Author: Gugu Lourie

Technology group Jasco Electronics announced plans to sell its Electrical Manufacturers Division. The JSE-listed company said its wholly-owned subsidiary Jasco Trading has entered into a sale of business agreement with African Zaibatsu Corporation (AZC) As part of the deal, AZC will acquire 100% of the Electrical Manufacturers Division (EM) for R65 million. The proceeds from the disposal will be applied towards reducing the Jasco corporate bond and the working capital loan. EM focusses on the business of contract manufacturing components for predominantly the domestic appliance industry in South Africa. AZC is a 100% black-owned and 100% black youth-owned South African…

The Southern African Private Equity and Venture Capital Association (SAVCA), in partnership with First National Bank (FNB) and the SA SME Fund as lead sponsors, has launched a Fund Manager Development Programme (FMDP) with the aim of increasing the number of females-and black-owned and managed fund managers. South Africa’s private equity industry still has a way to go in achieving a truly diverse workforce. This is according to the 2019 SAVCA industry survey, which revealed that the percentage of female and black (as defined in the B-BBEE Codes) professionals within the industry in 2018 increased to 29.6% and 56.9% respectively,…

Blue Label Telecoms, which owns 45% of the troubled mobile phone group Cell C, may face suspension on the JSE bourse. The exchange said Blue Label Telecoms has failed to distribute its annual financial statements and notice of the annual general meeting within the four-month period stipulated in the JSE’s Listings Requirements. “Accordingly, the company’s listing on the JSE trading system has been annotated with a ‘RE’ to indicate that it has failed to comply and that the listing of this company’s securities is under threat of suspension and possible removal,” said the JSE on Tuesday. The exchange added that…

The Telkom October Big Deal has been revealed. Telkom’s SmartBroadband Wireless 40GB Anytime + 40GB Night Surfer SIM only data gives you 80GB per month for just R299. Night Surfer Data shall be valid between 12am – 7am. But you also have the choice to add a Huawei B525 router for R70 per month. That’s R369 in total for your very own WiFi at home. Connect all your devices and use your 80GB your way. The SmartBroadband 40GB Wireless is an LTE data offer. It is available as a SIM Only on a 24-month contract and as a deal which…

Stash, an investment app created by Liberty, now reaches 45 000 users. The tax-free investment app has been downloaded 50, 000 times with 175,000 investment transactions per month, and more than R70 million in investments so far. Liberty said on Monday this is a great reason for anyone to start stashing their spare change today. Stash is an app that simply rounds up transactions when you swipe your bank card and invests the digital spare change in South Africa’s Top 40 companies, tax-free. Stash is classified as a tax-free investment account, which means you don’t pay any tax on your…

Yoco announced today that its customer base of small businesses had crossed the 50,000 milestone and to further grow its customer base the South African FinTech firm is launching a new, lower-cost POS terminal The South African Point of Sale payments provider also launched the Yoco Go, a card machine targeting previously underserved small businesses that have not had access to card payment and Point of Sale technologies. The introduction of the Yoco Go is a critical element of the company’s growth strategy of doubling its merchant base over the next twelve months. Historically, small businesses have been excluded from the…

Cryptocurrency platform Coindirect has launched a brokerage system aimed at traders looking to do large volume cryptocurrency transactions. The “over-the-counter” (OTC) model, introduced this month, is a ‘first’ in South Africa and sets Coindirect apart from its local competitors in the market, the company claimed. “During our first two years in the industry we have paid close attention to which users are driving the volume of crypto trading,” Nic Haralambous, Coindirect’s COO, says. “Our approach is to bring cryptocurrency to as many users as possible, however, the data shows that a majority of the daily trading volume in South Africa…

Struggling mobile phone operator Cell C is showing no signs of recovery but it seems to be going slowly nowhere. JSE-listed telecoms group Blue Label Telecoms, which owns 45% of Cell C, informed investors on Thursday that the mobile phone operator incurred trading losses of R1.56 billion, impairments of its property, plant and equipment of R2.2 billion and de-recognised its deferred tax asset of R4.09 billion for the year ended-May 2019. Blue Label Telecoms said its 45% share amounted to R3.609 billion on the inclusion of the amortisation of intangible assets of R10 million and an expense of R65 million…

Blue Label Telecoms, which was once a darling of JSE investors, is sinking deeper into trouble as Cell C knocks the JSE-listed group’s earnings. Cell C’s largest shareholder reported on Thursday that core headline earnings for the year ended 31 May 2019 equated to a negative 304.77 cents per share. Headline earnings per share is South Africa’s main profit gauge. The company as expected attributed the bad news to Cell C and impairment of its total investment in the Oxigen India group. The company which used to be regarded as a JSE’s best-kept secret has seen its shares plummet 36% year-to-date…

