Welcome to Matters of Mind (MM)
September first edition
To control the anxiety produced by moments of intense pressure, first step back and analyse the stakes. Theodore Kinne, contributing editor of strategy+business
In his book The Power of Pressure, Dane Jensen speaks about the “pressure equation” growing simultaneously more intense across three elements. These are 1) the levels of importance (how much something matters), 2) uncertainty (how unclear the outcome is), and 3) volume (how many other demands there are on your time).
If you consider exams, it is dealing with these three elements as they converge at the time of writing that is the challenge. Yet, they are not being examined. Furthermore, they rob you of giving your full attention to the questions. If you have ever observed contestants in quiz shows the ones that do better are less self-conscious because they are listening to the question, this gives them the best chance of answering correctly. Step back and give your full attention to the exam so that you can exhibit the knowledge you have learned.
This newsletter has articles in all categories with a focus on the wider implications of the rates cut, the two -pot system and being less polarised in our opinions regarding NHI.
Enjoy!
MM Editorial Team
Economic Matters
Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years
The Federal Open Market Committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points in the US, amid signs that inflation was moderating and the labour market was weakening.
3.5min read
Expected US interest rate cut will change global economic landscape
It may result in a rebound in Eurobond issuance and more capital flows to emerging markets, as well as stoke gold, platinum group metals and oil prices.
…here at home, it will give the South African Reserve Bank more space to do the same on 19 September when its Monetary Policy Committee wraps up its next meeting on interest rates.
3min read
South Africa central bank joins easing club with 25 basis point rate cut
“In the analysis we found 25 to be a prudent stance to take,” Kganyago told a press conference. “You’ve got to be cautious. Adventurism is not part of our monetary policy toolkit,” he added.
2.5min read
South African stocks shine despite China woes, mining sector lags
South African stocks are outperforming emerging-market peers with an 8% rise in 2024, but China’s economic struggles pose a risk to the key mining sector. The FTSE/JSE Africa All Share Index has soared, yet mining stocks lag, hit by slumping iron ore prices due to China’s property crisis. While concerns about China weigh on miners, optimism from South Africa’s recent elections and potential interest rate cuts are boosting other sectors.
2.5min read
Financial Services Industry
ASISA appoints Kaizer Moyane as new CEO
Moyane also chairs the Business Unity South Africa (BUSA) Standing Committee on Social and Transformation Policy and is the Overall Business Convenor at the National Economic Development and Labour Council (NEDLAC).
1min read
The High Cost of Negative Consumer Perception
Let’s talk some truth. Of all the challenges the insurance industry is facing today, chief among them is the reality that insurance is becoming very hard for people to afford.
An opinion piece from Carrier Management addressing the obvious that not many want to talk about. 4min read
Diversity and Inclusion
Empowering The Marginalised Featuring Karabo Motaung
In this episode, titled “Empowering the Marginalized featuring Karabo Motaung,” we dive deep into Karabo’s inspiring journey from her early beginnings to her influential roles as a seasoned economist, a board member at the South African Broadcasting Corporation (SABC), and a passionate mentor. Karabo shares her experiences overcoming systemic barriers, championing fair economic practices, and driving initiatives that uplift and amplify the voices of those often overlooked in society.
A one-hour amazing conversation with Karabo Motaung and Thato Pule.
Life Insurance
‘The data on extreme human ageing is rotten from the inside out’ – Ig Nobel winner Saul Justin Newman
Not to be confused with the actual Nobel prizes, the Ig Nobels recognise scientific discoveries that “make people laugh, then think”.
We caught up with one of this year’s winners, Saul Justin Newman, a senior research fellow at the University College London Centre for Longitudinal Studies. His research finds that most of the claims about people living over 105 are wrong.
The importance of good data has never been more pertinent. What does this mean for actuarial life models? 5min read
Revolutionising Life Insurance with Wellbeing Data
Elevate’s portal stands out by integrating a wide range of data, including medical records, financial information, and fitness data from various wearables, into a single, user-friendly platform. This consolidation provides clients with a holistic view of their wellbeing, enabling personalised health goals and actionable insights that encourage proactive health management.
Overview of 2.5min, followed by 11min interview.
General Insurance
Global Non-Life Reinsurer’s Profits to Peak in 2024: Fitch Rating’s Midyear Analysis
Fitch Ratings published midyear underwriting results for 19 non-life reinsurers last week, finding that the group’s average first-half 2024 combined ratio was 84.2, and forecasting continued profits for the rest of 2024 and 2025 also.
High-level overview of reinsurance as a group. 5min read
California Policyholders May Be On the Hook for Wildfire Losses
This discussion raises interesting perspectives on how to cover losses.
We in South Africa may be facing similar challenges with wildfires and flooding. How will we deal with them? 2.5min read
Health Insurance
Hope for Africa as WHO approves first mpox vaccine
The vaccine from Danish pharmaceutical-maker Bavarian Nordic has been approved in Europe as well as the US and other high-income countries since a global mpox outbreak in 2022, reports The New York Times. But low- and middle-income countries rely on the WHO through the prequalification process that determines which drugs, vaccines and health technologies are safe, and efficient uses of limited health funding.
