Public Works minister Dean Macpherson and eThekwini mayor Cyril Xaba are set to announce steps to work together to address bad buildings and inner-city rejuvenation.

Article by: Jannie Rossouw - Bright Future Consulting As a business owner, you’ve poured your energy, time, and resources into building your business. But unforeseen risks—big or small—can undermine your success in an instant. Is your business prepared to face those threats head-on?   At Bright Future Consulting, we co-develop tailored Risk Management Plans that empower your business to not just survive—but thrive—in today’s fast-paced world. The plans are designed to identify, assess, and mitigate risks across every aspect of your operations, so you can focus on growth with confidence.   What Are Your Risks in These Areas of Business? Leadership & Management Marketing Sales Administration & Compliance Finance Human Resources IT Financial Planning (personal and business insurance and investments)   How we support you The mission of Bright Future Consulting is simple: to protect your business from the unforeseen. We help you to develop a custom-built Risk Management Plan that covers every base, allowing you to focus on your core goals and grow with peace of mind. Having a Risk Management Plan enables you to improve: Pro-active risk identification that eliminates potential threats before they occur. Resilience across departments, so your business can bounce back from any setback. Operational efficiency, streamlining processes and cutting costs. Financial stability, keeping your cash flow healthy and protecting your investments. Compliance and reputation management, to avoid legal troubles and enhance trust.   Futureproof your business today, partner with Bright Future Consulting to safeguard your business from the unexpected.   Contact Jannie Rossouw – Founder of Bright Future Consulting now: 082 560 4149 jannie@brightfuture.co.za

You've worked hard to build your business—are you prepared for the unexpected? At Bright Future Consulting, we craft custom Risk Management Plans to help your business not just survive, but thrive.   Key Areas We Cover: ✓ Leadership & Management ✓ Sales & Marketing ✓ Finance & Compliance ✓ HR & IT ✓ Financial Planning (insurance & investments) Your Benefits ✓ Identify and eliminate risks before they become threats. ✓ Build resilience so your business can bounce back from setbacks. ✓ Enhance efficiency and reduce costs. ✓ Secure your finances and protect your investments. ✓ Stay compliant and protect your reputation.   Futureproof your business today!    Contact Jannie Rossouw to secure the opportunity to benefit by going through this process. (Founder of Bright Future Consulting and Executive Business Advisor) 082 560 4149 jannie@brightfuture.co.za Bright Future Consulting is a proud Associate of BusinessFit SA.

