Quick reads for this week

FSCA revokes licence of investment firm and debars two key personnel

In a decisive move aimed at reinforcing the integrity of South Africa's financial services sector, the Financial Sector Conduct Authority (FSCA) has revoked the licence of Global and Local Investment Advisors (Pty) Ltd (FSP 43286). Alongside this sanction, the regulatory body has debarred key personnel Michael Haldane and Mauro Forlin for 30 years. This action follows a thorough investigation that unveiled significant violations of financial service regulations.

According to the FSCA, the investigation revealed that Global and Local, alongside Haldane and Forlin, had provided financial services linked to the BHI Trust—an entity operating without the necessary authorisation as a financial services provider. This breach not only highlights the perilous implications of unregulated financial advice, and underscores the responsibilities that licensed providers bear in protecting vulnerable clients in the market.

The regulator said that particularly concerning was the finding that Haldane and Forlin failed to properly assess the suitability of the BHI Trust's products against the risk profiles of their clients. Alarmingly, this included pensioners, some with no other source of income, who were placed in hazardous financial situations without adequate consideration of their circumstances.

The FSCA's findings point to clear violations of multiple regulatory frameworks, including the Financial Advisory and Intermediary Services Act of 2002, the General Code of Conduct for Authorised Financial Services Providers and Representatives enacted in 2003, the Determination of Fit and Proper Requirements for Financial Services Providers from 2017, and the Financial Sector Regulation Act of 2017.

In light of these breaches, Haldane and Forlin have been barred from engaging in various capacities within the financial services industry. This includes a prohibition on providing or being involved in financial services, acting as key individuals within any financial institution, and offering specific financial services, whether directly or via outsourcing arrangements.

Google opens applications for Black-owned startups accelerator in South Africa

In a significant move designed to empower the entrepreneurial spirit in South Africa, Google has announced that applications are now open for the Google for Startups Accelerator Africa: Black Founders programme. This initiative aims specifically to support Black-owned startups operating out of South Africa, underlining the tech giant’s commitment to fostering innovation and economic growth within the region.

The accelerator programme, is poised to run from 2024 until March 2025. It invites South African startups that are not only based in the country but are also building solutions that cater to the wider African or global markets. To qualify, startups must meet a checklist of criteria: a minimum of one Black South African founder must be involved, the team should have the relevant experience and drive, and the startup must have a live product that is leveraging, or has the potential to leverage, artificial intelligence. In addition, a harmonious fit with Google products is essential, showcasing the potential to harness these tools for scaling.

Folarin Aiyegbusi, Head of Startup Ecosystem for Google Sub-Saharan Africa, remarked, “Startups in Africa are critical drivers of innovation, economic growth, and social progress.” He said that by channeling investments into Black-owned startups, Google is not merely supporting individual enterprises; it is contributing to systemic change aimed at fostering job creation and economic empowerment for future generations.

South Africa unveils its first electric minibus taxi, eKamva, at Smarter Mobility Africa summit

In a significant stride towards sustainable public transport, South Africa has launched its first electric minibus taxi model, known as eKamva. This initiative, spearheaded by GoMetro in partnership with various companies and research institutions, was unveiled during the Smarter Mobility Africa summit.

It introduces not just an innovative vehicle but also an integrated electric vehicle (EV) business model complete with charging infrastructure, termed flx EV.

The initiative commenced in early 2023, responding to the urgent need for environmentally friendly transport solutions that suit the unique conditions in South Africa. The project team, made up of GoMetro, Powerfleet (formerly MiX Telematics), HSW, and ACDC Dynamics, in collaboration with Stellenbosch University's Faculty of Engineering, undertook extensive testing around Stellenbosch. Their goal was to ready the eKamva for South African roads, ensuring it meets the demands of local taxi routes.

The newly established flx EV product will soon allow minibus taxi owners to apply for inclusion on a waiting list through its website, paving the way for a new era of electric public transport. In partnership with various stakeholders, flx EV is developing a network of charging hubs across the nation. The inaugural hubs are expected to be operational in Century City and Stellenbosch within the next year.

Alongside practical fleet management capabilities, the flx EV app will facilitate taxi owners in monitoring their vehicles' statuses and prepayment of charging, while ingeniously directing drivers to the nearest charging stations.

GoMetro’s CEO, Justin Coetzee, remarked, “This is a new approach to electrifying the smaller-vehicle public transport industry. We believe it will spark an entirely new economic sector and is socio-economically very important for the automotive sector.” This forward-thinking project might just be the beginning of a revolution in South Africa’s public transport, highlighting the potential for electric vehicles to coexist with everyday commuting needs.

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