KZN floods: Read these stories about the scale, science and economic impact of the devastation

If you hadn't already seen or read about the extent of devastation ten days ago, these articles will put it in perspective.  10 min read

Local knowledge adds value to mapping flood risk in South Africa’s informal settlements

The problem of floods in Durban is not new. Between 1980 and 2010, there were over 77 disastrous flood events in KwaZulu-Natal province and others. The flood events can be categorised as disastrous when lives are lost, people are displaced and property is destroyed.

Read on, on how factors work towards creating a perfect flood. 4 min read available in .pdf below.

Floods, insurrection, corruption, State Capture… and the self-inflicted fifth wound of economic destruction

More than 448 people have passed away, with more than 30 cases of missing persons, 3,937 homes destroyed, 8,039 homes partially destroyed, 13,500 households affected and 551 schools destroyed.

Durban recorded 351mm (more than double the 165mm record of 2019) of rainfall on Tuesday, 12 April. The floods led to the disastrous Durban harbour and port temporary closure, left rail networks inoperable and rendered the container terminal, truck depots and Island View fuel terminal largely inaccessible. 

It was former UN Secretary-General Ban Ki-moon who reminds us that “corruption is measured not just in the billions of dollars of squandered or stolen government resources, but most poignantly in the absence of hospitals, schools, clean water, roads and bridges that would have changed families and communities.”

Please read this article to understand that all of this could have been avoided had we taken the Durban floods of 2019 seriously. Harrowing 4 min read.

Global economic news

Soaring Prices Reach Asia to Bring Global Inflation In Sync

The world is now facing a synchronised inflation outbreak as food and energy prices surge in Asia, a shift from just a few months ago when the region appeared to avoid the price fever gripping the US and parts of Europe. 

Inflation readings across the region – China, India, Indonesia, Philippines, Thailand and South Korea – recently rose more than forecast, while New Zealand on Wednesday hiked rates by the most in 22 years over price worries. And accelerating manufacturing costs suggest the worst is yet to come.

Markets are starting to price in rising inflation expectations and more aggressive central bank action across much of Asia. That’s beginning to mirror trends seen in the US, where data Tuesday showed consumer prices last month rose by the most since late 1981, piling fresh pressure on the Federal Reserve to respond.

This article is informative about how world events have triggered overall rise in inflation.  6 min read

Health, NHI update 

District hospitals will be key to NHI — the time to empower them is long overdue

The successful implementation of National Health Insurance will rely heavily on effective governance at district level.  The NHI Bill correctly identifies district hospitals as key during the early transitional NHI phases. Failing to capacitate them for the challenges ahead could prove disastrous, argues Russell Rensburg and Claire Botha.

A 4 min read which offers a lot of insight, more detail than opinion. 

The controversial National Health Insurance Bill has serious constitutional and human rights implications

Parliament recently concluded public hearings on the contentious National Health Insurance Bill. This article looks at submissions made on the constitutional and human rights implications of the Bill, to determine what the parliamentary committee on health could take from these diverse public inputs.

Good high level cover of the main concerns with links to parts 1,2, and 3 of this series. Take note of the reasons for and against the implementation and look to impact on existing livelihoods and services. 5 min read. 

The cheapest and most expensive medical aid schemes in South Africa – pricing and what they offer

Be informed of what is currently out there or maybe compare with what you have. TymeBank has partnered with the National HealthCare Group to launch Tyme Health offering coverage as low as R139 per month. 8 min read 

Scale what works: The benefits of proven health interventions

Interactive visualization showing the opportunity to extend and improve life through known health interventions.

The very big picture of health interventions across the globe. Engage the information by clicking on the graphics. 5 min read

Industry news

Insurance update on KZN floods

The South African Insurance Association (SAIA) says the damage to infrastructure in KwaZulu-Natal as a result of the floods already exceeds R1.1 billion, which was the estimated cost of damage after the flash floods in the province in 2019.

In a statement, SAIA said the devastation and loss of lives make this month’s floods the worst natural disaster to hit South Africa.

Climate change was increasing the insurance and recovery costs following more frequent and severe floods, as well as other disasters, such as fires.

Some interesting acts of benevolence to take note of here by Absa and Avbob. 3 min read

Adding sugar to the Cofi?

Business Day reported on an FSCA briefing for the select committee on finance on Tuesday on the current status of the Conduct of Financial Institutions (Cofi) Bill.

The first version of the Cofi Bill, which was released for public comment, provides for the creation of a centralised unclaimed benefit fund that could be used for social good. The bill was first released for public comment in December 2018, and the second draft was released in September 2020. It is aimed at consolidating into one law the conduct standards of financial institutions currently housed in different laws.

