By Stephán Engelbrecht, Fund Management



The world is entering an unprecedented time and there is no historical playbook for what happens next. While not our base case, calamity risk is increasing (mass infections across South Africa [SA], with dire economic consequences), and nobody knows how to quantify this risk. We have many requests from clients asking for investment opportunities in this crash and we are happy to share our fundamental views. However, investors in any equities must bear in mind that, in the shorter term, cheap shares can get even cheaper and wild swings are likely. Our views are based on a 12-to 24-month timeline, with a base case scenario of the world normalising during this time period. So, risks have to be taken into account and any investment in equities should be considered in this context. Shares only become this cheap when risks are extremely high.



In times of extreme market volatility (and corrections), it is often unnecessary for investors to look far down the quality curve to find attractive opportunities that will generate significant returns in future. This is oftentimes the correct strategy as those economic uncertainties causing market volatility can have far more dire consequences for lower-quality businesses. This can make a company look inexpensive on the surface, but the upside might be limited as the business first has to struggle through an earnings trough, or raise equity to shore up its balance sheet which will, in turn, dilute current shareholder returns.



However, sometimes it is worth taking the risk. During market corrections, fundamentals are often ignored, and some market participants will sell a share at any price. It is at these prices where, we believe, the risk-return profile is so attractive that these counters deserve a small allocation in a diversified portfolio. These calculated risks may just turn out to be some of the best performers in an investor’s portfolio.



With that as background, we have scoured the SA market for some very exciting investment opportunities. We concede that these opportunities do come with some risks, whether it be debt, currency, regulation, liquidity or, in some cases, a combination of these factors, associated with them. Nevertheless, we believe that, at current valuation levels, the investor is more than compensated for such risks. So, put your hard hat on and prepare for some volatility although, at the end of the day, we are confident that a portfolio of these shares will reward investors handsomely.



MTN Group



If one were to draw up a list of countries where it is notoriously difficult to do business, and that also have extremely volatile regulatory and economic environments, the chances are that a large number of these nations will be among the 21 countries in which MTN operates. Initially, with major global mobile operators reluctant to enter these markets and regulations being fairly light, these countries held the appeal of attractive emerging market (EM) growth potential, with limited competition, for MTN. While this worked well in the beginning, over recent years MTN has appeared to stumble from one exogenous shock to the next – wars, extreme currency volatility, sanctions, exorbitant regulatory penalties and various lawsuits – but the company has weathered all these setbacks. MTN’s vulnerability to these exogenous events means that it is typically sold off, particularly aggressively during periods of risk aversion. This time around, the market sell-off was amplified by the collapse in the oil price, to which a number of MTN’s markets are vulnerable (especially Nigeria). With MTN’s share price falling below R40, the counter has now declined &gt;85% from its 2014 peak and it is currently trading at levels last seen in 2005.



In an industry where scale is critical, the significance of MTN being a top-two market share operator across all the markets in which it operates should not be underestimated. Where the telecommunications sector globally has largely been consigned by investors to the status of an ex-growth utility, MTN stands apart for several reasons. First, many of the Group’s markets still have further opportunities to increase penetration of mobile telecommunications and the potential to migrate those users to smart devices and drive data adoption. Second, while most developed market (DM) operators are confined to the provision of commoditised voice and data services, MTN is capitalising on opportunities to also add digital and mobile financial services.



Although MTN CEO, Rob Shuter has announced that he will be leaving the company at the end of his contract in one year’s time, he assembled a very competent management team during his tenure. Shuter has set the Group on a self-correction course. This includes the disposal of non-core assets, with proceeds being used to pay down debt (R14bn in sales were raised in the first year, with guidance of a further R25bn to be realised over the next few years) and paying particular attention to turning around some of the Group’s underperforming business units.



Since many of MTN’s new revenue streams do not require significant capital investment and are delivered through over-the-top platforms already in place, it has enabled the company to provide guidance of low double-digit revenue growth, margin expansion and relatively flat capital expenditure over the next 3-5 years. With the strong double-digit growth in free cash generation that this guidance implies, MTN is targeting annual dividend growth of 10%-20%.



Even at the bottom of the dividend guidance range, the prospective dividend yield is 15%, while the price as a multiple of expected earnings in 12 months’ time is 5x. No doubt, Brent Crude oil at below $30/bbl poses risk in the short term of foreign exchange availability and currency devaluation in Nigeria (MTN’s largest profit generator in FY19, accounting for c. 40% of group EBITDA). However, we are mindful of the oil industry saying, “the best cure for low oil prices, is low oil prices” and it is unlikely that the current situation will be sustained long term. At current levels, we believe there is now enough of a margin of safety in MTN’s share price to compensate for the risks it presents, with the potential for a strong recovery as current headwinds abate.



Investec



Over the past four decades, Stephen Koseff and Bernard Kantor created an institution. Built on the foundation of entrepreneurship and being agile and nimble to service its customers, the distinctive zebra logo became one of the most widely recognised symbols in SA financial markets.



In the early 2000s, Investec started to expand offshore with the UK being a key target market. Unfortunately, the UK’s highly competitive banking environment, ever more draconian and complex regulation and a global financial crisis (GFC) that hit just as Investec started to expand aggressively in the UK, made the experience far more lacklustre than the firm’s local successes. However, the company stayed the course, and, over time, Investec has built a strong UK presence.



Nevertheless, the UK remains a considerable drag on the Group’s profitability and ROE. Since the disastrous acquisition of Kensington in 2007 and the harsher regulatory environment post the 2008 GFC, Investec’s UK division has struggled to achieve a ROE greater than its cost of capital. This has resulted in Investec rightfully trading at a discount to its book value for significant periods since the GFC.



This discount to book value reached extremely low levels during the current sell-off, trading at close to 0.3x book. In addition, it coincides with some real positive changes taking root at Investec. The old guard has moved on and the new management team have taken decisive steps to improve the profitability of the bank.



Management unbundled the asset management division to make the structure less complex, committed to improving the cost-to-income ratio in the UK and promised that there were no sacrosanct segments of the business that will not be cut in the event of underperformance. We are still at the initial stages of the new regime and it will be interesting to see whether management can indeed improve the UK division’s ROE.



Although we acknowledge that Investec is not the highest-quality bank in the world and its earnings growth and ROE profile are far more volatile than its SA peers, we believe that the current share price provides an opportunity to enter at depressed multiples that more than sufficiently reflect the lower quality. And, the investor may yet benefit from an improvement in operating metrics as the new management team start their work.



Redefine



In recent years, many SA (and global) conservative investors squirrelled their savings away in property shares to earn an attractive, growing income. This bubble burst over the last few months and even the highest quality property companies have seen their value decimated. Selected YTD (to 25 March) declines among local property counters include Growthpoint (-45%), Redefine (-74%), Resilient (-46%), Nepi Rockcastle (-40%), Vukile (-63%), Attacq (-58%) and Hyprop (-60%). This follows already steep share price drops across the board in 2019.



The dire economic outlook for SA had already impacted Redefine’s share price hard when the novel coronavirus (COVID-19) hit and the whole property sector is now in crisis. These are unprecedented times and the world has changed in the last few weeks. Some tenants (especially in the retail sector) will earn little or no turnover for some time, and we have no doubt that they will want to renegotiate rentals with landlords. Some smaller tenants will go bankrupt. It is clear to us that the property sector will be reset after panic around the virus has subsided. Thus, the fate of many property companies is largely dependent on SA banks, who have very strong balance sheets and who, we believe, will be very co-operative in working with these companies to navigate the way through the current crisis. Although loan-to-value (LTV) ratio levels are all stated in the debt covenants for property companies, we think that the credit providers’ focus will turn from LTV ratios to interest cover, cash flow and sustainability. It is not in the interests of the banks to “pull the plug” on some of their biggest clients. We expect Redefine to work its way through this scenario together with the banks, with “reset” value emerging.



Management have acknowledged that they have no idea where rentals will settle, and they will largely depend on the health of the economy and the tenant. About 30% of retail turnover is from “safe” companies such as food retailers, cellphone companies and banks. Many office tenants will remain robust and industrial/logistics rentals will depend on tenant quality. So, it is not a disaster across the board, but months of hard negotiations will follow.



However, for investors, LTV ratios will remain a key metric and something which Redefine will have to address. At its last results presentation (FY19), Redefine had an LTV ratio of 43%. To highlight the spiral, if we assume the company had R100 of book value and R43 of debt – that 43% LTV is only just within its debt covenants. If the book value is written down by 25%, the LTV ratio goes up to 57%! Asset sales are usually a partial solution, but this looks increasingly unachievable. Withholding dividend payments becomes the next, and most likely, scenario. If a company can generate an 8% yield on book value (we are assuming no tax payable, which may be contentious), ploughing this back into debt repayments (as opposed to dividends), with a two-year dividend holiday, can reduce the LTV ratio from 57% to 41% – back into the covenant zone. We note that Redefine has already announced a delay in its interim dividend payment.



A big issue with withholding dividends is taxation. REIT (Real estate investment trust) legislation allows companies designated as such, to not pay tax and to distribute income to shareholders who receive the distribution as taxable income. If REITs do not distribute 75% of their income, then the current rules say they must pay tax on their income. We believe the property sector is in the process of negotiating with Treasury in an attempt to waive this rule – at least for a once-off time period.



We conclude that in a base-case scenario, the adjusted book value will be well below current book values, but higher than the share prices. We calculate that Redefine is fundamentally worth 50%-100% more than its current share price (unless Armageddon prevails!). But there is a high risk of shareholders not getting dividends for one, or even two, years. The share price is factoring in a far worse scenario than our base case. But investors should focus on the balance sheet and track closely the progress the firm makes in degearing.



There is a long road ahead, but we believe that, in the end, we will look back at this as a great opportunity to buy the share.



Northam Platinum



The platinum group metals (PGM) miners were the talking point of 2019. After being priced for bankruptcy in 2018, the price of the PGM basket recovered in 2019 resulting in the share prices of these miners rallying by 250% or more. The higher basket price helped these miners reduce their leverage with some of the mining companies going into a net cash position. It was a remarkable turnaround and highlighted just how cyclical the fortunes of these businesses are. Which begs the question, do you want to buy into such a cyclical industry in these uncertain times?



