Email not displaying correctly? View it in your browser.

DATE: April 2019

IN THIS ISSUE

ASISA Enterprise and Supplier Development (ESD)

ASISA Foundation

ASISA Academy

Other ASISA news

Click on the HEADINGS to go directly to the article

Dear stakeholder

We would like to share with you some recent noteworthy accomplishments of the ASISA Foster the Future entities: the ASISA Academy, the ASISA ESD initiative and the ASISA Foundation.

All three initiatives share the common goal of addressing one of the key social deficits that plagues our country and prohibits economic growth, namely unemployment. With ongoing support from key stakeholders and funding from ASISA members, the Foster the Future initiative aims to empower vulnerable communities through financial literacy, facilitate employment for graduates and create jobs by building businesses.

The ASISA Board, through its Transformation Governance Committee, exercises strategic oversight over the Foster the Future entities.

ASISA Enterprise and Supplier Development (ESD)

ASISA’s Enterprise and Supplier Development (ESD) initiative completed a record first quarter in 2019, creating 232 new jobs and committing an additional R43 million in developmental support of industry aligned small and medium enterprises. During the first quarter of this year the ESD initiative also received R11 million in new contributions from funders for the continued support of SMEs into and beyond the 2019 calendar year. The ASISA ESD achievements since inception include the following:

  • R651 million raised
    -  R484 million for SME investments
    -  R167 million for SME development programmes
  • R394 million deployed
    -  R258 million into SME investments
    -  R136 million for SME development programmes
  • 594 SMEs developed
    -  3 448 jobs supported
    -  985 jobs created
  • 29% average revenue increase across supported SMEs
  • 60 000 hours of SME developmental support provided
  • R190 million spent in industry procurement from supported SMEs
  • Optimal ESD investment provided for 46 funders

We would like to invite you to visit the new ASISA ESD website, where you will find up-to-date information about:

  • SME investments;
  • Development Programmes;
  • Impact metrics (including jobs supported, jobs created, growth in turnover, growth in profit);
  • The funding application process; and
  • The SME Database.

The ASISA SME Database enables our stakeholders to access SME information for procurement purposes. Subscription to the database at a nominal annual fee provides subscribers with Supplier Development Points.

ASISA Foundation

The ASISA Foundation has entered into an agreement with the South African Housing Co-operative Association (SAHCA) to collaborate on delivering financial literacy programmes to members of the community across the country.

The SAHCA membership consists of primary and secondary housing co-operatives in various provinces. These co-operatives facilitate programmes and activities to prepare members of the community for future home ownership. The provision of relevant financial literacy programmes is one such activity.

Since this function aligns with the Foundation’s objective of providing relevant and objective financial education programmes to poor and vulnerable communities in the most effective and efficient manner, it makes sense for SAHCA and the Foundation to work in partnership to deliver suitable financial education programmes in a structured and co-ordinated manner.

A pilot financial literacy programme is underway with the Western Cape Secondary Housing and Development Co-operative (WCSHDC), a member of SAHCA. The learnings will be used to further tailor the Foundation’s Saver Waya Waya: Build Up Programme, a financial literacy programme designed for co-operatives, to the needs of SAHCA members.

It is envisaged that the Build Up Programme will be rolled out over time across provinces subject to the availability of funding.

  • L+EARN Programme for ISFAP

The Foundation has partnered with the Ikusasa Student Financial Aid Programme (ISFAP) to equip students with the skills required to successfully manage their finances, both during their time as students and later once they enter the job market.

The Foundation’s L+EARN Programme is currently being piloted at the University of Johannesburg (UJ) as an additional component of the wrap-around support offered by ISFAP to students.

ISFAP is in the third year of its pilot phase with students enrolled across 12 universities in faculties covering occupations in high demand. The programme aims to provide young South Africans with a higher education that will enable them to pursue careers that have been identified as critical to South Africa’s economic development.

Contributing to the success of ISFAP is the wrap-around psychological, social and educational support to participating students, which aims to reduce drop-out rates. This approach is proving very successful in that it is achieving a retention rate in excess of 90% for students enrolled in some of the toughest degree programmes like medical, engineering, accounting and actuarial.

ASISA is represented on the ISFAP steering committee and financial support to students is being provided by the private sector, including ASISA members, via the ISFAP Foundation.

  • Celebrating with Driven

We would like to congratulate Driven Entrepreneurs on having reached the five-year milestone, which is considered a big achievement in the world of start-ups.  Three years ago, the ASISA Foundation partnered with Driven on the roll-out of our flagship FLAME (Financial Literacy and Micro-enterprise) Programme, which empowers beneficiaries in low-income areas.

Despite being a fledgling business, Driven’s MD, Owen Muzambi, and his team helped us take financial literacy to more than 300 community members with our FLAME Programme. Best of all we managed to incubate 30 township micro-enterprises. These businesses started the incubation programme with cumulative recorded turnover of just over R100 000 per month. After 15 months of incubation, the businesses had generated cumulative turnover of more than R4 million, of which R1 million was profit.

Thank you, Owen and team. We are proud partners.

ASISA Academy

The ASISA Academy once again collaborated with Investec Asset Management on delivering a bespoke five-day Analyst Bootcamp as part of the Investec Asset Management graduate induction programme. This year a sizeable fixed interest session was included.

We are pleased with the feedback received from the 13 delegates who attended:

  • “What I enjoyed in particular was the application of theory to everyday scenarios (e.g. the perpetuity model in the context of the removal of a product line), and getting to practice these formulas.”
  • “I enjoyed the course, learnt a lot, found it very valuable to our careers going forward from here.”

The ASISA Academy Programme Champion for the Analyst Bootcamp is Associate Professor Francois Toerien of the University of Cape Town.

Other ASISA news

  • Draft Conduct of Financial Institutions (COFI) Bill

In December last year National Treasury published a draft version of the Bill for public comment. The Bill seeks to streamline the current range of different laws applicable to the financial sector and to establish a consolidated, comprehensive and consistent regulatory framework for the conduct of financial institutions. ASISA invited comment from all members and set up a working group of representatives from those members who responded. The final ASISA submission was sent to National Treasury on their 1 April 2019 deadline.

  • Revised format for the replacement advice record

The Financial Sector Conduct Authority (FSCA) published a revised draft of the Replacement Advice Record (RAR) on 27 March 2019 for comment by 30 April 2019.  Rule 19.2.6 of the Policyholder Protection Rules (PPR) provides that the FSCA may determine the format for the RAR.  The ASISA PPR work group has been involved in the consultation on this draft and the previous draft.

  • Insurance premium collection framework 

On 9 April 2019, the FSCA published a discussion document on the insurance premium collection framework for comment. The document has been distributed to members for comment.

  • ASISA Gap Study

The ASISA Gap Study, conducted every three years, measures the difference between existing life and disability cover and the actual insurance needs of South African earners. The last study was done in 2016.

We are currently preparing for the 2019 ASISA Gap Study and have once again commissioned True South Actuaries & Consultants to carry out the research. In addition to the life and disability component of the study, we are also requesting data on critical illness cover. The information request was sent to ASISA risk insurance members during April for completion by 7 June 2019.  The results will be presented at the end of October 2019.

 
Leon
Click here to unsubscribe