WealthWise magazine
www.wealthwisemag.com
Vol II/No. 12 FREE
South Africa/Africa region April/May 2012
THE FUTURE OF AFRICAN LUXURY
Plus: CAREER Special Wealth and Happiness Investing in Coal
Your bi-monthly guide to wealth Click to read more
Contents
April/May 201 2
Coverstory
BusinessWise
Agenda
40 Profile of an Entrepreneur 足 Starting an online niche business
64 Books
10 The future of Wealth in 37 Why ECM offers South Africa sustainable solutions
LifeWise 20 Three Happiness
Secrets
to
42 The GAP Marketing Turnover Boost Model Part 22 How to break free from III consumerism chains 46 The Top 10 Qualities of Business Leadership
MoneyWise
24 JSE Sectors 足 Cheap or Expensive? 27 Calling for Coal
CareerWise
49 Facebook at the office
52 Employee Recognition 足 easy guide for 31 The Crisis of Developed An managers Economies 足 Is It Over? 55 Monitoring Absenteeism
58 Green living at Edenhof Conservation Estate
68 Events
Regulars 3 Contents
4 ForeWord 5 Get in touch 6 Contributors 70 Last Word 71 In next edition WealthWise magazine 3
ForeWord
Defining African Luxury
S
hould we advocate forAfricanluxuryand over the top brands in countries where unemploymentandpovertyare serious issues? With the risk of being misunderstood, I say a resounding yes. In this issue we advocate for African luxury, trends in the highend market and the habits oftherich(andfamousorbetter said, infamous). Our cover story touches on why African luxury has a great potential and why this is good news for African countries – case in study, South Africa, the continent’s largest economy.
4 WealthWise magazine
We then debate the wealth and happiness issue and why money and heavy consumerism are not the key inachieveahappy,fulfillinglife. We look at the international and developed markets and their influence in African economies and current trends on JSE. Investors would be thrilled to find an extensive report on commodity investing (coal).
We talk about Enterprise Content Management (ECM), business leadership qualities and career management and employee issues in our extended career section.
We hope that our publication will inspire you to make every day, longlasting changes to a wealthier future. Wishing you all the best, Denisa Oosthuizen Managing Editor WealthWise magazine www.wealthwisemag.com
Get In Touch
Contact us Email: denisa@wealthwisemag.co.za editor@wealthwisemag.co.za Mobile: +27(0)82 819 2820 +27(0)81 326 1579 Skype: denisa.oosthuizen Facebook: WealthWise magazine Twitter: @WealthWisemag LinkedIn: www.linkedin.com/company/wealthwise足magazine
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Denisa Oosthuizen denisa@wealthwisemag.co.z a
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Copyright
All content and information within WealthWise publication is property of the Publisher and should not be reproduced, copied or entirely quoted without the prior approval of the Publisher, being protected under copyright laws. Should you wish to make use of any of the content displayed please contact us at denisa@wealthwisemag.co.z a or editor@wealthwisemag.co.za . For editorial contributions, comments and suggestions, email our editor at
editor@wealthwisemag.co.za . For technical issues and other website related comments, email us at admin@wealthwisemag.co.za
April/May 2012 Cover: dreamstime.com Contributors: Yasin Ebrahim, Paul Stewart, Adrian Saville, Andrew Morton, Lana Conlyn, Hendrien van Zyl, Johan Mouton, Michelle Momberg, Denisa Oosthuizen Photos: dreamstime.com and contributor's photos where stated WealthWise magazine 5
Contributors
Paul
Stewart
is managing director of Plexus Asset Management. Founded in 1995, the Plexus group of companies is an independent financial services provider that specialises in providing financial planning and investment management solutions and services. Plexus has a strong culture of being research driven, having developed the PlexCrown Fund Ratings (used as the basis for the annual Raging Bull Awards for the unit trust industry) and the Plexus Unit Trust Indices. Read Paul's opinions on the JSE markets in MoneyWise section, page 24. 6 WealthWise magazine
Dr. Adrian Saville
is CIO of Cannon Asset Managers. He holds a Visiting Professorship in Economics and Finance at the Gordon Institute of Business Science. Cannon Asset Managers is a niche investment management company, based on the philosophy and principles of value investing.
Read Adrian's debate on the developed countries' crisis in MoneyWise section, page 31.
Johan Mouton
is the owner and marketing specialist at Online Systems. He has been involved in marketing research projects, consulting work and developing people for business. He has an Honours degree in marketing and has developed a marketing boost model to help companies increase their turnover by implementing and focusing on adequate marketing strategies. Read Part III of Johan's 18 GAP Marketing Turnover Boost Model in BusinessWise section, page
42.
Contributors
Andrew
Morton
is Managing Consultant at The HR Hub, South Africa’s first HR Service Centre, offering a number of HR products and services under one roof, covering the complete HR spectrum. Read his articles about business leadership and monitoring absenteeism in BusinessWise and CareerWise section, pages 46 and 55.
Hendrien van Zyl
is learning solutions consultant at Optima training. Her expertise lies in the design and deliver learning solutions in support of strategic business objectives, on time and within budget. She has over 25 years experience in education, training and development, including design, development, facilitation, coaching, and management of training projects in various industries. Read Hendrien's article about employee recognition in the workplace in CareerWise section, page 52.