It is a fair question, and the answer very much depends on the risk tolerance of the investor. The reason why we are comfortable with a small position in Northam is due to the precarious demand-supply balance which the industry faced going into the COVID-19 crisis.



Prior to 2019, the threat of electric vehicles (EVs) caused the PGM basket price to remain below the breakeven price for mining companies and they battled to survive. Capital expenditure was cut across the board, with mining firms struggling to pay for maintenance capex, not to even mention expansionary capex.



Then, in 2019, the combination of a greater focus on carbon emission worldwide, the more enhanced testing after the VW scandal and the lack of R&amp;D in combustion engines over the preceding few years forced vehicle manufacturers to just add more and more PGMs in their respective catalytic converters as emission standards became more onerous. With the costs of PGMs &nbsp;a small fraction of the total vehicle production cost, they had the luxury to do this. Demand for these metals surged and the miners were not in a position to increase supply. This caused PGM prices to rally, with rhodium and palladium hitting all-time highs.



In our view, this situation will not change in the short- to medium-term, despite the COVID-19 outbreak and the subsequent decline in global vehicle sales. We expect demand to remain strong due to higher emission standards. Importantly, the threat of EVs, which are expected to be close to 50% of global vehicle sales by 2030, will prevent PGM miners from investing in new mines, thus keeping a constraint on the supply response.



Northam is one of the few PGM miners that will see strong volume growth over the next few years. Due to some tough decisions taken by management during the lean years, the company was able to shore up its balance sheet and it continued to invest in operations. As a result, we expect Northam’s annual production volumes to increase from c. 600k ounces this year to 1mn ounces over the next few years. Northam’s mines are also of a very high quality, operating at very low operating costs due to mechanisation. Trading at very attractive valuations and offering significant earnings (at spot PGM prices) and production growth, Northam is a high-quality operator in a very cyclical industry.



Alviva Holdings



Alviva Holdings is not an exciting company! But it is one of the Africa’s largest providers of information and communication technology (ICT) products and services. The Group has three business segments – ICT Distribution, which imports ICT hardware and software and sells it into sub-Saharan Africa via resellers, Services and Solutions, which provides system integration and ICT solution services, and Financial Services, which provides leasing finance to small-, medium- and micro-sized enterprises (SMMEs) for their ICT products.



The risks to this business are real. It is difficult to see Alviva continuing to operate in the same verticals and products as it is currently working, in five years’ time. This is due to the ever-changing industry in which it operates. For example, cloud storage and processing will, likely, fundamentally change the role ICT service providers play in the lives of their customers. To survive, ICT service providers will have to adapt their business models quickly and also ensure that they have a balance sheet strong enough to absorb any shocks.



We believe that Alviva has both these traits. It has a very experienced and conservative management team, which have navigated through some very turbulent times in the past and we maintain that management should be able to continue to do so in future. In addition, management have also been conserving cash. Over the past few years, they have adopted a very conservative dividend policy, paying out only 10% of earnings in dividends.



At our last engagement with management, they conceded that the operating environment is very tough at the moment, adding that they were very disappointed in the company’s performance but that it should improve in the second half. Management have guided that they will first look to retire around R400mn in preference shares, after which they will engage with shareholders regarding potential share buybacks. Admittedly, this was before the COVID-19 outbreak.



However, Alviva’s valuation is ridiculous – it is currently trading at a historic PE ratio of c. 2x and a normalised free cash flow yield of 50% (and we believe that we are being conservative here), so the risk-reward profile for investors is very much skewed to the upside. Liquidity is a concern and we highlight that investors should be patient if investing in this counter.

Our top share picks for the brave investor: Finding opportunities in times of adversity

31 March 2020 



MEDIA STATEMENT 



MARY OPPENHEIMER AND DAUGHTERS TO GIVE R1.0 BILLION (ONE BILLION RAND) TO THE SOLIDARITY FUND IN THE FIGHT AGAINST COVID-19 IN SOUTH AFRICA



We join all South Africans in expressing our profound hope that, together, we can overcome this grave challenge to our country and to the world.



Under the wise leadership of President Cyril Ramaphosa, South Africans are following the government’s directives to prevent the spread of COVID-19. We realise, however, that until this pandemic passes, our country will experience enormous difficulties and hardships.



This unprecedented situation is placing strain on all our lives – but especially on our vulnerable communities, South Africans who struggle even in normal times to meet the basic needs of their families, to buy food and pay for medical and other necessities.



My daughters and I have thought long and hard about where we could make the greatest difference in this fight and have decided it is to support the humanitarian needs of everyone living in South Africa. So, we think that it is the Solidarity Fund which is most aligned to our concerns about basic needs, food, medicine, general care and gender abuse.



We are grateful for all the other efforts, small and large, that South Africans are making to help our country through this difficult time. We are especially proud of my brother, Nicky, and his family&#8217;s patriotism in launching a separate initiative, The South African Future Trust (SAFT), last week.



In addition, there are so many people to thank from all parts of our government and the private sector, who are providing essential services; and especially our healthcare workers – our hospitals&#8217; support staff, nurses and doctors – who are risking their lives to save everyone in South Africa most affected by COVID-19. 



We salute you.



MARY OPPENHEIMER &amp; VICTORIA FREUDENHEIM, REBECCA OPPENHEIMER, JESSICA JELL AND RACHEL DIAMOND



a. Mary Oppenheimer is the daughter of the late South African businessman and philanthropist Harry Oppenheimer. Her brother is Nicky Oppenheimer. 



b. The Solidarity Fund will make a separate announcement shortly, once this donation has reached the Fund. 



c. Media inquiries may be directed to the Mary Oppenheimer Daughters Family Office (MODO), email info@modaughters.com



END



For more coverage on COVID-19 visit:&nbsp;<a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Mary Oppenheimer and daughters donate R1 billion to COVID-19 Solidarity Fund

New York, March 31, 2020 &#8212; Moody&#8217;s Investors Service (&#8220;Moody&#8217;s&#8221;) has today placed Angola Government&#8217;s B3 long-term issuer ratings and senior unsecured rating and its (P)B3 senior unsecured MTN rating under review for downgrade. The short-term issuer rating is affirmed at Not Prime (NP).



The decision to place Angola&#8217;s ratings on review for downgrade is prompted by the magnitude of the shock from the sharp drop in oil prices and an acute tightening in global financing conditions on Angola&#8217;s already weak public finances and external position, and elevated government gross borrowing requirements. Weak governance, notwithstanding a number of reforms implemented in recent years, undermines the government&#8217;s capacity to respond to this shock and is a driver of this rating action.



The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. For Angola, the shock mainly transmits through a further weakening in the currency that raises the debt burden and debt service; a significant drop in revenues that is likely to prevent the government from pursuing its debt management strategy of paying down short-term debt and reducing rollover risk; and pressure on an already fragile balance of payments.



The review period will allow Moody&#8217;s to assess the overall policy response to the shock and the capacity of the authorities to manage: 1) the additional stress on public finances and the government&#8217;s balance sheet driven by the significant loss of oil-related revenues and a potential further depreciation of the currency; 2) the severity of the increase in external vulnerability given the expected sharp drop in oil export receipts putting pressure on foreign currency reserves; 3) the rising risks associated to large domestic and external debt service payments in a currently dislocated credit market.



Concurrently, all Angola&#8217;s country risk ceilings remain unchanged: Foreign Currency bond ceiling at B2, Foreign Currency deposit ceiling at Caa1, and Local Currency bond and deposit ceilings at Ba3.



RATINGS RATIONALE



RATIONALE FOR INITIATING A REVIEW FOR DOWNGRADE ON ANGOLA&#8217;S B3 RATINGS



As a result of the oil price fall in the face of depressed oil demand and a slow supply response, Moody&#8217;s now assumes that oil prices will average US$40-45 per barrel in 2020, and US$50-55 by 2021, around $20 and $10 below previous expectations in each year.



As a large oil exporter, Angola heavily relies on the oil sector as a source of government revenue (62% of total revenue in 2019) and exports (96%). Such a fall in oil prices heightens the pressure on Angola&#8217;s already weak fiscal and external metrics.



ANGOLA&#8217;S WEAK CREDIT METRICS ARE LIKELY TO DETERIORATE FURTHER, TO AN EXTENT PARTLY DETERMINED BY THE GOVERNMENT&#8217;S CAPACITY TO RESPOND



Angola&#8217;s credit profile is weakened by the oil price shock which negatively affects the government&#8217;s balance sheet and the country&#8217;s external position, through a significant loss of government revenue and export proceeds respectively. Also, the Covid-19 related spending to prevent the spread of the virus throughout the country is expected to further aggravate the fiscal deficit.



Already, Angola&#8217;s fiscal and external metrics are very weak. General government debt increased to an estimated 100.5% of GDP in 2019, from 81% in 2018, and debt-to-revenue was around 500% from 371% respectively. Similarly interest payment-to-revenue exceeded 25% in 2019 against 20.7% a year before. On the external side, vulnerability relates to low net foreign exchange reserves at $11.8 billion at the end of 2019, covering around 6 months of imports of goods and services and external debt amounting to about twice the level of current account receipts this year, according to Moody&#8217;s estimates.



Angola is unlikely to be able to significantly increase its oil production that has been in a secular decline for the last 4 years to offset the price drop. Moody&#8217;s estimates that a $10/barrel decrease in oil price leads to a $2$2.5 billion loss in government revenue (around 3% of 2019 GDP) and a $5 billion fall in exports receipts.



The 2020 budget which was designed to post a small surplus (0.8% of GDP), was passed with a $55/barrel oil price assumption. It would have contributed to a slightly positive balance of payments after International Financial Institutions&#8217; (IFIs) disbursements of concessional loans. As a result of the price fall, Angola&#8217;s fiscal and external accounts will be in deficit, raising pressure on the exchange rate and foreign exchange reserves and incentivizing economic transactions in the parallel exchange rate market.



A budget no longer likely to be in surplus and further pressure on the currency are likely to raise the already very high debt burden. In turn, the government&#8217;s borrowing requirements are likely to increase again in 2020 having fallen to 15% of GDP in 2019 (including clearance of arrears to goods and services suppliers), at a time when international and possibly domestic financing comes at very high costs. Given the current dislocation in credit markets, it will be increasingly challenging for the government to secure financing at affordable costs. Previous objectives, including an ongoing debt management strategy aimed at repaying short-term debt and lengthening its debt maturity and the maintenance of net international reserves above $10 billion have also become far less achievable.



The impact of the oil price shock will be attenuated by the fact that the government posted a small deficit on the budget estimated at 0.3% of GDP and a current account surplus estimated at 4% of GDP in 2019. This is due to the implementation of a vast array of reforms, and strong consolidation efforts under the $3.7 billion and 3-year IMF program, approved in December 2018. But during this transition period, where the authorities, with the support of the IFIs, are trying to spur the private sector, restore macroeconomic stability with a more flexible exchange rate and sounder public finances, having cleared large amount of arrears and improved the debt structure, Angola&#8217;s credit metrics remain highly vulnerable to shocks.



The review period, which may extend beyond the usual three-month horizon, will allow Moody&#8217;s to assess the credibility and sustainability of the government&#8217;s plans and its ability to mitigate the impact of significantly lower oil prices on Angola&#8217;s credit standing.



ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS



Environmental considerations are not material for Angola&#8217;s rating.



As an oil producer and exporter, Angola&#8217;s environmental risks derive from carbon transition. Angola&#8217;s credit profile would face downward pressure in a scenario of rapid global transition to lower reliance on hydrocarbons that would depress global hydrocarbon demand and prices. However, in light of the measures against climate change taken so far, this is not Moody&#8217;s baseline.



Social considerations influence Angola&#8217;s credit profile, given very low wealth levels and high levels of poverty. GDP per capita, at $6,851 on a PPP basis as of 2018, remains low. Additionally, the UN&#8217;s Human Development Index for 2018 ranked Angola 147 out of 189 countries. Social indicators have improved from a very low level since the end of the civil war in 2002, but income inequalities remain very high despite the oil wealth of the country. Since the oil shock and the election of President Lourenco, the authorities have been implementing an ambitious reform agenda despite the political cost and inherent execution risks. Risk of social unrest remains, especially stemming from jobless young people.



Governance considerations are material to Angola&#8217;s credit profile and are a driver of this action. Data transparency and availability are areas of improvements, as well as institutional capacities that remain limited. For example, Angolan banks lost their dollar-correspondent banking relationships in 2016 because of their failure to meet international standards relating to shareholder structures and money laundering, resulting in increased transaction costs and delays. There are also significant weaknesses related to the management of public finance, illustrated by the level of arrears accumulated over the last few years.



FACTORS THAT WOULD LEAD TO A DOWNGRADE OF THE RATING



Moody&#8217;s would downgrade the rating if the review were to conclude that Angola&#8217;s government was unlikely to be able to alleviate the damage to its balance sheet and the subsequent rise in liquidity risk resulting in a credit profile no longer consistent with a B3 rating. Increasing risks of a balance-of-payment crisis would also likely lead to a downgrade.



WHAT COULD LEAD TO CONFIRMATION OF THE RATING AT THE CURRENT LEVEL



Moody&#8217;s would confirm the rating if the review were to conclude that a credible fiscal and economic policy response from the government will efficiently manage the risks arising from the upward trend in government debt, government liquidity risks, and increased pressure on the exchange rate, leaving Angola&#8217;s credit profile consistent with a B3 rating.



GDP per capita (PPP basis, US$): 6,851 (2018 Actual) (also known as Per Capita Income)



Real GDP growth (% change): -1.2% (2018 Actual) (also known as GDP Growth)



Inflation Rate (CPI, % change Dec/Dec): 18.6% (2018 Actual)



Gen. Gov. Financial Balance/GDP: 2.2% (2018 Actual) (also known as Fiscal Balance)



Current Account Balance/GDP: 7% (2018 Actual) (also known as External Balance)



External debt/GDP: 44.4% (2018 Actual)



Economic resiliency: b2



Default history: No default events (on bonds or loans) have been recorded since 1983.



On 26 March 2020, a rating committee was called to discuss the rating of Angola, Government of. The main points raised during the discussion were: The issuer&#8217;s economic fundamentals, including its economic strength, have materially decreased. The issuer&#8217;s fiscal or financial strength, including its debt profile, has materially decreased. The issuer&#8217;s susceptibility to event risks has not materially changed.



The principal methodology used in these ratings was Sovereign Ratings Methodology published in November 2019 and available at <a href="https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1158631">https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1158631</a> . Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.



The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.



The local market analyst for this rating is Aurelien Mali, +971 (423) 795-37.



REGULATORY DISCLOSURES



For further specification of Moody&#8217;s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody&#8217;s Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx? docid=PBC_79004.



For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody&#8217;s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider&#8217;s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.



For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.



The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.



These ratings are solicited. Please refer to Moody&#8217;s Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.



Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.



Moody&#8217;s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at <a href="https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569">https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569</a> .



At least one ESG consideration was material to the credit rating outcome announced and described above.



The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody&#8217;s affiliates outside the EU and is endorsed by Moody&#8217;s Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody&#8217;s office that issued the credit rating is available on www.moodys.com.



Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody&#8217;s legal entity that has issued the rating.



Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.



Samar Maziad



Vice President &#8211; Senior Analyst



Sovereign Risk Group



Moody&#8217;s Investors Service, Inc.



250 Greenwich Street



New York, NY 10007



U.S.A.



JOURNALISTS: 1 212 553 0376



Client Service: 1 212 553 1653



Marie Diron



MD &#8211; Sovereign Risk



Sovereign Risk Group



JOURNALISTS: 852 3758 1350



Client Service: 852 3551 3077



Releasing Office:



Moody&#8217;s Investors Service, Inc.



250 Greenwich Street



New York, NY 10007



U.S.A.



JOURNALISTS: 1 212 553 0376



Client Service: 1 212 553 1653

Moody’s places Angola’s B3 ratings on review for downgrade

By Piet Nel, SAICA
Project Director, Tax. 



Johannesburg, 30 March 2020 – The President of South Africa, Mr
Cyril Ramaphosa, recently announced a 21-day lockdown period from midnight on
Thursday, 26 March until midnight on Thursday, 16 April 2020 due to the
COVID-19 pandemic. 



The COVID-19
lockdown currently in place will have an impact on tax-related matters.&nbsp;
This includes contact with the South African Revenue Services (SARS), returns
and payments due to SARS, as well as disputes.&nbsp; It also has an impact on
employers and their employees.&nbsp; Whilst a lot of information was available
at the time of writing of this article, it is expected that more information
will be made available over the next couple of days.&nbsp; The following is
based on information that was available on 29 March 2020: 



Contact
with SARS during the period 



SARS advised
taxpayers and tax practitioners to use the online channels such as eFiling, the
SARS MobiApp and e@syFile to interact with SARS.&nbsp; SARS has provided
dedicated email addresses for this purpose on their website.&nbsp; 



It is
envisaged that visits to SARS offices are possible, but an appointment must be
made on the SARS website.&nbsp; Please remember the lockdown restrictions that
are in place when you are travelling to a SARS branch.&nbsp; Remember that
accountants and tax practitioners are not seen as the providers of essential
services.&nbsp; Special rules relating to Customs and border posts were made
available by SARS.&nbsp; 



Submission
of returns&nbsp; 



There is no
relief for the submission of tax returns.&nbsp; Taxpayers must therefore ensure
that returns are submitted on or before the due dates.&nbsp;&nbsp;&nbsp; 



Disputes 



According to a
notice from the Chairperson: Customs and Excise National Appeals, the days
during the period 27 March 2020 to 16 April 2020 will not be taken into account
in determining days or period for purposes of an appeal under the Customs
Act.&nbsp; 



SARS has not
given a similar notice for objections and appeals under the other tax
Acts.&nbsp; Where a taxpayer is unable to comply with a prescribed period
during which steps in the dispute process must be instituted due to the
lockdown, it would constitute exceptional circumstances.&nbsp; 



Payments 



Tax debt:



There is no
relief for the payment of assessed taxes and payment must be made on the due
date.&nbsp; In fact, SARS said that this is a critical period for SARS in terms
of revenue collections and now, more than ever, the country requires everyone
to pay their fair share.&nbsp; SARS requested that payments are made on time
and that COVID-19 uncertainty is not used as a reason for non-payment.&nbsp;
SARS may well continue with their collection procedures of tax debt.&nbsp; 



Where a
taxpayer is unable to make the payment, or can only do so partially, a request
for a deferred arrangement during the lockdown period must be sent to the
dedicated email addresses made available by SARS.&nbsp; 



Other
taxes:



In line with
the announcement by the President, SARS and National Treasury confirmed that
effective 1 April 2020, tax compliant businesses with a turnover of less than
R50 million will be allowed to delay paying a portion of their amounts due to
SARS.&nbsp; The details are as follows: 



Employees’
tax



With respect
to pay-as-you-earn (PAYE) liabilities, tax compliant business with a turnover
of less than R50 million can delay 20% thereof for a limited period of four
months, beginning 1 April 2020 and ending on 31 July 2020.&nbsp; The deferred
PAYE liability must be paid to SARS in equal instalments over the six-month
period commencing on 1 August 2020, i.e. the first payment must be made on 7
September 2020.&nbsp; There is no relief for the March payment due on 7 April
2020.&nbsp; 



Provisional
tax: 



Tax compliant
small- to medium-sized businesses will also be allowed to defer of a portion of
the payment of the first and second provisional tax liability to SARS, for a
period of twelve months, beginning 1 April 2020 and ending on 31 March 2021,
without SARS imposing administrative penalties and interest for the late
payment of the deferred amount.&nbsp; This means that the payment due 31 March
2020 must be made in full.&nbsp; 



The first
provisional tax payment due from 1 April 2020 to 30 September 2020 will be
based on 15% of the estimated total tax liability, while the second provisional
tax payment from 1 April 2020 to 31 March 2021 will be based on 65% of the
estimated total tax liability.&nbsp; Provisional taxpayers with deferred
payments will be required to pay the full tax liability when making the third
provisional tax payment in order to avoid interest charges.&nbsp; 



The proposed
amendments are deemed to have come into operation on 1 April 2020 and apply to
first provisional tax periods ending on or after 1 April 2020 but before 1
October 2020 and to second provisional tax periods ending on or after 1 April
2020 but before 1 April 2021.&nbsp; 



