Nedbank Business Watch || 27-05-2026

Added: 2026-05-30

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[00:01:02]Business watch is brought to you by Net Bank.

[00:01:34]A very good afternoon to you. It's 2 p.m. Central African time. Thank you for joining us here on Net Bank Business Watch. My name is Safis and I'm with Lunal Makula. We're happy to welcome you on the program. We want to tell you on the agenda today we unpack a significant development for crossber travelers informal traders as well as the transport operators who facilitate trade between a Swadini and South Africa from next Monday. New customs declaration requirements that are introduced by South African Revenue Service will come into effect and they will require travelers entering or leaving the republic to declare specified personal goods and motor vehicles used for travel. applicable across all modes of transport including road, rail, sea, and air. The regulations are expected to have important implications for the movement of goods and people across the border. Now, to shed light on what travelers need to know and how they can remain compliant, we will be joined by the Asatin Revenue Services Director of Customs Technical Precious, Chawuya.

[00:02:32]That is what's coming up on the program.

[00:02:34]>> All right, good afternoon. Thank you for tuning in. This is Net Bank Business Watch. Today, we take you back to a conversations. Fiso had with the head of head of branch networks at Net Bank Zama Laminia. They're talking about uh the benefits of a savings a savings and investment uh account at Net Bank. Then later we'll be joined by Toba Kamed for today's market analysis. Do stay with us. For now, let's take a quick ad break and come back with our business news.

[00:03:04]>> Digital helps you make crossber payments. Human gives you global specialists.

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[00:04:02]>> Welcome back. You tuned in to Net Bank Business Watch. And now for our business news.

[00:04:06]>> Flaw story. We take you to the Ministry of Commerce, Industry and Trade that is working on establishing a leather tenery and that is an effort to help local leather businesses enhance their operations. Promotional officer Sibongi from the small and medium enterprise development speaks more on this development 2016 2026. So currently South Africate.

[00:05:14]Trade Center implement value chain Currently Fact, potential investors.

[00:06:02]All right, and that's it for our business news. 5 minutes after to the show continues after the break.

[00:06:23]All right, welcome back the central bank Officer Watini has announced that Swati can now use movable property as security when applying for loans as part of efforts to establish a national movable collateral registry. How important is this development especially for local businesses? Sunless economist joins us now to unpack exactly that. A very good afternoon to you Mr. How important is this development for for our small and medium enterprises?

[00:07:20]Afternoon Mr. Numo. Um so this is a very crucial moment for our smaller business enterprises and those microenterprises because as you will know um these are entities that mostly would not have the collateral requirements at the bank um in terms of movable pro movable immovable collateral which includes the likes of land property and all of the and all the likes. So when you allow for when you allow for movable property to be part of what can be used as collateral uh in essence you are opening up the bending industry to these small and medium enterprises so that they can come into the space and once they in the space they able to get the the the finance that they need and they're able to grow their businesses.

[00:08:16]uh which then unlocks an entirely new growth potential for the economy and I do contend that it is a critical milestone in the history of the kingdom because you know access to finance is a critical enabler to business growth and therefore economic growth >> define what movable collateral is.

[00:08:38]Um, so movable collateral is when you can use, you know, items and assets that can actually move from one location to the next, which includes the likes of cars, you know, which also includes inventory that you already have in your stock. And you can, it also even includes, you know, receivables, amounts receivables, which means when you're expecting a payment, then that can be used as collateral. Um so even livestock at some point we've seen it being used as collateral but we know that those are commodities that are quite mobile and they can move from one place to the next. So now that is what constitutes um a move movable property.

[00:09:23]>> All right Mr. We are you know we've seen that for years access to finance has been quite the conversation particularly it being largely dependent on owning fixed assets such as land or property right how does this this reform change uh what was to what the aspiration is >> um so what we are going to be essentially doing as a country is moving from the traditional banking model which was focusing on uh you know uh you know on um on immovable assets as collateral and then just opening up the space to allowing movable property to be that collateral. So now that is the major change that will this will introduce to the economy so that you make it easy for people even the unemployed you find they have some sort of assets that can be used as collateral um so that they could get a loan and then improve their standard of living. Um same thing with um you know SNME most of them do not have um you know physical pro removable property like land um or even houses and all of the likes. So but if you do allow you know for immovable property then you find that um they have some sort of machinery that they've already bought and it's fully paid for. So then banks can use that as collateral and more especially it allows you know these SMMES to get access to larger amounts of financing which they need that capital to actually grow and sustain their businesses. So when you allow for such to come into the play then you're opening up the the the credit market to quite a broader range of the uh population which also in moves towards um uh deepening the credit um the credit uh sector of the economy and then also deepening financial inclusion because it's not only going to be concentrated on SNME but then it's also going to go towards you know those people who have probably inherited wealth in one form or the next and then they can use that wealth or or that immovable property that movable property to be as collateral to improve their standard of living. So basically we are just increasing the depth of credit into the economy and once you see that fuel injection into the that injection into the economy of credit then you are going to be just speeding up the velocity of money speeding up the velocity of capital which can then be utilized to grow the economy and sustain small and medium enterprises which most cases you know find that financial constraints are the main barrier to growth and you know to development of the sector. So it also just helps the country to move towards um you know formalization of informal sector because there is some level of assets that those informal sector participants will have. But in most cases during the traditional banking modem uh there is only just property and um housing that can and houses that can prop land and houses that are usually considered you know uh but now you are just opening up the the the the frey and you are increasing the number of people who can actually get access to credit. I think it's safe for us to to to it's worth mentioning and very safe for us to mention that the central bank is still working on on this very registry and everything shall be implemented as soon as they are done. I I want to ask you though what type of assets uh can can realistically be used as collateral under this framework and perhaps how valuable those assets will be in terms of unlocking credit.

[00:13:16]>> Um so in terms of the assets uh Mr. I think for me it is not about the asset but it is more about the innovative banking modality that is going to come from that because we know that most movable assets actually do depreciate over time. So that has to be factored into uh the calculus of how much you then you are then going to get you know unlike imov immovable assets which tend to appreciate. So there is a bit off on scope there. Uh so we're looking at the likes of cars. Um we're looking at even at some point livestock you know. Uh then we are also looking at machinery and I've already stated the issue of finance receivable and then also imagine a trucking business that already has a truck that is working and they want to expand and get another track. So now you can use the first track as collateral then you get the money um to then delve into um the second track and therefore just expanding your business as a as an entrepreneur. Could this initiative encourage greater entrepreneurship particularly among young people and women who may have viable businesses but perhaps not really have the the the the traditional assets. They have limited traditional assets.

[00:14:44]>> Yes, most definitely Mr. Numalo that's why we are talking of deepening the reach of credit in a SWAT that means most people are now going to be in a position to get credit and remember we do have quite a lot of schemes in the kingdom but it's an issue of how much those schemes are willing to give up and what are those ceilings. Um, so you'd find that right now if you go to the banks, banks have all the money. So literally even if you needed 50 million, if you have the collateral to put up in a bank, you would get it. Even if you need half a billion, if you have the collateral to put up, you would get it.

[00:15:19]So what this then tends to do is um it gives people that collateral that they need and it also just implicitly um just moves the economy from those you know what we call because you are just doing to survive because you lack the capital to inject so that your business gets you to those margins where you are getting those economies of scale and then that output allows you to stay in entrepreneurship.

[00:15:49]ship. So most definitely we are going to see a shift towards entrepreneurship because people are going to have access to this uh capital through this movable proper movable assets and then they are going to do businesses that are at some point going to pay them um you know a significant amount. You know at some point past in my past life I worked for one such scheme where when you talked to a lot of the young people whom we were supporting most of the issues were you know soon as a job that comes up that can just pay them 4,000 they leave. soon as they get a job that's going to pay them 1.5 they leave because the the cap the seat capital that they were being given at that point in time was relatively low and it wasn't producing the returns that would just induce a person to stay in business remember when you are in business Mr. Normally you want to make your costs. You should get them back and then you need to have a um what we call a markup which would take up and absorb even the opportunity cost which is the best alternative for gone so that you can stay in that business.

[00:16:58]But otherwise if the access to capital that you have does not allow you to also pay for that alternative that you are going to before going. So immediately as you get that potential then you are going to leave and I think we've seen this quite a lot more especially with young people they would start a lot of this agricultural ventures and we know that agriculture has potential Mr. Agriculture has potential to produce multi-millionaires. But because they're at this very micro level where it is mostly about survival and that's what we find in terms of the informal sector that it's mostly about survival. But if you could give access to capital and you know you already have the skill this person has already run this business. So if you give this capital then you are actually just improving the the the sustainability and then also you are improving the length of stay in business. So once you get to do that you are going to see a growth in that entrepreneurial space because then you'll be funding people at an adequate level so that the opportunity cost is actually covered in the margins and the profits that they'd be getting. So you we do expect to see that shift and if you look at the studies coming out of Esadini one of the main constraints for SMME um in formal sector and you know those businesses that are just operating from home um 80% of them would always site if you take up any study right now and you look at it um 80% will always site access to finance as one of the major stumbling blocks that is actually stopping and delaying their progress. So once you can get to do that eventually you are going to uh you know once you can give access to finance then you are actually encouraging people to go into business and stay in business.

[00:18:46]>> Beyond beyond increasing access to loans what what kind of broader economic impact could this have? What kind of broader impact to economic activity could this have but also to job creation as well?

[00:19:03]>> Yeah. So what we um what we have to look at is the multiplier effect. Um so initially if you give money to an entrepreneur obviously they are going to hire a couple of people and those uh two people are now going to have enough spending power to go out there and spend and then the business in itself would also be spending uh in terms of um you know buying stock and doing all of those things. Um so that spending power tends to translate through the entire economy and you actually in a way it boosts what we call aggregate demand where there is that demand coming from firms and that demand coming from the employees and then overall you find that the economy grows because you the retailers are also going to benefit all of those sectors that that that uh these entrepreneurs are going to be using they're also going to benefit. So we are going to see that multiplier effect throughout the economy. So in essence we know that once you unlock credit the economy tends to grow Mr. because there is more spending power there's more money in the economy that can be spent and then people just tend it tends to grow the economy through the demand side and then also what we are looking at doing Mr. here is strengthening our supply response and our supply chains as a country. No, it's going to allow a bit of innovation because um you know once you have a bit of collateral the bank tends to view you differently because what collateral does is it minimizes the risk to the bank because in the event of default the bank will go for that um asset which you have used as a collateral. So it somehow reduces the risk parameters. It's more like a loan um that is almost guaranteed to be repaid because there is an asset that can be used in the event of default. So now we are going to see a bit of more innovation in the economy. We're most likely going to see uh you know the the the entrance of new products that we had never seen in the kingdom. This will be just spread by the fact that we now have credit. So what if and and if this um initiative does go through. So those are the things that we should um start to to expect as more credit is being rolled out and the depth of credit um extends and expands through through the entire economy. And perhaps let's look at some of the challenges that policy makers as well as financial institutions should anticipate during the implementation phase and you know what it is that will determine whether this this this registry has failed or succeeded.

[00:21:48]Um so for me when I did a bit of unadoptal and unadoptal analysis into the issue um the the risks which are the downside risks to this movable collateral um you know it's the fact that it depreciates.

[00:22:07]So what is going to be the loan to collateral ratio that financiers are going to want? I mean for example if you're going to use your car the moment your car leaves the lot it loses 20% of its value. So if your car was bought say for 500,000 the moment it leaves the lot it lose it it loses around 100,000 now it's worth 400,000 and then every other year it's going to be depreciating coming down in terms of value. And once that happens, what you're going to see is if you do not do the loan to collateral ratio adequately, if you do not you don't invest enough time as a bank as a bank or financia to that loan to asset ratio, then you are going to find yourselves at that loss position because um the risk parameters are always moving unlike with immovable property which tends to appreciate over time. So you somehow insulated from that risk. And then also with movable property, again making an example of a car, I could use my car as collateral there. Doesn't mean I'm going to leave it there at the bank. I would still be able to use the car with the thinking that it's going to be insured and what not, but what happens if I crash the car as soon as I leave the bank and I already have the money? So now the bank is actually left without collateral. So all those are the issues that they need to thresh out and think around those.

[00:23:34]And I think I remember growing up we used to hear of certain banks loaning money against livestock. Again livestock right now we are talking of FMD. So the value of livestock is not the same value that it was before FMD was um actually um treated. And then also you're going to have to sell your cars at some your cows at some point. uh what happens if you sell the cows and do not replace them. So the value is always fluctuating. So we need to find that appropriate threshold where you can just say this I can use as collateral but taking into account depreciation and all of these other things. Um maybe let me just give you this much as a bank so that even when your property is depreciated beyond book value, I can still get the value of the money that I have given you. Now those are the downside risks with utilizing movable property because it tends to always depreciate and even with insurance you are not actually guaranteed that you will always get the money you will always get the value that you need. You will always even exceed um the value of the loan that you have given. I mean, if you've ever looked at talked at people who have actually bought cars utilizing loans and then the car just gets damaged probably um within 6 months or 3 months, whatever amount insurance is going to pay out doesn't cover the loan fully and then you'd have to still pump in some money into that. Uh so that's why I'm saying we need to think around uh the loan to collateral value and then that's what makes us think that the figure is going to relatively below in terms of um the loan to collateral value. So you'd find that if you have a car worth 600,000 probably it's going to come down to um a 100,000 that's what we can give you because we have to take into account the depreciation. So we have to be very careful around how we design those products so that we protect the banking sector and then we also protect um the the the creditor.