JSE-listed firm Blue Label Telecoms announced on Wednesday it will sell its shareholding in Blue Label Mobile to DNI 4PL Contracts Proprietary Limited (DNI). In terms of this transaction, Blue Label will sell 85% of Blue Label Mobile issued shares and all claims on loan to DNI 809. The price consideration payable by DNI to Blue Label in respect of the deal is R350 million. DNI will also pay R100 million, which shall escalate at the prime rate of interest plus 2% (compounding annually in arrears) from the fifth business day after the date on which all suspensive conditions  are…

South African venture capital (VC) firms and fund managers invested R1.5 billion channelled towards South African startups in 2018. This is according to SAVCA 2019 Venture Capital Industry Survey released by the Southern African Venture Capital and Private Equity Association (SAVCA), conducted in collaboration with research partner Venture Solutions. Gauteng businesses received the largest share of VC money in 2018 (R658 million), up 38% from 2017. The Western Cape saw an increase in 2018 of 14% in VC investments amounting to R433 million. Kwazulu-Natal (KZN) backed VC business have in 2018 seen a significant increase in activity in comparison to 2017, with…

Vodacom’s boss is on study leave and the chief financial officer (CFO) is acting as CEO of the mobile phone operator, TechFinancials has learned. British mobile phone giant Vodafone, which owns Vodacom, has sent Shameel Joosub to study at Harvard Business School, a reliable source this week told TechFinancials. Another source at the company confirmed that Till Strichert, Vodacom’s CFO has been appointed as acting CEO. However, Vodacom wouldn’t be drawn into commenting the matter. “Vodacom does not comment on internal matters of this nature,” a Vodacom spokesperson said in an email response. Asked when is Joosbub contract was ending, the response was:…

The Independent Communications Authority of South Africa (ICASA) said on Thursday it will, before the end of 2019, publish the Information Memorandum on the licensing process for the International Mobile Telecommunications (IMT) spectrum or what is also referred to as high demand spectrum. This follows the publication of the Policy on High Demand Spectrum and Policy Direction on the Licensing of a Wireless Open Access Network (the Policy Direction) by the Minister of Communications and Digital Technologies. The Information Memorandum is also intended to provide guidance to stakeholders and prospective applicants on the process and criteria to be applied by…

JSE-listed group Blue Label Telecoms woes mount as Cell C continues to negatively impact the company. Blue Label Telecoms, which owns 45% of Cell C, on Thursday informed investors that its earnings will take a knock. The company attributed this to ongoing Cell C woes. Blue Label Telecoms said its earnings for the year to end-May 2019 will take a R6.71 a share knock. It attributed this to Cell C’s trading losses, impairment of its property, plant and equipment, the impact of a de- recognition of its deferred tax asset and the impairment of its total investment. The earnings will…

GRAND BAIE, Mauritius – Twelve-year-old Marika and 10-year-old Annie are swimming in the warm water of the majestic ocean and are ecstatic to see me. They greet me in English, and I warmly respond and say “hi young ones”.  “You can speak English,” Marika exclaims.  French and Creole are the languages most spoken in Mauritius. Annie shyly asks: “How is that possible? You look like a Mauritian.”  Before I can answer, she asks: “Are you visiting here? Where are you from?” “The city of Jo-hustle-burg is my hometown little ones”. I silently say: “Thank you, the greatest writer of our troubled…

Southern Africa Telecommunications Association (SATA) on Friday announced that it was working hard to enable a one flat rate for the process of making and receiving calls overseas. Roaming costs are sky-high for travellers across the Southern African Development Community (SADC) region and is a hindrance when just popping over to a neighbouring country for pleasure or work. SATA chairman and CEO of Mauritius Telecom Sherry Singh said on Friday the organisations finalising its initiative to decrease roaming prices. The initiative is known as ‘Roam like at home’. Singh said he has invited the SATA member countries to sign the…

Southern Africa Telecommunications Association (SATA) on Friday launched a digital sharing platform to address the challenges of knowledge sharing in the region. SATA was founded in 1980 in line with the Southern African Development Community (SADC) Treaty. It regroups companies from the information and communications technology industry. It aims at spearheading regional ICT infrastructure and services developments. Its vision is to become the most dynamic and value-adding organisation that facilitates the building of a prosperous information society for the SADC region. At the launch of the digital sharing platform in Port Louis, SATA chairman and CEO of Mauritius Telecom, Sherry…