Employment
Tax Incentive (ETI): 



For the period
of four months, beginning 1 April 2020 and ending on 31 July 2020:



<ul class="wp-block-list"><li>The maximum amount of ETI claimable during this four-month period for employees eligible will be increased from R1 000 to R1 500 in the first qualifying twelve months and from R500 to R1 000 in the second twelve qualifying months.  </li><li>Allowing a monthly ETI claim in the amount of R500 during this four-month period for employees from the ages of: <ul><li>18 to 29 who are no longer eligible for the ETI as the employer has claimed ETI in respect of those employees for 24 months; and </li><li>30 to 65 who are not eligible for the ETI due to their age.  </li></ul></li><li>Accelerating the payment of employment tax incentive reimbursements from twice a year to monthly as a means of getting cash into the hands of tax compliant employers as soon as possible.</li></ul>



This will,
however, only apply to employers that were registered with SARS as at 1 March
2020. Further to the above, the current compliance requirements for employers
under sections 8 and 10(4) of the ETI Act will continue to
apply.&nbsp;&nbsp;&nbsp; 



Unemployment
Insurance 



The President
also said that government is exploring the temporary reduction of employer and
employee contributions to the Unemployment Insurance Fund and employer
contributions to the Skill Development Fund.&nbsp; The Unemployment Insurance
Commissioner has developed a Corona Virus Tem­porary
Employer-Employee Relief Scheme (COVID19TERS) to contribute to the containment
of the Coronavirus and its impact.



In terms of
the Temporary Employer/Employee Relief Scheme (TERS) process, the UIF may fund
the distressed companies directly in relation to the TERS Allowance. The
benefits paid will be capped at a 38% to 60% of the maximum of R17 712 per
month and the employee will be paid in terms of the income replacement rate
sliding scale as provided in the Unemployment Insurance Act.&nbsp; The minimum
that will be paid will be a replacement income equal to minimum wage of the
sector concerned.&nbsp; 



Where an
employer, as a direct result from the current COVID-19 pandemic, decided to
close their business for a period and send employees home, this would
constitute a temporary lay-off. If the employer cannot pay his employees for
this period, the employer can apply for the “National Disaster Benefit” from
the UIF.&nbsp; 



Where an
employee has been quarantined for 14 days or longer, the Illness Benefit will
apply.&nbsp; Existing benefits for illness and unemployment will kick in if no
leave is granted.&nbsp; 



Should a UIF
contributor pass on from COVID-19, death benefits will be paid to the
beneficiaries of the deceased.&nbsp; 



Employers
should apply by reporting their closure to the email address: <a href="mailto:Covid19ters@labour.gov.za">Covid19ters@labour.gov.za</a>.&nbsp; 



Value-Added
Tax



SARS announced
that, due to the measures put in place under the Disaster Management Act 57 of
2002, “essential goods” as defined in Regulation R.398 in Government
Gazette No 43148 of 25 March 2020 will be subject to a VAT exemption and a full
rebate of customs duties during the COVID-19 pandemic.&nbsp; 



The
VAT-rulings department at SARS announced that work on rulings in progress will
be delayed. Any correspondence, including new ruling applications submitted to
SARS from 27 March 2020, will be acknowledged or responded to once the
aforementioned measures have been relaxed or ended.



Conclusion 



Employers,
employees, taxpayers and tax practitioners are advised to regularly check the
SARS website for updates on the issues.&nbsp; SARS indicated that it would make
information available to recognised professional bodies to be communicated to
tax practitioners.&nbsp; 



[End]



About SAICA



The South African Institute of Chartered Accountants (SAICA), South
Africa’s pre-eminent accountancy body, is widely recognised as one of the
world’s leading accounting institutes. The Institute provides a wide range of
support services to more than 50 000 members and associates who are chartered
accountants [CAs(SA)], as well as AGAs(SA) and ATs(SA), who hold positions as
CEOs, MDs, board directors, business owners, chief financial officers, auditors
and leaders in every sphere of commerce and industry, and who play a
significant role in the nation’s highly dynamic business sector and economic
development.



SAICA Media Contact



Kulani
Chauke



Communication
Coordinator: Corporate



SAICA Brand
Division 



011 479 0698



<a href="mailto:kulanic@saica.co.za">kulanic@saica.co.za</a>



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

The impact of COVID-19 lockdown on tax and unemployment related matters

By Chris Bishop



 It was words from a son and a grandson that set the richest man in South Africa on the road to save the incomes of thousands of South Africans working for cash strapped small and medium-sized businesses across the country. COVID-19, with all its lockdowns and fear, threatens to close scores of these businesses seen as the engine of the economy.





 Nicky Oppenheimer, the 75-year-old scion of the billionaire family that made a fortune from mining and diamonds, was one of the first to come up with a billion rand to ease the pain for South African companies in the shadow of COVID-19. In South Africa, money and Oppenheimer are synonymous. His grandfather Ernest Oppenheimer, the son of a German cigar merchant, started out working for a London diamond dealer. Near the end of the 19th century the company posted the then 21-year-old to South Africa where he found his way to the Kimberley diamond diggings and a fortune. His son Harry consolidated the family wealth with De Beers and Anglo American – a pile, according to Forbes, that stands at $7.5 billion. Now a slice of that money will be ploughed back into the South African economy from whence it came.



For more on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a> 



“It was actually a word from my grandson, Sam, that said we have been privileged for quite some time as South Africans and in a crisis like this you need to give something back to the country and this idea developed into something, that I am very proud of, to give money in a trust that we will have no interest in so the money we are giving it as a straight donation,” Oppenheimer told CNBC Africa.



 The family call it the South Africa Future Trust and it will also give interest free loans to keep jobs, income and small and medium enterprises in business. For many companies across South Africa the 21-day lockdown of the country turned off revenue like a tap. Massive job losses are expected even after all returns to normal in what was already a fragile economy, downgraded to junk by all three ratings agencies, heading for negative growth. If there was any doubt in Oppenheimer’s mind that help was needed his son, Jonathan, delivered more telling words.



 “Well my son has a simile that I think is appropriate here and he says that South Africa’s is like a car that has a puncture and you are pulled over the side of the road and you are stopped. But the car has another problem that is that the battery is not as strong as you would want it, so it is absolutely vital that you should keep the ignition turning while you change the tyre. What the South Africa Future Trust is trying to do is to keep small and medium enterprises alive while the tyre is changed,” says Oppenheimer.



 CNBC Africa raised the point that larger companies, employing more people, faced even bigger problems. What about them?



 “You are absolutely right, this is a huge problem and we must all do what we can. We certainly hope that many other business people will look at the structures we have put up and know that this is going to be independently managed and independently run and want to contribute to it and extend its reach,” says Oppenheimer.



 Oppenheimer once told me about his energetic grandfather that if you bumped into him you bounced off. With a billion rand, he must surely hope to spark a movement to imbue South African small and medium businesses with the same resilience.

How SA’s small businesses can access the R1bn Oppenheimer fund

The African billionaire who wants COVID-19 to bounce off business

(Reuters) &#8211; Harmony Gold Mining Company said on Tuesday that it expects limited gold production during the 21-day lockdown in South Africa in the wake of the fast-spreading coronavirus. 



The South Africa-based miner said that it expects to only produce between 650kg to 700kg of gold in South Africa during the lockdown. 



(Reporting by Aakash Jagadeesh Babu in Bengaluru; Editing by Bernard Orr)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21I0TF-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21I0TF-OZABS</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Harmony Gold sees lower gold production during 21-day lockdown

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Developing nations need an additional $2.5 trillion on top of recently announced stimulus measures to fight the economic blow from the coronavirus. That’s according to a United Nations report launched today. The report outlines ways in which that money can be raised. Richard Kozul-Wright, who was part of the research, joins CNBC Africa for more.

Developing nations need $2.5trn to fight COVID-19

Developing nations need $2.5trn to fight COVID-19, here’s how the money can be raised

By Dr Victor Oladokun, outgoing Director of Communication &amp; External Relations at the African Development Bank Group



Why
Africa Urgently Needs an Ubuntu Plan



Africa urgently needs a globally
coordinated Ubuntu Plan in response to COVID-19, a fiscal stimulus that
recognises our shared and connected humanity, as we find ourselves in the midst
of an unprecedented crisis.



The
world&#8217;s largest cities are eerily silent. One virus has disrupted the whole
world in a manner never seen before in history.



COVID-19,
a term that did not exist in our vocabulary a couple of months ago, has brought
virtually everything to a grinding halt. It&#8217;s a surreal almost cinematic scene.
Except that we are all living through it.&nbsp;




With governments balancing economies and
the welfare of their citizens, entire industries and institutional systems find
themselves fighting for survival in the midst of mandatory lockdowns. Food
supply chains, transportation networks, educational systems, governance and
judicial systems are either strained or barely functioning with medical
services being the worst hit.



Unlike
any other pandemic, COVID-19 will alter the way we live, work, and
socialise.&nbsp; The financial costs and the
economic devastation are already of epic proportions. This is why Africa in
particular urgently needs an Ubuntu Plan. A globally coordinated fiscal
stimulus plan that recognises our shared and connected humanity. 



The
case for an Ubuntu Plan



This
past week, America passed a 2 trillion Dollar stimulus package that will keep
markets operational, support Americans out of work, and help reduce Federal
Reserve lending rates. It is the largest bailout in the history of the United
States. European economies likewise have announced stimulus measures in excess
of 1 trillion Euros. Chinese factories are ramping up again, backed by a $344
billion stimulus package.



In
contrast, Africa&#8217;s economies are already buckling. Global demand for oil and
gas and commodity products &#8211; the mainstays of Africa&#8217;s leading economies &#8211; has
stalled. Revenues which were already overextended have dried up and small,
medium, and large enterprises are at risk of total collapse.



Last
Thursday, the United Nations Conference on Trade and Development (UNCTAD)
estimated that the pandemic could reduce the growth of the region&#8217;s gross
domestic product (GDP) from 3.2% to 1.8% in 2020. On 27th March, The Secretary
General of the UN Antonio Guterres said: “Africa is a continent with very
little capacity to respond and I am extremely worried that in those situations,
we might have millions of cases with millions of people dying”.



