Every one person employed by multinational giant Unilever is responsible for the support of a further 22 individuals, according to a critical study of the company’s economic footprint in South Africa. The findings are expected to create the impetus for other multinationals and large businesses to re-look how they create and share wealth.
The “Footprint” study, a critical research project carried out by Professor Ethan Kapstein of INSEAD, a leading European business school, has found that every person employed by Unilever South Africa supported another 22 up and down the supply chain. This impact on jobs is regarded as significant in South Africa, with its extremely high unemployment.
Unilever SA’s Gail Klintworth with Professor Ethan Kapstein
The study also found that, for every R100 of sales by the company, a further R145 of value-added is created in the wider South African economy. The associated economic activity also generated nearly one percent of South Africa’s tax revenue.
The role of multinationals, especially in developing countries, has been the subject of debate for many years. Some governments and campaigning organisations have questioned whether multinationals do more good than harm in emerging markets.
PKF, the chartered accounting and business advisory firm that specialises in servicing growing and entrepreneurial companies, is positive about this year’s budget speech. Tax specialist DR ROBIN BEALE explains why.
The new simplified, turnover-based tax system for small businesses, announced by Trevor Manual in his budget speech today, is to be welcomed, even though some caution is in order.
The simpler tax matters are for the small business, the better. The new turnover-based tax proposed for these businesses will be a combination of VAT and income tax, with business owners paying tax on their total turnover without making any deductions for expenses. However, there is a danger that small, unsophisticated businesses could unwittingly miscalculate their taxes. Therefore a simpler turnover system is preferable.
With an increasing focus on regulation, companies must be able to both shape and respond to the regulatory agenda in traditional as well as emerging markets. But this is not easy to put into practice, particularly in the communications sector, as KPMG reports.
The 2007 KPMG Bringing Regulation into the Boardroom survey, based on interviews with over 60 senior managers in telecommunication operators around the globe, reveals that senior management and the regulatory function, whilenot poles apart, may have different priorities.
Convergence of telecommunications and media, along with deregulation, is blurring traditional regulatory boundaries and putting increasing pressure to improve communications, learn from other industries and build a strong regulatory team.
“This situation is even more complex and pressing for those companies operating in multiple regulatory environments,” says Yunus Suleman, chairman of KPMG SA. “Subsequently, companies will increasingly need to develop proactive regulatory functions that recognise commercial issues and can communicate with the board.” Keep reading →
Fundamo, the South African-based mobile banking software developer, has been chosen to partner Accenture in the world wide rollout of mobile wallets to 700 mobile network operators.
Fundamo, a provider of mobile banking and payment software solutions, has signed a partnership agreement with Accenture, the global management consulting and technology services company, to accelerate the worldwide adoption of mobile wallets.
Accenture will lead the promotion of mobile wallets worldwide in 2008, which will allow Mobile Network Operators (MNOs) to deploy, operate and fine tune a Mobile Wallet service, learning how to streamline registration, optimise price points and test partnering relationships with a bank, prior to full scale mobile wallet service deployment. The Accenture Mobile Wallet platform will be presented to 700 Mobile Network Operators early in 2008.
“This partnership combines Accenture’s ability to define and deliver new business opportunities globally, bringing together both communications and financial services markets, with Fundamo’s deep experience and technology development in the mobile payments market,” says Aletha Ling, Head of Business Development at Fundamo. Keep reading →
The bankingsector’s real opportunity for organic growth is to look for the vast unserved African banking market, says international banking guru Joe DiVanna, who is to head a bill of over 60 experts at a banking technology conference in Nairobi next month.
Joe DiVanna, a world-renowned consultant, researcher, speaker and trainer in innovative banking, will headline the African Banking Technology Conference, to be held in Nairobi from 28 March to 4 April 2008.
Described as a “polymath” by The Economist, for his cutting edge approach to strategy development, DiVanna directs Maris Strategies, a Cambridge think-tank for business and financial services. He is author of numerous management books, including Redefining Financial Services and The Future of Retail Banking,
He will hold a full-day “Banking Mini-MBA”, entitled “The African Banking Agenda: Innovation, Performance, Service”.
“The dynamics of the unfolding landscape of today’s world financial markets demands that financial institutions learn to excel at innovation in order to compete,” he argues. “In Africa, competition is being redefined as regulatory structures open up to foreign banks. Within each nation, competition for existing customers is also becoming more intense, as banks are often targeting the same customers. Keep reading →
The Big Change is a business strategy blog and newsletter published by Arthur Goldstuck, managing director of World Wide Worx, a leading technology research organisation based in Johannesburg, South Africa.
The Big Change was a runner-up in the SA Blog Awards 2008, in the category Best SA Business Blog. Congratulations to Matthew Buckland for the winning blog in this category. The overall winner of the Blog of the Year award was Thought Leader (see link alongside).
The Big Change, through World Wide Worx, is an official media partner for AfricaCom 2008, the premier pan-African communications event, now in its 11th year. For a decade, this event has comprised a high-level conference and co-located exhibition hosting the very latest in communications technology and strategy.
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