Article by: Liana Ahrens Teixeira, LPJ Financial Services Pty Ltd In The E-Myth Revisited , Michael E. Gerber presents a powerful analogy: "Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall." This thought-provoking insight offers a profound perspective on the distinct yet interrelated roles of management and leadership.   Understanding Management: Efficiency in Action Management is fundamentally about efficiency. It involves the meticulous planning, organizing, and controlling of resources to achieve specific objectives. Think of management as the skill set that allows you to climb the ladder of success with precision and effectiveness. Managers focus on optimizing processes, minimizing waste, and ensuring that each step taken is purposeful and calculated.   In practical terms, management encompasses tasks such as: Streamlining operations to enhance productivity. Allocating resources effectively to avoid bottlenecks. Setting and monitoring performance metrics to ensure goals are met. Implementing best practices to improve processes and outcomes.   Effective management ensures that resources are used wisely, deadlines are met, and goals are achieved. It’s about making sure that everything runs smoothly and efficiently, allowing the organization to perform at its best.   The Role of Leadership: Direction and Vision Leadership, however, is about more than just efficiency. It’s about vision, direction, and purpose. Leadership determines whether the ladder is leaning against the right wall, meaning it’s concerned with the bigger picture—whether the goals we are striving for are aligned with our core values and long-term objectives.   Leaders are responsible for: Crafting and communicating a compelling vision that inspires and motivates. Setting strategic goals that reflect the organization’s values and mission. Making critical decisions about the direction and focus of efforts. Guiding and mentoring team members to ensure alignment with the vision.   A leader’s role is to ensure that the organization is not only climbing the ladder efficiently but that the ladder itself is positioned to reach the right wall. This means continually assessing whether the strategic direction is appropriate and making adjustments as necessary to stay aligned with the overall mission and values.   The Synergy Between Management and Leadership While management and leadership serve different functions, they are deeply intertwined. Efficient management ensures that the day-to-day operations are handled effectively, while strong leadership ensures that these operations are moving in the right direction.   Consider this analogy: A skilled manager may excel at making sure that the ladder is climbed quickly and effectively, but without the strategic vision of a leader, there’s no guarantee that the ladder is placed against the right wall. Conversely, a visionary leader may set a bold direction, but without effective management, the ladder might not be climbed efficiently, and the vision may never be realized.   Navigating the Balance In today’s dynamic business environment, striking the right balance between management and leadership is crucial. Here are some ways to navigate this balance: Set Clear Goals and Objectives:  Define what success looks like for your organization and ensure that both management and leadership efforts are aligned with these goals. Foster Open Communication:  Encourage dialogue between managers and leaders to ensure that operational efficiency and strategic direction are in harmony. Embrace Continuous Improvement:  Regularly assess and refine both management practices and leadership strategies to adapt to changing circumstances and evolving goals. Invest in Development:  Provide opportunities for team members to develop both management skills and leadership qualities, fostering a culture that values both efficiency and vision.   Conclusion As we climb our ladders of success, let’s remember the distinction between management and leadership. Efficient management ensures that we ascend with precision, while visionary leadership ensures that our ladder is positioned to achieve meaningful and impactful outcomes.   Are you climbing the ladder effectively? And more importantly, is your ladder leaning against the right wall? Reflect on these questions to ensure that both your management and leadership efforts are propelling you toward true success.