Lockdowns
are not equal



Even
though the United States, Europe and many parts of Asia are better suited
economically and infrastructurally to a lockdown, they are struggling to cope
with the burden of this sudden pandemic. A situation that will likely will be
worsened by the duration and unpredictability of the pandemic.



If
these societies are struggling, the impact on Africa is best imagined.



Prior
to the crisis, 41% of sub-Saharan Africa’s population lived on less than $1.90
a day which is very little to survive on. Seven out of ten persons (70%) in
Africa are in vulnerable and precarious forms of informal employment eking
their living on a daily basis. Lockdown, homeworking and teleconferencing is
therefore not an option. Family support systems from blue and white-collar
workers and the diaspora, are themselves under threat. Job losses will&nbsp; strain these critical informal support
systems to breaking points.



 In Africa, formal social safety nets rarely exist. Therefore, stockpiling food items for extended periods of isolation is out of consideration. Linked with this, Africa requires vast food supplies to meet the needs of the continent&#8217;s poorest who can barely afford a decent mmeal. 



Recent
cyclones, Kenneth and Idai, and a&nbsp;
plague of locusts, have already put considerable pressure on&nbsp; immediate food supplies for the continent.



Which
is why an Ubuntu Plan is now critical in order to cushion the harsh
social and economic impacts of the COVID-19 pandemic in Africa. Such a plan
would include a fiscal stimulus package, the development of critical
infrastructure and support for the continent&#8217;s most vulnerable populations. 



The
fact is that in the 21st century, clean water supplies and access to
electricity are the stuff of dreams for millions of Africans. Globally, almost
800 million people are without access to clean water. Of these, 40% live in
sub-Saharan Africa.&nbsp; The simple act of
hand washing which the pandemic requires for prevention is still not possible
for millions. Linked with this, less than 58% of Africa&#8217;s population has access
to modern healthcare facilities. 



A
race against time



Africa
and its partners have already been striving hard to tackle the challenge of
eradicating poverty with measures such as the UN’s Sustainable Development
Goals, and the African Development Bank&#8217;s High5 strategy. 



The
COVID-19 pandemic however shines the spotlight on Africa’s&nbsp; poor healthcare delivery systems and
facilities and its vast challenges. Africa has one of the highest population
densities in the world. For people living in tens of thousands of informal
settlements, the idea of social distancing is inconceivable. Millions of
vulnerable low-income people live in cramped communal houses and rooms and
in&nbsp; areas that lack basic amenities,
especially water and sanitation. 



In
the short term, to effectively combat COVID-19, we urgently need self-testing
kits, personal protective equipment (PPEs), makeshift living spaces and
hospitals, recovery units and inexpensive easy-to-operate ventilators. 



The
World Health Organisation (WHO) has already issued a ten-point strategy that
calls for the creation of corridors on the continent to facilitate emergency
deployments and material shipments.&nbsp; The
plan also calls on governments and the private sector to help increase
supplies, medical equipment and care, and to strengthen surveillance and public
awareness, in order to prevent&nbsp;
continent-wide community transmission.



In
the short window available, global cooperation is imperative.



&nbsp;The African Union&#8217;s Vision Agenda 2063 and
action plan states among other things, that “We are part of the global drive
through the United Nations and other multilateral organisations to find
multi-lateral approaches to humanity’s most pressing concerns including human
security and peace, the eradication of poverty, hunger and disease &#8230;”&nbsp; 



Rethinking
the future



In
the mid to long term, we must urgently rethink social life, urban and rural
planning and our budgetary priorities, if life is to be preserved. We must&nbsp; decongest informal settlements rapidly and in
their place&nbsp; develop&nbsp; affordable housing that is suitable for
isolation&nbsp; and quarantine, in the event
of future pandemics.



There
is no better time for a globally coordinated Ubuntu Plan. To stop the
global spread of COVID-19 and its global devastation, it must be stopped in
Africa. The world must pay attention and lend a helping hand by strengthening
global cooperation, now more than ever before.&nbsp;




Ubuntu
&#8211; The preservation of human dignity, health, lives and wellbeing, demands
nothing less.

Victor

Op-Ed: Victor Oladokun on why Africa urgently needs an Ubuntu Plan

African Development Bank President bids farewell to Victor Oladokun, Director of Communication



Abidjan, Cote d’Ivoire, 30 March 2020 &#8211;
Outgoing Director of Communication &amp; External Relations, Dr. Victor
Oladokun’s received commendation from President of the African Development
Bank, Dr Akinwumi Adesina, for his exceptional leadership.



Dr. Oladokun, who joined the Bank in 2017, is
a veteran communications expert, and leaves the Bank on reaching the mandatory
retirement age.



“Victor joined the Bank two and half years
ago, and has provided exceptional leadership on communication. He has led an
outstanding team. &nbsp;We have built a structure that is able to support us,
to get our news out globally and at the regional level and to make sure that
our member countries and shareholders are fully aware of what we are doing. We
never had that.”



The President praised the communication team
for their tremendous work in training local and regional African journalists to
help understand the Bank’s work and to report better on getting the message of
the Bank across African countries.



“I must say that the quality of the support
that the communication team has provided to the Bank for our Annual Meetings
has been simply remarkable. &nbsp;We have now reached a bar,” Adesina said,
adding that the Board of Directors commended Oladokun at their last meeting.



“I would like for all of us to thank Victor
Oladokun for being an outstanding professional, for being such a dedicated
staff, for being somebody who mentored and supported all of his staff. Victor,
as you leave the Bank, please go well. Our thoughts and blessings are with
you.”



Responding, Victor Oladokun said it was
&#8220;a singular honor&#8221; of his professional life to have worked at the
Bank. 



Addressing members of the communication team,
he said, “you are a stellar and innovative team that has always gone the extra
mile. Well done. &nbsp;I encourage you to continuing reaching for new heights
in the months and years ahead.”



Dr. Oladokun acknowledged President Adesina&#8217;s
visionary leadership and his role in helping re-shape the narrative of a new
and resurgent Africa.



To staff, he concluded, &#8220;As I leave the
bank, I take with me our shared memories, challenges, and successes. Thanks for
allowing me to be a part of this journey and for the excellent support you have
given me as your Director of Communication. I will forever be grateful.&#8221; 



Contact: Emeka Anuforo, Communication and
External Relations Department, African Development Bank, email: <a href="mailto:e.anuforo@afdb.org">e.anuforo@afdb.org</a>

AfDB President bids farewell to Victor Oladokun, Director of Communication

Media Release



For immediate release



31 March 2020 &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp; &nbsp;



Sanlam announces new leadership in its most
key positions



New independent non-executive Chair of Sanlam
Board



New Sanlam Group Chief Executive Officer



New Sanlam Group Financial Director



Bellville – Sanlam today announced that the
Sanlam Board has approved new appointments in three of its most senior
positions in the diversified financial services group.



The Sanlam Board has approved that:



Mr Elias Masilela be appointed as independent
non-executive Chair of the Sanlam Board with effect from 10 June 2020;



Mr Paul Hanratty be appointed as Group CEO
from 01 July 2020; and



Ms Abigail Mukhuba be appointed as Group
Financial Director from 01 October 2020.



Each of the appointments was made following
rigorous and thorough Board processes with internal and external candidates for
each of the three key positions as well as the requisite approvals from the
Prudential Authority.



Sanlam views leadership succession as
important and takes a proactive stance when it comes to leadership transition.
Vacancies in the most senior positions have created the opportunity to find the
best available candidates as well as advancing the Group’s transformation
agenda at the most senior levels in the organisation.



New independent non-executive Chair of Sanlam
Board



Mr Masilela, who already serves as a Board
member, is the former Chief Executive Officer of the Public Investment
Corporation (PIC). He currently serves on a number of company boards and
co-owns and co-manages a consultancy focused on strategy, economics and
business development.



Mr Masilela succeeds Dr Johan van Zyl as Board
Chair. Dr Van Zyl’s departure as Board Chair in June 2020 was announced in
March 2019.



Mr Masilela’s extensive network of key
stakeholders in both the private and public sectors in South Africa and beyond
is viewed as valuable to Sanlam’s existing strategy of becoming the leading
financial services company in South Africa and the rest of Africa.
Notwithstanding the key contributions made by Sanlam’s businesses outside South
Africa, the company still generates some 60% of its earnings within South
Africa.



Mr Sipho Nkosi, Chair of the Sanlam
Nominations Committee of the Board commented:



“We have followed the same thorough process as
with each key appointment within the organisation in the interest of good
corporate governance. The Committee recommended the appointment of Mr Masilela
as an independent non-executive Chair of the Board and the Board’s decision is
unanimous.



“The Board looks forward to Mr Masilela’s
leadership at Board level as he directs the Board’s strategic deliberations on
key matters going forward. The Board also wishes to express its gratitude to Dr
Van Zyl who served for a period of three years as Chair of the Board.”



In accepting his new role, Mr Masilela
commented:



“The financial services sector in South Africa
is a significant contributor to economic stability and growth in the country.
Sanlam has consistently achieved market related performance and, when measured
against its peers, can demonstrate that it is a leading contender.



“The Sanlam Group has a clear and focused
business strategy to unlock value for its stakeholders. Given where we are in
the business cycle, management will do the necessary shifts in emphasis to the
Group’s strategy. It will remain the responsibility of the Board to hold
management accountable for the implementation of the Group&#8217;s strategy, in order
to achieve our business objectives and oversee consistent adherence to sound
corporate governance practices.”



Dr Van Zyl steps down as Chair of the Board
but will continue to serve as a non-executive director on the Board in the
interest of continuity at Board level. Dr Van Zyl represents the interests of
Sanlam’s largest shareholder Ubuntu-Botho Investments, along with Dr Patrice
Motsepe and Dr Rejoice Simelane.



New Sanlam Group Chief Executive Officer



Mr Kirk, the current Group CEO, will remain
available to the organisation after Mr Hanratty takes over as new Group CEO in
July. He will fulfil various responsibilities, including support to Mr
Hanratty, until 31 December 2020 when his five-year contract at Sanlam ends.



The Board’s decision is that Mr Hanratty will
commence duties as Group CEO on 1 July 2020. However, in light of the very
challenging times that South Africa is facing in dealing with the Covid-19
crisis, Mr Kirk will continue to play an important role at an ASISA industry
level, working with the Government in addressing these challenges. He will
continue in a leadership role in the Group through these times and be available
until 31 December 2020, as the situation normalises, fulfilling various
responsibilities, as well as supporting with the handover to Mr Hanratty.



The appointment of the new Group CEO follows
rigorous deliberations by a special ad hoc Board Committee led by Dr Shirley
Zinn, a seasoned Human Resources professional who is an independent
non-executive director on the Sanlam Board. The Committee was also assisted by
relevant external service providers to find and evaluate appropriate internal
and external candidates.



Dr Zinn commented:



“The Committee considered applications from
several internal as well as external candidates. Shortlisted candidates
submitted impressive proof of experience as well as sets of key strategic
priorities to ensure the Sanlam Group’s growth trajectory into the future.



“In the end, the Committee was guided by
evidence of significant experience to successfully manage a complex financial
services business. Experience and insight into the broader financial services
sector, including peers, was also considered. Given Sanlam’s scale and relative
diverse business activities, the Committee recommended to the Board that Mr
Hanratty be considered to be appointed as new Group CEO.”



Under Mr Kirk’s leadership the Sanlam Group
has achieved many accolades. Sanlam has achieved the clear leadership position
amongst insurance groups operating in South Africa and on the African
continent. Key to this was progress on implementing the Group’s profitable
growth strategy over the past few years and the completion of the Saham transaction
in Morocco. This transaction has cemented Sanlam’s position as having an
unparalleled footprint across 32 countries on the African continent.



Mr Hanratty, a qualified actuary, has served
on the Sanlam Board as a non-executive director since 3 April 2017. Before he
was appointed to the Sanlam Board in 2017, he held key leadership positions at
Old Mutual.



Commenting on his appointment, Mr Hanratty
said:



“Leading an organisation of this scale is
certainly an honour. Over the last two decades or so Sanlam has successfully
demonstrated that it is able to consistently unlock value for shareholders and
the rest of its stakeholders.



“Significant shifts in the operating
environment in both South Africa and elsewhere in our key markets may result in
increased challenges to Sanlam achieving its business objectives. In
successfully meeting these objectives, we’ll be guided by the Group’s existing
strategy and we’ll consider the necessary shifts where required and relevant. I
look forward to working with Sanlam’s Group Executive Committee as well as its
various stakeholders.”



New Sanlam Group Financial Director



The third key appointment that the Group
announced, is that of Ms Abigail Mukhuba as Group Financial Director.



Ms Mukhuba joins Sanlam from leading mining
company African Rainbow Minerals where she has held the position of Finance
Director since 2017. She qualified as a Chartered Accountant in 2005 and holds
an MBA (UCT), M Com (RSA and International Tax) (RAU), B Com (Hons) (RAU), B
Compt (UNISA). She has held several senior finance positions at KPMG Inc., BMW
SA and Exxaro Resources Limited.



She has over 15 years’ experience in the
financial reporting and tax specialist environment in both the automotive and
mining industries. She is a pioneer in her field and is a fervent supporter of
women empowerment.



Ms Mukhuba takes over from Mr Wikus Olivier
who has been acting as the Chief Financial Officer (CFO) since July 2019 when
Mr Heinie Werth, former Sanlam Finance Director was appointed as Chief
Executive Officer of Sanlam Emerging Markets, the business cluster that is
responsible for Sanlam’s businesses across 32 countries in Africa, as well as
the Group’s other emerging markets businesses in India, Lebanon and Malaysia.



In announcing Ms Mukhuba’s appointment, Mr
Kirk commented:



“We thank Wikus for his stellar contribution
as acting CFO and are pleased that he remains with us in a Group Exco position.
Over this period, we have had the opportunity to explore the market for the
best skills available as well as making progress in advancing Sanlam’s agenda
of appointing black professionals at the most senior levels in the
organisation. We are delighted to bring Ms Mukhuba on board and wish her every
success as part of our dynamic team.”



Commenting on her appointment, Ms Mukhuba
said:



“Joining the Sanlam Group as Finance Director
is certainly an honour and it comes with significant responsibility as we work
towards ensuring the organisation’s financial health to the benefit of all
stakeholders. Sanlam is at an inspiring juncture in its history as it has
successfully established itself as a major player in financial services – both
in South Africa and its key markets. It is working towards unlocking value from
existing key investments while carefully navigating its future over the medium to
longer term.”



Mr Wikus Olivier who has been acting as the
Chief Financial Officer (CFO) since July 2019 has been appointed as the Group’s
Chief Executive: Strategic Projects. Mr Olivier took over the acting position
when Mr Heinie Werth, former Sanlam Finance Director, was appointed as Chief
Executive Officer of Sanlam Emerging Markets. He will ensure a successful
transition and thereafter take responsibility for a portfolio of important
change projects at Sanlam.



Ends



Notes to editors



Short Profile on Mr Elias Masilela



Mr Masilela (age 56) is the Executive Chairman
of DNA Economics, Commissioner of the 1st &amp; 2nd National Planning
Commission.



He holds a BA Degree Social Science with the
University of Swaziland, MSc in Economic Policy and Analysis with Addis Ababa
University as well as several professional certificates with Harvard
University.



Mr Masilela serves as Board Chair of several
influential entities in South Africa, including Capital Harvest and the
National Task Force on Impact Investing in South Africa.



Other Board memberships include Multichoice
Group, Multichoice SA, Alternative Prosperity Holdings, Future Planet Capital
in London and Strate.



Mr Masilela was previously, Chief Executive
Officer of the Public Investment Corporation (PIC), Head of Policy Analysis at
Sanlam, Acting Deputy Director General for Economic Policy in the National
Treasury, Director of Research at the Central Bank of Swaziland.



Previously, he was a member of the Boards of
the South African Reserve Bank, the Government Employee Pension Fund, the
Airports Company SA, Absa Financial Services, Eskom Pension and Provident Fund,
as well as the UN Global Compact Board &amp; Chairman of the (UNGC) SA Local
Network. Until recently, he was Chairman of Economic Research Southern Africa
and member of the Avior Capital Markets Board, Absa Asset Management and the
V&amp;A Waterfront.



Mr Masilela founded several strategic
initiatives such as the Financial Sector Charter Council, Social Security and
Retirement Reform, United Nations Global Compact Africa Implementation Agenda
for the Social Development Goals and the Ratepayers Association network in
Swaziland, amongst others.



He has published and lectured widely. He is a
public speaker and commentator.



Mr Masilela is also an acclaimed author,
having achieved the Top 40 of Alan Paton Award in 2007 (Number 43 Trelawney
Park; kwaMagogo). His most recent book is entitled LARRY – Simply Larry,
September 2018.



Short Profile on Mr Paul Hanratty



Mr Hanratty (aged 58) had a long and
successful career with Old Mutual in South Africa and the United Kingdom (UK).



He holds B.Bus.Sc (Hons) degree from the
University of Cape Town and became a Fellow of the Institute of Actuaries (FIA)
in 1987. He completed the Advanced Management Programme (AMP) at Harvard
University in 2002.



Mr Hanratty joined Old Mutual in 1984 on
graduating from UCT. He went on to hold various roles before being appointed
CEO of Old Mutual South Africa in 2006. As CEO, he helped the organisation
navigate the global financial crisis (GFC) and strongly developed Old Mutual’s
presence in the rest of Africa. In 2009 he assumed a broader role within Old
Mutual PLC (London) with responsibility for Old Mutual’s insurance and asset management
businesses in US, UK, Scandinavia, Europe, South Africa, Africa and other
emerging markets. He was responsible for reshaping this portfolio of businesses
and transforming the strategic and financial profile of these businesses in the
years following the GFC.



He was appointed Chief Operating Officer of
Old Mutual PLC &nbsp;in 2011 and then became a board member as Group Chief
Operating Officer in 2013. In this final role, he drove business performance
and key acquisitions internationally, while also serving on the board of
Nedbank.



Aside from serving on the Sanlam board since
April 2017, he is a non-executive director of MTN where he chairs the finance
committee and is on the audit and risk committees, and of an Ardonagh
subsidiary, a private markets UK insurance broker where he chairs the
&nbsp;risk and audit committee. He is also Non-Executive Chairman of IDM, a
digital financial services group in which he is an investor.



Mr Hanratty is known as a seasoned, highly
experienced, high profile, credible and well-regarded figure in South African,
broader emerging markets and international insurance circles. He boasts a
revered track record of growing and turning around insurance and asset
management business. He has extensive mergers and acquisitions experience.



Short Profile on Ms Abigail Mukhuba



Abigail Muelelwa Mukhuba (aged 40) has is
currently Financial Director of African Rainbow Minerals, a leading mining
company with a market value of R35 billion with some 28 000 employees.



As Financial Director at African Rainbow
Minerals her key responsibilities include:



Efficient and optimal capital allocation
across the group



Managing and maintaining an effective asset
management strategy



Being accountable for overall financial
reporting, group governance and risk management and technology and information



Advising the CEO on all strategic matters
across areas of accountability



Providing motivational and inspirational
leadership to the team and organisation at large, as well as guidance and development
to maintain high performing teams



Actively participating in all strategic
discussions and decisions at board and related committee and executive meetings



Presenting the group’s financial performance
at relevant forums



Leading the controlling and analysing of all
relevant business issues



Continuous improvement culture: evaluate
potential deviation in trends, support and monitor operational effectiveness
programmes, best practice implementation and continuous improvement practices



Adoption of innovation and technology to
enable the business to maximise stakeholder returns



Her key achievements to date are developing a
formalised capital allocation model framework to guide business decisions on
efficient ways of allocating capital across the group. She also implemented a
business continuity programme across most of the group entities.



In terms of her new responsibilities as Group
Financial Director at Sanlam, she brings technical financial reporting and
associated governance capabilities. She strongly believes in living and
displaying personal responsibility for her contribution to achievement of the
company’s strategy. Given her overall risk management as well as technology and
information management experience, she is provided with a holistic view of the
organisation which allow for improved business decision making.



