Business fraternity benefits from conference

Daan Schoeman Financial Planning Solutions hosted another successful quarterly client feedback session at the Pietersburg Club last Wednesday during which local businesspersons were granted the opportunity to obtain information on the economic stance of South Africa following major changes on the political landscape of the country since the end of 2017.
A new president, new finance minister, a potential overhaul of the South African Revenue Services, potential land expropriation legislation, the Steinhoff issue, an increase in value added tax, the budget, the way forward and banking solutions were on the agenda.
Daan Schoeman Financial Planning Solutions invited representatives of Fairtree Capital and Sasfin respectively to share their views with local businessmen on the different issues investors face.
South Africa’s economy, inflation and repo rate
Ryan Jameson from Fairtree Capital indicated that South African economy advanced an annualised 3,1% quarter on quarter in the last three months of 2017, following an upwardly revised 2,3% rise in the previous period and beating market expectations of 1,8% for the full year. It is the strongest growth rate in six quarters mainly due to a robust gain in agriculture, a rebound in internal trade and a faster increase in manufacturing.
On consumer inflation Jameson said that the consumer price index in South Africa increased 4% year-on-year in February of 2018, easing from a 4,4% rise in January and below market expectations of a 4,2% gain. It was the lowest inflation rate since March 2015.
About the repo rate Jameson indicated that the South African Reserve Bank cut its benchmark repo rate steady by 25 bps to 6,5% on 28 March, in line with market expectations, citing lower inflation expectations. He reiterated the importance of staying the course in terms of one’s investments and not to make the age old mistake of making long term portfolio decisions on short term noise in the market.
2018 Budget Speech
Jameson said the 2018 Budget was well received and highlighted some of the inscriptions to help build a growth-enhancing platform to propel the country’s growth trajectory.
VAT increased from 14% to 15% adding R23 billion to the budget. This increase was the first since the introduction of VAT in 1993.
He also highlighted the increase in tax on tobacco products and alcohol adding that the outlook on economic growth improves but remains below trend. The 2018 growth rate is currently at 1,8%. He also referred to the almost R57 billion allocated to free tertiary education over the medium term.
In general Jameson cited that the budget was largely applauded and it has created a clearer political outlook and furthermore created more confidence with greater collaboration between government, businesses and the labour sector.
Sasfin Banking
Roger Dunn form Sasfin Banking shared the benefits of Sasfin Banking saying that Sasfin is a bank-controlling company that provides a comprehensive range of specialist financial products and services for business and wealth clients. Their financial products and services focus on the needs of entrepreneurs, corporates, institutions, and high-net worth individuals. Sasfin is “beyond a bank” in that they go beyond the traditional expectations of the financial services industry and strive to deliver solutions with exceptional personalised service. They challenge themselves to create tailor-made products and solutions that suit their clients’ needs – whether they are entrepreneurs or investors.
For more information visit www.sasfin.com
The next business conference is planned for July.

Story and photos: RC Myburgh
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