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TimesLIVE
a day ago
- Business
- TimesLIVE
FairPlay expresses concern about price increases after Brazil poultry ban
It appears chicken importers are already exploiting consumers by raising prices due to South Africa's ban on the import of poultry from Brazil. This is the view of FairPlay, an advocacy movement committed to combating dumping and predatory trade, which said it had been told that chicken importers were suddenly charging local meat processors 30% more for imported mechanically deboned chicken meat (MDM). MDM is a paste used in the manufacture of processed meats such as polony and South Africa imports most of its MDM from Brazil. 'The price, we are informed, has gone up from about R20/kg to more than R30/kg. If this is true, it would be a scandalous and totally unjustified exploitation of South Africa's ban on the importation of poultry from Brazil because of a bird flu outbreak in that country,' FairPlay said. It called on chicken importers and their representatives to deny this huge price increase in MDM, or to explain why it was happening. The Brazil ban was announced on May 19. As poultry imports from Brazil can take up to six weeks to reach South Africa, Brazilian consignments reaching the country at the moment are not affected. 'So what is the justification for the price increase? Is this a case of make as much as you can while you can?' FairPlay said the bird flu ban on Brazilian poultry will affect the supply of MDM in South Africa, and it will be up to meat importers to arrange alternative supplies. It said importers could also encourage Brazil to apply to South Africa for a compartmentalisation agreement, which would allow the import of MDM from parts of Brazil not affected by bird flu.
The Citizen
2 days ago
- Business
- The Citizen
Two law firms get lion's share of RAF's R103m legal services spend
A disproportionately high 84%. Scopa wants to know why. Scopa chair Songezo Zibi was unimpressed that Scopa had to ask three times before the RAF supplied information about the top 10 law firms it uses. Picture: Michel Bega/ The Citizen The Road Accident Fund (RAF) paid 84% of the total R103.1 million it spent on corporate legal services in its 2024 financial year to Malatji & Co Attorneys Inc and Maponya Ledwaba Attorneys – just two of the 43 legal firms on its panel. Malatji & Co was paid R55.87 million by the RAF in 2024 and Maponya Ledwaba R30.75 million. The RAF revealed this in a presentation to Parliament's Standing Committee on Public Accounts (Scopa) last week. These two law firms were also paid the bulk of the amount the fund spent on legal services in the RAF's 2023 financial year, with Malatji & Co paid R15.25 million and Mopanya Ledwaba R14.86 million of the RAF's total corporate legal services bill of R34.26 million that year. Zibi said Malatji & Co in particular received 'an incredibly disproportionate portion of the work allocated by the RAF'. Source: RAF presentation to Scopa, 28 May 2025 This information was initially not made available to Scopa and was only provided after committee chair Songezo Zibi complained that it had twice requested information about the top 10 law firms that received briefs from the RAF and accused the fund of deliberately withholding this information from the committee for improper reasons. ALSO READ: RAF CEO placed on special leave with full pay, as MPs grill fund Law firm selection Acting RAF CEO Phathutshedzo Lukhwareni said a panel of 43 law firms was appointed by the RAF in December 2023 but only 19 were briefed and paid during the 2023 and 2024 financial years 'at the time of preparing the report [presentation]'. Lukhwareni said the RAF has a panel of law firms and the selection takes place depending on the complexity of the matter. Scopa member David Skosana of the ANC asked what criteria is used to allocate briefs among the 43 law firms, why only 19 firms had been briefed and paid, and what measures are in place to ensure cost effectiveness and equitable distribution of work among the firms on the panel. Scopa member Mark Burke of the DA said Maponya Ledwaba Attorneys was extracting R30 million a year from the RAF but 'has got one director, three senior associates and an associate as a secretary and an admin clerk'. 