12 Inside BUSINESS Tuesday, July 25 2017 | NEW ERA The proper handling of sensitive company documents Staff Reporter Windhoek The process of document destruction is the final stage of a document’s life cycle, and is a task that is essential to protect confidential information about businesses and clients. As a result, simply throwing the old documents away is not a safe option and serious businesses have been advised to make use of professional document shredding, which has been described as the only way to ensure total peace of mind. According to the Document Warehouse, situated in Windhoek’s Khomasdal neighbourhood, a sticky note detailing the date and time of the next company meeting isn’t nearly as confidential as the telephone numbers or bank details of a previous client. Some examples of the types of documents that call for the acquisition of professional document destruction services include documents containing financial information of any kind, documents containing insurance policy information, documents containing credit and debit card numbers, documents containing confidential employment information (such as salaries, employee home addresses etc.), documents containing education information (such as graduate certificates) and copies of ID documents, driver’s licenses and passports. “Aside from peace of mind, there are several other advantages associated with outsourced document destruction. These include saving money and time as well as lowered associated risk,” said Ray Vries, sales and marketing director at the Document Warehouse. In terms of saving money, Vries noted that when document shredding needs are outsourced, money will be Photo: Contributed Trusted… The Document Warehouse in Khomasdal is the preferred service provider in the secure destruction of vital documents. saved as there will be no need to purchase a hefty shredder for the office. The initial cash outlay for a shredder is, after all, not the only expense incurred as it will require regular servicing and maintenance which will add a fair amount too. “Generally, outsourced document destruction is incredibly affordable, especially if a large amount of shredding is required as a discounted rate is usually applicable,” Vries added. In terms of saving time, Vries noted that hundreds of documents each month takes up a substantial portion of time. Outsourcing the job means not worrying about dedicating any time or staff to this tiresome task, thus increasing business productivity. Also, when shredding documents onsite using a shredder, there is an increased risk that the documents could fall into the wrong hands before they are destroyed. “When outsourcing the job, the documents will be destroyed swiftly and effectively, making it a much more risk-free process,” Vries concluded. Start saving today to enjoy retirement Staff Reporter Windhoek Did you know that July is national Savings Month? Originally, savings month was a savings awareness campaign developed in South Africa but soon found its way to Namibia. Savings month is aimed at promoting debate around key aspects of saving, raising awareness of the benefits of short, medium and long-term planning, building relationships with key partners to leverage future opportunities and getting consumers to move from ennui into action. We can all agree that there are many things that one has to save for, but saving for your retirement is most important and unavoidable. When one starts out their career, they are advised to save 15 percent of their gross salary for their retirement. This means that one has to save for about 35 years to live the same quality of life after they retire as they did before the time. Traditionally, one reaches retirement at 60 years of age and with life expectancy in Namibia increasing we are generally living longer and hence the need to save for our retirement years. The latest statistics by the World Health Organisation indicate that life expectancy in Namibia has risen to 64 years for men and 69 years for women. The importance of savings for one’s retirement can therefore not be overemphasised. According to the Financial Literacy Initiative (FLI), 89 percent of salaries in Namibia are paid to service debt leaving very little household disposable income let alone anything for savings. At the same time, research indicates that 51 percent of Namibians are financially literate, but only a mere 32 percent of this population implements their knowledge of financial literacy. This data paints a clear picture, that Namibians do not have enough long-term saving plans such as retirement savings for future use. While retirement can seem so far out in the distant future, it is important to have a special retirement savings plan to be able to afford oneself the same quality of life as before retirement. All too often people entering retirement do not place enough emphasis on personal planning to ensure they maximise their opportunities. This often results in people having to work long past their retirement years to make ends meets or elders depending on their children to look after them during their retirement years. It is imperative to take the time now – at an early stage in your planning process – to think about the choices available to you in preparing for your retirement. Saving for retirement should not be left to the last minute – with proper planning you can start saving for retirement today. This can be done either by investing a lump sum or some of your salary each month or you can grow your money over time so that you can retire comfortably. Regardless of how much you need to or can afford to save, the most important thing is to start and stay committed to saving. It is a fact that the economy has not been doing well of late. In December 2016, Namibia slipped into a technical recession with statistics showing the economy had contracted by 1 percent between October and December 2016. Recession is a period of temporary economic decline, during which trade and industrial activity are reduced and it is generally identified by a fall in the gross domestic product (GDP) in two successive quarters. The latest data reveals that the country has been in recession for three consecutive quarters. As a result of this, companies are closing down or cutting costs by reducing labour as one of the alternatives to manage and still be able to make a bit of profit. This is a reality one must be prepared to face, not just emotionally but financially too. According to statistics from the Namibia Labour Force Survey 2016 released last month by the Namibia Statistics Agency, the number of people employed in 2014 dropped from 708,841 to 676,885 in 2016. But employment is often not guaranteed, thus the need to be prepared. The Construction Industries Federation (CIF) of Namibia last month said 63 percent of businesses have either closed down, are dormant, or have scaled down operations drastically. The federation estimates that between September 1, 2016 and March 31, 2017 about 30 percent of the workforce was retrenched. If you are retrenched or change jobs, you can maintain your retirement plan by moving it into a preservation fund. You should resist the temptation to cash in your savings, as it will be very hard to make up for the value you’ll lose. If you are retiring soon or are already retired, you need to draw a monthly income from your savings to maintain your lifestyle. You also need to manage your retirement savings to ensure it lasts throughout retirement. A comprehensive retirement annuity can fulfil all these needs or a specific requirement you may have, assisting you to maintain your financial independence during your retirement. Retirement is a fact of life. The question lies in what to do to ensure that you retire in comfort. When you retire, your needs do not magically disappear, bills will still need to be paid and you will still have a life to live and need things that require money. Upon reaching retirement age, all Namibians automatically qualify for the government old age pension (currently at N,200 per month). This makes a difference but is hardly enough to get one through the month especially when one is used to a regular and larger monthly income. For previously employed pensioners, the pensions and government senior citizens grants should just offer an additional source of income and not serve as the primary source of income. Retirement plans such as the Sanlam Namibia Retirement Annuity is an effective way to save for retirement because when you retire, you may take up to one third of your accumulated savings in a cash lump sum. The rest is used to provide you with a monthly income. Also, your retirement annuity contributions to Namibian registered pension, provident or preservation funds reduce your taxable income up to certain limits (i.e. your premiums are tax deductible), and the growth on your investment is tax-free. To ensure you retire comfortably and maintain the lifestyle you desire, make the smart move and start saving today. Planning for your retirement is essential, and retirement investments that you make today, will pay off in the long run.
Tuesday, July 25 2017 | NEW ERA Inside BUSINESS 13 IMF says global recovery on firmer footing WASHINGTON The global economic recovery is on firmer footing as improving growth in China, Europe and Japan offset downward revisions for the United States and Britain, the International Monetary Fund said Sunday. However, wage growth remains sluggish which risks increasing Numsa strike will cause irreparable damage, says Afribusiness JOHANNESBURG Afribusiness said yesterday that a strike by the National Union of Metalworkers of South Africa (Numsa), if it went ahead, would cause irreparable damage to the economy. This comes as Numsa last week slammed “intransigent” employers in the engineering sector and warned of a “total shutdown” in the industry as it goes into a fifth wage negotiation meeting. Numsa declared a dispute with employers in the engineering sector wage negotiations which deadlocked last month. Afribusiness’s labour law advice unit manager, Charles Castle, warned that the strike that Numsa was threatening the entire metal and engineering industry with would harm, rather than benefit, the workers. Castle said if Numsa proceeded with its strike, the sector should expect more retrenchments and job losses which South Africa could afford at this stage with a current unemployment rate higher than 27 percent. “We understand the economic difficulties that employees in these sectors face. Considering the current economic situation of South Africa, it is irrational and unjust to employers and workers alike to embark on a strike as a result of unreasonable demands,” Castle said in a statement. “Employers will be left with no other alternative but to commence with retrenchments as a result of affordability and profit margins.” The union, which represents about 140,000 workers in the metal and engineering sector, is demanding a 15 percent wage increase across the board based on the actual rate workers are earning, not on the new minimum rate. It wants increases backdated to 1 July as the wage agreement lapsed at the end of June. But employers propose, among other things, a three-year wage agreement offering of 5.3 percent wage hike across the board for the first year of the agreement based on the minimum rate, and not the actual rate that workers are earning. If the strike goes ahead, key sectors that will be heavily affected include foundries, electronics and telecommunications, the plastic and fabrication industries, machinery and equipment, electrical