SA, Nigeria sign accounting agreement

Association of National Accountants of Nigeria

The South African Institute of Professional Accountants (SAIPA) has signed a memorandum of understanding with the Council for the Association of National Accountants of Nigeria to facilitate cooperation and allow members to work in both countries, the institute announced last week.

The memorandum allows members of the one organisation to become members of the other, which will enable South African accountants to work in Nigeria and Nigerian accountants to practice in South Africa.

via SA, Nigeria sign accounting agreement – SouthAfrica.info.

Spaza's worth R7bn

Spaza Shop

JOHANNESBURG – In an industry that turns over more than R7bn annually, spaza shop township micro-entrepreneurs have a potential which cannot be ignored. Emerging as micro-convenience stores during apartheid there are now an estimated 10 000 spaza-shops spread across South Africa according to the South African Cities Studies conference paper published in 2011.

The Absa SME Index indicates that business ownership is on the rise but a majority of businesses in South Africa, two thirds, employ only one person. On average spaza shops employ between one and four people. The potential for sustainable job creation is evident. However, spaza shops exist in the informal economy meaning they exist outside of the institutional and regulatory frameworks.

Spaza shops range from survivalist endeavours to complete mini-supermarkets. Christo Botes, executive director at Business Partners says that the challenge with survivalist entrepreneurs is that they have no vision and often do not have the skills or training to move their business to the next level.

This is the current challenge being faced by local spaza shop owners in townships who are being forced to close down or are bought out by foreign spaza shop owners. The different approach to business adopted by foreign spaza shop owners has allowed them to compete against local spaza shops.

via R7bn worth of untapped township potential – MyBusiness | Moneyweb.

Access to credit still easy in South Africa

Woman in small shop Ghana

According to the World Bank‘s 2013 Doing Business Report, South Africa has been joint-ranked, along with Malaysia and the United Kingdom, as the easiest country in the world for small and medium-sized enterprises (SMEs) to access credit.

Gerrie van Biljon, executive director of Business Partners Limited, says that this will be the third year in a row that South Africa has achieved the ranking and that that it is a very encouraging sign for small business owners locally.

He says that there is however evidence that a lack of SME financing still exists, despite the reported easy credit access. “Access to finance remains the number one hindrance for SMEs, regardless of this high rating. This is most likely due to the fact that SMEs are unsure of how to apply for finance, or that they do not qualify for the type of financing that is available. It is therefore of utmost importance that SMEs understand the stringent credit conditions that need to be fulfilled to obtain financing.”

via Access to credit still easy in South Africa – World Bank report.

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Section 21 company

Parliament building in Bloemfontein, South Afr...

Interested in forming a section 21 company?

Great!

“Section 21 company” is the name of non-profit companies registered in South Africa under the old Companies Act 1973 as amended.

The new name for a Section 21 company under South Africa’s new Companies Act, 2008 is “Non-Profit Company” abbreviated to “NPC”.

Information on registering an NPC through us

African free trade area

Definition of Sub-Saharan Africa, according to...

In sub-Saharan Africa 36 of 46 governments improved their economies’ regulatory environment for domestic businesses in 2010/11‚ which is a record number since 2005.

The World Bank said this was good news for entrepreneurs in the region‚ where starting and running a business was still costlier and more complex than in any other region of the world.

African leaders have called for a continental free trade area by 2017 to boost trade within the continent‚ which should further boost the opportunities available to SA companies.

via News | SA gains one position in ‘Ease of Doing Business’ | Bizcommunity.

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Spotlight On Small Business Development

The main entrance to the International Convent...

The 37th International Small Business Congress, taking place in Johannesburg from 15-18 September, will help to chart the way for small business development in South Africa, with a particular focus on emerging industries.

Briefing journalists in Cape Town on Monday, Trade and Industry Minister Rob Davies said the congress would provide a platform “to benchmark and draw lessons from both the developed and developing countries with a view of sharpening policy development and high impact programmes in the South African SMME sector”.

It will be the first time that the congress is held on the African soil, and more than 1 000 international delegates are expected to descend on the Sandton Convention Centre to discuss the future and role of SMEs in the global economy.

International Small Business Congress president Catherine Swift will be joining speakers from South Africa, Canada, England, Nigeria, Malaysia, Northern Ireland, Cameroon, Japan, France, Mauritius, Sierra Leone and India.

The theme of the congress will be “Fostering small business in new and high-potential industries worldwide”.

Davies said this theme was “of particular importance to South Africa, especially as we widen the market for South African goods and services through stronger focus on exports to the region and other economic groupings such as Brazil, Russia, India, China and South Africa (BRICS).

via allAfrica.com: South Africa: Spotlight On Small Business Development.

Small Business Congress

CAPE TOWN/SOUTH AFRICA, 11JUN2009 - Rob Davies...

The 37th International Small Business Congress, taking place in Johannesburg from 15-18 September, will help to chart the way for small business development in South Africa, with a particular focus on emerging industries.

Briefing journalists in Cape Town on Monday, Trade and Industry Minister Rob Davies said the congress would provide a platform “to benchmark and draw lessons from both the developed and developing countries with a view of sharpening policy development and high impact programmes in the South African SMME sector”.