'Does that seem right? Does it seem reasonable that a firm with that staff cohort could be extracting that value and delivering value?' asked Burke. Lukhwareni said some of those disbursements were for counsel fees and the cost is determined by the complexity of the matters they have handled and, if the matter is prolonged for a number of years and goes all the way to the Supreme Court of Appeal (SCA) for instance, the cost will obviously be significant. He said repeat briefings are determined by the successes the law firm have registered in the previous cases but declined to comment on the size of Maponya Ledwaba Attorneys because he is not privy to this information. 'To the extent that they [the two law firms] are in the panel and are competent to be in the panel, I don't see any unreasonability in that,' he said. ALSO READ: RAF needs a Settlement Hub for crash victims – expert The 'complex' cases Mampe Kumalo, who was referred to by Lukhwareni as the RAF's head of legal but is the fund's chief governance officer, said the complex cases these firms had or were handling include the Discovery Health, South African Revenue Service (Sars) and Auditor-General matters. The Discovery Health matters relate to various applications it launched against the RAF linked to the failure of the fund to pay the past medical expenses of claimants. The Sars matter involved an application to stop and prevent the tax collection authority from deducting R5.1 billion – or any part of this amount from the RAF levies it collects – to pay Eskom in terms of a settlement agreement between Sars and the power utility. ALSO READ: R25.5 billion deficit over five years — Can RAF afford to pay out claims? Repeat business despite repeated failure Zibi requested Kumalo to provide Scopa with a detailed breakdown by the close of business on Thursday of the fees paid to the two firms, including attorney fees, party-party costs, the cost of counsel and punitive costs orders against the RAF. 'The reason I want this is that you have persistently been clobbered on the AG matter by a law firm you continue to pay and see absolutely no reason to seek another law firm,' he said. Deputy Minister of Transport Mkhuleko Hlengwa said they must not be ignorant to the fundamental risk which prevails at the RAF because of the lawyers. 'The abuse of the system and the leakages of the money not reaching claimants in part is a result of the construct of the RAF. 'Why are we spending so much money on legal fees?,' he asked. 'We should be spending it on claimants because the whole system is fundamentally structured in a way which is problematic, hence the bill that we will be bringing … to parliament.' ALSO READ: RAF national crisis demands urgent action – expert Malatji responds Approached for comment about how the firm was able to receive such high fees from the RAF and if it has had any engagements with the Special Investigating Unit (SIU), Tebogo Malatji – MD of Malatji & Co Attorneys – told Moneyweb the firm has no way of knowing how the RAF decides to appoint attorneys on matters and what criteria it uses to do so. 'We are thus unable to tender the explanation you seek and suggest that you direct the question to the RAF. As the two directors primarily responsible for the servicing [of] the RAF, I have 31 years practice experience and Ms Sunelle Eloff, 24 years,' he said. 'We have personal injury law experience from the time that we started practice, have acted for the RAF for the most part of our practice lifespan and are therefore experts in the field. 'We are also one of the leading public law specialist firms in the country. 'We can only but speculate that the reasons the RAF instructed us in each instance that they did must have something to do with our years of experience, expertise and suitability for the matter at hand,' said Malatji. 'We have acted for the RAF in several of their most complex matters assisted by senior and junior counsel from the Bar and that accounts for the high value of payments to our firm displayed. 'Moreover, the figures displayed at Scopa as being payments to our firm consist primarily of counsel/advocates and other disbursements and to a lesser extent fees to our firm,' he added 'Until we are confronted with the actual number of instructions issued by RAF to its panel attorneys, we do not accept your assumption that it is our firm that allegedly received a disproportionate number of instructions.' Malatji added that the SIU has not engaged the firm on this issue. Maponya Ledwaba Attorneys has not responded to a Moneyweb request for comment on these same issues. This article was republished from Moneyweb. Read the original here.
