Finweek UK 13 March 2014
finweek www.finweek.com 13 March 2014 2 million DEATH As an investment strategy Entrepreneurs: WHEN LESS IS BETTER Start-up Meet Anthony le Roux of Uber 9 771024 740005 11940 SA: R23.50 (incl. VAT) Other countries: R20.61 (excl. VAT) security guards can help YOU CASH IN on a booming industry How SA’s MAKE money WITH MPACT METROFILE TEMPLETON’S EURO GOVERNMENT BOND FUND Jeep with ® Inside finweek www.finweek.com 13 March 2014 2 million DEATH As an investment strategy Entrepreneurs: WHEN LESS IS BETTER Start-up Meet Anthony le Roux of Uber 9 771024 740005 11940 SA: R23.50 (incl. VAT) Other countries: R20.61 (excl. VAT) security guards can help YOU CASH IN on a booming indus try How SA’s MAKE money WITH MPACT METROFILE TEMPLETON’S EURO GOVERNMENT BOND FUND P10 CASHING IN ON CRIME FEARS 4 Feedback From our readers 6 Rewind & Trending N ews review and preview 8 Context SA’s online shopping market 10 Cover C ashing in on the booming security industry 16 Insight T he economics of bigotry 18 Infographic: Hollywood by the numbers 20 Cross-border expansion: The fast and the fleet-footed 22 Poor roads claim more tolls from Sanral 24 Venezuela’s angry students 28 The Gab Shhh , don’t tell anyone! 31 Investment W hat are unit trusts? 33 End in sight for platinum strikes 34 Impala’s hoping to coin it on Mandela 36 Pro Pick S atrix Balanced Index Fund 37 House View Punts 39 Simon Says Don Group, Old Mutual, EOH 40 Killer Trade: Mpact: Bullish on recycling 41 Small Cap Modular business plan pays dividends 42 Fund Focus Templeton Euro Government Bond Fund 43 Invest DIY How to position and protect your portfolio 44 Money B anking on death; Property feeding frenzy 50 Entrepreneur T he story of a sale 52 Start-ups: Introducing Uber Cape Town 56 Technology T ested: Nokia Lumia I520 57 One operator to rule them all 58 Life T he week that was in SA sport 60 Directors & Dividends Dea lings and payouts 62 In Brief Cr ossword P46 Property frenzy P6 Be careful what you wish for Cover story: Tandisizwe Mahlutshana Cover concept: Zandri van Zyl Cover story layout: Tshebetso Ditabo Photographer: Rowyn Lombard Model: Aubrey Rathaka P28 Shhh, don’t tell anyone! P41 Modular business plan pays dividends FEEDBACK 4 FINWEEK 13 MARCH 2014 Feedback PUBLISHED BY MEDIA24 WEEKLY MAGAZINES PRINTED BY PAARL MEDIA AND DISTRIBUTED BY ON THE DOT HEAD OFFICE 40 HEERENGRACHT, CAPE TOWN, 8001 OR PO BOX 1802, CAPE TOWN, 8000. PHONE 021-406-4552 GAUTENG OFFICE 5 PROTEA PLACE, PROTEA PARK, SANDOWN, 2196 OR PO BOX 785266, SANDTON, 2146. TEL 011-217-3053. WEBSITE www.finweek.com OVERSEAS SUBSCRIBERS +27-21-405-1905/7 FINWEEK SUBSCRIBES TO THE SOUTH AFRICAN PRESS CODE WHICH COMMITS US TO JOURNALISM THAT IS TRUE, ACCURATE, FAIR AND BALANCED. IF YOU THINK WE ARE NOT COMPLYING WITH THE CODE, CONTACT THE PRESS OMBUDSMAN AT 011-484-3612 OR ombudsman@presscouncil.org.za © FINWEEK 2011 ALL RIGHTS RESERVED. TO INQUIRE ABOUT PERMISSION TO REPRODUCE MATERIAL CALL OUR ARCHIVE AT 021-406-3232. SUBSCRIBERS 0861 000 571 subs@finweek.co.za SHOPS 0861-888-989 assistance@onthedot.co.za INQUIRIES Share your thoughts with us on Twitter (@Finweek) or find us on Facebook (facebook.com/Finweek) EDITORIAL ACTING EDITOR WILLEM KEMPEN DEPUTY EDITOR TANDISIZWE MAHLUTSHANA MANAGING EDITOR NICOLE BOUCKAERT JOURNALISTS AND CONTRIBUTORS SIMON BROWN, SIMON DINGLE, GLENDA WILLIAMS, JESSICA HUBBARD, DAVID MCKAY, BRUCE WHITFIELD, KRISTIA VAN HEERDEN, GLENDA WILLIAMS, DANIELLE GARRETT, BLAIR BURMEISTER, WARREN DICK, SUB-EDITORS STEFANIE MULLER, JUSTINE OLIVIER OFFICE MANAGER THATO MAROLEN LAYOUT ARTISTS BEKU MBOTOLI, TSHEBETSO DITABO, ZANDRI VAN ZYL GENERAL MANAGER CHARLENE BEUKES PUBLISHER LEE-ANNE COOSNER PROJECT MANAGER DEIRDRE MCDONALD CEO: MEDIA24 MAGAZINES JOHN RELIHAN CFO: MEDIA24 MAGAZINES RAJ LALBAHADUR ADVERTISING SALES AND SOLUTIONS S ALES DIRECTOR CRAIG NICHOLSON 011-322-0731 BUSINESS MANAGER (KZN) EUGENE