Latest news with #TymeBank
Daily Maverick
19 hours ago
- Business
- Daily Maverick
South Africa's SMMEs are flying blind in a changing global order
Small businesses are yet again expected to absorb the shocks of stalling growth, economic policy and diplomacy. Small businesses are expected to keep the lights on, even as South Africa stumbles through an increasingly volatile global and domestic economic environment. While a 25 basis point rate cut at month end offered some respite, it's hardly the lifeline small, medium and micro enterprises (SMMEs) need, said Miguel da Silva, executive of business banking at TymeBank in the bank's SMME forecast for June. 'Some diminishing pressure on the cost of credit' followed the South African Reserve Bank's cut, Da Silva said. Yet, he said 'the economy needs every bit of help it can get'. VAT relief with a fuel levy sting The National Treasury's decision to hold VAT steady at 15% provided some short-term relief to cash-strapped SMMEs. But the olive branch came with a thorn. As of 4 June, petrol and diesel prices jumped by 16c and 15c per litre respectively. 'With many small businesses already operating on razor-thin margins, this 16c increase will likely be passed on to consumers, potentially dampening demand in an already constrained market,' Da Silva said. This adaptation to the Budget showcases the government's strained fiscal position. In a podcast discussion on Budget 3.0, Stanlib chief economist Kevin Lings pointed out that until South Africa lifts GDP growth above 3%, pressure on public finances will persist. 'The negative revenue impact from backtracking on the VAT increases proposed in the previous version of the Budget, as well as the weaker economic growth trajectory, is counteracted… by a combination of revenue and spending adjustments,' explained Dr Elna Moolman, Standard Bank Group head of South African macroeconomic research. 'The expenditure changes are dominated by scaling back some of the new spending proposed in the previous versions of the Budget, while the revenue adjustments include both the reversal of some of the tax relief previously proposed… and unspecified future tax hikes.' The Budget foreshadows a pivot to removing the regulatory burden on businesses. Though, as Da Silva noted, no specific SME-support programmes, funding initiatives or targeted relief measures have emerged. Q1 data highlights on the scale of struggle The economic scoreboard from Q1 depicts an economy in stagnation: GDP grew by just 0.1% in Q1 2025, with agriculture (+15.8%) the only area showing growth. The National Treasury revised 2025 growth expectations downward from 1.6%, from 1.8%. Official unemployment rose to 32.9%, from 31.9%, which translates to a decrease of 54,000 in the labour force. Youth unemployment increased to 46.1% from 44.6% in the first quarter of 2024. While the SME SA Funding Summit 2025 on Thursday, 12 June is expected to explore access to finance, Da Silva stressed that a functioning, reliable environment matters more. How does this affect you? No real relief for entrepreneurs: if you're running a small business, don't hold your breath for targeted funding or tax breaks. Government promises of support remain vague. Price volatility on imports and exports: If Agoa collapses or BRICS moves away from the dollar, expect price changes in imported goods and export delays. Policy fog = business risk: If you're a customer, supplier or entrepreneur, inconsistent policy and mixed messages from government and diplomats create risk, which translates into cautious spending, higher borrowing costs and business hesitancy. Agoa and the diplomatic see-saw South Africa's trade diplomacy with the US remains complicated, but functional for now. Trade Minister Parks Tau and Agriculture Minister John Steenhuisen delivered a new framework to US Trade Representative Jamieson Greer on 19 May, laying out a new bilateral trade proposal. 'We met and had a very cordial and constructive meeting with Ambassador Greer… We had a very open and frank exchange about how we can ensure mutually beneficial trade between South Africa and the United States of America,' said Steenhuisen. He further noted that 'the importance of both markets for each other, and obviously a lot of emphasis from the American side [on] wanting to rebalance some of the trade… and from our side, wanting to retain market access'. With Agoa set to expire in September 2025, a renewal is looking uncertain. Da Silva said that 'the complex challenge of either finding alternative markets or restructuring their operations' looms large for SMME suppliers in US markets. 'While the US is not our largest trading partner, it is an important one, with 8% of our exports destined for its shores,' said Maarten Ackerman, chief economist at Citadel. 'Of that 8%, a third is excluded from tariffs, but citrus exporters are likely to be hardest hit.' BRICS Summit brings new questions Then there's the BRICS Summit in Brazil in early July, where stakeholders are expected to discuss mechanisms to alleviate dependency on the dollar. 'For SMEs, particularly those in export-oriented sectors, this diplomatic tightrope walk translates into very real business planning challenges,' Da Silva explained. Navigating dual allegiances between BRICS and the West 'requires SMEs to develop strategies that can withstand diplomatic volatility while capitalising on emerging opportunities', Da Silva said. DM
TimesLIVE
5 days ago
- TimesLIVE
Scammer dupes college managers and students with fake internship jobs