This article goes into some detail around the unclaimed pension benefits which stood at R47bn according to the FSCA and estimated  belonging to 4.4 million pension fund members, with 80% of them held by trade union-affiliated pension funds. 4 min read. 

SCA judgment ‘puts fund retirement members’ accrued benefits at risk’

The court’s ruling that a retirement fund’s rules may be amended to reduce the benefits that have already accrued by the time the amendment is approved and registered “flies in the face of conventional legal principles”, said Hunter, who has 25 years’ experience in retirement and financial services law and regulation.

A must read. The implications of basing a judgement on the wrong premise are far reaching. 3 min 30 sec read

Telkom has frozen an employee’s pension. Here’s why a judge has allowed it.

Telkom has succeeded in “freezing” a pension pay-out to a former employee it is suing for over R200 million.

3 min read. 

Why insurer changed its mind after declining a claim

The question of full disclosure at the time of application, as well as during the term of a policy, came to the fore in a recent article published in Rapport. After first repudiating a death claim for R10 million on the grounds of non-disclosure, the insurer, after consultation with the Ombudsman for Long-term Insurance, reviewed its decision and paid the claim.

This is an important read, explaining the Didcott principle and referencing the Ganas case of 2018. 4 min read

FSCA is concerned about life insurance premium increases

The FSCA says it will continue to ensure that insurers adopt “a fair and balanced approach” towards premium increases, while taking into account the valuable role the insurance industry has played in difficult economic circumstances.

The Ombudsman for Long-term Insurance saw a 48% increase in the number of complaints related to policy lapses last year, as policyholders struggled to pay premiums, the FSCA said in its 2022 Financial Sector Outlook Study, which was released this week.

What impact would policy lapses have on the insurer and the insured? 3 min 30 sec read

Investments 

Addition by subtraction: When good investment decisions are about knowing what to avoid

Counterpoint's Daniel King looks at the value of the concept of via negativa in investment decision making.

This is article is easy to follow and is further comment on the need for us to filter information. It is another tool, this time for investment strategies. 3 min read. 

4 egg-cellent reasons why it’s never too early or too late to start saving for retirement

Ollewagen emphasises that it’s never too early to start saving for retirement. “The earlier you start, the more runway you give your retirement savings to grow. It is especially over the longer term when the magic of compound interest comes into effect – which is when your interest earns interest.”

Have a look at the four reasons and commit them to a way of life once you enter the workplace! 3 min read.

How much it costs to borrow R100,000 in South Africa

If used correctly credit can add positive value to your overall financial well-being. But you need to ensure that you understand what the total amount is that you will re-pay and if that amount is reasonable for the need you want to use the credit for, says Ester Ochse, product head of FNB Money Management.

This is a practical article in which a layperson can see all the costs in borrowing money, however you don't see the mechanics of how the bank arrives at the monthly instalment with that interest rate. Can you work it out? 3 min read.  

Investing in 2022: Look local

After the unusually high returns from SA equities (and even local bonds) that investors enjoyed in 2021, some may be expecting lower results in the next few years. After all, some headwinds to growth are presenting themselves in the form of rising inflation, higher global and local interest rates, the potential of new Covid strains, geopolitical tensions, and political concerns both locally and abroad, all arising from the interconnected world we live in. Also, importantly, starting valuations for both SA equities and bonds are now more expensive than they were at the beginning of last year.

However, at M&G Investments we still see many good opportunities for excellent investment returns across most SA asset classes over the medium term.

Sponsored content by M&G but an angle worth looking at. 3 min read

ESG and Investing

AA-rated ESG expert on Russia: Sustainable funds should be ‘company first, country second’

Mike Fox has argued against blanket exclusions as many funds and corporates divest from Russia.

LONDON: Top sustainable manager Mike Fox has said his funds operate on a ‘company first, country second’ basis, pushing back against businesses and investors blindly cutting ties with Russia in the wake of the Ukraine invasion. 

Another opinion worth looking at. 2min 30 sec read

Sanlam: Asset managers have to ask an entirely new set of questions

SA's largest non-bank financial services group sees increasing significance in issues around sustainability.

Maybe ESG will be an important factor when considering where you would like to work. 3 min read

The path to sustainable and inclusive growth

In this episode of the Inside the Strategy Room podcast, three coauthors of a recent McKinsey Quarterly article articulate the scope and potential solutions for one of the biggest challenges of our times: fostering economic growth for the good of all.

This is a podcast, but also available to read on this site below in .pdf. A positive 10 min read. 

Climate change and ways around it 

Climate change will transform how we live, but these tech and policy experts see reason for optimism

People often resist transformation because their fear of losing what they have is more powerful than knowing they might gain something better. Wanting to retain things as they are – known as status quo bias – explains all sorts of individual decisions, from sticking with incumbent politicians to not enrolling in retirement or health plans even when the alternatives may be rationally better.