It will be the first time that the congress is held on the African soil, and more than 1 000 international delegates are expected to descend on the Sandton Convention Centre to discuss the future and role of SMEs in the global economy.

International Small Business Congress president Catherine Swift will be joining speakers from South Africa, Canada, England, Nigeria, Malaysia, Northern Ireland, Cameroon, Japan, France, Mauritius, Sierra Leone and India.

The theme of the congress will be “Fostering small business in new and high-potential industries worldwide”.

Davies said this theme was “of particular importance to South Africa, especially as we widen the market for South African goods and services through stronger focus on exports to the region and other economic groupings such as Brazil, Russia, India, China and South Africa (BRICS).

via Spotlight on small business development – SouthAfrica.info.

South African women entrepreneurs

Entrepreneurs

The 2012 Sanlam / Business Partners Entrepreneur of the Year competition has seen a  5% increase in the number of female finalists  which is a critical sign that speaks to general health of the South African economy, say organizers of the competition.

The resonates well with  the GEM research report on South Africa which showed that the total early-stage Entrepreneurial Activity (TEA) for South African females improved by 161.3% from 2001 – 2010, growing from 3.1% to 8.1%.

In a statement the organizers said female entrepreneurial activity has been proven to be a major catalyst in triggering economic growth in developing countries.

via South African women venture into entrepreneurship | UJUH.

African free trade zone

Industry and Foreign Trade Minister Mahmoud Eissa stressed the need for consolidating inter-trade among African countries as this matter has become a must to achieve the regional economic integration, in light of the numerous challenges facing Africa and the multi-lateral trade system.

He also called for achieving reconciliation and matching by African various African blocs in order to achieve African free trade zone.

Ethiopian Prime Minister Meles Zenawi, public ...

Minister Eissa urged African countries to support all efforts to facilitate African inter-trade.

Eissa called as well for strengthening African business organization and the involvement of the private sector in carrying out the trade exchange programs. The world economic forum started Thursday in Addis Ababa with 700 African dignitaries taking part.

Egypt‘s delegation was headed by Dr. Mohamed Eissa, Industry and Foreign Trade Minister deputizing for Field Marshal Hussein Tantawi, Head of the Supreme Council of the Armed Forces (SCAF).

Eissa gave a speech on means to give a push to the African trade Agenda. He met after the inaugural session with Ethiopian Prime Minister Meles Zenawi who expressed his country’s keenness to cement strategic relations between Egypt and Ethiopia.

Eissa held several meetings with officials of a number of Egyptian companies operating in the Ethiopian market. He also met, on the sidelines of his participation in the World Economic Forum, with Egyptian members of the Egyptian-Ethiopian Business Council.

During his talks with the companies’ officials, Eissa discussed ways of boosting economic cooperation between Egypt and Ethiopia within the upcoming phase.

The two sides also tackled the obstacles which hinder the increase of investments either in Egypt or Ethiopia.

via Egypt State Information Service.

 

Making jobs for people

JOHANNESBURG, SOUTH AFRICA - JANUARY 21:  In t...

“The real issue is not the target, the real issue is can we mobilise all of the South African resources… in order that all of us do what we can to put people into some kind of job,” Gordhan told the Foreign Correspondents Association in Johannesburg.

This included government, business and civil society.”We are not doing enough in South Africa as a whole,” he said.

The government had set the target of five million jobs by 2020, but Gordhan said it was more important to get everyone into some kind of job.

“In respect of our younger people, to have the basic experience of working, that is the objective at this point in time.”

Job creation was not the sole preserve of government, he said.

“You cant just look at government, because 70% of those jobs must come from the private sector.”

Its the private sector that must create jobs. For them to do this they must invest.”Gordhan said businesses had around R500 billion in profit surplus lying in banks, which they should be investing. Business, however, was risk averse, which he said was to some extent understandable.

Recent comments by First National Bank CEO Michael Jordaan were quite instructive, Gordhan said. Gordhan said Jordaan had said South African businesses needed to take a medium or long-term view, not just react to short-term risks.

“There are immense prospects that other countries are seeing on the African continent, that we ourselves are not seeing adequately,” Gordhan said.Business should also be taking advantage of opportunities offered by South Africas membership of BRICS – the Brazil, Russia, India, China, South Africa economic partnership.

Gordhan said there needed to be frank talk about what was holding up investment, especially as the economy was recovering.

“The globe is not going to collapse… after every crisis there is a recovery. We are in a period of recovery, just a very uncertain one… [its] not very smooth.”

When asked whether South Africas labour laws were restricting job creation, Gordhan said there were efficient structures in South Africa for raising these issues.

“Whichever side has concerns should use those forums and create a climate for dialogue… and resolution so that we can move ahead.”

He said international organisations had different views on whether South Africas labour legislation was rigid.

“And by and large the view would be that we are not an overly rigid economy.”

He said anyone with concerns about the proposed labour law amendments should approach Labour Minister Mildred Oliphant as she had an open door.

The Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill were adopted by Cabinet last month. They would now be considered by the Parliamentary portfolio committee on labour before being submitted to the National Assembly and the National Council of Provinces for adoption.

This was after over a year of debate on the two bills in the National Economic Development and Labour Council.

via All of South Africa needs to create jobs: Gordhan – Times LIVE.

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