engineering, basic metals, heavy and light engineering, as well as construction engineering companies. Companies which supply critical parts to the auto industry, including Auto Industrial, Bell Equipment, CBI, Union Carriage and Wagon, Dorbyl, Marley Pipe System and Dana Spicer Axle among others, could also be affected by the strike, while ongoing work at Eskom power stations Medupi, Kusile and Ingqurha, may also incur further delays. - Nampa/Ana tensions that have pushed some countries toward more anti-global policies, while efforts to erode financial regulations put in place since the 2008 crisis could erode stability, the IMF warned. “The recovery in global growth that we projected in April is on a firmer footing; there is now no question mark over the world economy’s gain in momentum,” IMF chief economist Maurice Obstfeld said. Presenting the latest update of the World Economic Outlook (WEO), he said “recent data point to the broadest synchronized upswing the world economy has experienced in the last decade.” The fund still expects the global economy will grow by 3.5 percent in 2017 and 3.6 percent in 2018, the same as in the April WEO. However, the unchanged forecast masks some significant revisions, including in the United States where the IMF downgraded its growth estimate last month after judging that spending plans promised by President Donald Trump that had been expected to provide a boost to the economy were stuck in limbo. The US estimate was cut to 2.1 percent for this year and next, down 0.2 points and 0.4 points, respectively, from the more optimistic forecast in the last report. The outlook for the British economy also was revised down by 0.3 points to 1.7 percent this year on weaker-than-expected activity in the first quarter, while the impact of Brexit “remains unclear.” But those downward revisions were offset by the improving outlook in key economies, including the euro area where growth prospects have improved in France, Germany, Italy and Spain. The euro area now is projected to see economic growth of 1.9 percent this year and 1.7 percent in 2018. Japan also is seeing improved growth prospects, with an expansion of 1.3 percent this year MARKET OVERVIEW expected, although that is seen slowing sharply to 0.6 percent in 2018. Meanwhile, China continues to be a major engine of global growth, expanding by 6.7 percent this year, and 6.4 percent next, driven by economic policies in Beijing. The forecast for 2017 was revised up by 0.1 percentage point, “reflecting the stronger than expected outturn in the first quarter” which the IMF said was underpinned by Beijing’s “supply-side reforms.” The 0.2-point upward revision for 2018, however, was the result of the expected delay in the “needed fiscal adjustment,” which could cause risks down the road. China’s “higher growth is coming at the cost of continuing rapid credit expansion and the resulting financial stability risks,” Obstfeld warned in his prepared statement. But within the mostly upbeat forecasts, the IMF once again sounded the warning on the growing anti-global sentiment, which could leave all economies worse off. That has been fueled in part by the fact the benefits of increased growth have not been broadly shared. “Even as unemployment is falling, wage growth still remains weak,” Obstfeld said. That “not only holds back the improvement of living standards, but also carries risks of exacerbating social tensions that have already pushed some electorates in the direction of more inward-looking economic policies.” While the report does not specify any country, it comes amid Brexit talks and the Trump administration’s continuing focus on “America first” policies, including cutting bilateral trade deficits and backing away from free trade agreements. The report warned that “policies based narrowly on domestic advantage are at best inefficient and at worst highly damaging to all.” Obstfeld said, “Strengthening multilateral cooperation is another key to prosperity.” Finally, the IMF cautioned that “a broad rollback of the strengthening of financial regulation and oversight achieved since the crisis” -- something the Trump administration is pushing -- could increase the risk to global financial stability. - Nampa/Ana Money Market Change Latest Selected NSX Stock 3 months 0.00% 7.08% Symbol Stock Name Spot % Move 6 months -0.05% 7.48% CGP CAPRICORN INVESTMENT GROUP 1800 0.00% 9 months -0.08% 7.63% NBS NAMIBIA BREWERIES LTD 3350 0.00% 12 months -0.12% 7.78% BVN BIDVEST NAMIBIA LTD 787 0.00% Bonds Change Latest FNB FNB NAMIBIA HOLDINGS LTD 4679 0.00% GC17 (R203 : 7.09%) 0.03% 7.76% ORY ORYX PROPERTIES LTD 2071 0.00% GC18 (R204 : 7.15%) 0.02% 8.06% NAM NAMIBIAN ASSET MANAGEMENT 72 0.00% GC21 (R208 : 7.47%) 0.03% 8.29% NHL NICTUS NAMIBIA 200 0.00% GC24 (R186 : 8.54%) 0.03% 9.76% BMN BANNERMAN RESOURCES LTD 30 -6.25% GC27 (R186 : 8.54%) 0.03% 10.15% DYL DEEP YELLOW LTD 292 -0.34% GC30 (R2030 : 9.13%) 0.03% 10.80% SILP STIMULUS INVESTMENT LTD-PREF 12129 0.00% GC32 (R213 : 9.21%) 0.03% 10.92% FSY FORSYS METALS CORP 139 13.01% GC35 (R209 : 9.53%) 0.03% 10.96% TUC TRUSTCO GROUP HOLDINGS LTD 411 0.00% Commodities %Change Latest B2G B2GOLD CORP 3507 -0.54% Gold 0.11% $ 1,256.38 Platinum 0.04% $ 935.21 Copper 0.00% $ 6,004.00 Brent Crude 1.50% $ 48.10 Main Indices %Change Latest NSX (Delayed) -0.05% 1067.22 JSE All Share 0.52% 54,442.51 SP500 -0.04% 2,472.54 FTSE 100 -0.97% 7,380.48 Hangseng 0.53% 26,846.83 DAX -0.09% 12,229.59 JSE Sectors %Change Latest Financials 0.32% 15,294.45 Resources 0.43% 31,898.89 Industrials 0.93% 74,994.65 Forex %Change Latest N$/US dollar 0.47% 12.9783 N$/Pound 0.74% 16.9177 N$/Euro 0.21% 15.1007 US dollar/ Euro -0.24% 1.1635 Namibia Monthly Data Latest Previous Namibia Inflation (Jun 17) 6.1 6.3 Bank Prime 10.75 10.75 BoN Repo Rate 7.00 7.00 24-Jul-17