African investors rand-denominated access to its shares, deepening liquidity and broadening the investor base. Aimia holds 94.2% of sustainable chemicals firm Giovanni Bozzetto, wholly owns Cortland International, and has a 10.85% stake in Clear Media. Strong performance and disciplined capital management reflect Aimia’s focus on long-term shareholder value and global growth ambitions. (SOURCE: SENS)
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PAN AFRICAN TRIPLES PROFIT TO R1.2 BIILION ON GOLD BOOM
Pan African Resources’ profit more than tripled to R1.2 billion in its latest financial period, fueled by a surge in gold prices averaging R1 040,000 per kilogram. Revenue rose to R4.5 billion, up from R1.5 billion the previous year, supported by higher output from South African and Ghanaian operations. Cost efficiencies and improved ore grades lifted margins, while disciplined capital management kept expenses in check. The strong cash flow positions Pan African to expand exploration, reduce debt, and reward shareholders, reinforcing its standing in the gold sector amid volatile global markets. (SOURCE: SENS)
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... AS SIBANYE BOOKS R15.81 BILLION IMPAIRMENTS ON LITHIUM, GOLD
Sibanye-Stillwater will recognise R15.81 billion in impairments for the year, including a R7.8 billion hit on its Finnish Keliber lithium project after weaker long-term lithium hydroxide price forecasts and delayed ramp-up assumptions. Project costs rose 17% to €783 million (about R14.8 billion) prompting a phased rollout. A further R3.78 billion impairment was recorded at Kloof, where gold reserves fell 6.3% to 9.4 million ounces. Earlier, US PGM operations were impaired by R4.23 billon due to tax credit rollbacks under Donald Trump’s One Big Beautiful Bill Act. Despite balance sheet strain, higher gold prices reversed R1.92 billion in prior impairments and lifted HEPS guidance sharply. (SOURCE: SENS)
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AFRICAN NATIONS RUSH TO CASH IN ON BOND SCRAMBLE
Kenya and Ivory Coast have returned to international bond markets, capitalising on lower borrowing costs and improved investor risk appetite. Kenya plans to raise up to $2 billion (about R32 billion) in Eurobonds while buying back 2028 and 2032 notes to smooth its maturity profile. Ivory Coast is preparing a Dollar issuance of about $1.5 billion. Meanwhile, the Democratic Republic of Congo is planning its maiden international bond sale. Narrowing emerging-market spreads and falling yields have encouraged African sovereigns to refinance debt and reduce longer-term borrowing risks. (SOURCE: Bloomberg)
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TRAINING - MS EXCEL BEGINNER - LEVEL 1
TRAINER: Mark Tyrer – Summit Solutions Training
OVERVIEW
An introduction to Excel covering the basics, ranging from Data Input and Spreadsheet Navigation to Formatting and Printing.
There is a key focus on understanding how Excel works with different Data Types, using Excel Formulas, as well a whole bunch of tips and tricks that one can use to improve efficiencies when Entering and Editing Data.
WHO SHOULD ATTEND?
Excel beginners, as well as those who are self-taught who need to revisit the foundational principles that Excel is built on.
WHAT TO BRING
Own laptops are recommended but should you not have one let us know and we will provide one. Interactive course material will be provided on USB memory sticks which attendees will be able to keep for future reference.
Attendees will receive a certificate of attendance.
Date: 26 February 2026
Time: 08:30 – 16:30
Venue: PMCB Office, 1 Parkhaven, 55 MacLeroy Road, Northern Park, Pietermaritzburg
COST (excludes vat ) includes lunch PMCB Members: R1 430 p/p, R1 390 p/p for 3/more, R1 320 p/p for 5/more
Non-members: R1 695 p/p, R1 640 p/p for 3/more, R1 590 p/p for 5/more
Please note: The company will be liable for payment unless CANCELLATION is received in writing 24 hours prior to the event. |
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Imagination creates reality.
Richard Wagner |
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