[00:25:43]>> Mr. Spe, thank you for your time.

[00:25:44]Unfortunately, we've run out of our time, but thank you for insights. We'll go for a break. The show continues when we return. Stay with us.

[00:26:43]All right, welcome back. The Swatini Revenue Service says informal traders and kumbies that transport informal traders to South Africa are affected by the new South African revenue service requirements for travelers entering or leaving South Africa. This is going to include the declaration of personal goods and motor vehicles used for travel asin revenue services precious Chawuya the director of customs technical unpacks some of the personal goods that need to be declared. The regulations regulations rather will take effect from next Monday and this applies to all travelers entering or leaving the republic either by road, train, ship or air.

[00:27:24]>> We we know that we have um operators of public transport who provide a service in terms of public transport for various passengers. So let's deal with firstly the driver. The driver has to declare and use the platform to also indicate that they are carrying passengers. So they will declare even the that kumbi or taxi that they they are driving and then the passengers now who are in that kumbi if maybe they went to South Africa for purposes of buying certain items they are supposed to also then make their own declaration there indicating the goods that they bought. But let's take an example of a case where we are leaving Eswatini and going to South Africa in that public uh transport for purposes of buying. So when we are still in Eswatini and going to South Africa, we don't have any goods except for our personal belongings. So the passengers will not make any declaration but the driver is going to make a declaration and indicate that he is traveling with people in this type of motor vehicle. So that is how um let me say public transport operators are going to be affected by this uh regulation. In saying personal goods, we are not talking to your used clothing items that you will be using during the travel. But we are saying that could it happen that maybe you are traveling by car that motor vehicle is being imported into South Africa when you enter the border. So you will you are supposed to declare that um you could be carrying a laptop. You indicate that um you could be carrying items that you bought maybe you are visiting your your relatives. So those items need to be declared. Those are the personal goods that we are referring to. And you remember you declare while you are still on the way to the border to avoid um delays and cues at the border. SARS has made the process simpler because they've availed an online portal or platform through which travelers can declare. You just go to the SARS website um which is ww.s s.gov in South Africa. So you you go there, you find the customs page and inside the customs page there is a link that takes you to the traveler management system which is where you then lo your declaration indicate your passport number and then um the particulars of the travel and the motor vehicle that you are bringing with you into South Africa. The same thing also when you leave remember also this is for all travelers. So we know that there's different modes of travel into South Africa. For us in Esadini, there's also a mode. So even if you are going to be entering or leaving the country through the airport, you do submit the traveler declaration. As long as you are carrying goods with you other than your used um clothing items, those are the goods that are targeted for the declaration. But um then there are different other modes.

[00:30:37]this train uh which in the event that we do have passenger trains going into South Africa, you would still be able to to submit your declaration for purposes of that clearance. Cell phones are not necessarily regarded as goods to be declared in this sense as long as it's not an item that you bought when you were in South Africa. So if you bought a cell phone from South Africa and you're coming with it into Eswatini, submit that as part of the declaration of goods. But if it's a cell phone that you are already using, that one need not be declared. Um when you declare the motor vehicle um the information that is required on the platform cuz remember this is a simplified declaration process for travelers. There is no attachment of documents there. So what you need to know is the particulars of the motor vehicle. What make is it the model? Um color registration details. That's the information that you need. So you would have your reference from your registration uh card perhaps, but it is not necessarily that you are going to have to carry that to fulfill the declaration because this declaration is something that you do in the comfort of your home. Firstly, let's remember that the platform is available online. So, it's up to me to take the initiative to submit the declaration before my travel.

[00:32:10]24 hours in advance, you are good. And then they did indicate that because maybe I have challenges with internet or things like that, I'm unable to process my declaration while on the way. when you reach the border they have um placed stations and gadgets through which travelers can make their declarations. I have been made to also understand that they will support the process maybe for the first 5 days of the from beginning of June but we should be able thereafter to stabilize and uh the process normalizes.

[00:32:50]All right, that marks the end of our Enterprise Watch segment. We'll go for a break. We'll be back shortly.

[00:33:40]Welcome back. You're still watching NetBank Business Watch. Thank you so much for staying with us. Our conversation today with head of branch networks from Net Bank Esadini Zamanguan is uh centered around investing which is one of uh the very essential topics but very overlooked in most cases and a modern poet which is a rapper has said before that scared money doesn't make money. So you do want to invest your money. So let's demystify the myths around investing and make you motivated to invest whatever it is that you are saving on the side. Zam, thank you so much for joining us on the program.

[00:34:19]Perhaps I want us to start here. Net Bank loves to interact with customers across different income levels. Right.

[00:34:26]Are you seeing a shift in how the ordinary Lisad or how the ordinary Masadi view investing in particular?

[00:34:34]>> Uh good afternoon Muni. Thanks for having me. I think your quote just is running through my mind. Um yes, we are seeing a shift um in how emasi view money. In fact, we we really appreciate that the conversations are happening.

[00:34:51]The conversations must happen. I think money is relatively tight for all of us and as Net Bank, we believe that we are the financial experts. So we always want to help customers and consumers understand how to manage their money better. Um and also how to grow their money. Um I've mentioned that money is tight. So >> of course we start to think of how do I get to save for the future. How do I make a saving when an an expense goes up or we're in a situation now where we're seeing even fuel prices um are going up.

[00:35:23]So in turn even the cost of goods will will certainly go up. that you are alive and conscious to what options do I have and how far does my money take me currently?

[00:35:34]>> Yeah, a very tight physical space for almost everyone and you you're right on that one. But >> there's often the conversation around starting small.

[00:35:44]>> Yeah.

[00:35:44]>> You know, and you know, I want to understand how Net Bank is enabling its customers there to really begin investing even with the modest amounts.

[00:35:54]M I think you are touching on it uh with respect to some of the misconceptions that people would have around investing.

[00:36:02]Uh one would typically assume that you need to have a lot of money to start investing >> but to your point you just do need to start small. So in terms of if you have um uh maybe 300 malangi or 500 malangi, it is important that you actually start putting away what you can actually afford and over time that amount grows.

[00:36:26]um as long as you maintain consistency um and it will help you to fulfill and close some of these fiscal gaps that you you are mentioning or um also moves you a step closer in terms of some of your financial goals and aspirations.

[00:36:40]>> Absolutely. From a net bank perspective, >> how do you help clients understand the difference between saving and investing and why both are important?

[00:36:52]Yeah. So, savings and investments are closely related. Sometimes it's difficult to make a a distinction, but the key difference um is that they're usually for different purposes. So, saving is typically for your short-term needs in terms of your short-term um financial goals. So that's either you're saving for a holiday, you're saving for some immediate expense, school fees, uniform, um groceries even, uh and even if you're saving for a full tank for every end of the month.

[00:37:24]>> Uh whereas um investment is more of a long-term goal. So that's when you are saving for bigger um financial goals, whether you want to buy a car or make a a hefty deposit on a car or a property purchase as an example. So basically uh we say that it's important to have both of them because they serve different purposes. Um short-term uh in in the savings maybe for your emergency kind of um expenses that may arise. You don't know what will happen um at any point in time. So you want to create a a buffer for yourself.

[00:37:58]>> Absolutely.

[00:37:58]>> And then um investments as well it serves a different purpose because you have a specific long-term goal that you want to attain and you work consistently to get to it. Yeah. And so how do you propose Net Bank comes into the play now in supporting its customers in building that what you call a balance between short-term financial security as well as long-term financial or wealth creation.

[00:38:25]>> I think it's important to to have conversations with yourself that are honest with respect to how you want to uh what you want to attain. Is it wealth creation that you want to attain? and then or is it an immediate cushion like we've spoken to and what are you actually saving or investing for? So in terms of what we present as the bank is basically uh options that fit different risk appetites. Our risk appetites may not be the same between Zama and as FISO.

[00:38:57]>> Um our goals may also not be the same with respect to what we are saving for and how long we want to save for. Um so those are the key things that um you would want to actually you know ask yourself and and align in that. But in terms of the offerings of course there's a spectrum of options that fit those different uh variables to say is it short-term long-term savings um accounts notice deposit accounts fixed deposits accounts um retirement annuity unit trusts and shares. All of those are options that build wealth creation or create a buffer depending on your immediate need.