The Citizen
5 days ago
- Business
- The Citizen
Semigration boosts Cape residential rental yields
Semigration to the Cape has been a major boost for the residential rentals market, especially in areas such as Durbanville which offers a great lifestyle, but more affordability, says Daniela de Villiers, Seeff's rentals manager for the Durbanville area. The higher demand has unlocked more opportunities for investors and landlords in the area, offering attractive rental yields of 6%-10% depending on the area and property, she says. Average rental rates in the Durbanville and surrounding area range between R9,000 to R25,000, and for luxury homes, upwards of R30,000 per month. Luxury estate homes go to as much as R51,000 and R60,000 per month for homes rented out by Seeff in the Kanonberg and Clara Anna Fontein estates. Tenants are coming mainly from Gauteng, particularly the Pretoria area. They are drawn to the area due to the central location, reputable schools, and relative affordability compared to other upmarket locations in Cape Town. Durbanville offers easy access to main arterials, and well-maintained, safe neighbourhoods. The country-like lifestyle and proximity to the Durbanville Wine Valley are also a bonus for people moving from upcountry. Both families and young professionals are flocking to the area. Students from nearby medical facilities, and those doing practical rotations at state hospitals in the area are also drawn to the rental market. Anneke Roux, another rental agent with Seeff who operates in the Welgedacht area, says the area is also popular with those who enjoy an active lifestyle as they can safely walk and cycle in the scenic surroundings. The highest demand in Welgedacht is in the R13,000-R20,000 range while yields range from 6-10%. Schools are a big attraction, according to Allison Oosthuizen, another Seeff rental agent. Young professionals are drawn to the good selection of apartments in the area, including those at the Waterfront. Apartments rent out at R9,000-R11,000 per month which is more affordably priced compared to the Cape Town CBD. Townhouses is a popular alternative as they are also well-priced at R14,000-R18,000. Even luxury homes at R41,000-R51,000 offer good value compared to other upper end areas. The opportunity for investors is mostly for properties in the R1.2m to R2.4m price range where they can achieve a rental income of R9,000 to R20,000 per month, providing a rental yield of 5-7%. Gratia van Jaarsveld, another Seeff rental agent, however, cautions that landlords must keep their prices in line with the market or they could risk not attracting a good calibre tenant within a reasonable period. Pet-friendly properties are always sought-after. When investing in a rental property, a good location is vital, but landlords must maintain properties in a good condition to optimise the rental and retain good tenants. The areas of Pinelands and Thornton, closer to the City, report similar trends. Johan Meyer, licensee from Seeff for the areas, says the high demand is due to proximity to UCT, Groote Schuur Hospital, good schools, and access to the airport. Tenants include students, medical staff as well as those working at the Old Mutual offices. Here too, rental properties are in short supply, and landlords can earn yields of 6-10%. There is high demand for neat, modern accommodation such as the new Pineworx development. Apartments are renting out at R9,500-R14,000 while houses range from R20,000. The highest prices achieved by Seeff over the last year include R25,000 for a rental in Victory Avenue, R35,000 in Uitvlugt, and R42,000 in Links Drive. Issued by Gina Meintjes
Daily Maverick
5 days ago
- Business
- Daily Maverick
Young South Africans school the market — JSE Investment Challenge April winners announced
Every year, the Johannesburg Stock Exchange Investment Challenge puts South Africa's sharpest young minds to the test – and every year, a crop of winners rises to the top. The April 2025 results are in and the future of finance is looking bright and, in most cases, still in school uniform. With four risk-flavoured categories to choose from – income, equity, speculator and ETF/ETN (exchange traded notes/exchange traded funds) – each month brings new winners, while the race for the annual crown keeps everyone on their toes. It's the ultimate financial boot camp, minus the push-ups, but with plenty of number crunching. From rural roots to repeat victories Mpumelelo Secondary School, renowned for sweeping all five top positions in the schools' income category last year and repeated victories over the past several years, has once again proven its mettle in 2025. For the month of April, the Mpumelelo team, The Brave Ones, secured first place in the income category with an impressive portfolio growth of R10,139.73. Grade 11 learner, Mthombeni Nokubonga Naomi expressed her excitement: 'I felt ecstatic after winning, but I couldn't have done it without the support of my mentors.' The journey was far from easy. The team faced numerous challenges, including coordinating meeting times and locations. 'Sometimes it was difficult to decide where to gather,' Naomi said. However, the biggest obstacle was limited internet access and data shortages. 'We supported each other by sharing devices, and Mr Mtsweni, our teacher, helped by providing devices and assisting us with logging into the JSE platform,' she added. When selecting shares, the team adopted a careful strategy. 'We first checked the news – whether company-specific or external factors – and analysed charts of different companies to evaluate their growth potential,' explained Mfundo Mahlangu, a Grade nine learner from The Brave Ones. Equity experts in action Grey College's team, the profit predators, clinched the top spot in the equity category with a 3.92% gain. Their strategy – a laser focus on mining and banking sector companies, backed by diligent research and a few helpful hints from The Money Show with Stephen Grootes. 