Author: Michael Jackson Partner Cox Yeats Murray Munro, the CFO of Tongaat Hulett, appealed a fine handed down by the JSE on the basis that he was not responsible for misrepresentations contained in Tongaat Hulett’s financial statements. The Financial Services Tribunal found that he was strictly liable. Directors are not usually strictly liable for errors in financial statements. Our Companies Act codified the common law on the obligations of directors and the preparation of financial statements. Our common law and the Companies Act does not impose strict liability on directors. They are only liable if they fail to exercise reasonable skill and care. The standard of director conduct required is contained in Section 76 of the Companies Act. A director is obliged to exercise his or her powers in good faith, for a proper purpose, in the best interests of the company and with the degree of care, skill and diligence that may reasonably be expected of a person having the knowledge, skill and experience of that director. In performing his or her obligations, the director is entitled to rely on employees of the company whom the director reasonably believes to be reliable and competent. The director may also rely on legal counsel, accountants or other professionals retained by the company. In the Brazilian Rubber case, the English Courts described the duty of skill to be “… a director’s duty has been laid down as requiring him to act with such care as is reasonably to be expected from him, having regard to his knowledge and experience. He is, I think, not bound to bring any special qualification to his office. He may undertake the management of a rubber company in complete ignorance of everything connected with rubber, without incurring responsibility for the mistakes which may result from such ignorance; while if he is acquainted with the rubber business, he must give the company the advantage of his knowledge when transacting the company business”. The general rule has been that directors must make reasonable effort to understand the company affairs and exercise his or her own judgement based on personal knowledge and experience and the information and advice provided by company officials and professional experts. Section 29(2) of the Companies Act states that any financial statements prepared by a company must not be false or misleading in any material respect. It follows that the Companies Act and common law requires a director to act with reasonable skill in preparing financial statements. The director, in doing so, is entitled to rely on expert advice provided by, for example, the company’s auditors. These principles were considered by the Financial Services Tribunal in a recent judgment handed down on 31 July 2024. The Tribunal was chaired by Judge Dennis Davis and considered an appeal by Murray Munro, the chief financial officer and director of Tongaat Hulett. The JSE had found that Munro had been involved in the material mis-statements of the financial statements of Tongaat Hulett, between 2011 and 2018, and that he should receive a penalty of R6 million, a public censure and be disqualified from holding the office of a director of a listed company for 10 years. Munro appealed the decision of the Johannesburg Stock Exchange contending that the information which the Stock Exchange had relied upon (three property transactions) had not been placed before Munro and there was no evidence to the effect that Munro was aware of the mis-statements. Munro further contended that he was entitled to rely on experts to ensure that the financial statements were properly prepared. In particular, he was entitled to rely on the auditor’s interpretation. The issue arose as to whether Munro was strictly liable for the mis-statements or whether he could rely upon the principles contained in the Companies Act. The Tribunal found that the JSE was entitled to rely on the provisions of the Listing Requirements which imposed a different legal test to the Companies Act. The Tribunal referred to an earlier decision against Markus Jooste which stated: “ Jooste was the chief executive officer of Steinhoff throughout the period in question. Directors of issuers fulfil a critical role in ensuring that listed companies comply with the Listing Requirements. Issuers of securities listed on the JSE are only able to comply with the Listing Requirements if their directors take appropriate action (or refrain from taking unlawful actions) to ensure that such issuers comply in all respect with its provisions and to ensure that the financial information of listed companies are, in all aspects, accurate and correct and that it represents a fair and accurate exposition of the company’s financial information ”. Every director of a listed company is required to complete a declaration which reads: “ I agree to be bound by and comply with the JSE Listings Requirements, as amended from time to time, and, in my capacity as a director, I undertake and agree to discharge my duties in ensuring such compliance whilst I am a director. The delegation of any of my duties to any sub-committee or anyone else will not absolve me of my duties and responsibilities in terms of the Listing Requirements ”. The Listing Requirements oblige listed companies to prepare financial information in accordance with IFRS. The PWC Investigation into Tongaat Hulett had identified that there had been an overstatement in Tongaat Hulett’s annual financial statements affecting assets, income and liabilities in excess of R10 billion. This fact and that Munro was a central figure in the manner in which the financial records of Tongaat were prepared and reflected, was, in the Tribunal’s view, sufficient evidence to conclude that Munro had breached the Listing Requirements and that the fine of R6 million should be upheld. The Tribunal differentiated between a penal statute (such as the Companies Act) which requires fault and a regulatory one (such as the JSE Listing Requirements) which imposed strict liability. Steinhoff and Tongaat are not usual examples. However, this ruling is a reminder for directors to be careful of the consequences of their actions. Directors can be held strictly liable for a breach of the duty of skill and cannot rely on advice given by company officials and professional experts.

MEDIA RELEASE   ITHALA SOC LIMITED FSP LICENCE SUSPENSION     25 August 2024     Ithala SOC Ltd, established by the government to mobilize financial resources and provide financial and supportive services to the people of KwaZulu-Natal, especially in the rural areas, has reacted to the suspension of its Financial Services Provider (FSP) license by the Financial Sector Conduct Authority (FSCA). ·         Ithala has been instrumental in building an inclusive economy, creating wealth, and improving people's lives. Over the past 20 years, since its corporatization, Ithala has consistently met depositors' demands and has never used depositors' funds to cover its losses.   ·         The suspension of our FSP license follows the refusal by the FSCA to grant Ithala an exemption against the Financial Soundness Requirements, which had been granted for several years. The latest exemption had expired on 30th June 2022.   ·         It's important to note that the financial soundness requirements outlined in the BN 194 of 15 December: Determination of Fit and Proper Requirements (“BN”) do not apply to FSPs that are registered Banks as provided for in Section 43. Ithala is not a normal FSP as envisaged in the previously mentioned BN and is also not a registered Bank as provided for in Section 1 of the Banks Act. Due to the complex nature of Ithala's business, the FSCA had rightly exempted Ithala from the requirements of the BN because of the impossibility of Ithala to comply with such requirements given the nature of its business. It is important to note that without this blanket exemption, all registered Banks will more likely be unable to comply with these requirements.   ·         The decision to decline Ithala an exemption and to ultimately suspend its FSP license is based on the argument that Ithala no longer enjoys an exemption under the Banks Act, despite Ithala holding deposits in its balance sheet and the presence of the Repayment Administrator who was appointed to safeguard the deposits while a solution is being devised relating to the legislative challenges presented to Ithala.   ·         The compliance matters raised by the Prudential Authority and the FSCA are consequential to an absence of policy certainty and legal framework governing a State-owned institution like Ithala. This concern has been raised by Ithala during its engagements with National Parliament, National Treasury, the Minister of Finance, and other stakeholders. Currently, there is no legal reason why exemptions cannot be issued pending the determination of a policy and legal framework to regularize the business of Ithala.   ·         Contrary to previous media reports, Ithala continues to safeguard its customers' premiums and has been submitting its financial statements without fail. Additionally, Ithala does not have a liquidity problem and is solvent to meet its customer demands. Unfortunately, due to the absence of a legal framework to allow Ithala to continue operating, the presence of the Repayment Administrator, and the restrictions imposed by the Prudential Authority and the Regulators, Ithala's future is uncertain, and this will adversely affect its customers.   ·         We have called for pragmatism in dealing with Ithala, given the pre-existing legislative challenges. Ithala has placed a guarantee as a form of protection to its insurance business. However, all efforts have not assisted, and the business now finds itself in a precarious situation, which will lead to its assets being sold and ultimately being liquidated.   ·         The entity is now being systematically shut down with a narrative of non-compliance being at play. This is unjust to a State-owned entity serving financially excluded people, and which has had three consecutive years of unqualified audits and without liquidity problems.   ·         Accordingly, Ithala has complied with the FSCA directive while it continues to work with relevant stakeholders to agree on an alternative plan to regularize its operation. The ordinary people’s bank, Ithala SOC Ltd, will remain open despite the systematic carnage. Therefore, we call on our existing customers not to panic. We will continue providing them with uninterrupted service and shall communicate if there are any changes. We still believe that a bank should be a catalyst for building an inclusive economy, creating wealth, and transforming people's lives. This is a role Ithala has played over two decades, and it is the role we will continue to play to transform people's lives.   THE END

Ashok Sewnarain, the chairman of IBV International Vaults Group, reflects on his journey from founding his own company to building a successful business conglomerate over two decades. In his narrative, he discusses the challenges he faced, the achievements he reached, and the crucial role his family played in both his personal and professional life. Ashok emphasizes the importance of simplicity in business operations and the essential nature of having courage. Looking ahead, he sees significant opportunities for business growth in KZN. His guiding principle is to fear no one while respecting everyone.

August marks Women’s Month, and with it comes the exciting announcement that nominations are now open for the KZN Top Business Women 2024 initiative. Powered by Morar Incorporated and supported by DRG, BusinessFit, and Radisson Blu Hotel Durban Umhlanga, this initiative celebrates its fifth year of recognising the remarkable achievements of KwaZulu-Natal's most successful and inspiring women. KZN Top Business Women shines a spotlight on women who have excelled as leaders, executives, and business owners, making significant contributions to both the business world and society. The initiative highlights qualities such as innovation, fresh ideas, and effective strategies that drive growth, enhance productivity, create jobs, and promote gender transformation in the workplace. Jennifer Reddy, CEO of Morar Incorporated, expressed her enthusiasm, stating, “We are thrilled to be the main sponsor of KZN Top Business Women this year. I deeply believe in the initiative’s power to validate and uplift businesswomen, who often undervalue their own capabilities and achievements. By nominating a woman, you are recognising her extraordinary qualities and encouraging her to share her story.” The initiative aims to: Inspire and uplift future generations of women, motivating them to pursue their goals, dreams, and ambitions. Raise awareness of the vital role women play in society and the workplace. Promote gender equity across industries. Grant Adlam, CEO of KZN Top Business, added, “Through this initiative, we aim to elevate the profile of women in KZN, celebrate their achievements, and showcase their successes.” Each participant will be featured in a professional portfolio, including photography, video profiles, and online recognition across social media platforms, offering excellent marketing opportunities. The celebration will culminate in a gala dinner on Thursday, 14 November, at the Radisson Blu Hotel Durban Umhlanga, where we will honour the invaluable contributions women make to KwaZulu-Natal. Nominations are open to women from all stages of business and life, across all industries. Past nominees have represented diverse educational and cultural backgrounds, including entrepreneurs, professionals, executives, artists, journalists, non-profit leaders, lawyers, doctors, and public officers. As we profile different women each year, we encourage those who have not previously participated to be nominated. Please note that women who have already been part of the initiative are not eligible for re-nomination. Women are also welcome to nominate themselves if they wish to participate. To nominate someone or for more information, visit https://www.kzntopbusiness.com/topbusinesswomen  o r contact Angela at ange@kznleaders.co.za  / 066 206 5654.