The students said that when they arrived at the mine they were shocked to learn that they had wasted their money and time on a scam. 'We called 'Mike' and he gave us another contact number [which appears] on the mine's website,' she said. 'Mike' told us that we needed to meet him at Moruleng Mall, where we'd do a medical examination to get a medical certificate. 'He told us that we need to transfer R550 each to a TymeBank account. That's when we realised that this was a scam because we do not know of a big company that uses that bank.' The student then called the college, which tried unsuccessfully to contact 'Mofokeng'. The distressed students camped at the mall for hours while the college arranged transport to take them back to Gauteng. While at the mall, the students said they met students from four other institutions in Gauteng who had been scammed by the same man. On Tuesday, some of the students were seen leaving the college carrying their clothes and bedding in bags. An electrical engineering student said: 'I am from Mpumalanga and have nowhere to go because I did not pay rent for June as I was going to be in another province where the accommodation would have been covered by the mine.' Jan Greyling, the spokesperson for the P&T Training Educational Institution, said they were approached by what appeared to be a genuine agency which had promised to place students at the mine. 'The agency presented documentation aligned with legitimate requirements. As part of the placement process, P&T Training incurred costs associated with the required medical clearances for the learners, ensuring they were fully prepared for their work-based learning experience,' he said. Greyling said arrangements were made for the students to report to the mine as stipulated in the placement agreement with the agency on the college's behalf. He said the matter has been referred to their legal team for investigation. Siyanda Bakgatla Platinum Mine spokesperson Hope Tyira confirmed that 'Mofokeng' tried to solicit payments for medical examinations and certificates using a fake recruitment process. Tyira said the mine was investigating the matter with their shareholders. 'On becoming aware of the incident, we acted swiftly and in co-ordination with relevant partners to safeguard the wellbeing of the students and we are conducting a comprehensive investigation into the matter,' he said.
IOL News
5 days ago
- Business
- IOL News
Venture capital in Africa poised for measured rebound in 2025, with South Africa leading the charge
Following a 46% drop in African VC funding in 2023, 2024 showed early signs of stabilisation. According to internal valuation memos from Endeavor's Harvest Fund II, African equity funding declined just 2% year-on-year in 2024, totalling $2 billion (R36bn). Venture capital (VC) across South Africa and the broader African continent is entering a period of cautious recovery and renewed opportunity, after two years of contraction and recalibration. After a turbulent period in 2022 and 2023, 2024 was a year of recalibration. Now in 2025, we're seeing signs of resilience and reawakening across African venture capital. The key differentiator has been quality, due to founders who are building real businesses with disciplined capital use, strong unit economics, and scalable platforms. Following a 46% drop in African VC funding in 2023, 2024 showed early signs of stabilisation. According to internal valuation memos from Endeavor's Harvest Fund II, African equity funding declined just 2% year-on-year in 2024, totalling $2 billion (R36bn). This suggests the market may be bottoming out. Quarter four 2024 was particularly strong, driven by three late-stage megadeals - TymeBank ($250 million), Zepz ($267m), and Moniepoint ($110m) - which accounted for nearly half of the continent's total funding. While the volume of deals was still low, the return of nine-figure rounds was a key indicator that investor confidence is cautiously returning. In South Africa specifically, funding totalled $459m, which is down from prior years, but far less volatile than in other regions. TymeBank's record-setting round helped maintain confidence, and the overall investment narrative was bolstered by the country's macro stability: moderated inflation, improved energy security, and post-election momentum boosted investor sentiment. Looking ahead, Endeavor expects the market to slowly but steadily rebound in 2025. Globally, easing inflation and anticipated interest rate cuts are likely to unlock capital previously sidelined. This trend is expected to extend into Africa, though the continent still awaits its AI boom, which was the dominant driver of venture capital globally in 2024. 2025 won't be a return to frothy 2021 valuations, but it will be a year where high-quality African startups, especially in fintech, enterprise tech, and healthtech, regain their growth footing. We're already seeing founders shift their strategies and extending runway, focusing on breakeven, and selectively raising from aligned capital. Endeavor's Harvest Fund II portfolio exemplifies this trend. Across 17 companies, 2024 saw average revenue growth of 49% (4 year CAGR), driven by standout performers like Tyme, Onafriq, and Sendmarc. The fund is now fully deployed, and its successor, Harvest Fund III, secured R190 million in its first close in late 2024, surpassing initial targets and drawing in blue-chip investors like Standard Bank, Allan Gray, and the SA SME Fund. But in this cautious environment, not all capital is created equal. What we're seeing is a flight to trusted, strategic capital. Endeavor's rules-based co-investment model, backing only rigorously vetted, founder-led companies with strong inflection points, has given investors greater confidence in a period where diligence is more critical than ever. Endeavor South Africa continues to curate a pipeline of over 135 high-growth companies through its rigorous international selection process, positioning Harvest Fund III to deploy into a diversified and thoroughly validated portfolio across the continent. While macro headwinds remain, Endeavor sees African innovation as a long-term megatrend. There is no shortage of talent or ambition here. The bottom-up drivers of digital adoption, financial inclusion, and youth entrepreneurship are firmly in place. What we need now is the patient capital and partnerships to fuel the next chapter of scale. With a global network of over 5,000 mentors, deep access to capital, and a mission-driven investment thesis, Endeavor is positioning its entrepreneurs to navigate the complexities of the current cycle while building for the future.
The Citizen
31-05-2025
- Business
- The Citizen
Your money, your rules – these are your banking rights
Your banking rights are protected by the Code of Banking Practice compiled by the Financial Sector Conduct Authority. When you pay your money into your bank account, your money remains yours and therefore you should have rights attached to your money and your bank account. Having a bank account is not just about keeping your money safe but about having financial security, making payments easily and accessing services that improve your life. In short: your bank owes you. Banks are required to treat all customers fairly and cannot discriminate based on income, gender, race or background. However, despite these regulations, many consumers continue to face challenges in accessing financial services due to high costs and complex requirements. Therefore, Cheslyn Jacobs, chief commercial officer at TymeBank, says you should understand your rights as a consumer when it comes to banking. 'Understanding your rights helps you to make informed choices and ensures that your bank treats you fairly. It allows you to confidently navigate banking services, question unfair charges and take advantage of the benefits and protections available to you as a customer. 'When you know what to expect, you can make financial decisions that best serve your needs and long-term goals.' The Code of Banking Practice guides how banks should treat you. The Financial Sector Conduct Authority (FSCA) also ensures compliance with the code. Jacobs says these rights include: Your right to a bank account You have the right to open a bank account, provided you meet some basic requirements, such as proof of your identity, proof of residence and sometimes proof of income. You may also need to provide a minimum opening deposit. ALSO READ: FSCA finds banks do not handle consumer complaints properly Your right to clear information about bank charges It is important to know the costs associated with your account, Jacobs says. Banks are required to clearly explain all fees, charges and interest rates before you open an account. Always ask for a list of all costs upfront, check your bank's website and regularly review your bank statements. Your right to switch banks If you are unhappy with your bank's service, fees, or policies, you have the right to move your money to another bank. Jacobs says it is easier than ever to switch banks. 'Compare options and choose a bank that offers affordable, transparent and secure banking when you switch.'. ALSO READ: FSCA to investigate banks charging different amounts for the same product Your right to have your privacy and security protected Your bank must protect your personal and financial information and cannot share your details without your consent unless required by law. However, Jacobs points out, safeguarding your financial security is also your responsibility. 'To protect yourself, always use strong, unique passwords for online banking and enable two-factor authentication where possible. Be cautious of phishing scams and never click on suspicious links or share your banking details over the phone, email, or text unless you are 100% certain of the recipient's identity. 'Regularly monitor your bank statements for any unauthorised transactions and report them immediately. When using ATMs, be aware of your surroundings and shield your PIN entry. If you lose your card or suspect fraud, notify your bank as soon as possible to block unauthorised access. By staying vigilant and following these steps, you can help keep your financial information secure.' ALSO READ: FSCA fines African Bank R700 000 for misleading advertising [VIDEO] Be on the lookout for fraud and stay aware According to the South African Banking Risk Information Centre (Sabric), an organisation that works with banks, law enforcement, and regulators to combat fraud, nearly R3.3 billion was lost to fraud in 2023. Digital banking fraud increased by 45%, and banking app fraud by 89%. 'Criminals are using advanced technologies, and therefore it is important to stay informed,' Jacobs says. Look out for a bank that offers security features such as: Biometric verification that protects you against identity theft. DebiCheck, which allows you to approve transactions before money is deducted. Multi-factor authentication by using a One-time PIN (OTP) to verify transactions. Security updates must be done regularly to protect your account against fraud. Tips and updates via various communication channels, including SMS, social media and email on how to protect your money. ALSO READ: Consumer Protection Act and your rights How the Consumer Protection Act adds to your banking rights The Consumer Protection Act (CPA) protects you from unfair treatment, misleading information and hidden fees from your bank. It ensures you receive fair and transparent financial services. Jacobs says if your bank fails to meet these standards, you have the right to take action to protect yourself and hold them accountable. He says when you have a problem with your bank, you must start by trying to resolve your complaint directly with the bank, as the Code requires all financial institutions to have internal dispute resolution processes. 