MARAIS 031-566-4178 BUSINESS MANAGER (DIGITAL) TERANCE WINSON 021-443-9418 NATIONAL SALES MANAGER WEATHERTON NYAMBEU 011-217-3185 CIRCULATION SALES & SOLUTIONS CIRCULA TION MANAGER ARMAND KASSELMAN 021-443-9975 SUBSCRIBER ENQUIRIES ELMARIE EYGELAAR 021-443-9828 DRAWING A LINE I refer to Bruce Whitfield’s article entitled A leap to the left (27 February edition). I have little interest in politics as such. All I want from Government is a secure environment in which to work and reap rewards according to my efforts. There is indeed cause for concern. However, there are certain things that we have to accept and understand when dealing with the ANC Government. The first is that their objective is not to gov- ern the country for the long-term benefit of its people. Their primary objective is to stay in power no matter what it takes. In order to stay in power they obviously need votes and the fact that the majority of the elector- ate is unsophisticated and easily manipulat- ed makes it easy for a ruthless organisation to get them. The majority won’t be able to understand that they are voting their own future prosperity down the drain. The second is that the struggle in South Africa, as with most freedom struggles on the continent, had little to do with freedom and prosperity for the people but every- thing to do with power and privilege for the leaders – Robert Mugabe said: “Zimbabwe is mine.” The actions of our ANC ‘leaders’ certainly suggest that they regard our coun- try as their personal property to milk and do with as they please. (I say ‘leaders’ because leadership implies posi- tive motivation and the courage and ability to make unpopular deci- sions for the long-term good.) It does not take great academics to formulate economic policies that uplift populations. By looking around the world and noting what the most prosperous nations are doing and following their examples would be a good start. It is time for a strong opposition to draw a line in the sand and say “so far and no further”. The removal of property rights will utterly destroy Nelson Man- dela’s ideals for a prosperous Rainbow Nation and is likely to plunge the country into anarchy. Nigel Peddie Contact Finweek, P O Box 785266, Sandton 2146, tel (011) 217-3000 or feedback@finweek.co.za THIS WEEK’S CONTRIBUTORS Kelly Berold kellyberold@gmail.com Simon Brown simon@justonelap.com Simon Brown heads justonelap.com, a free resource of financial information and investment education. Blair Burmeister blairb@finweek.co.za Warren Dick warrendick7@gmail.com Simon Dingle simond@finweek.co.za Moxima Gama moxima@themoneyhub.co.za Craig Gradidge Craig@gminvestments.co.za Jessica Hubbard jessicah@finweek.co.za Graeme Joe Graeme@butterbean.co.za Tandisizwe Mahlutshana tandisizwem@finweek.co.za David McKay david@miningmx.com Gareth Ochse garethochse@gmail.com Gareth Ochse is the founder of ValuationUp.com. James-Brent Styan James.Styan@beeld.com Gavin Symanowitz gavin@blockbusterinnovation.com Dr Gavin Symanowitz is an actuary and founder of BlockbusterInnovation.com . Garth Theunissen Thewritegarth@gmail.com Bruce Whitfield brucew@finweek.co.za Glenda Williams glendaw@finweek.co.za For more information, visit finweek.com e s t l I n t i n ap y e r , s t ong - term benefit of is m in e. Th e ac ti on p d ( l t co m si o go ac e c o u p l J ust how much political heat is the ANC feeling ahead of the poll on 7 May? A significant amount, according to research by the South African Institute of Race Relations (IRR), which maintains that the country is tee- ing itself up for a Zimbabwe-style land grab and, to make matters worse, says its CEO, the off icia l opposition is com- plicit. It’s easy to dismiss the cl aims as fanciful. La nd rights are constitutionally protected, besides which, an economically prudent ruling part y could not feasibly contemplate poli- cies that would be destructive to already delicate foreign investor sentiment. “Nobody thought so in Zimbabwe either,” says Frans Cronjé, CEO of the think tank that has published a con- troversial assessment of two pieces of pending legislation it argues could be as destructive to rural South Africa as Lord Kitchener’s scorched earth policy was during the South African War at the dawn of the last century. “It could result in the expropriation of commercial farming operations with zero compensat ion,” cautions the IRR. The first of these is the Restitution of Land Rights Amendment Bill of 2013 (the Restitution Bill). The a im of the le g islation is to open a new five-year window during which land claims can be lodged. It’s estimated there could be more than 375 000 of these as dispos- sessed South A fricans seek a mechanism to redress some of the economic wrongs of the past. The IRR is not opposed to the prin- ciple of land res- titution but notes with alarm that the cost could amount to nearly R180bn. The res- titution budget, however, sits at a paltry R3bn. Hence the concern that something infi- nitely more sinister is afoot. Cronjé says that another piece of pending legislation is being crafted to achieve precisely t hat. The Promotion and Protection of Investment Bill makes provision for the State to play the role of custodian over d isputed land. Ownership would not shift, and therefore it would not be a case of outright expropriation. “The Constitutional Court has already ruled in a case involving mining rights – the deprivat ion of property f rom an existing owner is not matched by the acquisition of that property by the State. A leap to the left INSIGHT 6 FINWEEK 27 FEBRUARY 2014 Rewind This means t hat there is no expropriation – and no right to any compensation,” says Cronjé. “There is precedent.” Sound fanciful? Perhaps. But Cronjé is concerned that the ANC is facing mounting political opposition among disaffecte d youth who might be tempted to cast a vote for Julius Malema’s Eco- nomic Freedom Fighters. DA support for re-opening land claims could aid the process. “Together,” says Cronjé, “these two pieces of legislation could spell the end of private propert y rights in South Afr ica – not just in agriculture but across the economy. We suggest that the Govern- ment and the Africa n National Congress [ANC] may be preparing the ground to confiscate private propert y and distrib- ute it to poor communities if and when they feel the need to do so. That time will come when the politica l pressure on the ANC is so great that it fears losing a future election.” ■ BY BRUCE WHI TFIELD would not shift, and therefore it would not be a c ase of out right expr opriatio n. “The Const itutiona l Court has already ru led in a c ase involv ing mining rights – t he depriva tion of pr operty f ro m an existin g owner is not matched by the acquisitio n of that property b y the Stat e. future ele ction.” ■ Frans Cronjé “TOGETHER, THESE TWO PIECES OF LEGISLATION COULD SPELL THE END OF PRIVATE PROPERTY RIGHTS IN SOUTH AFRICA.” Gallo imag es/ Getty image s: Foto 24 /Denzil Maragele TBWA\HUNT\LASCARIS 040512 For more information on the Nissan LCV Range visit www.nissan.co.za THE BACKBONE OF ANY BUSINESS. Smart Business Choice | Proud Heritage | Proven Capability NISSAN LCV RANGE. A Nissan Light Commercial Vehicle is an ideal partner in any business. Make sure you choose the effi cient LCV that is cost-effective and low on maintenance. Reliable, adaptable and not afraid of hard work, a Nissan LCV is a workhorse that’s as integral to your business as you are. F or decades big business hoped for a weakening of the tripar- tite alliance. The ANC/ COSATU/SACP coalition was seen as damaging to business. Now that the alliance is fraying at the edges – many are wondering whether or not the status quo was more palatable than the heightened levels of political and eco- nomic uncertainty with which managers are contending on a daily basis. It really is a case of being careful what you wish for. Both Government and big business have been taken unawares by the rapid radicalisation of the workforce particu- larly in the platinum belt, and the state is stretched to deal with the rapid rise in violent service delivery protests. For ever watchful ratings agencies, concerned about the sustainability of a South Afri- can turnaround without the economy finding innovative ways to include grow- ing numbers of disaffected young people, the rise in activism cannot be ignored. A dramatic change in political climate following the May elections could force the hand of the state and that of big busi- ness to greater levels of co-operation in the face of a leftwing backlash. Finance minister Pravin Gordhan is a strong pro- ponent of greater co-operation between public and private sectors. But the ANC is vulnerable to a back- lash from first-time voters, who believe that they have little to lose in voting for what they might regard as a radical alternative. Julius Malema’s Economic Freedom Fighters (EFF) is shaking up the political landscape and is likely to get more than a handful of seats in parlia- ment. That would provide the EFF with a level of political credibility that it craves to achieve and will do one of two things – lead to greater sustainable co-operation between public and private sectors, or a kneejerk jump to the left of traditional ANC policy to placate voters. So far the state has remained reso- lute and focussed on prudent long-term financial planning. Gordhan may have got away with a couple of percentage points on the marginal tax rate if he’d chosen to follow a populist agenda. But with just 168 000 South Africans earn- ing over R1m a year, the impact could have been more negative from a compli- ance point of view than positive. For now sceptical ratings agencies are giving the finance minister the benefit of the doubt. In as much as big business was hoping for a breakdown in the tripartite alliance, the EFF and its supporters are eager to plunder the coffers of the rich. They, too, should also be careful about what they wish for. The super rich are globally wealthy and although it might pain them to do so, they are able to pack their bags and take their money generating ingenuity with them. ■ Be careful what you wish for INSIGHT 6 FINWEEK 13 MARCH 2014 Rewind If SA were a company and Pravin Gordhan was its financial director with executive authority over the departments and divisions beneath him, he’d probably have a far bet- ter chance of limiting the profli- gacy of his colleagues. Markets are keen to know whether he will serve another term. Like Trevor Manuel before him, he is regarded as a safe pair of hands. While he is politically powerful and remains influential in ANC circles, his austerity drive in Government departments is not popular. His post-budget tea and biscuits replaced what is traditionally more lavish fare as he seeks to lead by example. His attempt to drive the same behaviour into other depart- ments is not going down well. Politics is a messy business. If he were to be dropped or moved after the elections, the ANC should con- sider whether his successor would have any other easier choices they would be able to make. Politicians, too, need to be careful about what they wish for. THE PRAVIN POSER… BY BRUCE WHITFIELD INSIGHT FINWEEK 13 MARCH 2014 7 MOBILE FINANCIAL SERVICES are moving into the radar of mobile oper- ators, financial institutions, technology firms and governments, particularly in regions where financial inclusion is limited – like Sub-Saharan Africa (SSA). McKinsey reports that close to 500m people are unbanked (in Sub- Saharan Africa) while there are 502m active SIM connections representing around 253m mobile subscribers in the region. This gap between unbanked individuals with access to a mobile phone is the foundation of opportunity for mobile money. BREAKING NEW GROUND Out of the African nations, Kenya and N igeria are leading the way in terms of adoption of mobile payment technology. “This is a growing trend that is help- ing the two countries introduce more unbanked citizens to formal financial services,” says Sachin Shah, head of cash management products at Standard Bank. Standard Bank saw the number of payments to mobile wallets in Kenya, on behalf of its clients, increase by 300% in 2013. Millicom, a global telecom group, said that mobile money was the largest contributor to revenue growth in Africa in Q4 2012, and that the MTN Group, offering mobile money in 11 SSA mar- kets, has more than 10m subscribers. Given the growth in users, as well as the commitment from operators, it has become clear that Safaricom’s M-Pesa – currently the most developed mobile payment system in the world which allows Kenyans with a national ID card or passport to deposit, withdraw, and transfer money with a mobile device – is no longer the only success story in this industry. WHY MOBILE MONEY? According to Shah, multinational cor- por ations operating in Africa are look- ing at ways to eliminate the risk of carrying and transporting cash. The use of mobile wallets to facilitate cash- less payments is a cost-effective and efficient way of doing this. Multinational corporations in the fast-moving consumer goods sector are particularly interested in rolling out mobile payment solutions as it allows them to distribute their products in remote areas without having to take the risk of transporting cash. According to Wayne Cook, product head for cash management at CFC Stanbic Bank in Kenya, mobile pay- ment is becoming a valid substitute for carrying cash in many parts of Africa. “It’s an easy and safe way to ensure that funds reach their intended recipi- ents, which makes it an ideal solution for companies that have large work- forces requiring weekly or monthly wage and salary payments.” THE OPPORTUNITY As well as enabling payments, mobile t echnology is capable of extending the reach of financial services through products like insurance, credit and sav- ings. Through effective relationships with banks and other financial insti- tutions, mobile operators can meet a broader range of customers’ financial needs. In the savings and credit space, Safaricom is leading the way through the launch of its banking and loan product, M-Shwari. M-Shwari is a bank- ing product for M-Pesa customers that enables them to save and borrow money through their phone while earn- ing interest on money saved. M-Shwari was launched in Novem- ber 2012, in partnership with Com- mercial Bank of Africa, and now has more than 2m active customers with deposits amounting to 20bn Kenyan Shillings and outstanding loans of 60m Kenyan shillings. When digital payments take hold, as it did in Kenya, consumers eventu- ally profit from the related savings. The cost of making payments via M-Pesa is about half that of other formal domes- tic-payment services. Moreover, cus- tomers can instantly send payments from their mobile phones instead of travelling an hour or more to distant bank branches. Clearly, there is significant oppor- tunity for digital payments in many markets of Sub-Saharan Africa. Widespread consumer acceptance of mobile-communications technology is also highly encouraging. For players who are able and will- ing to move in the near future, there are also opportunities to win first- mover advantages. ■ Trend ing r oa de r ra ng e of c us to me rs ’ fi na nc ial Tapping into Sub-Saharan Africa’s cashless society BY BLAIR BURMEISTER Kenyan Shillings Gallo Images/Thinkstock INSIGHT Context www.finweek.com SA’S ONLINE SHO 8 FINWEEK 13 MARCH 2014 45.1% Gauteng 1.2% 22.6% 3.2% 2.5% 3.6% 3.3% 11.9% 9.1% 1.6% 5% East London Other Eastern Cape EASTERN CAPE 2.5% Port Elizabeth WESTERN CAPE 17.6% Cape T own 5% Other Western Cape FREE STATE 1.6% Bloemf ontein 1.6% Other Free State LIMPOPO MPUMALANGA NORTHERN CAPE NORTH WEST 7.3% 1. 1% 3.5% Durban Pietermaritzburg Other KwaZulu-Natal KWAZULU-NATAL 10.9% 26.5% 7.7 % Pretoria Johannesburg Other Gauteng 5.33% 6.61% 19.86% 6.35% 0.80% 5.70% 24.57% 27.36% 13.01% 8.30% 27.15% 15.92% 11.11% 23.37% 12.41% 18.37% 45.77% 5.01% 40.29% WHAT KIND OF PRODUCTS HAVE YOU PURCHASED ONLINE IN THE LAST 3 MONTHS? % OF ONLINE SHOPPERS PER GEOGRAPHICAL AREA Other specify None/Don’t know Videos/DVDs/games Toys/dolls Sports memorabilia Sports goods Music Hotel reservations/Tourism services Home equipment (kitchenware, furniture, etc) Groceries Event/Concert/Sports tickets Electronic equipment (camera, music player, TV) Cosmetics/Health supplies Computer software Computer hardware Clothing/Accessories/Shoes Books Automobiles and Parts Airlines tickets 4 G 33% 3 3 M M PUMA L L L A NG N NG A A WEBSITE UNIQUE AUDIENCE kalahari.com 99 2 420 amazon.com 935 858 bidorbuy.co.za 701 720 groupon.co.za 685 726 takealot.com 678 684 computicket.com 521 411 picknpay.co.za 475 135 ebay.com 474 302 woolworths.co.za 442 695 game.co.za 398 438 superbalist.com 327 022 mrp.com 303 028 zando.co.za 290 116 click.co.za 280 855 edgars.co.za 269 420 yuppiechef.com 229 778 amazon.co.uk 207 408 wantitall.co.za 197 094 dionwired.co.za 190 423 spree.co.za 167 166 style36.co.za 161 803 incredible.co.za 147 034 truworths.co.za 126 523 hificorp.co.za 125 508 capeunionmart.co.za 124 734 exclus1ves.co.za 113 701 ebay.co.uk 111 154 spar.co.za 107 799 builders.co.za 104 921 ackermans.co.za 100 388 These figures are based on the Eective Measure panel of 9 000 panelists in SA and excludes classified sites LEADING RETAIL SITES VISITED BY SOUTH AFRICANS – DECEMBER 2013 PPING MARKET INSIGHT ORDER ONLINE – PICK UP NEARBY 19.45% DESIRED/PREFERRED WAITING TIME FOR PRODUCT DELIVERY 1-4 working days 14 days + 5-10 working days 10-14 working days 38.31% 38.03% 14.54% 9.22% 80.62% NoYes SOURCE: Effective Measure SOUTH AFRICAN E-COMMERCE IN 2013 A recent study conducted by the Effective Measure and IAB SA eCommerce found that mobile traffic to online retailers over the past three months have increased to 47% from an average monthly figure of 32%. Over 10 000 South African internet users were surveyed on their online shopping habits and found that the majority of South African online shopping is de- voted to South African sites. Finweek takes a look at their key findings and how this growing trend is enhancing our economy. % of shoppers who would be willing to pick up their items from a nearby shop and pay on collection COVER 10 FINWEEK 13 MARCH 2014 BY TANDISIZWE MAHLUTSHANA IF YOU TYPE THE WORDS ‘SOUTH AFRICA’ INTO AN INTERNET SEARCH ENGINE, GRAB A NEWSPAPER AT YOUR NEAREST NEWSSTAND, LISTEN TO A NEWS BULLETIN ON THE RADIO OR WATCH ONE ON TV, YOU ARE ALMOST GUARANTEED TO FIND A NEWS STORY RELATING TO CRIME IN THE COUNTRY. IN HIS 2014 BUDGET SPEECH, THE MINISTER OF FINANCE, PRAVIN GORDHAN, ANNOUNCED THAT THE SA POLICE SERVICE WOULD RECEIVE A 5% INCREASE TO R78.1BN IN ITS BUDGET ALLOCATION TO CARRY OUT ITS PROGRAMMES FOR THE SAFETY AND PROTECTION OF SA AND ITS CITIZENS. HOWEVER, THE INESCAPABLE REALITY OF CRIME HAS DRIVEN MANY SOUTH AFRICANS TO INVEST A GREAT DEAL IN THEIR OWN SAFETY, FROM HIGH ELECTRIFIED FENCES TO HOME PEPPER-SPRAY SYSTEMS AND ARMED RESPONSE UNITS, TO NAME BUT A FEW. AND LET’S NOT FORGET INSURANCE! STEPPING UP WHEN POLICE FAIL [...]... action Rape in police custody Torture Assault Other criminal matters Non-compliance with Section 29 of IPID Act 275 431 22 50 4 131 703 127 TOTAL 6 728 CORRUPTION X 670 April 2012 March 2 013 X 47 X April 2012 March 2 013 MISCONDUCT 14 FINWEEK 13 MARCH 2014 6 April 2012 March 2 013 SYSTEMIC CORRUPTION COMPLAINT OF THE DISCHARGE OF FIREARM(S) COVER ARE THERE POSSIBLE BUSINESS OPPORTUNITIES? THE SECURITY... product placement in movies in 2 013 100 – The number of product partners Warner Bros picked up for Man of Steel 94% - of American teenagers see at least one movie a year $1.22bn – The amount Iron Man 3 (Walt Disney Pictures) grossed worldwide in 2 013 $863 million – The amount The Hunger Games: Catching Fire (Lions Gate) grossed worldwide Source: adweek.com 18 FINWEEK 13 MARCH 2014 Global Trading can sometimes... 