You may be sick of hearing about climate change, but did you know that you can make a difference?  4 minute 30 sec read  

All things digital 

SA bucks the e-levy implementation trend in Africa

As industry bodies warn of the tax’s repercussions on Africa’s financial inclusion, South Africa’s National Treasury says it will not introduce the electronic transaction (e-levy), or digital payments levy.

Over the last few years, countries across the continent have been introducing an e-levy on electronic financial transactions – including Tanzania (2021), Ghana (2021), Congo (2019), Malawi (2019), Côte d’Ivoire (2019), Kenya (2018) and Uganda (2018).

During a recent GMSA webinar, Ashley Olson Onyango, head of financial inclusion at GSMA, explained: “Taxes put on digital transactions have become a growing trend in Sub-Saharan African countries, as well as Asian countries. We see taxes on these services as regressive to financial inclusion and it plays a part in excluding resources from financial inclusion and social inclusion strategies.

Note the argument for financial inclusion versus cash gains for government. 4 min read

The GSM Association is an industry organisation that represents the interests of mobile network operators worldwide. More than 750 mobile operators are full GSMA members and a further 400 companies in the broader mobile ecosystem are associate members. Wikipedia

UJ implements blockchain-based certificates for graduates

The Johannesburg-based university says it is the first South African institution to offer blockchain-based certificates for graduates. This not only allows graduates to securely view and order lost or damaged certificates, but also gives them access to share their certificates securely with third-parties or employers, at no cost.

A satisfying read for all our UJ students and blockchain put to good use. 2 min 30 sec read

SA crypto arbitrage continues to outperform

Cape Town-based company Future Forex is using an arbitrage investment strategy to achieve one of the best investor returns relative to risk on the South African market for their clients.

Is this too good to be true? What is arbitrage? 3min 30 sec read

In economics and finance, arbitrage is the practice of taking advantage of a difference in prices in two or more markets; striking a combination of matching deals to capitalize on the difference, the profit being the difference between the market prices at which the unit is traded. Wikipedia

Crypto firm Luno hits milestone with 10m customers

“Luno aims to bring crypto to over one billion people by 2030, so reaching 10 million customers is an important milestone, which supports a transition towards building a better, more fair financial system.”

What makes Luno a builder of a fairer financial system? 2 min 3o sec read

It’s time to upgrade the world to a better financial system

The existing financial system was built for a non-digital age, ignoring the needs of the modern individual and with many unnecessary inefficiencies and gatekeepers. The world now has access to new technologies like decentralised cryptocurrencies that are quickly making these old systems and ways of thinking redundant. Like communication evolving from landlines to mobile phones, or post to email, money is now finally catching up with other information revolutions.

Read more and  decide for yourself if Luno or crypto is the way to go. 3 min read

About you 

Networking online: how to make professional connections remotely and why it matters

My research shows that in early 2022, 44% of young people used social media to look for career information – up from only 19% a decade ago – and 42%consulted their social networks when looking to make a career decision. Online networking, even before the pandemic, was a crucial tool for career development.

Networking underpins two key aspects of professional advancement: employability and self-directed career development.

An important read as you whether you are in the workplace or about to enter it. 4 min 30 sec read available below in .pdf

I prioritized my research at the expense of my health—until I crashed

After drawing blood and running a CT scan, the doctor had questions for me. “What is a typical day like for you?” he inquired. “I am a graduate student with a packed schedule that usually keeps me at work late into the night,” I replied. Next, he turned to diet. I paused when this question came, embarrassed by my answer. “I only have coffee for breakfast. For lunch and dinner, I usually grab something from a fast-food vendor on campus.” The doctor seemed aghast. As more questions followed about my stress levels and lifestyle, my unhealthy state began to sink in.

Please read this and if you recognise the patterns in yourself - change them. It's a simple three legged stool for good health: eat well, sleep well and move well.  Reducing stress is a conscious act - choose to be happy with the tasks you managed to do and do not beat yourself up for those you didn't. Tomorrow, set yourself a shorter list!

James Clear on self- pity 

"Many good opportunities are ruined for the dream of slightly better ones.

Would you have a more successful career if you had taken that other job or moved cities? Possibly. But your actual career will definitely suffer if you don't commit to doing it to the best of your ability.

Would you be 10% happier in a different relationship? Maybe. Maybe not. But you'll definitely be unhappy in the one you have if you spend all day thinking about what else is out there.

The surefire way to end up worse off is to agonize over unchosen options and fail to make the most of the one you selected. Every minute spent yearning for your unlived lives is a moment you can't invest in the one you actually have.

Choices matter, but so does your level of commitment."

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