3min read
Survey shows HIV rates soaring in Mpumalanga
Nearly 900 000 people in Mpumalanga (or 17.4% of the population) are HIV positive, giving it the dubious title of province with the highest infection in the country, according to the findings of the sixth SA HIV Prevalence, Incidence and Behaviour Survey (SABSSM VI), released by the Human Sciences Research Council this week.
2min read
BUSA’s Khulekani Mathe on collaboration not conflict, as the key to making progress. While legal challenges loom, Mathe emphasised the importance of constructive dialogue and presented business-driven solutions aimed at bridging gaps and advancing universal healthcare without resorting to the courts.
This is a recording or you can watch the interview here. 11min listen or watch
No proposed compromise on NHI is on the table, says Health Minister
The article quoted an unnamed government source – said to be a member of the ANC’s national executive committee – as saying: “The middle-ground option will give us a chance to show our members, who have been alienated by the NHI, that we do not want to take away their healthcare.”
Read more on the issue, note it is dated earlier than the interview with Mathe above. 4min read
Study links personal and work-related factors with low resilience among doctors and ambulance personnel
The South African healthcare system is grappling with myriad challenges, placing immense pressure on healthcare workers who require exceptional resilience to navigate these difficulties. Psychological resilience is imperative for enabling effective adaptation in the face of such demanding environments.
3.5min read
Discovery Health announces contribution increases for 2025
Contribution increases will range from 7.4% to 10.9%, depending on plan choice, and all members will benefit from new risk-funded day-to-day benefits and a new personalised health programme.
Comprehensive article. 4min read
Banking
SA banks to issue new loss-absorbing debt to prevent bailouts
South Africa’s largest banks will start issuing a new class of loss-absorbing debt, known as financial loss absorbing capacity (flac) instruments, from January, Moody’s Ratings reports. Designed to enable the orderly resolution of struggling banks, these instruments can convert to equity in a “bail-in” scenario, avoiding taxpayer bailouts. The central bank estimates that the top six lenders need to raise up to 360 billion rand by 2030.
2min read
Standard Bank sees ROI from cloud, AI
The acceleration of Standard Bank’s digital transformation strategy has seen it gain a return on investment, with a 28% increase in digital transactions, while containing cost growth at 2%.
2min read
Motsepe’s ARC pumps R295m into Rain, TymeBank
Businessman Patrice Motsepe-controlled African Rainbow Capital (ARC) has made an additional investment of R295 million in digital bank TymeBank and telecommunications company Rain.
3min read
SA fintech firm Omnisient lands multimillion-rand funding
“Our mission is to create the world’s largest repository of alternative consumer data to grow financial inclusion,” says Jon Jacobson, co-founder of Omnisient.
2min read
Investments
Breaking News: SA Deputy Finance Minister explains why he opposes prescribed assets
David Masondo said the National Treasury might announce measures during the Medium-Term Budget Policy Statement that will make calls for prescribed assets unnecessary. Masondo provided four reasons why he opposed prescribed assets.
- Recipients would have no incentive to be efficient
- Poorly performing projects will receive capital
- Returns may be impacted and funds may not be able to meet their liabilities
- PAs may not result establishing new retirement funds, leaving workers with no retirement benefits
Filed under Macroeconomic news on City Wire’s website. Where will we put it?
3min read
The fear index: The roots of market distortion
As the world transitions from cheap and abundant money to higher interest rates and capital scarcity, where does that leave SA?
A very interesting article which covers a host of questions related to the dynamics of market volatility. 4min read
Retirement / Pensions
GRANT BASE: Survey aims to quantify fees charged for two-pot withdrawals
Withdrawal fees paid to administrators in the coming months could range from R640m to R1.25bn. Various commentators have focused on the tax that will be paid to the SA Revenue Service on these withdrawals, and the effect this will have on the economy, but the other “leakage” from the system will be the fees paid to administrators.
5min read
Two-pot reforms: implications for financial planners
Whether an individual is resigning from their job, getting a divorce, ceasing to be a tax resident or retiring – the two-pot regime touches clients’ lives in a meaningful way that requires careful analysis and tax planning by financial advisors.
4min read
Two-pot is hiding another nasty tax surprise
This article poses the question of whether it is wise to borrow from your future self. The example provided is clear and realistic.
3min read
Two-pot system is about compulsory preservation
This is an interesting article because it speaks about the impact across the economy and amongst other points made, shows SA savings and fixed investment as a share of GDP.
5min read
About YOU
Leading under pressure
Pressure is a goad. Whether it arrives in the guise of a burning platform or a project deadline, a strategic goal or a performance target, a high stakes deal or an aggressive competitor, pressure can help leaders attain new heights of performance and achievement. You know the adage: no pressure, no diamonds.
The problem with this pithy observation, attributed to 19th-century Scottish essayist Thomas Carlyle, is that it is both true and false. Though pressure can drive outsized results, it can also become an insurmountable obstacle to performance and achievement. It can overwhelm a leader and result in missteps that torpedo companies and careers.
A thoughtful piece of writing which can apply to us all. 5min read