[00:39:36]>> Let's talk to that firsttime investor uh walking into a net bank branch today or tomorrow whatever.

[00:39:43]>> How do your teams then guide them in choosing the right product for their needs? I mean you mentioned a plethora of of of products there.

[00:39:51]>> So I believe that um your need is actually what helps us to determine.

[00:39:57]Remember I did say that we are financial experts and we also want to help you create your financial risk.

[00:40:02]>> But um underpinning that uh the initial guidance would be to say uh start simple >> with as minimal or as low a risk as possible. Um, so these options can include, you know, fixing your your money for a fixed term, which means putting away the money and and knowing that you're earning an interest, you're earning interest or compounded interest over a period of time, >> or a notice deposit account. That's more medium-term to say, I'm going to put away funds for a certain period of time, and I'll give the bank notice when I want those. But those funds whilst they're placed there are actually earning you a return as opposed to sitting in your purse or under a mattress.

[00:40:43]>> Absolutely.

[00:40:45]>> There's often a conversation around time >> and discipline and that's very key in investing, right? That's what you say.

[00:40:52]>> Yeah.

[00:40:53]>> How would you say NetBank then encourages and supports a culture of consistent investing among its clients?

[00:41:01]I would say that you mentioned the element of time and probably time is is the best um indicator uh and probably the most powerful tool to have. Time is always of the essence and we always say start early and start consistently because the benefit of investing is that you earn the interest and when you earn you then start to earn compound interest. So what that means is that you earn interest on the fixed amount that you've invested and then you earn interest on the interest that it's earned as well. So if someone starts saving at 20 years old um over time even if they are saving smaller amounts visa v someone who might start saving or investing um at the age of 40 as an example but they're putting in larger sums you would find that the one who started much earlier with the smaller amounts is actually making more based off of the time elements because their interest has compounded significantly. So that is where then the time element comes in to say you start to grow your wealth more um and the consistency ensures that this wealth is actually growing consistently as well. M so while you >> I mean you speak to the 20-year-old I love the example you're making an example of a 20-year-old and a 40y old and you break down how compound interest can be life uh saving for for both of them but particularly for the one who started >> uh early >> and it it just makes me wonder because we often hear people who who get into employment early say I want to enjoy my money first >> and you know do you want talk to that person, that young person right now.

[00:42:45]>> I do want to talk to that young person.

[00:42:47]I mean, just last month we were coming from the global money week where we raised um awareness on this. I do want to talk to the young person because >> you there's not a right time if I may say the the the only right time is now or immediately when you come to that realization though I made the example of the 40-year-old it doesn't mean that we can't start today. Um, and also it doesn't mean that you have to start investing with a large sum of money or I can't afford it or I'm just not the investing type etc. Whatever you may tell yourself.

[00:43:23]>> But I would say yes, start small. If you want to enjoy your money uh and you are enjoying your money as the 20 year old then surely you want to enjoy your money for a longer period.

[00:43:35]>> Absolutely. So you want to create a fund for your enjoyment. Uh make it be consistent. Uh well allow yourself to have a consistent life of enjoying.

[00:43:47]>> Um so I would recommend that they absolutely do save. They've just started working like you've said they consider options of short-term and long and medium-term type of investments. They create emergency funds at a minimum so that should the fund go a little bit lopsided they have a they have a cushion um >> to to bail them out if you may. Um so I would recommend that they just maintain the consistency. There are various options in the market um and there are various options that are um sold by banks and financial institutions that would fit that profile of a customer. So it's all about once again determining your needs. What does that 20 year old want in 3 years, 5 years, 10 years or what do they want in 6 months or a year?

[00:44:36]That's part of this um enjoyment phase.

[00:44:40]>> Absolutely. So I take it that next to time the next critical thing is discipline. Correct.

[00:44:48]>> Because that then informs the consistency and the consistency is essential as you put it right. But from your experience, what would you say are some of the most common mistakes that your customers make and then how does NetBank come into the play now to make sure that these people avoid these pitfalls?

[00:45:06]>> Yeah, I think we we've just touched on some of these um we've just touched on some of these um common mistakes.

[00:45:14]>> It's it's the voices in your in your head to say um >> actually I don't make enough money. I'll start investing when I make more money or uh I'll start next year. Um and we're having a conversation at an apt time.

[00:45:30]It's Q2.

[00:45:31]>> Let's review.

[00:45:32]>> Absolutely.

[00:45:33]>> Um our >> what do they call them?

[00:45:37]>> Goals. What are the goals that you've put in for the year? Let's take stock.