August is Women's Month, a time dedicated to writing about remarkable and inspiring women. In this significant month, we begin assembling the KZN Top Business Women collection for 2024. Annually, we compile a collection of extraordinary, inspiring, and successful women, showcasing the paths of their unique careers. This initiative is quite special. Inclusion in the publication is a one-time honor. If you know someone who deserves recognition for their contributions to the business community and their remarkable achievements, please use the nomination list to nominate them. The list is exclusive to 40 women each year, and we've celebrated some incredibly talented, successful, and financially prosperous individuals who contribute significantly to the economic and social upliftment. We take pride in detailing the ladies' journeys, from their beginnings to their current status and future aspirations. Every participant will be treated to their preferred professional photoshoot at the prestigious Radisson Blu. Our photoshoots are meticulously planned to take place under expert lighting and in various captivating hotel settings, ensuring an unparalleled experience. Our highly skilled videographic team will craft an exceptional editorial, showcasing the journey of success, expertly curated by the editor of KZN Top Business Portfolio. Following this, each participant will have the opportunity to join an exclusive webinar. The grand finale of this remarkable event will take place on November 16th at the Radisson Blu Durban Umhlanga, where we will reveal the stunning portraits and the luxurious hardcover coffee table book during a thrilling gala dinner. Nominate with confidence - whether it's your mother, colleague, neighbor, or anyone deserving recognition as one of this year's top businesswomen. Their journey is worth celebrating. Take the step to nominate them; it has the power to change lives and ignite inspiration. This act creates a valuable thread in the tapestry of career choices for those who look up to and learn from the achievements of remarkable women in the dynamic province of KwaZulu-Natal.

Article: The Mercury - Yogashen Pillay eThekweni Municipality has welcomed the World Travel Awards nominating the City’s business travel and tourism industry for eight awards for their 31st edition. The City described this as a vote of confidence and a nod of approval of eThekwini’s offerings. The awards are to be held later this year. eThekwini said it had received four direct nominations this year. “This includes Africa’s Leading Festival and Event Destination 2024, which Durban has scooped for three consecutive years, Africa’s Leading Business Travel Destination 2024, Africa’s Leading City Destination 2024 as well as Africa’s Leading Meetings and Conferences Destination 2024.” The City added that other nominations included Africa’s Leading Airport 2024 (King Shaka International Airport), Africa’s Leading Cruise Port 2024 (Port of Durban), Africa’s Leading Luxury Hotel 2024 (The Oyster Box), while the Inkosi Albert Luthuli International Convention Centre was nominated as Africa’s Leading Meetings and Conference Centre 2024. eThekwini mayor Cyril Xaba said it was a boost for the City to receive several nominations for such a prestigious awards ceremony. “Receiving accolades for being Africa’s Leading Festival and Event Destination for three consecutive years, beating other big cities such as Cape Town and Johannesburg, attracts business. “Festivals and big events have an enormous impact on boosting local tourism and the economy.” Xaba said these nominations were testament to Durban Tourism’s efforts to market the City to the rest of the world by highlighting the high standards that the City and its establishments strove to achieve. “Our teams recently participated in Australia and New Zealand key trade engagements from July 22 to August 1 to further position Durban as a destination of choice,” Xaba said. He called on residents to rally behind the City by casting their votes in order to bring these awards home. “Voting for the different categories is open to the public on the World Travel Awards website and will close on September 8, 2024. “The public is encouraged to show solidarity with the tourism industry and put their weight behind those nominated by casting their vote,” the mayor said. The City added that the winners would be announced at the World Travel Awards Grand Final 2024 set to take place on the Atlantic islands of Madeira on November 24.

Nominations are open to women from all stages of business and life, across all industries. Past nominees have represented diverse educational and cultural backgrounds, including entrepreneurs, professionals, executives, artists, journalists, non-profit leaders, lawyers, doctors, and public officers. As we profile different women each year, we encourage those who have not previously participated to be nominated. Please note that women who have already been part of the initiative are not eligible for re-nomination. Women are also welcome to nominate themselves if they wish to participate. To nominate someone or for more information, visit https://www.kzntopbusiness.com/topbusinesswomen

Succession and exit planning are critical yet often overlooked aspects of entrepreneurship.  Did you know that around 70% of business owners lack a formal exit plan?  Whether you're thinking about stepping back to enjoy your accomplishments or passing the torch to new leadership, having a well-thought-out strategy can make all the difference. Not even thinking about exiting your business yet? Good. Then it is the perfect time to consider the following questions to ensure you’re prepared when the time comes. Why now? Planning ahead minimises regrets, with 76% of business owners who sold their businesses regretting it within a year without a plan. We usually tell our clients to have at least a 5-year and a 10-year plan to exit their businesses. This allows them to be ready when opportunities arise, even if they don’t plan to exit yet. Why consider an exit strategy? Deciding to exit a business can stem from various motivations—personal reasons, new ventures, or retirement. Reflect on why you want to sell. Exiting when your business is thriving maximises its value. According to the  2022 Business Owner Survey Report,  businesses that exit at their peak achieve significantly higher valuations compared to those in decline.  What is the business worth? Getting the right value for your business is crucial. Overestimating or underestimating its worth can derail your plans. Engage financial advisors and professional valuators early. For example, a client aimed to sell their business for R40 million but discovered it was worth only R15 million. Through a strategic exit plan over six years, they increased the value to R50 million, proving the importance of realistic planning.  Businesses with clear succession plans typically sell for 20-30% more. When is the right time to exit? Timing is key. Selling when your business is thriving fetches a better price. Monitor market conditions, the economic climate, and industry trends. At the CFO Centre, we recommend a minimum of five years to plan your exit strategy thoroughly. This ensures a smooth transition and optimal outcomes. What happens when I exit? Succession planning and your role as owner and CEO to identify your successors are critical. Identifying and training a successor early on is key to avoiding disruptions during your final handover.  Only 27% of private company boards have adequate succession plans , highlighting a significant gap. If family members are involved, plan for their future roles. Decide if they will continue or exit with you. Consult shareholders to align your strategy with their expectations. Clear roles and succession plans increase survival rates into the second generation. According to the  PwC Family Business Survey 2023,  businesses with structured governance and family protocols in place tend to navigate family dynamics more effectively, enhancing their longevity. Who should help me during this process? Businesses with comprehensive advisory teams achieve up to 40% higher transaction values . That is why a good CFO and a team of advisors are essential. They provide diverse perspectives and expertise to navigate the complexities of the exit process, allowing you to be better prepared. And then? What about me when I’m gone? Your departure will be tough on the business, especially if you don’t plan it properly - but don’t forget about yourself in the process. Plan for what you will do next to avoid the void many entrepreneurs feel after selling their businesses or retiring. Maintain a growth mindset and find purpose in life outside of your business by visualising what your days will look like when you don’t have to worry about the business. You didn’t work your whole life to let this business live and die with you but rather to build a sustainable venture where you can leave a legacy.   Succession and exit planning require time, foresight, and a team of trusted advisors. Start early, plan meticulously, and surround yourself with experts. With a strategic approach, you can ensure a successful transition that benefits you, your business, and its future stakeholders. Article by Rowan De Klerk - The CFO Centre South Africa