Guiding consumers since 2009

Sleeping Africa awakes

By Staff Writer

The World Economic Forum on Africa has is being held at the Cape Town International Convention Centre from June 10th to 12th 2009. The Sessions are a global talk shop designed to plot the way forward for the African economies. The Forum is co-chaired by the Industrial and Commercial Bank of China (ICBC), the World Bank and the UAE's Dubai Group. With a global forum like this the major stakeholders are apparent. Kofi Annan was there co-chairing for the World Economic Forum itself. The conference posited that in the global downturn Africa was well placed to thrive. There were a few reasons for this.

 

  • Partial decoupling
  • In South Africa the NCA
  • Africa still growing

 

Jiang Jianqing Chairman of the board of the ICBC explained in his opening remarks that his bank has more than 60 projects in Africa and that the money is available. He dismissed notions of neo-colonialism saying that China and Africa had a shared history of being colonised and that as over the last thirty years China the sleeping dragon has stirred and become strong again, so Africa over the next 30 years will awake and also become strong again. This sentiment was continued at the forum with the idea that Africa will awake and become the engine of growth for the world as it pulls itself out of the derived financial crisis.

The financial crisis was in a large part caused by risk being diversified through rather than across asset classes. In other words bundling homeloans together was an inherently risky practise, and it doesn't matter if it was five different types of eggs if they were all in the same basket. With risk allegedly diversified risky lending practises were rife. In South Africa the National Credit Act was introduced to put the brakes on risky lending, and has contributed to us being in less of a risky position come credit crunch time. Africa as a whole was less exposed to derivative financial products and as such is now in a position to bounce back and lead the world's economic recovery.

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions