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	<title><![CDATA[iAfrica :: Business : Main Article]]></title>
	<link>http://www.iafrica.com</link>
	<description><![CDATA[All the news that's fit to print.]]></description>
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<pubDate>2018-06-29 14:27:54</pubDate>
<content_id>1060049</content_id>
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<heading><![CDATA[Rand firmer as dollar rally pauses]]></heading>
<title><![CDATA[Rand firmer as dollar rally pauses]]></title>
<description><![CDATA[The rand was firmer early on Friday ahead of trade and budget data, advancing for a second consecutive session.]]></description>
<body_text><![CDATA[The rand was firmer early on Friday ahead of trade and budget data, advancing for a second consecutive session as a pause in the dollar&rsquo;s recent rally and fresh demand for local bonds supported the currency.
At 0700 GMT the rand was 0.67% firmer at 13.6800 per dollar compared to a close of 13.7725 overnight in New York.
A heavy global selloff of emerging market assets in recent sessions eased on Thursday and continued on Friday as the greenback tapered off, mainly on a climbing euro boosted by EU leaders reached an agreement on migration.
&ldquo;Initially the rand went sharply higher as the euro lost some ground and 14.00 was paid once, but we saw some good local exporter interest up at those levels and as the euro traded higher the rand was soon back below 13.90,&rdquo; said analysts at Nedbank in a note.
The yield on the benchmark government issue due in 2026 was down 6 basis points to 8.875%.
Stocks opened firmer, with the Johannesburg Top-40 Index up 1.93% to 50,730 points.]]></body_text>
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<source><![CDATA[Reuters]]></source></item>
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<pubDate>2018-06-29 12:14:26</pubDate>
<content_id>1060045</content_id>
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<heading><![CDATA[Numsa blames Eskom financial woes on management]]></heading>
<title><![CDATA[Numsa blames Eskom financial woes on management]]></title>
<description><![CDATA[Eskom has revised its offer to 6.2% for this year and 6% for the next two years or inflation-based if higher.]]></description>
<body_text><![CDATA[National Union of Metalworkers of South Africa (Numsa)&nbsp;says the inclusion of independent power producers (IPPs), a bloated top management and a failure to deal with high coal prices are just some of the reasons why&nbsp;Eskom&nbsp;faces financial difficulties.
The union was speaking after Thursday&rsquo;s wage negotiations.
Eskom has revised its offer to 6.2% for this year and 6% for the next two years or inflation-based if higher.
Numsa says it will hold a series of shop steward meetings to discuss the way forward ahead of a meeting with Eskom next Friday.
The union's Irvin Jim says the talks have been held in good faith.
&ldquo;We&rsquo;ve been here to negotiate, not to blackmail. We can&rsquo;t say we&rsquo;re optimistic but we&rsquo;re taking this offer to our members and they must reflect.&rdquo;]]></body_text>
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<source><![CDATA[EWN]]></source></item>
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<pubDate>2018-06-29 10:09:53</pubDate>
<content_id>1060040</content_id>
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<heading><![CDATA[Moyane to appear before Nugent inquiry]]></heading>
<title><![CDATA[Moyane to appear before Nugent inquiry]]></title>
<description><![CDATA[Tom Moyane is expected to appear this morning before the commission of inquiry into tax administration and governance at Sars.]]></description>
<body_text><![CDATA[Tom Moyane&nbsp;is expected to appear this morning before the commission of inquiry into tax administration and governance at the&nbsp;South African Revenue Service (Sars).
Legal counsel for the suspended tax boss has contended that the inquiry has become a witch hunt against him.
The Nugent commission heard this week how Moyane purged top staff members and dismantled enforcement units within the revenue collector.
Moyane&rsquo;s lawyer Eric Mabuza says the fact that his client has to face two inquiries about the same matters is unfair to him.
&ldquo;He&rsquo;s now expected to attend another inquiry while there&rsquo;s also a pending inquiry chaired by Advocate Azhar Bham, obviously he&rsquo;s going to be prejudiced.&rdquo;
Moyane will appear before the commission this morning and is likely to raise an objection to the panel, alleging that professor Michael Katz who sits on the panel is conflicted.
Mabuza says they believe Katz has to recuse himself because he used to be President Cyril Ramaphosa&rsquo;s lawyer.
This is not the first time Moyane has made this request.
Judge Kate O&rsquo;Regan was replaced in Moyane&rsquo;s disciplinary inquiry after his legal team claimed she faced a conflict of interest; that process is now headed by Advocate Azhar Bham.]]></body_text>
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<caption><![CDATA[Suspended Sars Commissioner Tom Moyane. Credit: EWN.]]></caption>
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<source><![CDATA[EWN]]></source></item>
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<pubDate>2018-06-28 14:26:34</pubDate>
<content_id>1060035</content_id>
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<heading><![CDATA[Former official denies existence of rogue unit]]></heading>
<title><![CDATA[Former official denies existence of rogue unit]]></title>
<description><![CDATA[Former Sars official says that investigative units were dismantled simply because they were impacting well-connected people and businesses.]]></description>
<body_text><![CDATA[A former&nbsp;South African Revenue Service (Sars)&nbsp;senior official says that investigative units at the revenue collector were dismantled simply because they were impacting well-connected people and businesses.
Gene Ravele, who left Sars after he was alleged to have been part of the so called &quot;rogue unit&quot;, has denied all accusations that there was a unit that conducted illegal surveillance of tax payers.
He's been testifying at the commission of inquiry into Sars, chaired by retired judge Robert Nugent.
Ravele says that&nbsp;Tom Moyane&rsquo;s decision to rid Sars of all units at the forefront of enforcing tax compliance was rooted in corruption.
Ravele says there was no rogue unit and the narrative around it was deliberately orchestrated so that enforcement could be halted.
But he says this came at a cost to the economy.
He has also told the commission how Moyane gave instructions to stop all investigations and inspections into the cigarette industry.]]></body_text>
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<caption><![CDATA[Gene Ravele gives evidence at the Nugent Commission of Inquiry into governance at the South African Revenue Service on 28 June 2018. Credit: EWN.]]></caption>
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<pubDate>2018-06-28 12:12:35</pubDate>
<content_id>1060033</content_id>
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<heading><![CDATA[Metrobus warns commuters of fare increase]]></heading>
<title><![CDATA[Metrobus warns commuters of fare increase]]></title>
<description><![CDATA[Increase in Metrobus fares adds to the pressure most are feeling due to increase in VAT, fuel price and a climb in the cost of living.]]></description>
<body_text><![CDATA[Metrobus&nbsp;has warned commuters to brace for a 7% increase in fares from Sunday.
This comes after the Joburg city council approved the 2018/19 budget recently.
The increase in Metrobus fares adds to the pressure most people are feeling due to an increase in VAT, fuel price hikes and a general climb in the cost of living.
Metrobus spokesperson Goodwill Shiburi says, however, that discounts for specified commuters will remain unchanged.
&ldquo;We&rsquo;re also keeping our discounts unchanged. We give 47% to all scholar uniform and those with student cards and the elderly people we give 90% discounts. So, the discount part remains the same.&rdquo;]]></body_text>
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<caption><![CDATA[Credit: @JoburgMetrobus/Twitter.]]></caption>
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<source><![CDATA[EWN]]></source></item>
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<pubDate>2018-06-28 09:50:55</pubDate>
<content_id>1060028</content_id>
<author><![CDATA[]]></author>
<heading><![CDATA[Unit dismantled for 'access to easy money']]></heading>
<title><![CDATA[Unit dismantled for 'access to easy money']]></title>
<description><![CDATA[Former head of Sars Large Business Centre unit, says she believes unit was dismantled so that there would be access to large sums of money.]]></description>
<body_text><![CDATA[Former head of&nbsp;South African Revenue Services' (Sars)&nbsp;Large Business Centre unit, Sunita Manik, says she believes that the unit was dismantled so that there would be access to large sums of money for fraudulent purposes.
She was testifying before the commission of inquiry headed by retired Judge Robert Nugent on Wednesday.
The commission heard from former Sars senior officials, who described how fear and intimidation became commonplace at the revenue collector during the reign of suspended Sars commissioner&nbsp;Tom Moyane.
&quot;That's where the bang for buck is. If I want access, whether its politically, individually or from a revenue stream point of view, if I want access to significant amounts of money... Sars is a big bank.&quot;
This is what Manik believes is the motivation why the Large Business Centre was effectively dissolved by Tom Moyane.
The unit was in charge of dealing with big corporations and ensuring that they were tax compliant.
Moyane did away with the unit during a controversial restructuring process.
Manik believes breaking up the Large Business Centre would mean corrupt individuals would have had access to large sums of money.
&ldquo;Anybody who wanted access to easy money and wanted the power in Sars, you&rsquo;d target the LBC. You'd also target tenders within Sars.&rdquo;
The commission further heard that she eventually resigned because of widespread fear and intimidation in the organisation.]]></body_text>
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<pubDate>2018-06-27 14:44:17</pubDate>
<content_id>1060023</content_id>
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<heading><![CDATA['Mercedes investment in SA statement of trust']]></heading>
<title><![CDATA['Mercedes investment in SA statement of trust']]></title>
<description><![CDATA[President Cyril Ramaphosa has emphasised government's commitment to stimulate significant, new investment in the country's economy.]]></description>
<body_text><![CDATA[President&nbsp;Cyril Ramaphosa&nbsp;has emphasised government's commitment to stimulate significant, new investment in the country's economy.
He addressed delegates at auto manufacturer&nbsp;Mercedes-Benz's announcement of a R10 billion investment&nbsp;in the expansion of its East London plant on Tuesday.
The luxury car brand's new generation C-Class model will also be manufactured here.
Ramaphosa says this cash injection signals a positive momentum in the target to raise R1.2 trillion in new investment for South Africa.
&quot;This investment is a statement of trust, a statement of confidence that South Africa is indeed a good investment destination and we welcome you for having brought this investment here.&quot;
Member of Mercedes-Benz's divisional board, Markus Schafer: &quot;This is an important milestone for Mercedes-Benz, especially for Mercedes-Benz South Africa today and I think a very important milestone for the community, expanding the plant and making the plant ready for the future. This is a sign of trust in the fantastic work force.&quot;

#MBInvestment Automaker Mercedes Benz Cars has invested 600 Million Euro in the expansion of its East London plant. KB Image : Supplied pic.twitter.com/5c9GkcoHas
&mdash; EWN Reporter (@ewnreporter) June 26, 2018


#MBInvestment The luxury car maker&rsquo;s new generation C-Class is one of the vehicles that will be manufactured at the site. KB pic.twitter.com/Oqqw8pU6QG
&mdash; EWN Reporter (@ewnreporter) June 26, 2018


#MBInvestment Ramaphosa, this investment is a statement of trust, a statement of confidence that Mercedes Benz is demonstrating to all and sundry in country and beyond the shores of our country that SA is indeed a good investment destination. KB Image : Supplied pic.twitter.com/OgytmxwVqe
&mdash; EWN Reporter (@ewnreporter) June 26, 2018
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<caption><![CDATA[Mercedes-Benz vehicles on the assembly line. Credit: Supplied.]]></caption>
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<source><![CDATA[EWN]]></source></item>
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<pubDate>2018-06-27 12:03:08</pubDate>
<content_id>1060020</content_id>
<author><![CDATA[]]></author>
<heading><![CDATA['Please Call Me' inventor barred ]]></heading>
<title><![CDATA['Please Call Me' inventor barred ]]></title>
<description><![CDATA[A  former Vodacom employee who invented the “Please Call Me” is not allowed to disclose the details of the settlement.]]></description>
<body_text><![CDATA[A former&nbsp;Vodacom&nbsp;employee who invented the &ldquo;Please Call Me&rdquo; is not allowed to disclose the details of the settlement between him and the cellphone company.
Lawyers for both,&nbsp;Nkosana Makate&nbsp;and the network company, agreed in the High Court in Pretoria on Tuesday that he would not disclose details of their settlement to the media or any other third party.
This is after media reports suggested that Makate had been offered R10 million.
A Constitutional Court ruling in April 2016 directed that Makate be recognised for his &ldquo;Please Call Me&rdquo; idea.]]></body_text>
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<caption><![CDATA[Nkosana Makate. Credit: EWN.]]></caption>
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<pubDate>2018-06-27 10:07:03</pubDate>
<content_id>1060014</content_id>
<author><![CDATA[]]></author>
<heading><![CDATA['SA's economy still not creating enough jobs']]></heading>
<title><![CDATA['SA's economy still not creating enough jobs']]></title>
<description><![CDATA[Economists have warned that while an additional 56,000 jobs have been created in the last quarter, it doesn't paint a good picture overall.]]></description>
<body_text><![CDATA[Economists have warned that while an&nbsp;additional 56,000 jobs have been created&nbsp;in the last quarter, it doesn't paint a good picture overall.
Stats SA&nbsp;released the findings on Tuesday, showing that employment increased due to the community services, construction, manufacturing and business services sectors.
However, employment decreased in the trade, mining and transport sectors.
Economist Azar Jammine points out that year-on-year, employment figures aren't as high as they should be.
&ldquo;If you look at a year as a whole, through to the first quarter, the amount of job creation in the formal sector was 74,000, or 0.8% which is still well below the economic growth rate recorded over the past year and that means that the country is still not creating enough jobs.&rdquo;]]></body_text>
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<caption><![CDATA[A worker on a car assembly line. Credit: AFP.]]></caption>
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<pubDate>2018-06-26 14:31:23</pubDate>
<content_id>1060010</content_id>
<author><![CDATA[]]></author>
<heading><![CDATA[Beating the odds and staying wealthy]]></heading>
<title><![CDATA[Beating the odds and staying wealthy]]></title>
<description><![CDATA[Here is a brief discussion of the key risks for families to safeguard against in the quest to stay wealthy.]]></description>
<body_text><![CDATA[In 1982, Forbes Magazine in the United States published its now renowned list of the 400 wealthiest Americans for the first time, ranked by their net worth. Twenty-one years later, JP Morgan conducted a study to examine the list and determine which families remained amongst the country&rsquo;s wealthiest.
The result was astonishing: less than 15% of people, or just 54 of the original names remained on the list. The most common reasons for dropping out included an over-concentration in a particular asset and too much leverage, followed by excessive spending and tax.
A more recent 2012 study from JP Morgan found that only 36 of the original names were still on the list &ndash; in other words, just 9% of people had managed to keep their wealthy status over a 20-year period.&nbsp;
These studies demonstrate that not only does it take considerable work and aspiration to build wealth, but preserving wealth equally demands hard work and attention.
Below follows a brief discussion of the key risks for families to safeguard against in the quest to stay wealthy, drawing on JP Morgan&rsquo;s 2004 paper &ldquo;Beating the Odds and Staying Wealthy&rdquo;:&nbsp;
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentration
&ldquo;Most wealthy families have, at some point, channelled their resources into one area &ndash; whether a company, an industry, real estate, or even an art collection &ndash; which has become the primary source of their increased financial wealth.&rdquo; (JP Morgan, 2004)
However, it&rsquo;s important to remember that not all assets maintain their value over time.
Trends change, prime property locations lose their attraction, technology disrupts established industries and companies fail &ndash; just consider the example of Steinhoff, or the recent slide in share prices of the companies in the Resilient Group.
Diversifying your asset base can be challenging, especially as it may involve selling an asset to which you have a strong emotional attachment. But spreading your investment risk is essential to preserving your wealth, ensuring that your investment strategy remains uncorrelated to specific asset classes, companies, industries and geographical locations.
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spending
&ldquo;It comes as a surprise to many people that to sustain wealth, they can spend no more than 4% annually of their investable assets.&rdquo; (JP Morgan, 2004)
This sage advice highlights the importance of adjusting your income expectations as a percentage of your overall wealth rather than a simple rand amount.
Studies have shown that overspending is common even among the affluent, as families get used to a certain lifestyle and struggle to adjust their spending habits relative to the size of their investable assets.
It&rsquo;s important to remember that if the value of your investable assets decline as a result of poor investment returns, your consumption as a percentage of your assets will increase, potentially eroding your capital base.
The reality is also that no sound investment strategy can save you from bad spending habits. Taking on more investment risk to address the shortfall between income and spending needs is not likely to be sustainable.
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leverage/ Gearing
&ldquo;Leverage is a double-edged sword. It provides an opportunity to enhance returns but it also increases risk.&rdquo; (JP Morgan, 2004)
Borrowing money to make money can be extremely productive, but the key is to understand the risks and how best to mitigate your risk exposure.
We don&rsquo;t need to look much further than our own market to demonstrate these risks &ndash; just consider the collapse of Steinhoff&rsquo;s share price at the end of 2017.
Also remember that when share prices collapse, not only does the investment value disappear, but a leveraged position would cause banks to call on the collateral provided, making the owner of the shares a forced seller in the market.
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes
&ldquo;Tax poses a significant risk to families that do not implement effective strategies on a timely basis.&rdquo; (JP Morgan, 2004)
Effective tax and estate planning are crucial to understanding the impact that taxes will have on a family&rsquo;s wealth, especially in a world where governments are increasingly raising revenue through various forms of wealth taxes.
Consider, for instance, that taxes on the transfer of assets in an estate from one generation to the next can even be as high as 50% in some jurisdictions.
Simultaneously, fiscal authorities have also tightened the rules on &ldquo;tax havens&rdquo; and formalised the sharing of information between jurisdictions. As a consequence, it is more important than ever to carefully weigh up the risks that you may be taking in order to reduce your tax liability.
Attempting to minimise tax through implementing a complex ownership structure means that you risk having the entire structure disallowed by a tax authority. Rather, it would be wiser to consider simple strategies that make economic sense.
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Family dynamics
&ldquo;Many fortunes do not survive to the third generation, often because the relatives find it hard to manage their assets together effectively.&rdquo; (JP Morgan, 2004)
Solutions for addressing the risk of family dynamics include drawing up a memorandum of understanding to express a convergence of intent between parties, flexible structures and appropriate insurance cover.
Also avoid leaving all financial decisions to a single family member: should this person be unable to attend to the family finances for any reason, the family fortune could be placed at unnecessary risk.
6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability
&ldquo;In our increasingly litigious world, the wealthy are vulnerable to risks such as class action suits for employee discrimination, malpractice, insider trading or negligence &ndash; justifiably or not. Theft remains an equally strong concern.&rdquo; (JP Morgan, 2004)
Manage these risks by taking out appropriate insurance against liability suits, and instituting good controls such as restricting access to your personal or financial information.
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency
&ldquo;Currency risk comes into play when there is a mismatch between a family&rsquo;s assets and its financial goals.&rdquo; (JP Morgan, 2004)
The steady depreciation of a vulnerable currency owing to higher local inflation will gradually erode the wealth of a family, and make no mistake that the value of currencies can drop rapidly and unexpectedly.
Events in emerging markets come to mind &ndash; just consider the recent freefall of the Argentinian peso, which has lost 30% against the US dollar so far this year. The South African rand is no different, and ranks amongst the most volatile emerging market currencies.
8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government action
&ldquo;Throughout history, the actions of governments have caused the destruction of wealth owned by individuals.&rdquo; (JP Morgan, 2004)
In South Africa we have already experienced the risks of government action on wealth, and seen first-hand the effects on investment and growth.
Radical tax increases or the expropriation of private assets can also have a significant impact on the wealth of families, while reckless monetary and fiscal policy can lead to hyper-inflation, as we&rsquo;ve witnessed in neighbouring Zimbabwe.
Meanwhile, as demonstrated in the US and China, the implementation of exchange controls and ideology shifts can occur suddenly, catching families by surprise.
Preserving your wealth
The many risks to wealth are significant, and the only way to safeguard against misfortune is through a considered investment strategy that emphasises diversification, safety and security.
Protecting your wealth requires constant vigilance, so having a dedicated wealth partner who understands the nature of your business, family and country&rsquo;s dynamics is essential.
Having a sound financial framework might just save you from disaster, helping you to beat the odds and stay wealthy.]]></body_text>
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<caption><![CDATA[Credit: Loan Pride.]]></caption>
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<source><![CDATA[Issued by Citadel Wealth Management]]></source></item>
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