South Africa’s first fully digital bank TymeBank is adding up to 3, 500 customers a day as it leverages the use of digital biometric technology to make banking simple and affordable. The bank, which is backed by billionaire Patrice Motsepe, has on-boarded 500 000 customers as at 30 June 2019. TymeBank is owned by African Rainbow Capital (ARC) Financial Services Holdings, a company within Motsepe’s Ubuntu-Botho Investments stable. African Rainbow Capital said on Thursday in a statement that the bank is signing up between 3 000 and 3 500 customers per day, with about 40% of bank accounts being active. “The…

Apple today formally announced its launch plans for its new TV streaming service, Apple TV+. The new TV streaming service will be available globally from November 1. The service will be available on the Apple TV app on iPhone, iPad, Apple TV, iPod touch, Mac and other platforms, including online at tv.apple.com, for $4.99 per month with a seven-day free trial. Starting today, customers who purchase any iPhone, iPad, Apple TV, iPod touch or Mac can enjoy one year of Apple TV+ for free. Through Family Sharing, up to six family members can share one Apple TV+ subscription. Subscribers can…

Worldwide, malaria kills an estimated 435 000 each year, mostly children under the age of five, mainly in Sub-Saharan Africa. A South African biotech startup ERADA Technology Alliance (ERADA) has developed saliva-based malaria asymptomatic and asexual rapid test (Smaart) test known as Salva! which the startup claims is a world first. Mining group De Beers has contributed €288 000 (R4.7 million) in ERADA. The foundation grant – which has been facilitated by De Beers Group’s Venetia Diamond Mine in Limpopo, in the Northern province of South Africa close to the border with Zimbabwe and Botswana – will support Smaart. SALVA’s global…

More and more people in Ghana and Uganda are adopting the services of aYo, a mobile micro-insurance joint venture between MTN and SA’s third-biggest insurer Momentum Metropolitan. Its products, which are designed for the lower-income segment of mobile phone users, focus on digitally enabled, high volume, low-value transactions offering flexible payment and cover options “While aYo clients enrolments increased by a pleasing 233% to 4.0 million year-on-year, it has yet to achieve sufficient scale to fund the overhead costs,” said Momentum Metropolitan in its latest integrated annual report. The JSE-listed insurer said the rollout of aYo to additional markets should…

JSE-listed technology firm Altron said on Friday it has placed executives at one of its subsidiaries on precautionary suspension following an investigation that has revealed potential internal irregularities. The three executives work for Altron Nexus. Altron Nexus provides a variety of converged telecommunication services ranging from the distribution of professional two-way radio products and systems across sub-Saharan Africa through Alcom Radio Distributors, operating the largest trunked radio network in South Africa through Fleetcall and providing end-to-end ICT system integration services through Alcom Matomo. The executives were suspended after an investigation that has revealed potential internal irregularities. The investigation came after Altron received…

Digitisation and automation could result in a net gain of up to 1.2 million jobs in South Africa by 2030, a new report reveals. The Future of Work in South Africa: Digitisation, productivity and job creation report from McKinsey & Company states that technology-related gains could triple South Africa’s productivity growth, more than double growth in per capita income, and add more than a percentage point to its real GDP growth rate over the next decade. South Africa is poised for notable change. The advance of technology – including machine learning, artificial intelligence and advanced robotics – is rapid and…

First National Bank (FNB) customers sent more than R26 billion worth of eWallet funds in the year to end-June 2019. This was derived from eWallet transactions processed in the year and was a 25% year-on-year rise in the value of funds compared to R21 billion in 2018. eWallet allows FNB customers to send money to anyone with a valid SA cell number. The money is transferred instantly and can be used to buy prepaid airtime, send money to another cellphone and more. The money can be withdrawn from an FNB ATM or select retail stores. eWallet was introduced in 2009.…

MIC Investment Holdings (MIC) has disposed of its empowerment shareholding in Westcon Southern Africa (Westcon SA). MIC is an investment company and is a wholly-owned subsidiary of the Mineworkers Investment Company. The Mineworker’s Investment Company is a 100% black-owned broad-based investment holding company that was established by the Mineworkers Investment Trust (MIT) to provide ongoing funding for the Trust’s social and educational projects. MIC has sold off its 40% stake to Ascension Capital Partners, a private equity investor. “I am delighted to welcome Ascension as our new BEE partner in Westcon SA and thank the MIC for its valued contributions during its nine…