She speaks English (fluent), Tshivenda
(fluent), IsiZulu (moderate), SeSotho (moderate) and Afrikaans (basic).



Notes to editors



About Sanlam



Established as a life insurance company in
South Africa, the Sanlam Group has transformed into a diversified Pan-African
financial services group which is listed on the JSE, A2x and the NSX. Sanlam’s
vision is to be the leader in client-centric wealth creation, management and
protection in South Africa, to be a leading player in Pan-African financial
services with a meaningful presence in India and Malaysia and to play a niche
role in wealth and investment management in specific developed markets.



Through its five business clusters – Sanlam
Personal Finance, Sanlam Emerging Markets, Sanlam Investments Santam and Sanlam
Corporate &#8211; the Group provides comprehensive and tailored financial solutions
to individual and institutional clients across all market segments. Sanlam’s
areas of expertise include insurance (life and general), financial planning,
retirement, investments and wealth in both South Africa and selected emerging
markets.



In addition to its South African operations,
the Group has a direct stake in operations based in Namibia, Botswana,
Swaziland, Zimbabwe, Mozambique, Mauritius, Malawi, Zambia, Tanzania, Rwanda,
Uganda, Kenya, Nigeria, India, Malaysia and the United Kingdom. It has business
interests in the USA, Australia, Burundi, Lesotho and the Philippines. Through
the SAHAM Finances holding company, it has direct exposure to insurance
operations in Morocco, Angola, Algeria, Tunisia, Ghana, Niger, Mali, Senegal,
Guinea, Burkina Faso, Cote D’Ivoire, Togo, Benin, Cameroon, Gabon, Republic of
the Congo, Madagascar, Lebanon and Saudi Arabia.



For further information, visit <a href="http://www.sanlam.com">www.sanlam.com</a> or follow us @sanlam



Issued by Sanlam Group Communications



Sanlam Group Communications Contact People



Pearl Majola



<a href="mailto:pearl.majola@sanlam.co.za">pearl.majola@sanlam.co.za</a>



083 286 7476



Allim Milazi



<a href="mailto:allim.milazi@sanlam.co.za">allim.milazi@sanlam.co.za</a>



082 889 5874



Petra Steenkamp



<a href="mailto:Petra.steenkamp@sanlam.co.za">Petra.steenkamp@sanlam.co.za</a>



082 431 7956

Sanlam appoints ex-Old Mutual boss as new CEO

HARARE (Reuters) &#8211; Zimbabwe began a 21-day nationwide lockdown on Monday, following neighbour South Africa in implementing some of the world’s toughest anti-coronavirus measures likely to hurt an economy already suffering hyperinflation and food shortages.



But unlike in South Africa, where many citizens defied calls to stay indoors with some clashing with security forces at the weekend, Zimbabweans mostly stayed home. The country has recorded just seven cases and one death. 



Central Harare’s streets were deserted. Banks, government offices and businesses were shut. Zimbabwean police, who have a reputation for brutality, manned checkpoints on highways into Harare and questioned the few motorists, a Reuters reporter saw. 



In the poor township of Mbare in Harare, vegetable markets and the inter-city bus rank were closed and rows of wooden stalls used by vegetable vendors abandoned. 



At Nenyere Flats in Mbare, six men sat outside their flat drinking gin. Fox Dhalu, a 36-year-old father of three, complained that some shops had hiked prices over the weekend. 



“Seriously, does this pandemic also stop people from moving around? The government gave us short notice to prepare for this coronavirus lockdown. We are very angry about this,” he said. 



Shops have been exempted from closing but most had not opened by mid morning on Monday. 



A few blocks from the police station in the middle class suburb of Mabelreign, 73-year-old grandmother Angela Nerwande sat on an improvised stool selling vegetables on her stall. 



“What will my grandchildren eat if I stay at home? I have to continue working,” she said. “At my age I am not afraid of dying. If they want to arrest me let them come.” 



<h3 class="wp-block-heading">WATER CANNONS </h3>



In a statement, Police Spokesman Assistant Commissioner Paul Nyathi said: “The law is very clear, those who don’t comply will be arrested and prosecuted.” 



Many of South Africa’s most vulnerable have struggled to maintain the lockdown, and people in poor, overcrowded townships have continued to go out and mingle, in some cases prompting security forces to use water cannons to force them inside. 



State broadcaster SABC aired videos of soldiers humiliating people, making them do squats and pulling one along the ground with a wire. Defence Minister Nosiviwe Mapisa-Nqakula told the channel they should not use excessive force. 



“We want our security services to partner with our communities to stop the spread of coronavirus,” she said. 



In a bid to ease the impact on some of its poorest, South Africa relaxed restrictions on some public taxis during rush hour and made early social security payments to the elderly. 



South Africa has 1,280 cases, and two deaths, as of Monday compared with an African total of 4,894. 



In West Africa, in Nigeria’s two main cities &#8211; Lagos and the capital, Abuja &#8211; those who could afford to stock up queued at shops ahead of a 14-day lockdown starting at 11 p.m. (2200 GMT). 



(Additional reporting by Alexis Akwagyiram in Lagos; Writing by Tim Cocks, Editing by William Maclean)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN21H1W0-OZATP">https://af.reuters.com/article/topNews/idAFKBN21H1W0-OZATP</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Zimbabweans enter coronavirus lockdown amid severe economic crisis

By Chris Bishop Five million South Africans could soon be shielding themselves from COVID-19 thanks to the disease-fighting Solidarity Fund, but small businesses can pretty much forget it. The Solidarity Fund, driven by the business community and independent from government, has raised R500 million in a week to help ward off COVID-19, its administrators told journalists over a webcast. The money, to be administered by Africa’s biggest insurer Old Mutual, will be aimed largely at helping poor households weather the storm. One of the first actions of the fund will be to buy five million masks and gloves from China. CNBC Africa asked the fund administrators whether they were worried by reports that some face masks made in China had been found defective and returned. “We are absolutely award of this issue and the Solidarity Fund is consulting with the Department of Health here and will carry out the utmost diligence in making the purchase,” says Nicola Galombik is executive director of Yellowwoods, the investment holding company, who is working with the fund. But whereas masks will soon be on their way,small business is unlikely to see much protection from the fund. Banker Martin Kingston, who is also helping to launch the fund, said the fund was not going to be giving financing or soft loans to small business. “We simply don’t have the capacity,” says Kingston. The fund is casting its net widely. Veteran entrepreneur Gloria Serobe, one of the founders of the investment company Wiphold, said the fund was hoping for donations from far as well as near. ”The Solidarity Fund is looking for help from anywhere in the world..Overseas contributions are pretty much welcome and encouraged,” says Serobe.

Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown

COVID-19 Masks yes, small business sorry no.

JOHANNESBURG (Reuters) &#8211; South Africa’s rand plunged to an all-time low on Monday, falling below 18.00 to a dollar after ratings firm Moody’s cut the country’s last investment grade credit rating, adding to mounting panic about the coronavirus outbreak. 



At 0600 GMT the rand was 1.42% weaker at 17.9100 per dollar, pulling back slightly from the all-time low of 18.0800 it crashed to in Asian trading, indicating that the fallout of the coronavirus-led lockdown is likely to hurt local assets. 



Moody’s downgraded the rating one notch to ‘Ba1’ from ‘Baa3’ and maintained a negative outlook, meaning another downgrade could follow if the economy performs worse or government debt rises faster than expected. 



It was the last of the top three ratings firms to downgrade Africa’s most industrialised economy to sub-investment grade, following S&amp;P Global and Fitch’s downgrades in 2017. 



The latest ratings cut will see South Africa kicked out of the benchmark World Government Bond Index (WGBI) of local-currency debt, triggering up to $12 billion of forced selling, treasury and analysts estimate. 



Bonds were also weaker, with yield on the benchmark government bonds due in 2026 rising 72.5 basis points to 11.215%.



“We have previously argued that much of the downgrade has already been priced in and that we do not expect a capital exodus following the decision,” analysts at NKC Economics said in a note. 



“However, the global economic environment has changed considerably since the start of March.” 



South Africa’s confirmed coronavirus cases increased by 93 to 1,280 on Sunday and the death toll doubled to two. The country is its fourth day of a national lockdown and officials announced new measures to deal with the economic fallout. 



(Reporting by Mfuneko Toyana; Editing by Vinay Dwivedi)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21H0S6-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21H0S6-OZABS</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

South Africa’s rand crashes to its lowest ever after Moody’s pulls the plug

FNB confirms measures to
help customers impacted by COVID-19



Spokesperson: Jacques Celliers, FNB
Chief Executive Officer



Monday,
30 March 2020 – In recent weeks, the South African
Government, business community, philanthropists and society at large have shown
remarkable unity in a joint effort to protect our country against the impact of
COVID-19.



Working
in unison with stakeholders, National Government made a prudent decision to
invoke a 21-day national lockdown. As part of this decision, Government assured
the country that essential banking services will remain available and this was
reiterated by the Banking Association of South Africa (BASA).



As a financial services provider
and corporate citizen with over 40&nbsp;000 staff, thousands of suppliers and
millions of customers, this is a responsibility we do not take for granted.
Consequently, we have been working tirelessly to reconfigure operations where
necessary to operate efficiently and to help customers, especially those whose
financial position has been impacted by COVID-19.



Our aim is to ensure that all
our customers can continue keeping their financial affairs in order through
this difficult time and we believe that our ability to service customers
through multiple market-leading digital channels has provided relative comfort
to customers to continue managing their day-to-day-banking, investing, credit
and insurance needs. 



As we escalate our efforts to
help customers, we are pleased to announce that from 1 April – 30 June 2020 we
will implement measures to provide relief to individual and business customers
whose financial stability has been impacted by COVID-19. Our interventions will
assist customers who demonstrate sound banking behavior, such as having honoured
their repayments to the bank on a consistent basis prior to COVID-19.&nbsp; 



For those customers that
qualify, our COVID-19 interventions will be for all products with us, and they will be available for a period of three months, covering
the following: 



<ul class="wp-block-list"><li>Instalment cashflow
relief, during which part or no instalments/repayments will be due for a
specific period;</li><li>A preferential interest
rate will apply to the COVID19 relief interventions given;</li><li>No fees will be charged
for any relief granted;</li><li>Assistance with processing
credit insurance claims, where possible;</li><li>Individualised bridge
facilities for those who need it.</li></ul>



Interest
and fees will continue to accumulate on outstanding balances. Individuals and business customers can contact us via
their usual digital and assisted banking channels to enquire about these
services. During this week, customers will also be able to get more information
on our current COVID-19 relief measures through a dedicated icon on the landing
page of our banking App.



At the same time together with
the Banking Association of South Africa (BASA) and the banking industry we are
assessing potential financial solutions for those customers who do not qualify
under the current criteria. We encourage all customers who can honour their
financial obligations to continue servicing their repayments.



In addition to our efforts to help with financial relief, we have prioritised early invoice settlements for suppliers across the FirstRand Group and over R1 billion has been processed in the last few days. We are committed to continue expediting payments to local suppliers to help improve their financial stability. FNB has also made a significant contribution to FirstRand’s SPIRE initiative announced today contributing, alongside the FirstRand Foundations and RMB, to the group’s total anchor funding of R100m. Through SPIRE, FNB is also providing critical operational capacity (including its payments and governance platforms) to help the healthcare system scale its response to COVID19, with a particular focus on testing equipment, protective clothing and ventilators for hospitals.



We will waiver Speedpoint device
rentals and not charge a minimum fee for some merchants who are in good
standing but operate in distressed industries. In April, individual and
business customers on FNB Connect will also receive 1GB of free data to help
them stay connected during the lockdown. We are also working with industry
partners to ensure that customers can use any bank’s ATMs without paying
additional fees over and above the fees charged by their bank. 



Furthermore, we have opened an FNB bank account to
facilitate financial contributions and call upon all our internal and external
stakeholders to donate in support of the National Solidarity Fund. Stakeholders
who would like to make donations can use the following account number FNB
Account name: Solidarity Fund, Account number: 62848117447*.



The level of agility and
efficiency that the industry has shown over this difficult period would not be
possible without the leadership of BASA, Competition Authorities, SARB and
National Treasury. We commend all partners on the joint effort to protect our
country against the impact of COVID-19. 



ENDS



NOTES TO EDITOR



FNB Solidarity
Account



<ul class="wp-block-list"><li>Donations to the FNB Solidarity Fund are
via electronic funds transfer (EFT).&nbsp;&nbsp; </li><li>No cash donations are permitted. </li><li>Reference Number for deposits should
include: Id number or company registration number</li><li>Furthermore, donations will qualify for a <a>Section 18A certificate </a>for tax. Those who wish to
request a certificate can email: <a href="mailto:solidarityfund@fnb.co.za">solidarityfund@fnb.co.za</a></li></ul>



For more information, contact:



FNB Corporate Affairs



<a href="mailto:fnbmedia@fnb.co.za">fnbmedia@fnb.co.za</a>

FNB confirms measures to help customers impacted by COVID-19

STANDARD BANK EXTENDS INSTALMENT RELIEF MEASURES TO
PERSONAL ACCOUNT CUSTOMERS



29 March 2020: Standard
Bank has announced a second wave of relief to help its customer base navigate
financial commitments as Covid-19 continues to impact the livelihood of many
individuals across the country. 



The payment reprieve is aimed at
easing the financial burden of customers earning R7&nbsp;500 or less, who will
receive three-month instalment relief if they are not in arrears on any of
their accounts (as at 31 March 2020). This relief applies to qualifying
customers and their associated accounts, which include home loan, vehicle and
asset finance, credit cards as well as short term loans. Customers who opt for
the relief will see their interest and bank charges capitalised over the term
of their loan agreements. 



This second round of relief comes
after Standard Bank’s announcement last week that it would be instituting
instalment relief for both SMEs and fulltime students who have taken out loans
at the bank. The bank’s small enterprise clients with a turnover of less than
R20 million were granted a three-month instalment relief on their business loan
repayments. The latest instalment relief measure will further assist business
owners who bank with Standard Bank in their personal and business capacity. 



The three-month instalment relief
will be available on 1 April 2020 until end June 2020. Customers need not
contact the bank to initiate the offer, however, customers can continue to pay
their accounts as usual should they not want to take up on the relief offer
made by Standard Bank. 



Our customers’ financial
wellbeing remains our concern. Customers who are in financial distress and not
included in the three-month instalment relief offer, should contact the bank as
soon as possible by email on&nbsp; <a href="mailto:debtcarecentre@standardbank.co.za">debtcarecentre@standardbank.co.za</a>
or call us.



Funeka Montjane, Chief Executive,
Personal and Business Banking, Standard Bank South Africa, says: “At Standard
Bank, we are continuously looking for ways to provide the necessary assistance
to our customers who have been impacted negatively by the Covid-19 pandemic.”



Standard Bank is collaborating
with other government initiatives that have been started to support small
businesses and their employees. Qualifying employers and employees will also
get relief from initiatives like the Solidarity Fund. 



“We are committed to helping
those who are vulnerable at this time. It is critical that we try to ease their
financial burden and do what we can to prevent somebody from losing their home
or having to close their business. We continue to work with the industry and
regulators to ensure that we can solve some challenges systemically and we will
play our part responsibly to support government and the country,” says Ms
Montjane.



Furthermore, the banking sector
has collectively&nbsp;decided to waive Saswitch fees during the lockdown. This
means that a customer can use any ATM, including those offered by competing
banks and only pay the usual fees charged.



Standard Bank continues to evaluate
the current financial climate with a keen focus on how the bank can continue to
guide consumers through these difficult economic times.



“We will work tirelessly to find solutions that ease their financial burden in these times. We are here to help those who contribute to our society so that we can support economic growth in South Africa,” concluded Montjane.

Standard Bank extends instalment relief measures to personal account customers

30 March 2020



BANKS CHARGE REDUCED FOR SOCIAL GRANT BENEFICIARIES DURING COVID-19 LOCKDOWN 



Banks will significantly reduce their charges for South African Social Security Agency (SASSA) grant beneficiaries, to increase the number of pay-points they can use to collect their grants, which will help maintain social distancing in queues at bank branches and retailers, for the duration of the Covid-19 pandemic lockdown. 



Members of the Banking Association South Africa (BASA) provide accounts for 11.3 million SASSA beneficiaries. Banks – excluding the South African Post Office – have close to 400 000 points of service. This means SASSA beneficiaries will have more options for collecting their grants, including using ATMs at reduced costs. For grant payments for the lockdown period ending 16 April 2020: 



• Postbank and SASSA cards can be used at any ATM to withdraw SASSA grants, with no Saswitch charges.



• Withdrawal fees at bank ATMs will be waived for SASSA beneficiaries. 



For March grant payments, some SASSA beneficiaries may still be charged fees because banks cannot implement these technical changes at such short notice. Where fees are charged, they will be refunded by the SASSA beneficiaries’ bank as soon as possible. 



BASA members are assisting SASSA in communicating payment dates to beneficiaries. BASA members are also working closely with retailers and other stakeholders as part of their ongoing efforts to assist SASSA beneficiaries during the Covid-19 pandemic lockdown. 



ENDS 



Issued on behalf of The Banking Association South Africa

Bank charges reduced for social grant beneficiaries during COVID-19 lockdown

By Chris Bishop, head of programming, CNBC Africa 



Police minister Bheki Cele slammed drunken South Africans for flouting the first hours of the 21-day lockdown against COVID 19 by staging raucous street parties rather than sheltering at home to stop the spread of the deadly virus. A ministerial briefing in Pretoria, late Friday, said there were 1170 cases of the disease in South Africa and at least one death. Cele said his officers arrested 55 people after the lockdown at midnight Thursday as many drank by the roadside. Police officers also set up roadblocks on major highways leading out of Johannesburg to Limpopo, KwaZulu-Natal and the North West province, he told the briefing. Many vehicles were turned back as the police and authorities try to halt the spread of the disease, but arrests were mainly among those determined to party.    “These people don’t have the goodwill and were doing something they were told not to do. Some were opening up a street bash at midnight. Some were taking bush chairs and sitting under trees to drink. They were undermining the law of South Africa,”Cele said.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a> Many people gave tip-offs about places where people broke the lockdown to go and drink, but Cele said not all bore fruit. “We love this information, but please don’t give us fake news,”says Cele. The police minister warned that his officers would deal firmly with anyone breaking the 21-day lockdown. “This is about the life and death of the people of South Africa… If you don’t join us, we will pull you to join with us.” The briefing also heard that the German government wants to fly home its nationals from South Africa. There are more than 80,000 Germans living in South Africa. Transport minister Fikile Mbalula said the government had agreed to allow Germany to evacuate its nationals from next week.

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Zimbabweans enter coronavirus lockdown amid severe economic crisis

COVID-19 Masks yes, small business sorry no.

South Africa’s rand crashes to its lowest ever after Moody’s pulls the plug

FNB confirms measures to help customers impacted by COVID-19

Standard Bank extends instalment relief measures to personal account customers

Bank charges reduced for social grant beneficiaries during COVID-19 lockdown

COVID-19 UPDATE – Top cop Cele slams drinking in the face of death.

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Southern Africa

Our top share picks for the brave investor: Finding opportunities in times of adversity

Mary Oppenheimer and daughters donate R1 billion to COVID-19 Solidarity Fund

Moody’s places Angola’s B3 ratings on review for downgrade

The impact of COVID-19 lockdown on tax and unemployment related matters

The African billionaire who wants COVID-19 to bounce off business

Harmony Gold sees lower gold production during 21-day lockdown

Developing nations need $2.5trn to fight COVID-19, here’s how the money can be raised

Op-Ed: Victor Oladokun on why Africa urgently needs an Ubuntu Plan

AfDB President bids farewell to Victor Oladokun, Director of Communication

Sanlam appoints ex-Old Mutual boss as new CEO

Zimbabweans enter coronavirus lockdown amid severe economic crisis

COVID-19 Masks yes, small business sorry no.

South Africa’s rand crashes to its lowest ever after Moody’s pulls the plug

FNB confirms measures to help customers impacted by COVID-19

Standard Bank extends instalment relief measures to personal account customers

Bank charges reduced for social grant beneficiaries during COVID-19 lockdown

COVID-19 UPDATE – Top cop Cele slams drinking in the face of death.

News Tips

Advertise With Us

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