This article was written and supplied to CNBC Africa by Chivas 
Chivas Brother’s Limited was founded in 1801 by brothers James and John on the principles of sharing success and winning the right way. These principles established the foundations on which the Chivas brothers crafted their luxury whiskey and grew a business and brand of global scale.
Both James and John understood the value that businesses become truly rewarding when people share in their success. It is with this impetus that CNBC / Forbes Africa’s “Win The Right Way” and The Global “The Venture”, both brought to you by Chivas Regal, endeavors to discover the best &amp; brightest social entrepreneurs who embody the ethos of The Chivas Brothers values.
The first season proved to be an immense success as six African gems who are dedicated at using their entrepreneurial prowess for social and economic development were showcased on Chivas / Forbes &amp; CNBC Africa’s ‘Win The Right Way.’ The lineup included The South Africans Doug Hoernle, the Founder of Rethink Education as well Laduma Ngxokolo fashion designer and founder of MaXhosa by Laduma, together with Joel Macharia from Kenya, the CEO of Abacus and Ghana’s John Armah, CEO of Orios Group and Uneko Atawodi, CEO of Malaik Africa
The sextet of young Africans who ensure that their businesses benefit their surrounding communities was completed by Nigeria’s Chioma Ukonu, Chief Operations Officer of Recycle Points who flew the African flag high in the global showpiece of “The Venture” in Los Angeles, taking second place and earning her business US$ 200,000!
These successes have been the impetus in the growth of the ‘Chivas Win The Right Way’. Building on the triumph of season 1, the show, will expand to showcase even more Pan-African stories of emerging social entrepreneurs, which means an increase in episodes documenting the journey of young African entrepreneurs from more African markets.
The second season of ‘Chivas Win The Right Way’ will also be guided by a new presenter in the experienced and well-travelled Business Journalist, Gugulethu Cele who will document the journey of Africa’s top entrepreneurs as they look to represent the continent at the Venture finale in 2018.
Be sure to catch more rising Africans in season 2 of Chivas ‘Win The Right Way’ starting from 4 October 2017 to see Africa’s top social entrepreneurs on the road towards the Venture 2018!
For more information visit  <a href="https://www.theventure.com/en-za">https://www.theventure.com/en-za</a>
Follow the Venture on Twitter @ChivasVenture and use the #WinTheRightWay #ChivasVenture

Chivas Regal embarks on search for Africa’s top entrepreneurs

Transport Infrastructure Driving Boost in Africa’s Cross Border Trade 
Africa could soon be the largest free-trade area in the world. This is if the African Union’s Continental Free Trade Area (CTFA) stays on track to be operational by the end of this year. Once up and running, the continent-wide free trade zone could lead to a 52 percent ($35 billion) increase in intra-African trade within the next 5 years, according to the United Nations Economic Commission for Africa (UNECA).
The UNECA’s Stephen Karingi, who heads their Regional Integration and Trade Division, says “boosting intra-African trade is the most effective way to speed up Africa’s economic transformation.” Speaking at the recent Africa Session of the Aid for Trade Global Review 2017, Karingi added that “trade contributes towards industrialization and structural transformation.”
Increasing intra-African trade – which reportedly stands at 13 percent – will require the removal of certain barriers in order to improve connectivity, including improvement of custom procedures, reduction of transit and other trade costs, and, importantly, development of reliable transport infrastructure. Here’s a look at some of the inroads that have already been made in the expansion of Africa’s rail, road, and port networks to connect the fragmented African market:
The Ethiopia-Djibouti Rail Link 
This year saw the launch of the first fully electric cross-border railway in Africa. Linking Ethiopia’s capital Addis Ababa with Djibouti City – a stretch of more than 750 kilometres – the new line will incredibly cut travel time between the two countries. Running at 120km per hour, the rail journey, which lasts about three to four days by road, now only takes 12 hours. Each freight train reportedly transports the same cargo as 200 trucks, with the cost reduced by a third.
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-280971" src="http://cnbc.africa/wp-content/uploads/2017/08/ethiopia_djibouti_ra_hb5CS.jpg" alt="" width="600" height="400" />
The line, which cost $4.2 billion, is a significant step towards elevating the poor levels of trade between African countries. Ethiopia plans to construct another 5,000 km-long network of rail by 2020, linking to Kenya, Sudan and South Sudan.
The Trans-African Highway 
Envisaged more than 40 years ago by the United Nations Economic Commission for Africa (UNECA), the Trans-African Highway is an ongoing network of highways intended to connect all corners of Africa from north to south, east and west. The ambitious plan, first proposed in 1971, is aimed at boosting internal trade on the continent by building nine roads linking major cities across Africa. Those networks would collectively measure nearly 60,000km.
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-280972" src="http://cnbc.africa/wp-content/uploads/2017/08/the_trans_african_hi_Jk17e.jpg" alt="" width="391" height="400" /> 
While progress has been slow, the completion of this project will mark a new day for intra-African trade. One of the nine planned roads is already complete – the 4,400km Trans-Sahelian Highway which runs through seven countries, connecting Dakar, Senegal to Ndjamena, Chad. While more than half of the network has been paved, maintenance remains an issue. Conflicts in countries such as the Democratic Republic of Congo, Sierra Leone, Liberia, and Angola have led to both the destruction of some highways and hampering of construction.
Doraleh Multipurpose Port 
Djibouti recently opened its new 690-hectare Doraleh Multipurpose Port after two years of construction. The $590 million project, one of the most advanced ports on the continent in terms of facilities, can handle almost nine million tonnes of cargo per year.
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-280973" src="http://cnbc.africa/wp-content/uploads/2017/08/doraleh_multipurpose_hUUFK.jpg" alt="" width="681" height="400" />
Despite its small size, Djibouti is one of the important trading hubs on the continent, thanks to its convenient geographic location of connecting Africa to Asia and Europe by sea. Ports in the tiny East African country of less than a million people receive the bulk of cargo from Asia, followed by Europe, and then Africa.
West Africa Regional Rail Integration 
A group of West African countries and mines have poured significant investment into an ongoing extensive rail project which will boost trade in the region. When completed, the track will be 3,000 km long and connect Niger, Benin, Burkina Faso, Côte d’Ivoire, Ghana, Nigeria and Togo. The network will add newly built tracks to existing ones which will be upgraded. This project will greatly benefit landlocked countries like Niger, which face constant transport problems. The country largely relies on its neighbours’ seaports and road infrastructure to carry its imports and exports.
The West African Regional Rail Integration project is a response to the need for better infrastructure and reliable transport to move minerals from one West African country to another, and from the mines to major ports.
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-280974" src="http://cnbc.africa/wp-content/uploads/2017/08/west_africa_regional_jMJnM.jpg" alt="" width="732" height="400" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2017/08/west_africa_regional_jMJnM.jpg 732w, https://cms.cnbcafrica.com/wp-content/uploads/2017/08/west_africa_regional_jMJnM-300x164.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2017/08/west_africa_regional_jMJnM-730x400.jpg 730w" sizes="auto, (max-width: 732px) 100vw, 732px" />
Bagamoyo Port 
With its Port of Dar es Salaam, Tanzania is among the major trading hubs in Africa. Now the East African country is aiming to take things up a notch with the development of Bagamoyo Port, which is set to cost $11 billion.
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-280976" src="http://cnbc.africa/wp-content/uploads/2017/08/bagamoyo_port.jpg" alt="" width="511" height="400" />
While the new Tanzanian government has paused construction to focus on revamping other ports, Bagamoyo is set to be the biggest port in East Africa when completed. It will handle 20 million containers a year, more than double the capacity of the Port of Dar es Salaam. If everything goes as planned, Bagamoyo will boost Tanzania’s reputation as a trading centre for its landlocked neighbours such as Zambia, Rwanda, Malawi, Burundi, Uganda and the Democratic Republic of the Congo.
The East African Rail Masterplan 
Billed as Kenya’s largest infrastructure project since independence, the first section of the $13.8 billion railway officially opened in June 2017, connecting the capital Nairobi with the port city of Mombasa. The train will shorten travel time between the two cities from 12 hours to four, with freight trains set to carry 25 million tonnes a year.
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-280975" src="http://cnbc.africa/wp-content/uploads/2017/08/the_east_african_rai_1p9H8.jpg" alt="" width="600" height="400" />
The East African Masterplan will eventually extend to Uganda, Rwanda, South Sudan, and Ethiopia – a move that will further strengthen trade relations between the East African neighbours.
This article was supplied to CNBC Africa by Standard Bank.

Africa could soon be the largest free-trade area in the world

Inspired by the acclaimed LF-LC concept that debuted in 2012, the LC 500 goes beyond being a new luxury model to being the flagship sports coupe for the Lexus.
The all-new Lexus LC 500 does more than set new benchmarks of luxury, styling and performance; it pushes the boundaries of the driving experience as we know it. Complete with a 5-litre V8 engine, paired with Lexus’s first 10-speed automatic transmission, this vehicle offers a lightning-quick response and seamless power.
As the showcase vehicle for the next generation of Lexus, the driving dynamics of the LC 500 are based on three key principles: platform, transmission and suspension. The FR platform focuses on improving the structural rigidity of the body and suspension to enhance the driving dynamics and bring the beautiful design to life.
The LC 500 utilises the brand’s all-new premium rear-wheel drive platform to deliver more exhilaration behind the wheel. An optimal power-to-weight ratio has been achieved with numerous lightweight components, helping to lower the centre of gravity and enhance driving dynamics.
The newly developed 10-speed automatic transmission has the world’s fastest shift time, creating rhythmical and continuous acceleration. The multi-link suspension has been adopted on the front suspension for excellent response to steering.
Beauty becomes far more seductive when paired with power, and the LC 500 has no shortage of either. The exterior features are impressive, combining distinct styling with alluring high technology. The signature hourglass shape of the spindle grille is accentuated by the way the front and rear fenders flare out, while the rear subtly reinterprets and complements the front grille. The coupe’s long wheelbase underlines a sweeping roofline that tapers from the central position of the occupants, for a uniquely human-centred silhouette.
The LC 500 epitomises the philosophy of Takumi Craftsmanship, which is used to the last detail throughout the interior, accentuating the elegant lines of the luxurious cabin. Meticulously crafted from the finest materials the all-new interior of the LC 500 reflects the exterior design theme of dynamic luxury. The driving position was re-examined with just the right amount of ergonomics for the pedal layout and steering wheel angle, ensuring a comfortable distance between the driver and the vehicle. Special attention was put into the new steering wheel design to accommodate all variations of wrist grip and twisting, while larger magnesium alloy paddle shifters have been shaped for easier reach. Takumi Craftsmanship is reinforced in the upholstery with superior standards of quality and finish, as well as the hand-stitched leather centre console, dash pad and Alcantara door trim.
The Lexus LC 500 is more than the sum of its parts – it’s the powerful realisation of a desire to create something visionary, something extraordinary.
And it’s your invitation to Experience Amazing.

Introducing the all-new Lexus LC 500, your invitation to Experience Amazing

During a visit to Cape Town in 2013, Nigeria’s former president Goodluck Jonathan said it is imperative for Africa’s largest economies to work together. With this in mind it is hardly surprising that Nigeria’s commercial powerhouse, Lagos, and South Africa’s economic hub, Gauteng are on course to sign a Memorandum of Understanding that will formalise trade and investment relations between the two regions. However this is easier said than done. 
[bc_video video_id=&#8221;5459962589001&#8243; account_id=&#8221;1571595826001&#8243; player_id=&#8221;default&#8221;]
According to David Makhura, the Premier of Gauteng, only 9 per cent of exports from the region that he governs are destined for West Africa. It is a fact that is difficult to reconcile when you consider that Nigeria, Africa’s largest market can be found in that region. However, it becomes understandable when you remember that Africa has a poor record for intra-regional trade. The World Economic Forum reports that in 2014, Africa had the lowest levels of intra-regional trade in the world at 18 per cent. In Europe on the other hand, that figure stood at 69 per cent. 
It is a challenge that the Premier acknowledges. Speaking at a panel discussion in Lagos organised by CNBC Africa, he said, “The national or federal governments in our country are spending a lot of effort talking about increasing Intra-Africa trade.” However, he believes that there’s work to be done at the lower levels of government too. Citing the closeness that that provincial governments have to the real economy, he said, “the next phase of the development of intra-African trade is when governments below the national government really put in some effort and pull in their businesses and create ecosystems not only where businesses will thrive, but where doing business across the continent will be normal rather than an exception.”
Before the dreams of the Premier can be realised, barriers will need to be broken. Relations between South Africans and Nigerians have been strained as a result of xenophobia. According to Abike Dabiri-Erewa, the Senior Special Assistant on Foreign Affairs and Diaspora to Nigeria’s President Mohammadu Buhari, in the last two years, Nigeria has lost 116 citizens to xenophobic attacks in South Africa. For Foluso Philips, the Chairman of the Nigerian-South African Chamber of Commerce, the solution to this issue lies with the heart. “A lot of people laugh at me when I talk about the Nigeria and South Africa story. I start off by saying we have to learn to love each other and it’s a very fundamental thing.” He said. “The way to deal with this is to begin to get us to understand each other. That’s where you’ll find that the lead should not be economic issues but other cultural and social issues. It’s those interactions that we must have to see that both countries have a lot in common.” He continued. 
<iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/7SX85Dkf3PI" frameborder="0" allowfullscreen></iframe>
Premier Makhura was of a similar mind, keen to draw attention to similarities between the two nations rather than stress the differences. During the panel he said, “until South Africa and Nigeria say something you have not spoken in Africa.” Professor Ademola Abass, Special Adviser to the Governor of Lagos State for Overseas Affairs and Investment agreed and stressed the positive results that increased partnership between the two regions could bring. He said, “When Lagos State and Gauteng combine their resources, you’re going to break down barriers.” 
READ: <a href="http://cnbc.africa/zdnl-mc/2017/06/12/gauteng-looks-ghana-harness-investment-trade-drive-growth/">Gauteng looks to Ghana to harness investment and trade to drive growth</a>
With every partnership, there are bound to be winners and losers. It is a point that Philips was quick to raise. He emphasised the importance of the relationship between the two regions being mutually beneficial. “As much as South Africa says proudly South African we also want to be able to say proudly Nigerian so if we don’t have enough Nigerians going to do business in South Africa let’s make sure that the business that South Africa does here is one that is engaging Nigerians and employing Nigerians and not one in which we’re very dependent on imports,” he said. 
For Toyin Sanni, the CEO of United Capital, the mission to improve relations between the two regions could not have come at a better time. Advising investors to look for opportunities in Nigeria’s infrastructure space, she praised the efforts of the governments of Gauteng and Lagos, and called on the private sector to take advantage of the opportunities that have been created. “The next stage of this will be to have a working plan that involves the private sector champions on both sides that allows them to come up with a wish-list of policy concessions that will be required to drive these initiatives,” she said.