'Clearly outline the issue, provide any supporting documents and request a formal response. If the bank does not resolve your complaint satisfactorily and you believe you have been treated unfairly, you have the right to escalate the matter.' If you believe that your bank did not comply with the CPA, you can approach the National Consumer Commission (NCC) for complaints about unfair business practices, such as misleading advertising or hidden fees. ALSO READ: Financial service provider giving you problems? The NFO can help Other regulators that can help to protect your banking rights The National Financial Ombud Scheme South Africa (NFO) is an independent organisation dedicated to resolving consumer complaints against financial service providers, including banks, credit providers and insurers. Their services are impartial, confidential and free of charge. You can visit the NFO's website to lodge a complaint. Concerns related to financial advice or investment products can be investigated and mediated by the Ombud for Financial Services Providers (FAIS Ombud). Jacobs says these regulatory bodies have the authority to enforce corrective action, ensure that consumers are treated fairly and that banks comply with consumer protection laws. 'By taking these steps, you can assert your rights, seek fair treatment and contribute to greater accountability in the financial sector. 'Many South Africans do not realise they have banking and consumer rights. Understanding these rights helps you to make informed choices and protect yourself from unfair treatment or fraudulent activity.'
IOL News
22-05-2025
- Business
- IOL News
Sanlam and Tyme Bank launch joint venture for personal loans and credit life
A Tyme Bank banking kiosk. The digital bank, which has a network of 15 000 retail points across South Africa, has entered into an agreement with Sanlam to broaden their unsecured loans and credit life businesses into a joint venture company. Image: Reuters/Tiisetso Motsoeneng Sanlam and Tyme Bank have entered into a joint venture focused on growing in South Africa's unsecured personal loans and credit life markets, the financial services and insurance and digital bank said Wednesday. Collaboration between the two companies has been widely speculated about in the market since the acquisition by Sanlam Life in September 2024 of a 25% interest in African Rainbow Capital Financial Services Holdings, a company that holds 46% of Tyme Bank. 'The collaboration with Tyme Bank is an important component of the Sanlam credit strategy. The two companies have complementary customer bases and skillsets, promising excellent growth opportunities,' Sanlam's directors said in a statement Wednesday. Sanlam stated that the collaboration involves Sanlam Life, Sanlam Personal Loans (SPL), and Tyme Bank. SPL, with a loan book of R5 billion as at December 31, already provides unsecured personal loans of between R5 000 and R300 000, on repayment terms of 12 months to 6 years at a fixed interest rate. The digital Tyme Bank, launched in 2018 with more than 11 million customers already, provides personal and business banking services and unsecured personal loans in South Africa. The bank does not have branches, but aside from the internet site, it has a network of self-service kiosks, equating to 15,000 retail points across the country. The proposed deal will entail the establishment by SPL of a registered credit provider operating company to originate and administer personal loans to customers. SPL's existing business will be sold to this joint venture company. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Tyme Bank will acquire a 50% share in the company for R31.5 million. SPL will sell 50% of its loan book to Tyme Bank for about R400m, plus the capital value thereof. Tyme Bank will also share 50% of the credit life insurance results relating to the joint venture company loan book. Other benefits from the joint venture include Tyme Bank's robust infrastructure, as well as bank-grade fraud and anti-money laundering capabilities to support the credit strategy of the joint venture company. Sanlam and Tyme Bank will jointly develop a new lending capability on Tyme Bank's infrastructure. The joint venture will access both Sanlam and Tyme Bank's customer bases, creating cross-sell opportunities. Last week, Sanlam announced a strong start to its new financial year, with earnings, excluding investment return on shareholder funds, increasing by 15% for the three months to March 31, while net operational earnings, including investment returns on shareholder funds, increased by 22%. New business volumes were up by 15%. Sanlam's share price fell 0.15% to R85.67 on the JSE, early Wednesday morning. Visit:
