Here’s what caught our attention on Tuesday:
1. Tax indaba: Day two
The damage caused at Sars will linger for years to come, commissioner of the revenue service Edward Kieswetter told attendees of the 2019 annual Tax Indaba during his keynote address on Monday. The revenue service has lost at least 2 200 of its employees since 2014. Further to that, Sars has suffered tax revenue shortfalls increasing to R57 billion, which deputy finance minister David Masondo says is a result of institutional instability and slow economic growth.
2. Naspers’s listing of Prosus
Naspers shareholders on Friday gave the media giant the green light to list its new entity Prosus on the Euronext stock exchange in Amsterdam. Prosus will also hold Naspers’s stake in Tencent. Since it was given the go ahead, Naspers says its sees Prosus being valued at $100 billion, according to Bloomberg. Furthermore, Moneyweb is reporting that investment banks, including Goldman Sachs and Citigroup, will collectively be paid R500 million for their roles as lead financial advisors in the listing in Amsterdam.
Prosus will list on the Euronext on September 11.
3. Search for PIC CEO begins
November will mark a year since Dan Matjila tendered his resignation as Public Investment Corporation (PIC) CEO. Now the state fund manager says it is on the hunt for a new candidate to take on the position. The announcement that the asset manger is looking for an ‘executive search service provider’ was advertised on its website on Monday. The closing date for applications to provide headhunting services is September 9.
4. Imperial Logistics results
Imperial Logistics is reporting a 7% fall in continuing headline earnings per share to 542 cents for the 12 months ended June 30, 2019. Imperial is also reporting a continuing loss per share of 26 cents, down 105%. Continuing revenue increased by 6% to R49.7 billion and continuing operating profit is down 9% to R2.5 billion. Results were supported by a good performance in its African regions but exiting the consumer packaged goods business in South Africa lead to an impairment of assets, the company says. A final cash dividend of 109 cents per share is being declared.
5. Standard Bank taps into fintech for small shop owners
Standard Bank is investing nearly R61 million in fintech firm Nomanini, which connects informal merchants with distributors via an e-wallet. This is in a bid to offer credit to small shop owners and various other informal retailers who have limited access to banking services. According to Reuters, Standard Bank will collect and analyse data on retailers using Nomanini technology, which will allow the bank to pre-empt the trader’s re-stocking needs and send them alerts offering to arrange and underwrite the next order. At a later stage, the bank will look into helping the retailers offer financial services to their customers.