Why Gauteng, Lagos are leading the charge to work together

Africa has huge power needs and is making big steps towards meeting growing demands with solar energy. Africa’s sunshine positions it to command a staggering 40% of the world’s solar power generating potential, compared to Asia at 25% and North America at 11%, and Europe at 2%. Growth in solar power generating capacity has increased 10 times over the last four years, and venture capital investment is also up by 10-fold.
<a href="http://cnbc.africa/wp-content/uploads/2017/07/Branded-Syndication-Solar-Power-Infographic.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-216637" src="http://cnbc.africa/wp-content/uploads/2017/07/Branded-Syndication-Solar-Power-Infographic.png" alt="" width="580" height="1790" /></a>
&nbsp;

Moving Africa forward with solar

The fundamentals of social entrepreneurship are built on a foundation of positive shared growth and sustainability. The Venture competition aims to encourage business with purpose, and challenge the forward-thinkers of the world to promote their start-ups. Over the last 12 months Chivas searched the globe for passionate and generous individuals who echo the profit with purpose message – three of the finalists originate from Africa and are in the running to win a share of the $1 million grand prize. It has been an ongoing journey fuelled by the spirit of shared success and inclusion. Voting will open from May 8 2017. Vist chivas.com to see who will win the grand prize. 
<a href="http://cnbc.africa/sponsored/2017/07/03/nigeria-turning-one-mans-waste-another-mans-treasure/">Chioma Ukonu</a> (Nigeria) is a people-oriented businesswoman who values integrity, success and family. “I strongly believe that one has to be surrounded by people who are committed to delivering the same objectives,” she says. RecyclePoints operates as an incentive-based structure that collects recyclable materials from consumers and then rewards them with ‘points’ that they can accumulate and use to redeem or shop for household items offered through the iRecycle store. Her passion and strive is built on enabling community members, in particular women, to work for themselves while building a strong and dependable future for their family and community, while renovating the environment around them. 
James Steere (South Africa) has a passion for equality and driving change through innovation in Africa. With over 16 years of experience in drinking water purification technologies, strategy consulting, renewable energy consulting and entrepreneurship, I-Drop Water units encapsulates what James and his team stands for – positive change. I-Drop Water installs purification and dispensing units at the point of sale. Shoppers refill water containers, which means that they reduce plastic waste, while the water supply comes at no cost to retailers. They monitor the units remotely to keep maintenance costs low and split the revenue with the shop owners, which drives economic activity in communities. 
Dickson Ochieng (Kenya) previously founded an IT company and has a passion for first class customer service. Dedicated to improving people’s lifestyle and overall health and environment of urban communities, Sanivation was created to deliver clean, safe and efficient sanitation services. Just like Chioma’s recycling business, Dickson and his team are treating waste as a resource. “In urbanising communities we install modern container-based toilets in people’s homes for free and charge a small monthly fee to service them. Then, instead of dumping the waste, we transform it into a clean burning alternative to charcoal,” he says. Furthermore, by displacing charcoal, the briquettes combat deforestation and erosion, saving 88 trees for every ton sold.

Success tastes better shared

She is a pioneer in numerous fields: an entrepreneur who can recognise a great idea, and a philanthropist by nature who believes in ‘profit with purpose’. She is the quintessential modern woman – and her name is Uneku (Neku) Atawodi. 
Neku is the CEO and founder of Malaik, Africa’s first impact-focused equity crowd funding portal. Malaik was created to connect global and local investors with entrepreneurs raising equity finance. It aims to offer potential investors the chance to participate in Africa’s growth story. 
<iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/yf6ObrhZGTA" frameborder="0" allowfullscreen></iframe>
“Africa is brimming with entrepreneurs with growing high-impact businesses that could not only positively impact Africa, but the world,” Neku says. 
It is no wonder then that social entrepreneur and presenter of Chivas, Win the Right Way, Audu Maikori, tracked her down to share career insights over a glass of Chivas Regal 12 Year Old Whisky. 
Chivas, Win the Right Way is a TV series on CNBC Africa, featuring Africa’s most inspiring social entrepreneurs who run their business based on profit with purpose and use their shared success to inspire other African entrepreneurs to join a growing movement. 
Neku is one of the few international female polo players in Africa – her non-profit organisation, Ride to Shine, is the first self-funded NPO based in Abuja, Nigeria. Ride to Shine gives orphaned children access to equestrian activities and experiences. The organisation has a strong belief in the power of sports to develop key individual characteristics in a child. 
“Ride to Shine aims to use the sport of polo as a tool to open unimaginable doors for our children, giving them a global reach to develop into responsible individuals that go on to inspire their peers with a strong pay-it-forward ideology,” says Neku.
When she is not working to enrich her community, she is a World Economic Forum Global Shaper, an associate fellow of the Royal Commonwealth Society and a Clinton Global Initiative Lead mentor. 
In addition, the Meltwater Entrepreneurial School of Technology (MEST) recently scooped her up as General Manager in its Lagos Incubator programme, which provides training, investment and mentoring to aspiring technology entrepreneurs. The programme’s goal is to create globally successful companies that generate wealth and jobs locally in Africa.
“I am a believer in all things that spur innovative disruption across sectors,” says Neku. “Technology is proving to challenge the status quo globally, and is now offering a solid route to empowering Africa’s youth.” 
Neku is living proof that opportunities are plentiful when you are willing to aim high and work hard. For her, the biggest rewards are gained through living a lifestyle that is inclusive and generous, and for Chivas, she is undoubtedly winning the right way. 
Chivas, Win the Right Way is profiling six African social entrepreneurs, and has been airing on CNBC Africa, DStv channel 410, every Wednesday since September 7, 2016. Follow Chivas, Win the Right Way on social media: #WinTheRightWay • www.chivas.com

Africa’s first impact-focused equity crowd funding portal founder shares her career insights

South Africa’s top knitwear designer, Laduma Ngxokolo, credits his inspiration and success to his late mother, Lindelwa, who not only taught him how to hand-machine knit by the age of 16, but instilled in him the importance of his Xhosa heritage. Lindelwa was patron of the Xhosa heritage, who taught her son the impact that comes from involving your inheritance and community in your business. 
<iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/YgLTx3sb1ZA" frameborder="0" allowfullscreen></iframe>
For this reason, fellow social entrepreneur and presenter of Chivas, Win the Right Way, Audu Maikori wants to acknowledge and celebrate Laduma as one of Africa’s finest social entrepreneurs. 
Chivas, Win the Right Way is a television series on CNBC Africa, featuring Africa’s most inspiring social entrepreneurs. The series celebrates entrepreneurs who run their business based on profit with purpose, and use their shared success to inspire other African entrepreneurs to join a growing movement. 
Laduma is a modern gentleman who feels growing up alone played an essential part in his determination to succeed. 
The MaXhosa by Laduma vision was to create a modern Xhosa-inspired knitwear collection that would be suitable for amakrwala (Xhosa initiates), who are prescribed by tradition to dress up in new, dignified, formal clothing. Laduma has undergone the ritual himself and feels strongly that fashion is more than just clothes. “It’s a cultural identity, self-expression, and it’s an art form that informs trends.”
MaXhosa by Laduma does have a choice to source from China but chooses not to. “We have sacrificed a certain portion of profit, to make sure we are supporting local employment.” The reward is greater than revenue as this business model enriches people’s lives and allows for local economic growth; from the Angora goat farmers in Port Elizabeth, to the employees at the Newtown Factory. 
Sourcing locally is one of the most important factors for MaXhosa by Laduma as it extends beyond creating resident employment, but also embeds the ideology Laduma wants South Africans to embrace. “South African designers and social entrepreneurs need to develop their own voices in order for them to represent African fashion and business in their own style. They should not feel the need to appeal to a certain market in order to sell their range. They have to appeal to themselves and then opportunity will find them.” 
Laduma also feels that more private businesses should take on the responsibility of uplifting social entrepreneurs, not necessarily through financial support, but in the form of enterprise development by offering other services such as legal assistance from a law firm.
Laduma truly encapsulates the ‘never-stop-learning’ attitude of a social entrepreneur. His generous spirit is inevitably inspiring and most certainly has him winning the right way. “Working hard is the best recipe, talent is not. With hard work anything can be achieved.” This is evident in the final product range from Maxhosa by Laduma that compromises expectations and surprises with exceptionality through and through.
To find out more visit maxhosa.co.za

SA’s top knitwear designer: Weaving change through design and heritage

This content is sponsored by Chivas 
Ask young Ghanaian social entrepreneur, John Armah, how he’s doing and he’ll reply, “I am blessed”.
This is a modest summing up of Armah’s incredible achievements.
Last year he was listed as one of Junior Chamber International Ghana’s Ten Outstanding Young Persons. He was also ranked 12th Most Influential Young Ghanaian by Avance Media, Ghana’s leading media and public relations agency. And currently the Board Chairman of Junior Achievement Ghana.
Armah is the CEO of the Orios Group, which aims to redefine wealth creation in Africa by identifying, training and supporting scalable, impact-based African start-ups.
Orios has trained over 20,000 youth and businesses in Ghana, formalized over 400 Businesses and has been a key advocate of championing policy in Ghana&#8217;s Start-up Ecosystem also actively matching Investors to Start-ups in Ghana while it raises the Orios Fund.
It focuses predominantly on early and growth stage businesses providing Patient capital, business development, Training and Advisory services to this market, a choice that Armah made critical of the various opportunities, talent, skill in the Ghanaian Economy championed by early stage firms.
Orios calls on social entrepreneurs to ‘elevate their hustle and redefine their dreams’ – then enables them to do so by providing specialised advisory and training services, as well as facilitating patient capital, via its three subsidiary companies – GCEEI, Trade Invest, and the Orios Capital.
Armah’s vision is to enhance the growth potential of start-ups in Ghana.
He uses an interesting approach to mentoring aspiring entrepreneurs, believing that young people who want to be social entrepreneurs should also have a passion for what they do. But beyond the Passion must build relevant Governance structures, Improve product development and move beyond PR to building relevant products that people actually want and will buy.
Instead of dispensing words of wisdom, he believes there are three key questions  aspiring Entrepreneurs should be asking themselves. “Who am I? What am I here for? Who am I doing this for?” Once they can answer these questions he believes they are on their way to building successful businesses or helping others build same.
“The underlying factor for success is having the skill and commitment beyond passion for the social good you want to achieve. That passion helps you determine if you want to be part of a business or not. To be a social entrepreneur you must be driven by motivation, passion, commitment, and have a sense of compassion,” he says.
With a strong Board and Shareholders made up of some astute recognized and celebrated business men in Ghana, a Board chaired by Mr. Kweku Awotwi, Former Head of Ghana&#8217;s Volta River Authority. John Armah and his team of 15 core staff are leading a charge to raise a fund to provide patient capital to some of Ghana&#8217;s most innovative early and growth stage start-ups.
This ethos led to Armah being featured on the CNBC series, Chivas, Win the Right Way.
The show profiles six social entrepreneurs from the continent. Its aim is twofold: to give even more visibility to this movement that uses business as a force for good; and to showcase a new generation of African entrepreneurs.
Series host, Audu Maikori, says Chivas, Win the Right Way celebrates those who not only build personal successes but who also positively impact their communities – a process he calls “profit with purpose”.
Armah echoes this sentiment: “We exist on this Earth to do good, and sometimes we profit from this good, which allows us to create vehicles to do more good.”
Catch episode two of Chivas, Win the Right Way on Wednesday November 2 to find about more about Armah and the work he is doing in Ghana.
<iframe loading="lazy" src="https://www.youtube.com/embed/sOQwTpv9HDA" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
&nbsp;

Why this Ghanaian is among Ghana’s Ten Outstanding Young Persons

Joel Macharia, CEO and founder of Kenya-based online investment brokerage Abacus, is a true entrepreneur. His hard work and pioneering spirit were recognised in May 2016, when he was included in Forbes Africa’s 2016 30 Under 30 list. 
Joel will now receive further recognition when he appears in the first episode of Chivas, Win the Right Way – a TV series that showcases African entrepreneurs who use business as a force for good.
<iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/-96RVfbVW5E" frameborder="0" allowfullscreen></iframe>
The show celebrates those who build personal successes while also positively impacting their communities. Its host, Audu Maikori, a Nigerian entrepreneur, social activist, lawyer, public speaker and creative industry professional, calls this “profit with purpose”. 
This isn’t the first initiative from Chivas in this area. In 2014, Chivas launched The Venture, a $1-million annual competition, to support and bring together the best young minds in communal development; young minds like Joel, who started managing people’s finances at the age of 19. 
An avid inventor who built gadgets as a schoolboy, Joel is now set on building the largest pan-African investment brokerage. His goal is to grow Abacus’current investor database of around 4,000 to half a million within a few years, and he wants to see the systems that Abacus is building being used to build wealth for the disadvantaged and poor. 
Joel has surrounded himself with staff who see this vision as clearly as he does. 
“My understanding of business is that it has to have value, not just monetary value, but also the intrinsic value of making an impact. You need to build impact into your product, and your people need to believe that they are working for something that is greater than their paycheque,” says Joel.
As an entrepreneur, Joel has sage advice for others: “Be patient, it’s going to take longer than you think. Be prudent, it’s going to cost more than you think. And find support, you don’t know as much as you think.” 
Through all of this, Joel keeps his perspective by focusing on what’s been done – not just what still needs doing. 
For him, “winning the right way” is about the small achievements and the big milestones; it’s about the millionaires he’s set on creating; and it’s about the children who can’t afford their school fees and who benefit from a trust he’s set up. 
In his own words: “For me, ‘winning the right way’ is about living, and working, ethically.”

A Kenyan with a dream to create Africa’s largest investment brokerage

‘Sharing success and winning the right way’ – that’s something Chivas’ founding brothers, James and John, believed since they first began to craft their luxury Scotch whisky – a venture that resulted in an incredible whisky. This venture allowed them to generously support their local community for generations … and although the brothers have long since departed, others are finding that business becomes truly rewarding when people share their success and do good for others. 
Audu Maikori, Nigerian entrepreneur, social activist, lawyer, public speaker and creative industry professional, will present a six-part television series called ‘Chivas, Win the Right Way’, which will air on CNBC Africa from 7 September. The aim of the show is twofold: to give even more visibility to this movement that uses business as a force for good; and to showcase a new generation of African entrepreneurs. The show will profile six social entrepreneurs from the continent and serve as a precursor to the global competition, ‘The Venture’. 
Audu says ‘Chivas, Win the Right Way’ is about celebrating those who not only build personal successes but who also positively impact their communities; a process he calls “profit with purpose”. As the founder and president of Chocolate City Entertainment Group – one of the biggest record labels in Africa, which helps start-up and manage fledgling African artists – Audu is adamant that every enterprise must solve a problem before it can be called a success. “It’s not about the money, it needs to be about the community. Success is defined by helping people to live better. It’s about meeting needs. It’s about boosting employment, and empowerment. It’s about creating value and living ethically.” 
This isn’t the first initiative from Chivas in this area. In 2014, Chivas launched ‘The Venture’, a $1-million annual competition, to support and bring together the best young minds in communal development. ‘The Venture’ also aims to help create global problem-solving platforms. Audu is passionate about the competition’s ability to further accelerate ideas and invigorate these bright minds to find issue-driven social solutions – especially in the African context.
Audu hopes to see even more African entrepreneurs opening doors to even more collaboration, whether through music (as in his life story) or farming, health, technology, or education. It is his dream to see more African finalists in ‘The Venture’ in the future. 
His advice: “If you have a passion for your big idea, the drive to create tangible outputs, the capacity for hard work, and the determination to leave a legacy, then enter the next season of ‘The Venture’. It’s not even about the $1-million prize – it’s about value and purpose, and driving a cause that is worth more than plain profit.”

Embracing the philosophy of Chivas by showcasing Africa’s social entrepreneurs

For South African Doug Hoernle, founding director of Rethink Education, enjoying an excellent glass of whisky has much in common with pursuing social entrepreneurship. For one, both should be shared with people who have a similar passion for life and business. Secondly, when savouring the superb taste of a well-crafted Chivas the same appreciation for detail and quality should be used to embrace opportunities that stand for change.
<iframe loading="lazy" src="https://www.youtube.com/embed/hlkN_Ad7yBM" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
These are also the qualities that lead Nigerian entrepreneur and presenter, Audu Maikori to feature Doug in the third episode of the new TV series, ‘Chivas, Win the Right Way’, which will be aired on Wednesday, 4 January 2017 on CNBC Africa.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-130875" src="http://cnbc.africa/wp-content/uploads/2017/07/Chivas-advertorial-images3-01-189x300.jpg" alt="" width="189" height="300" />
The series celebrates social entrepreneurs who run their business in a way that benefits society, and use their success to inspire other African entrepreneurs to join a growing movement.
So ask Doug what success means to him and like most business people he will tell you that it’s partly about making sales but he is also driven, both personally and in his business strategy, by the bigger picture, and pushing the limits of learning.
Doug wants to use technological innovation to revolutionise the way African students learn. The standard of education in South Africa has long raised concern. According to civil rights organization, Equal Education, up to 50% of students who start Grade 2 in South Africa do not end up writing matric with their class. The majority of these learners fall to the wayside between Grades 10 and 12.
In response to this issue, Doug and his team have developed Rethink Education. This data-lite mobile platform uses mobile chat to deliver short, interactive math and science lessons that are fun and effective. It’s easily accessible, and eliminates one of the major barriers to quality education on the continent.
“Today we are still learning from text books and off the chalk on board, yet we have these really powerful devices in our pockets that can open up the world of learning,” says Hoernle.
Doug believes that innovation in education can be fast tracked by allowing people who have never really worked in this particular space to apply their thinking and new ideas.
“This way we can develop new innovative systems to solve the current issues. One cannot look at the old system and say that’s going to solve this [education] problem, it’s not, [and] by using mobile learning we can provide relevant and constructive education to anyone, anywhere, all the time. A number of students have limited access to learning material, because of the limited access to a desktop or internet connection; now they can learn on their phones.”
To date, Rethink Education has distributed maths and science content to over 500,000 South Africans. The team is putting in a lot of work to expand the business to more countries such as Kenya, Nigeria, Ghana and Zimbabwe.
At the end of the day, Doug encapsulates the pioneering spirit of a social entrepreneur who relies on a great team, realises the impact his business can have on his community and Africa, and who uses business for the greater good.
For Chivas, Doug is ‘winning it the right way’ and for Africa it is businesses like Rethink Education that should inspire everyone to be part of solving the challenges that face their communities.
To find out more visit: rethinkeducation.co.za

Using technological innovation to revolutionise the way African students learn

RecyclePoints: rewarding a nation for smart and sustainable acts
Lagos State in southwestern Nigeria generates an average of 9,000 metric tonnes of waste every day –1,200 of that is currently being recycled. For Chioma Ukonu, Chief Operations Officer of RecyclePoints, the old idiom “One man’s waste is another man’s treasure” serves as the foundation of her business, and one that she uses to uplift her community.
Chioma is a people-oriented businesswoman and social entrepreneur who values integrity, success and family.
<iframe loading="lazy" src="https://www.youtube.com/embed/n1bwSfMtrL4" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
“I strongly believe that one has to be surrounded by people who are committed to delivering the same objectives,” she says.
<img loading="lazy" decoding="async" class="size-medium wp-image-130867 aligncenter" src="http://cnbc.africa/wp-content/uploads/2017/07/Chivas-advertorial-Chioma-06-2-e1499089761857.jpg" alt="" width="189" height="300" />
Inspired by her passion, Audu Maikori – fellow social entrepreneur and host of Chivas, Win the Right Way – tracked her down to share career insights and what it means to win the right way. Chivas, Win the Right Way is a TV series on CNBC Africa, featuring Africa’s most inspiring young social entrepreneurs who run their business based on shared success and profit with purpose.
RecyclePoints operates as an incentive-based structure which collects recyclable materials from consumers and in turn rewards them with ‘points’ that they can accumulate and use to redeem or shop for household items offered through the iRecycle store. The venture was awarded the best waste and recycling innovation at the 2015 Waste and Recycling Awards.
The business supports over 8,000 locals and has changed the lives of over 100,000 people. “We have directly empowered over 1,000 people who, through our programme, now operate within the waste recycling value chain,” says Chioma. “We have over 7,000 subscribers that benefit directly from our model and this has a multiplier effect as most of these subscribers are households and major corporate institutions whose constituents are now practicing recycling as a major culture change.”
For Chioma, RecyclePoints represents more than just a successful and inclusive business model. It is working to cut down on the country’s carbon footprint and benefit environmental sustainability. The business creates employment, especially for the younger generation, as well as empowering women to become independent waste aggregators, supporting their families by selling the aggregated recyclable waste.
One of Chioma’s proudest moments was winning the Chivas “The Venture” competition in Nigeria last December, which has given her the chance to partake in the global competition happening in the US in June this year. The Venture is a global search initiative, supported by Chivas, to reward those who are using business and innovative social business ideas to create positive change.  “It was a sign that our venture can now represent Nigeria on the global stage,” she says. Chioma truly believes that with hard work and clear objectives, anyone can ‘win the right way’.
To find out more visit recyclepoints.com
Chivas, Win the Right Way profiles six African social entrepreneurs. This is the final episode the CNBC series which has been airing on CNBC Africa, DStv channel 410, every Wednesday since September 7, 2016.
Follow Chivas, Win the Right Way on social media: #WinTheRightWay • www.chivas.com

How Nigeria is turning one man’s waste into another man’s treasure

Gauteng, South Africa’s city of gold, is the 6th largest economy in Africa. As the country battles with a <a href="http://cnbc.africa/trending/sa-downgrade/2017/06/06/south-africa-slips-recession-economy-shrinks-q1/">recession for the second time in a decade</a> it is imperative that the industrial hub continues to make clear that it is open for business. With initiatives like the Gauteng Growth and Development Agency, and the Gauteng Investment Centre, the region has been active in finding opportunities for advancement both within and beyond its borders.
CNBC Africa’s Esther Awoniyi, recently <a href="http://cnbc.africa/videos/2017/06/12/south-africa-ghana-explore-investment-opportunities/">moderated a panel </a>comprising of government officials and businessmen in Ghana, to explore opportunities for increasing trade and investment between Ghana and South Africa. The group provided much needed insight into what can be done.
<iframe loading="lazy" src="https://www.youtube.com/embed/Ex2_OOZNFhA" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
According to the World Economic Forum, intra-Africa trade makes up about 15 per cent of all trade on the continent. It is a figure that Saki Zamxaka, the Chief Executive of the Gauteng Growth and Development Agency described as “woefully inadequate”. Trade between African countries pales in comparison to Europe and Asia. Intra-continental trade in those regions is 63 per cent and 53 per cent respectively.
David Makhura, the Premier of Gauteng said: “We have been talking a lot about deepening intra-Africa trade, but the progress is not satisfactory.” As the world economy gains momentum after a disappointing 2016, the Premier says the province is looking to investment and trade to solve economic stagnation: “We at the Gauteng province, we have identified investment and trade in Africa as one of the key interventions to solve slow growth.”.
As both Ghana and South Africa are countries with relatively developed mining sectors, there are a number of opportunities for collaboration between the two. However, Zamxaka was keen to highlight those in Ghana’s power sector. “The cost of energy here is still a little bit high which makes it viable for alternative energy sources, like gas, and solar, which we have a lot of experience with.” It is an opportunity that South African infrastructure development fund managers Harith are taking advantage of. According to a statement released by the company, Harith has started building the $550 million Amandi Energy Power Plant, which it hopes will eventually rely on gas acquired from Ghana’s offshore Sankofa oil field.
During the panel R. Yofi Grant, the CEO of the Ghana Investment Promotion Centre said the country is looking for more stories like this, as it has embarked on reforms to improve the ease of doing business. The Chief Executive hopes to see his native country become a conduit of business activity into West Africa. “Ghana is at the centre of the world.” He said. “We have these opportunities that we can harness to bring business to West Africa through Ghana,” he added.
Prudential Life Insurance Ghana is one of the companies that seems to be living Grant’s words to the letter. Inspired by the large number of uninsured Ghanaians the company, a subsidiary of Prudential, one of the world’s oldest life insurance companies, entered the Ghanaian market in 2014. According to Achumile Majija, the Chief Commercial Officer at Prudential Life Insurance Ghana, the factors that impressed the company were the country’s political stability, and the ease of doing business. “We’ve been talking to other markets to do similar business and we’re still in talks. We started some at the same time as we started in Ghana but there’s been a lot of red tape and bureaucracy, where you need to pay to see this person or you always have to get connections. In Ghana what I’ve found is that you guys appreciate foreigners more than your own.” He said when speaking on the panel. As Makhura, put it, “There’s a change of government in Ghana without blood flowing in the streets, it also has one of the more predictable business environments.”
According to World Bank figures, Ghana’s economy is expected to grow by 6.1 per cent in 2017. These are figures that South Africa cannot hope to match this year, as the country’s economy slipped into recession after contracting by 0.3 per cent in the fourth quarter of 2016 and 0.7 per cent in the first quarter of 2017. The country has however made plans that could boost economic growth in the future. “We as a government have decided to open up.” Zamxaka said when explaining his agency’s outward-looking investment strategy, promoting Gauteng as a favourable trade and investment destination. However to fulfil this mission, it is likely that the region will have to work hard to remove some of the negative stereotypes associated with doing business in Africa. As Makhura stressed, “Governance is important. We in government need to address issues of corruption. The idea that you can’t do business in Africa without having to pay a bribe must be something that we get rid of.”

Gauteng looks to Ghana to  harness investment and trade to drive growth

Content presented by GCIS
“Twenty-three years into our [South Africa’s] freedom and people can still complain; that is a sign of a very good democracy and a government that listens to its people.” These are the words of Ayanda Dlodlo, South Africa’s newly appointed Minister of Communications illustrating what freedom means to her.
She was speaking ahead of the commemoration of Freedom Day, celebrated on the 27th April in South Africa in remembrance of the first post-apartheid elections held on that day in 1994. The elections were the first non-racial national elections.
[bc_video video_id=&#8221;5410610651001&#8243; account_id=&#8221;1571595826001&#8243; player_id=&#8221;default&#8221;]
The Minister was hosting a dialogue with learners from various schools in Gauteng about what freedom means to them. In her address she remembered that as a young black woman living in apartheid South Africa, she, like many other freedom fighters, were forced to drop their studies and livelihoods and join the armed movement, living in bushes, carrying a rifle for protection.
“I did that for you… but you did not get this freedom, which was a result of the hard work, sweat, fear and tears, from us alone. Many people from all over the world sacrificed a lot for the freedom that you enjoy today,” said Dlodlo.
One such person, Minister Dlodlo points out was Sven Olof Palme, a Swedish Social Democratic Politician, Statesman and Prime Minister. “A white man that had nothing to do with South Africa, lost his life so that you and I could sit in this auditorium today and deliberate about what freedom means to all of us.”
The event took place at one of South Africa’s award-winning heritage sites, Liliesleaf, which has been described as “the nerve centre of the liberation movement”, a place of refuge for leaders including Nelson Mandela.
The purpose of the dialogue was to start on-going discussions with South Africans on what it means to Own your freedom. It should also cover areas that are working well and equally as well as those areas that South Africans feel are not working well and would like to see improvements from Government and Corporate South Africa, revealed Dlodlo.
The students who were invited to be a part of the dialogue, shared their concerns on the new South Africa, many of which spoke to issues of race, corruption and marginalisation of certain groups.
The Minister appealed to the youth; “while there are many problems in South Africa, I would implore you not to concentrate on those problems but to concentrate on this which you have, that none of us can take away from you, your freedom; let that frame the discussions”.
That’s not all.
There is also <a href="http://cnbc.africa/videos/2017/04/26/celebrating-freedom-day-with-freedom-of-speech/">Own Your Freedom</a>, a documentary named after this year’s freedom day theme, which can be viewed on CNBC Africa, see below.
<iframe loading="lazy" width="600" height="400" src="https://www.youtube.com/embed/q5yj8l1YRH8" frameborder="0" allowfullscreen></iframe>
It serves as a voice to the voiceless. Now, 23 years after democracy, they experience remarkable freedom of speech, a right enshrined in the Constitution.
Presented by Comedian Lihle Msimang, and directed by David Kau, the documentary offers insights on some of South Africa’s biggest issues including, State Capture, education, the economy and the future of the country.
It may have taken 23 years but initiatives like this ensure the dialogue about South Africa and freedom never dies, that government institutions listen and continue to enforce the freedoms which were fought for.
Share with us below what Own Your Freedom means or tweet us using #OwnYourFreedom.

This is what my freedom means, what does it mean for you?

The 5th edition of the AFRICA CEO FORUM will take place from 20 &#8211; 21 March in Geneva and will focus on how to succeed in this new economic cycle on the continent. Having cemented its status as the foremost meeting dedicated to the development of the African private sector, the  AFRICA CEO FORUM 2017 will bring together more than 1000 personalities, key decision makers in industry, finance and politics from the African continent and around the globe.
This year’s theme is “Re-thinking Africa’s business model”. The AFRICA CEO FORUM 2017 will open the debate on the economic boom of the 2000s, the context of economic growth in Africa and the critical decisions that must be taken to reach rapid and sustainable growth.
Major themes will include:
<ul>
<li>Unleashing innovation and the entrepreneurial potential of youth and women</li>
<li>Making Africa more attractive for international investors</li>
<li>Turning African stock exchanges into competitive powerhouses</li>
<li>Creating the next generation of African exporters</li>
</ul>
The AFRICA CEO FORUM 2017 will also offer 20 sessions for debate and reflection, allowing participants to hit strategic topics for driving African corporate growth including: digital transformation, fintech, agribusiness, private equity, emerging African champions, electricity and innovation.
<a href="http://www.theafricaceoforum.com/en/programme/2017-03-20/">Find out more about the programme</a>
Amongst the African and international personalities who will take part in the discussion and debate at the AFRICA CEO FORUM 2017 :
Akinwumi Adesina, President, African Development Bank ; Paul Polman, CEO, Unilever ; Mo Ibrahim, President, Mo Ibrahim Foundation ; Naguib Sawiris, CEO, OTMT Investments ; Phuthuma Nhleko, Chairperson, MTN ; Tonye Cole, Co-Founder and Group Executive Director, Sahara Group ; Oluwatoyin Sanni, CEO, United Capital ; Ibukun Awosika, Chairperson, Firstbank ; Mohammed Dewji, CEO, Mohammed Enterprises ; Bruno Mettling, CEO, Africa and Middle East, Orange ; Diego Aponte, CEO, MSC ; Benedict Oramah, CEO, Afreximbank ; Marie-Yvonne Charlemagne, CEO, Rougier ; Sola David-Borha, CEO, Stanbic IBTC Holdings ; Julius Kipng’etich, CEO, Uchumi Supermarkets ; Issad Rebrab, CEO, Cevital ; Saïd Ibrahimi, CEO, Casablanca Finance City Authority as well as Jean Kacou Diagou, CEO, NSIA.
Follow us on social media :
&#8211;  <a href="https://twitter.com/africaceoforum">Twitter</a>
&#8211;  <a href="https://www.linkedin.com/company/africa-ceo-forum?trk=top_nav_home">LinkedIn</a>
&#8211;  <a href="https://www.facebook.com/THE-AFRICA-CEO-FORUM-240363862988935/">Facebook</a>
 
Press contact : Abdoul Maïga – Tel. +33 1 44 30 18 18 – <a href="mailto:a.maiga@theafricaceoforum.com">a.maiga@theafricaceoforum.com</a>
&nbsp;

The AFRICA CEO FORUM 2017: Re-inventing Africa’s “business model”

While you need to consider the impact of tax when planning your retirement saving strategy, it shouldn’t be yourprimaryconcern. Tax is certain, and there’s no avoiding it. That said, it needs to be factored in both while saving for retirement, and also during retirement, given the different tax treatment of those two scenarios.
Broadly speaking, the taxation process can be summed up as “exempt-exempt-tax”, consistent with regulations in many countries globally. You areexemptfrom tax on contributions made while saving for retirement (up to certain limits), you areexemptfrom gains on the investment(s) while you are saving, but you are subject toincome taxupon retirement as you draw down your savings.
Retirement savings vehicles
The key retirement-savings vehicles are Retirement Annuities and pension or provident funds. The main difference between these products is that the latter are employer-provided and are typically mandated in most large businesses. Retirement Annuities are typically used by self-employed individuals, employees in organisations that don’t offer a pension or provident fund, and those who want to increase their retirement savings.
The main benefits of retirement annuities are that you are able to contribute to as many of them as you wish, you can stop contributing whenever you want, and they are transferable. There is additional flexibility in that single-premium retirement annuities are available. This is a tax-efficient way to house any excess savings, as you are able to use the lump-sum amount to reduce your income-tax liability in that year.
The new Taxation Laws Amendment Act
The signing into law of the Taxation Laws Amendment Act (2015) and Tax Administration Laws Amendment Act (2015) by President Jacob Zuma, came into effect in March 2016 and has promted many questions from those who are saving for retirement via Retirement Annuities, pensions or provident funds.
In short, the act ensures that the tax benefits of contributions to provident funds, pension funds and Retirement Annuities are now on an equal footing. (See our Q&amp;A for more detail on how the new act will affect you.)
It is also important to note that most people currently saving for retirement will be unaffected or better off under the changes. High-income earners are likely to be the most affected by the changes.
How the act affects you: Before retirement
The tax deduction increases from 15% of non-retirement funding income to 27.5% of the higher of remuneration or taxable income, up to a maximum of R350 000 annually, on contributions made towards structured retirement savings. This deduction now applies across the board, i.e. to provident fund contributions, pension fund contributions and retirement annuity fund contributions.
The distinction between retirement funding and non-retirement funding income has also been removed. That means all clients who were members of a pension/provident fund, and therefore unable to benefit further from the deductibility of contributions to a retirement annuity since their income was defined as retirement funding income, can now “top up” to the limit of 27.5% as described in the paragraph above.
How the act affects you: After retirement
In simple terms, without considering retirement fund lump sum withdrawal benefits, retirement fund lump sum benefits, or severance benefits received or accrued to an individual, any lump sum withdrawn at retirement above a minimum threshold (currently R500 000) is taxable. The table below illustrates the taxation applicable:
How is your annuity taxed?
The remaining two-thirds of your savings received in the form of an annuity (“pension”) is taxable. But this would only be for the amounts that exceed certain thresholds published by the South African Revenue Service. For the current tax year (to end-February 2017, these thresholds are:
<ul>
<li>Under 65: R75 000 per annum</li>
<li>Between 65 and 74: R116 150 per annum</li>
<li>75 and above: R129 850 per annum</li>
</ul>
Are early withdrawls still possible?
The withdrawal of the entire amount of a pension or provident fund is still possiblebeforeretirement, although this is in many instances very ill-advised due to the adverse tax consequences for the withdrawing individual. (For retirement annuity funds, withdrawals are only possible on early retirement due to ill-health or on emigration.)
Tax-free savings accounts
Lastly, tax-free savings account (TFSA) are another element those saving for retirement need to consider. The TFSA structure, introduced last year, offers an interesting way to supplement structured retirement savings. It would be difficult to argue that a TFSA is an absolute alternative to products like Retirement Annuities and pension funds. TFSAs allow the investment of R30 000 a year (up to a lifetime limit of R500 000, likely to be revised upward in future). These investments can be made in a number of different asset classes and all gains on these investments (capital gains, dividends and interest) are completely tax-free.
However, contributions are not tax deductible, which is why TFSAs should only be considered as a way to supplement whatever retirement savings an individual already has, especially if they are at (or near) the contribution limit of 27.5% of the higher of remuneration or taxable income.
With so many complex factors to consider and a very long time horizon, it is critical to get professional investment advice for your retirement saving, as well as the tax impact of choices you will need to make.
For more information on investing for retirement, speak to your financial adviser.
This article is part of an investment series by Discovery Invest. Click <a href="https://www.discovery.co.za/investments/your-guide-to-investing/?utm_source=cnbc_website&amp;utm_medium=web&amp;utm_campaign=cnbc_page_jun2017&amp;utm_content=discovery_invest_guide_to_investing">here</a> to read the rest of the articles.
&nbsp;

Sponsored

Chivas Regal embarks on search for Africa’s top entrepreneurs

Africa could soon be the largest free-trade area in the world

Introducing the all-new Lexus LC 500, your invitation to Experience Amazing

Why Gauteng, Lagos are leading the charge to work together

Moving Africa forward with solar

Success tastes better shared

Africa’s first impact-focused equity crowd funding portal founder shares her career insights

SA’s top knitwear designer: Weaving change through design and heritage

Why this Ghanaian is among Ghana’s Ten Outstanding Young Persons

A Kenyan with a dream to create Africa’s largest investment brokerage

Embracing the philosophy of Chivas by showcasing Africa’s social entrepreneurs

Using technological innovation to revolutionise the way African students learn

How Nigeria is turning one man’s waste into another man’s treasure

Gauteng looks to Ghana to harness investment and trade to drive growth

This is what my freedom means, what does it mean for you?

The AFRICA CEO FORUM 2017: Re-inventing Africa’s “business model”

Retirement and tax: what you need to know

News Tips

Advertise With Us

Sponsored

Chivas Regal embarks on search for Africa’s top entrepreneurs

Africa could soon be the largest free-trade area in the world

Introducing the all-new Lexus LC 500, your invitation to Experience Amazing

Why Gauteng, Lagos are leading the charge to work together

Moving Africa forward with solar

Success tastes better shared

Africa’s first impact-focused equity crowd funding portal founder shares her career insights

SA’s top knitwear designer: Weaving change through design and heritage

Why this Ghanaian is among Ghana’s Ten Outstanding Young Persons

A Kenyan with a dream to create Africa’s largest investment brokerage

Embracing the philosophy of Chivas by showcasing Africa’s social entrepreneurs

Using technological innovation to revolutionise the way African students learn

How Nigeria is turning one man’s waste into another man’s treasure

Gauteng looks to Ghana to harness investment and trade to drive growth

This is what my freedom means, what does it mean for you?

The AFRICA CEO FORUM 2017: Re-inventing Africa’s “business model”

Retirement and tax: what you need to know

News Tips

Advertise With Us

Newsletters