12 FINWEEK 13 MARCH 2014 closed their car windows and drove off I can’t depend on the police, I think they are useless.” According to Stats SA’s Victims of Crime Survey (VOCS) of 2012, about two thirds (65.6%) of households in Gauteng and Western Cape (64.4%) indicated that they had taken physical measures to protect their homes This helps to explain SA’s appal- Bigbrain Moloi (right) speaking to Finweek. .. 000 R13 296.97 per security guard, totalling R26 593.94 1 A-grade guard at R16 000 R14 882.85 Total: R169500.00 x 12 = R2 034 000.00 excl Vat per year Total: R121 644.36 x 12 = R1 459 732.32 excl Vat per year *Forecasted earnings (quotations) provided by Elite Security SA as **Total cost to company are regulated figures by PSIRA Pan Africa Shopping Centre in Alexandra, Johannesburg FINWEEK 13 MARCH 2014. .. have systematically outlawed homosexuality The continued implementation of such draconian measures could have worrisome long term effects on the economies that 16 FINWEEK 13 MARCH 2014 Africa has invested so much time and energy building Finweek explains these effects in further detail “The West can keep their ‘aid’ to Uganda over homos, we shall still develop without it,” Uganda’s government spokesperson... economy short term and could have dire economic consequences going forward ■ FINWEEK 13 MARCH 2014 17 INSIGHT BY THE NUMBERS: THE HOLLYWOOD MARKETING MACHINE Ever wonder what big Hollywood studios make from big budget films, and what they fork out to ensure that you end up watching them? The 86th Academy Awards took place on 2 March, and to celebrate US marketing website Adweek put together a by-thenumbers... security contractors Security expert and managing director of Elite SA Security Herman Mulder says that people have lost confidence in the police He adds that Elite SA Security MD Herman Mulder FINWEEK 13 MARCH 2014 13 COVER WHY ALL THE FUSS? L ate response, perceived laziness and corruption are some of the fundamental dynamics leading to public dissatisfaction with the SAPS, according to Stats SA The highly... additional work The budget allocation that Sanral receives from treasury has not been allocated proportionally with the added kilometres The length 22 FINWEEK 13 MARCH 2014 of the non-toll road network that Sanral manages for example, went up by 27% in 2012 /13 but the budget allocation only grew by almost 9% The DA believes that handing over more than 1 600km of Limpopo provincial roads to Sanral could... historian, the editor of the literary magazine Letras Libres and the author of Redeemers: Ideas and Power in Latin America Distributed by The New York Times Syndicate © The New York Times 2014 24 FINWEEK 13 MARCH 2014 Gallo images/Getty images M any of the young students protesting in the streets of Venezuela have no memory of any government other than that of President Hugo Chávez But now that he... company” ■ FINWEEK 13 MARCH 2014 33 INVESTMENT Impala’s hoping to coin it on Mandela T he reluctance of investors to take long positions on platinum is based on the supposition that there is a surfeit of above-ground stocks of the metal Trying to understand just how much platinum metal sits in investor hoards or mining company inventories is something of a dark art GFMS Thomson Reuters, a UK- based market . FORGET INSURANCE! STEPPING UP WHEN POLICE FAIL COVER FINWEEK 13 MARCH 2014 11 COVER 12 FINWEEK 13 MARCH 2014 N omatter Ncube stays with her parents and her. province. ■ X 120 April 2012 March 2 013 X 6 April 2012 March 2 013 X 670 April 2012 March 2 013 X 47 April 2012 March 2 013 CORRUPTION MISCONDUCT SYSTEMIC