South African Business 2020 edition
A unique guide to business and investment in South Africa. Welcome to the eighth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. A special feature focusses on the huge potential for growth and job creation which the tourism industry holds. The possibilities presented by the age of renewable energy for the mining industry is the topic of another special feature and the CEO of Minerals Council South Africa responds to a set of questions on the state of mining in the country. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces.
A unique guide to business and investment in South Africa.
Welcome to the eighth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. A special feature focusses on the huge potential for growth and job creation which the tourism industry holds. The possibilities presented by the age of renewable energy for the mining industry is the topic of another special feature and the CEO of Minerals Council South Africa responds to a set of questions on the state of mining in the country. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces.
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Banking and financial services<br />
New stock exchanges are attracting investors.<br />
SECTOR INSIGHT<br />
Discovery Bank has<br />
been launched.<br />
OVERVIEW<br />
On top of the recent issuing of new banking licences, <strong>South</strong><br />
Africa’s financial services sector has also been enlarged<br />
with the opening of several new stock exchanges. The<br />
decision by pharmaceutical giant Aspen Pharmacare to<br />
conduct a second listing on one of them, A2X, suggests good timing<br />
by the people behind the latest trend.<br />
A2X has attracted nearly 20 companies in a wide range of sectors in<br />
less than two years, with a primary focus on secondary listings. Patrice<br />
Motsepe’s <strong>African</strong> Rainbow Capital is an investor in A2X.<br />
Of the four new exchanges, Equity Express Securities Exchange (EESE)<br />
trades in Black Economic Empowerment (BEE) while ZARX and 4AX are<br />
targeting companies that are not listed elsewhere. ZARX has agricultural<br />
holding companies like TWK and Senwes among its first clients.<br />
The JSE is the world’s 19th-biggest exchange and nearly 400<br />
companies are listed on the JSE or AltX, the JSE-owned exchange for<br />
smaller companies.<br />
The green bond issued by the City of Cape Town is a sign of the<br />
“climate change” times. <strong>South</strong> Africa’s third-ever green bond attracted<br />
bids over R4-billion on an initial offering on projects worth R1-billion.<br />
The JSE intends opening a green section to deal with the expected<br />
growth of such instruments. The lead arranger for the bond was Rand<br />
Merchant Bank.<br />
In 2017 Tyme Digital received a licence to run a bank. By early 2019,<br />
TymeBank was available in 500 Pick n Pay and Boxer stores and more<br />
ONLINE RESOURCES<br />
Financial Sector Conduct Authority: www.fsca.co.za<br />
Insurance Institute of <strong>South</strong> Africa: www.iisa.co.za<br />
<strong>South</strong> <strong>African</strong> Institute for Chartered Accountants:<br />
www.saica.co.za<br />
<strong>South</strong> <strong>African</strong> Reserve Bank: www.resbank.co.za<br />
than 50 000 customers had an<br />
account. Tyme stands for Take<br />
Your Money Everywhere and<br />
refers to the fact that the bank<br />
does not have a branch network.<br />
The bank is targeting the lowerincome<br />
segment and promises<br />
speedy transaction and approval<br />
times. <strong>African</strong> Rainbow Capital<br />
began as the venture’s BEE<br />
partner but in 2018 bought out the<br />
Commonwealth Bank of Australia.<br />
Second to market among the<br />
country’s new banks was Discovery<br />
Bank, which officially launched in<br />
March 2019. Discovery Bank will<br />
apply the behavioural model<br />
it uses in its health business to<br />
reward good financial behaviour.<br />
The Discovery group is already a<br />
giant on the JSE (market value of<br />
R83-billion) with access to millions<br />
of customers.<br />
The insurance market<br />
now offers a greater variety<br />
of products to more market<br />
segments, including middleincome<br />
earners. An example of<br />
a specific product responding to<br />
new realities is Old Mutual’s iWYZE<br />
medical gap cover, designed to<br />
pay the difference between what<br />
a medical aid scheme is willing<br />
to pay and what the hospital or<br />
doctor is charging.<br />
89 SOUTH AFRICAN BUSINESS <strong>2020</strong>
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