'Luckily, the market turned in our favour and we managed a good gain in profits,' the team said. Sometimes, fortune really does favour the bold and well-prepared. Speculating for success In the university speculator category, the UP Capital team from the University of Pretoria – Brett Thomson and Joshua McKay – secured victory with a portfolio growth of 12.65%. Thomson, already a veteran of the challenge, credited his win to careful risk management and a flexible strategy. The same team (plus one extra team member) won the overall ETF/ETN category in the JSE Investment Challenge 2024, walking away with R30,000. 'With all the risk in the market, it has been important to be both long and short to outperform the market. What I learnt is how to position the size of different sectors of the market according to current market risk,' Thomson explained. Catch up April's honour roll Schools The Jade Hustlers of Stellenberg High School in the Western Cape won the speculator category, with growth of 7.19%. The BGC – Skillies of Hoërskool Stellenbosch in Western Cape won the ETF/ETN category with 5.65% growth. The Brave Ones of Mpumelelo Secondary School in Mpumalanga won the income category, with a growth of R10,139,73. The Profit Predators of Grey College in the Free State won the equity category, with 3.92% growth. Universities UP Assegai of the University of Pretoria in Gauteng won the ETF/ETN category with 12.13% growth. UP Capital of the University of Pretoria in Gauteng won the speculator category with 12.65% growth. for schools and for universities. Keep in mind, applying late means you'll be eligible only for the September monthly results – not the annual finals – so it pays to sign up early and get a head start on the competition. The next champion could be you. DM
IOL News
7 days ago
- Business
- IOL News
How to take control of your retirement savings
Discover how to take charge of your retirement planning and avoid common pitfalls that can jeopardise your financial future. Some of us count the days until the end of the 'nine-to-five', picturing a retirement of beach walks, travel, quality time with loved ones, and the chance to finally pursue long-neglected passions. Others can't afford to stop working at all. It's easy to assume the difference lies in income or privilege, but more often it comes down to decades of financial planning — or the lack of it. There's nothing more sobering than speaking to a 60-year-old whose retirement fund totals just R100,000. What do you say to someone facing the end of a working life with no safety net? It's easy to blame the investment industry for high fees, too many choices, or underperforming portfolios, although the answer is closer to home: It's on us. We need to take a more active role in what's in our retirement fund. The 10X Investments Retirement Reality Report found that only 6% of South Africa's population is on track to retire comfortably, highlighting a significant retirement savings crisis, with most people facing financial difficulty in their 'golden years'. Of those who do plan for retirement, few are confident they can support themselves due to tough economic conditions. The report shows that a typical earner who saves 15% of their income from the start of their career and preserves their savings when changing jobs will need about 40 years to accumulate a large enough nest egg for a comfortable 30-year retirement, presuming a return of 5% after costs. Experts suggest aiming to replace 60-75% of your working income in retirement. So if you earn R40,000 per month today, you'd want R24,000 to R30,000 per month in tomorrow's money, keeping in mind that these amounts need to grow with inflation over time. 1. Take ownership and re-evaluate your investment strategy Too often, people outsource responsibility for their retirement savings, assuming their employer's fund will take care of everything. But simply belonging to a provident fund isn't enough – you need to understand how it works, what you're invested in, and whether it's aligned with your goals. When was the last time you checked your balance? Are your funds positioned for the stage of life you're in? Confidence in your retirement plan doesn't come from having a fund; it comes from knowing it's the right one for you. Confidence in your retirement plan comes from staying informed and making intentional decisions, not hoping passively. 2. Dipping into your savings, or cashing in About 56% of working people who change jobs cash in their retirement savings. When you switch jobs, it's essential to understand the potential impact on your pension. Your new employer may have different pension policies, contribution rates, and benefit structures. Transferring your pension can consolidate your funds and streamline your retirement savings. However, it's crucial to assess the fees, investment options, and any potential loss of benefits associated with the transfer. One of the biggest downsides is the loss of compound growth: by withdrawing your pension early, you miss out on decades of investment returns. Even a small withdrawal can have a major impact over time. 3. Too much debt Not prioritising debt repayments while employed leads to a debt burden at retirement, making it more difficult to cover basic expenses. Many retirees also have large mortgages or remortgage their homes to access funds. Consider also making regular top-up payments towards your car or other debts if there is space in your budget while ensuring you provide for saving when you will need it most, at retirement. Paying off short-term debt and saving for retirement are two examples of financial levers that are within the individual's control. Small, significant improvements in these areas will help you make large steps towards financial health and wealth. The key message is: don't panic. A limited retirement fund does not have to mean a life of struggle. You can still make the most of your golden years. The best time to start is now. * Jackson is a client relationship manager, at 10X Investments. PERSONAL FINANCE