[00:45:42]Am I still on track? Am I still doing what I wanted to do? Are my financial aspirations still in order? And it's okay to start over. So do start over.

[00:45:51]and any time um is is appropriate time but also uh I do want to stress that the longer you have or listen to these voices or delay then you lose the element of time that we've just spoken to >> which means that the value or the creation and wealth that you're trying to um build or create is also slightly impacted but that that's not to say that you can't build the consistency and add additional income into your savings and investments.

[00:46:24]>> But those are the common mistakes that we we we we find. We also find that people may not understand risks the risks associated with uh some investment um options. So I would also encourage customers to do their due diligence to research to find out what works for them to understand how the products work for them. Uh I mean we see a lot of cases of bata uh as a as an example where you know something seems too good to be true. Invest 300 and we will triple your money in two weeks.

[00:47:04]>> Come on now. Yeah.

[00:47:05]>> So so those kinds of examples should be red flags um and triggers of of of going off. So you have to be sure that you understand the risks. You have to be sure that you are comfortable with the risk you're taking in terms of the appetite. When will you get your returns? How long will your money sit there? Um and do you understand what potential um risk they could be there with respect to the interest that you earn and the like? Yeah, >> absolutely. So I take it u quarterly reviews if you will for of your goals.

[00:47:38]>> Um very very essential. uh but also being realistic about your goals and ambitions very essential as well.

[00:47:46]>> Imposter syndrome uh you know that time that is delayed you're saying it's not denied but it's it's very important to to know how to have that conversation >> uh with yourself and I think if if if you're able to you know vet those mistakes and make an informed decisions >> then you'll be good. But I want to give you just one last opportunity to speak on whatever I may have forgotten to to ask you about because we are done with this conversation.

[00:48:11]>> Yeah. I think I want to reiterate um the three things that we spoke about with respect to choosing your investment.

[00:48:19]>> Re-evaluate what's your financial goal.

[00:48:22]>> That's the first one. So you must make sure that you determine what is your goal.

[00:48:27]>> Also, how long are you willing to put your money aside for? So, is it short-term? Are we saving for emergency or are we saving for a long-term goal?

[00:48:37]And then how much flexibility do you need? Will you need the money immediately now or how would you want to access your funds and how would you want to contribute to your funds? So, those are the three main things that I would uh highlight in terms of uh the selection or the choosing of uh investment options. And then the consistency. Keep in mind the consistency, the diligence, the discipline that we've spoken about. It doesn't help. Your quote is talking about um risk um to some extent. But also we we see a note that you know you'll put away some money in a savings pot or whatever the case may be, but when you feel like ah I I'm really broke and it's a week before payday. So you start to tap into that and that sort of erodess the discipline because part of the discipline is >> invest tuck the money away but also learn to live within what is then remaining. That's why we encourage that you save what is affordable to your pockets. Don't overstretch yourself.

[00:49:43]>> Stretch yourself absolutely. Thank you so much for your time. Head of branch networks from NetBank SWAT. It is cited the most powerful tool for financial growth and that is investing. And there you have the conversation. You can make an informed decision as you invest whatever it is that you can invest. Very important. Let's go for a break. The show continues when we return.

[00:50:58]Welcome back. Thank you for staying with us and this is our final segment for today's program. This is market analysis with Toba Kame from NetBank. A very good afternoon toba. Thank you for coming through. Let's quickly get into our markets today. what is happening in the world of markets. Starting off with currencies uh this afternoon.

[00:51:16]>> Uh good afternoon Lulu and uh thanks for having me again. Um so um trading is quite muted um today. Um when we look at our currencies um the Rand or Langani is um trading quite flat against um the major currencies um up slightly 0.17% against the dollar, 0.14% against the euro and 0.08% um against against the pound. There isn't really in terms of technicalities, there isn't really much that's going on um right now, but the market is waiting to see what the South African Reserve Bank will do tomorrow to um interest rates. We have an MPC meeting um tomorrow afternoon. Uh the market is pricing in a 25 basis point um increase.

[00:52:04]Um so we we're just going to see how that how that goes um at the back of the the spike in inflation that we saw um earlier this month from 2.1% to 4% to 3.1 to 4%.

[00:52:19]>> Okay. So Leang is at 16 this afternoon.

[00:52:23]>> Yes. Okay.

[00:52:23]>> Yes.

[00:52:24]>> All right. So you know we we we we know that the talks of the peace agreements between the uh conflating countries are still ongoing. Yes.

[00:52:33]>> Uh as it promising you know have have been markets moved you know with these discussions.

[00:52:39]Um so yes um we seeing a bit of um a consolidation today um but there were shocks yesterday um when the US launched um attacks on objects nearer to the straight of Humuz and um Iran coming out to say that this they consider this a a gross violation of the cisfire um agreement that they've had for um for the past seven weeks. Um so that has sort of then dampened um hopes but at the same time um you know the market is still hopeful that um a a an agreement is going to come out but it's probably not as imminent as we thought it would be um like we we had thought over the weekend when we saw all of that movement um of what was happening and the Asian meetings and all of that. But um there is hope that um a a an agreement is going to be reached um but it might just not be as imminent as we thought it would be.

[00:53:42]>> So looking at that discussion so far as you said that there is hope. So we can anticipate the conflict ending pretty soon. Um likely likely even though these things can be unpredictable because there are demands that are on the table um that both sides are still you know um zigzagging across um you know Iran is coming out to say that they want their asses to be unfrozen. Um I think it's about um if I'm not mistaken 24 billion um in dollars and um there's also a number of things that they have put on the table. They want Israel to stop bombing um um Lebanon as well. And we've seen Israel, you know, coming out yesterday to say that they're going to be more aggressive and actually launching um um a number of of of strikes into into Lebanon. So with those moments or those incidents then um sort of backtrack or push back the hopes of of of an agreement it coming out um sooner than we we anticipate. But um with what both sides with comments that are coming from both sides we can tell that conversations are still ongoing. Um it's just that there are these incidents that's keep that that keeps on popping up.

[00:55:02]>> Right. So are these discussions in any way affecting the price of gold today.

[00:55:06]But let's take a look at uh the numbers today.

[00:55:09]>> All right. Um yes. So um we've seen gold actually lose a bit of value um today um at um 4,452 down 1.22 uh%. So this is at the back of the incident um that happened yesterday where the US bombed um um or attacked objects near the the the Gulf. Um no this then you know to the market means that um if such continues then inflation is likely going to be higher for longer and then that means that rates are also then going to be kept higher for longer to try and control the inflation. Um so in times of higher rates then gold tend to take tends to take a back seat. So that has knocked um a couple of dollars of the price of um of gold. And then Brent crude it's um trading also lower 3.43 um% um today um at $103 per barrel.

[00:56:14]Um that is um you know just the hopes from from the market or positive sentiment that a a deal is going to to be raised and you know the the the the straight is also going to be opened. We've seen a number of um shipments of of vessels moving over the um the passage um of countries that are or have good relations with Iran. So you know that was signaling that there is hope that um you know an agreement is going to be reached and the the the passage is going to be opened for all um um um the the vessels that used to pass um through that >> right so with equities today what data has been shared >> um so equities are in the green um in terms of the S&P 500 and the footsy um at uh 7.5 um dollars and that is 0.61% up in the fourth at 10.5 um,000 um up 23%. um this is at the back of um good um uh performance uh reporting for the first quarter and also um we've seen you know AI companies and um chip makers doing quite well um in in in in in recent in recent times with their share prices increasing quite um significantly that has added to to to to the performance that we're seeing in terms of of equities. Um but it's it's also it also just speaks to um just risk sentiments in the market that you know investors are seeing that >> you know a you know a peace agreement is in the cut so there is room to you know be a little bit riskier in terms of where they place their money.

[00:58:10]>> Okay. So lastly to in just a minute um can we expect any data to be released this week in South Africa and the US?

[00:58:18]>> Yes. So tomorrow we have the MPC um meeting. Um so we expect uh the governor to announce their rate decision um for the month of May. Uh the market is expecting a 25% uh basis point uh increase but we'll wait to see how that goes. Then could also also have a number of data coming out of the US. We have personal um consumer expenditure coming out tomorrow as well which is the Fed's preferred gauge of inflation to see um how inflation is likely to likely going to trade which will then influence their decision in the next coming um MPC uh meeting.

[00:58:59]>> All right, thank you to Thank you for coming through. Well, there you have it.

[00:59:02]We've come to the end of our episode.

[00:59:04]Thank you for tuning in. You are watching Nad Bank Business Watch. Why not? You can still watch this episode if you've missed it on our YouTube page asini TV. But for more details on the savings and investment accounts, do visit any net bank branch countrywide.

[00:59:19]We'll see you next week Wednesday. Have a good day.

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