Michelle Momberg
is is the Managing Director of NokusaEI. She has been involved with document management solutions and ECM consulting for more than 15 years, heading up the SAP Consulting Division within the organisation as the Consulting Director. Before joining NokusaEI, Michelle had six years of experience in consulting, administration and sales at Absa, Unnovens and Kennedy & Donkin. She is an experienced public speaker on SAP ECM functionality. Read Michelle's article on ECM importance in BusinessWise, on page 37. WealthWise magazine 7
Contributors
Yasin
Ebrahim
qualifications; Financial Risk Manager (GARP), Chartered Alternative Investment Analyst (CAIA); Investment Management Certificate (CFA UK) provide him with a sound background to explore Alternative Investments.
is an investment professional, with an honours degree in Actuarial Science from University of Kent, a Post Graduate Diploma in Islamic Banking & Finance and a CFA candidate, researching developments in the Alternative Investment space through exposure in traditional and social media.
Read Yasin's opinion on the coal investing opportunities in MoneyWise section, page 27.
His background in Risk and Investment Management coupled with leading industry
Lana Conlyn
is a writer, public speaker and life coach. Her work is aimed at people who are looking for a new perspective on conventional topics. Her anthology of poems ‘Am I Enough’ was nominated for the Olive Schreiner Award by the Academy Awards for English in 2009, she has been a frequent guest on Great Expectations with Sam Cowen and is a writer for The HR Hub. Read Lana's funny story about Facebook at the office, CareerWise section, page 49.
Want to contribute to our publication with an article, feature or analysis? Contact us at
editor@wealthwisemag.co.za
.
WealthWise magazine 9
CoverStory
The Future of Wealth in South Africa by Denisa Oosthuizen
W
e live in a country of contrasts: extreme poverty and immense wealth, toxic greed and bountiful generosity, desperation and hope”. This is how Silvana Bottega, founder of Southern African Luxury Association (SALA) started her written message to the hundreds of guests who participated at SALA’s first Wealth Summit on 7 and 8 March 2012, at Sandton Sun, Johannesburg. In a country full of contrasts, with a rampant unemployment rate of 25% and nearly 16 million South Africans dependant on government’s social grants to survive, one would wonder the scope and purpose of such a conference, where African 10 WealthWise magazine
luxury was on everyone’s lips, from leaders in wealth managements and senior executives of luxury businesses across the country, from Cape Town to Johannesburg. In the words of Bottega, “the luxury industry has the capacity to inspire innovation and generate employment”. Not only the luxury market is a provider of growth opportunities for Africans, but the hope and aspirations of the burgeoning middle class on the continent is an indication of better things to come. Moreover, the high end market has a promising future, with strong growth potential especially in the most developed African economy, South Africa, the focus of the conference.
Designed to explore both the state of wealth in the specifically South African market and to identify the obstacles and the opportunities for growth, the twoday Summit was comparable to an educational manual in understanding how the wealthy think, live, spend their money and create an impact in Africa.
The Wealthy Elite Marcia Klein, editor of the Business Times and Money and Careers section of the Sunday Times, who has been involved in the compilation of Sunday Times’ annual Rich List in South Africa, which takes in account the assets owned by the wealthiest, notes that “most of those who made
Photo: Africa's richest people, including South African magnates Patrice Motsepe and Nicky Oppenheimer Compiled Wikipedia
the list are selfmade billionaires and increasingly multiracial”. Out of a top 100, with names already entrenched in the SouthAfrican’sbusinessmedia – Patrice Motsepe (R23bn), Lakshmi Mittal (R20,9bn – only his South African assets) and Nicky Oppenheimer (R11,1bn), the first twenty billionaires, cumulating around R112bn, represent 75% of the wealth distributed on the Rich List. Only 28 are listed as billionaires (over R1bn). There are three fundamental things that we notice when reading the “Rich List” of a country. Firstly, the concentration of wealth, which in Africa is still in the hands of fewer than in similar emerging markets
(India and China are very good examples). And second, the weak presence of women millionaires. Only 4 women made it on the Sunday Times’ Rich List, lead by ABSA group’s CEO Maria Ramos. Thirdly, when looking at some of the biggest earners in South Africa, we cannot help but decry the high inequality in the earning capacities of men and women. Shoprite’s Whitney Basson tops the list at more than R600 million annual earnings – sixty times more than Maria Ramos’s R11 million annual income. South Africa’s business environment is still very much maledominated and it will continue to be so for some good decades, unless women empower themselves
by
Forbes.com
and
with financial intelligence, knowing how to create wealth through investments and businesses. One of the most interesting topics discussed at the event was the importance of cultural and semiotic insights on the value of status in South Africa. Dr Inka Crosswaite, semiotics analyst at Added Value, looks at the different ways in which people give meaning to the world, in this case luxury. She analyzes how material objects, such as brands, acquire meaning in different cultural contexts. “We found luxury has a variety of meanings for each person – it is rare, unique, exclusive; magical, of dream value, flamboyant; ultimate; powerful; highly sensorial.
WealthWise magazine 11
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