Small Business Stuff Chat about SMME issues

29Jul/100

Your Wallet – The Bottomless Pit

It was confirmed in the press today that all major highways around Johannesburg and Pretoria are to be tolled.  The cost has been estimated at around 50c per kilometre for a private car, and “many times that” for a commercial vehicle. If you live in Pretoria and work in the Johannesburg CBD, or vice-versa for that matter, it will cost you about R1000 to drive there and back every working day in a month. 

I don't know about you, but I am becoming heartily tired, to put it politely, of paying for the same thing many times over. If there is one thing that will make me chuff off overseas it is the continual assault on my wallet to buy something I have paid for several times already.

Health, Safety and Security, Education, practically all the public services. We pay for each many times.

We pay through local and national taxation, through fees and levies, through paying for the replacement services that we feel necessary to buy because of the inadequacy of State provided services. There are the hidden costs buried in the price we pay for goods and services as suppliers try to recoup the additional fees and levies they are burdened with.

In this case we pay for the Department of Transport and SANRAL through national taxation and fuel levies every time we fill up at the pump. We pay for local roads through local rates and taxes and licence fees on our vehicles. We pay for Tollcon through toll fees on major roads. Now we must pay again at 50c per kilometer to use roads we have already paid for.

The clear intent is to drive us off the roads onto a public transport service. That might be acceptable if there were an affordable, reliable and safe alternative to the private car, but there is not.

What will clearly happen is that the residents of small towns on the rat runs next to the freeways will see their traffic flows increase exponentially, with the consequent damage to their infrastructure and the quality of their lives. We will see the cost of goods and services increase as delivery companies recoup the additional costs of the road toll.

We will continue to see the great and the good hurtling along the by-now-deserted freeways, blue lights a flashin', comforted by the knowledge that we, the long-suffering taxpayer are once again paying.

I think, as I have said before, that it's time for the villagers to light their torches, pick up their pitchforks and march on the houses of the mighty, if necessary dragging a guillotine behind.

This will be the last straw for this camel.

(Note to self - I must find a course on how to jimmie a transponder.)

 

25Mar/100

FNB/PayPal – A Failed Opportunity

SA has once again managed to turn a prospective Golden Goose into tough old turkey that is best left alone.

A link-up between FNB and PayPal, the online payment portal was announced today.  It gave me little pleasure.

What we expected was a gate-opener to local and international on-line trade.  Saffers would be able to buy through the on-line banking payment portal of a local bank, with the comfort of the world’s largest payment facilitator ensuring high-quality global user comfort. 

For merchants PayPal would allow us to set up international shop-fronts with low transaction charges and remit the cash back to our local bank accounts.

For the Reserve Bank and SARS it would give them the opportunity to track the currently invisible off-shore on-line trade and tax it.

What we got was not even close.

Today’s announcement was more about Exchange and Bank Controls than about opening the sluice gates for International on-line trading.

First, and saddest, you cannot link PayPal with a business account. Only personal accounts. Puts most SMME merchants right out of the game.

Your local SA PayPal account will be denominated in US Dollars. There are probably two reasons for this.

    1. Without partnering with FNB, PayPal would need a local deposit taking licence to operate local accounts. They don't want the time and hassle of acquiring one.  The PayPal account, while called an SA PayPal account, is probably held on American servers.  Hence the dollars.
    2. FNB don't want you to be able to buy and sell online between PayPal accounts without passing through your FNB account on the way. They don't make anything on direct trades. So, the sales prevention team have decided to denominate the account in dollars and only have dollar buy-now buttons on the PayPal interface.  The simple lack of a rand buy-now button makes PayPal useless to all intents and purposes for internal SA trade.

You have 30 days to transfer your money back to South Africa. You can’t keep the money in your SA PayPal account as a wallet … that would be in contravention of the Reserve Bank Regulations and FNB’s Terms of Service. You will be responsible for making sure the money comes back in time.

Each transaction must be uniquely identified. Every detail about the sender, receiver and the transaction will be reported to the Reserve Bank. No more avoiding VAT and duty.

South Africans will not be getting the full PayPal implementation. We can send and receive money but will not be able to use the buy-now buttons in South African Rand. 

You will have to use a second merchant gateway to handle rand transactions. Why use PayPal at all then ?

FNB will be adding 1.5% onto the transaction value. This, coupled with PayPal.com’s 3.4% + R2.10 per transaction, takes us to about 5% – which means that one of PayPal’s most attractive features – the low transaction fee – is negated for South Africans.

Sorry Folks, but this is a another prime example of the Victorian approach to banking and e-commerce that hamstrings 21st century trade in SA.

25Mar/100

Media Freedom – the Viral Choice

As on-line marketers, we are all writers, or aspiring writers.   What we write and how we write it is key to our success.  We see media exposure as a vital component of our business plans.  We can write what we want, provided it's within normal legal limits.  That is what we expect from the constitutional guarantees in this democracy, and we all respect that. 

However, there is the potential for it going pear-shaped as the ANC implodes and uses whatever means it can to retain power.   I hear the goose steps of authoritarian fascism coming down the passage.

I used to think wee JuJu was a figure of fun.  I used to giggle at the jokes about him circulated on e-mail.  I used to write witty pieces about his latest antics. (I thought they were witty anyway).  Now I am not so sure.  He acts and sounds like his namesake, Julius Streicher, the founder and editor of Goebbels virulently anti-Semitic and pro-Nazi rag, Der Sturmer.

He was heard last week to say "I will personally arrest journalists caught breaking the law".  He was also heard to rant and rave about a “Boer Press” campaign against top public officials, including himself.

Floyd Shivambu, his acolyte and spokesperson in the ANCYL threatened nineteen of the country's top journalists when they questioned the authenticity of a dossier he’d attempted to leak. The subject of the dossier? The private life of City Press reporter Dumisani Lubisi, who, you may also remember, was instrumental in exposing Youth League president Julius Malema’s various business interests.

Malema has at best a sketchy knowledge of the law, especially company law, and is clearly not bothering to study the laws relating to powers of arrest, and because of his antics, those of incitement to racial hatred, libel and slander.   The law under which he is proposing to carry out his arrests is his new personally developed law making doing, saying or writing something he doesn't like an offence.  Or just being white.

That we have a body of jurisprudence, case law and precedent, operated by a pretty much independent judiciary seems not to matter one whit.  He will stamp on anyone that disagrees with him.

What is clear that constitutionally guaranteed media freedom is under serious threat, and not just from  Malema. The silence from the Presidency and senior members of the ANC is deeply worrying.  The history of the SABC as ANCTV is no comfort.

Where it is particularly relevant to the SMME online sector is that on-line publications, including blogs and websites fall under the ambit of current law.  Adding controls on what you must or must not publish or advertise and the way in which you do it will affect your business.  We are already limited in email correspondence.  People have been fired for sending email that someone considered objectionable, even if they were not the intended recipient.

The portents are there.  Generalissimo Cele militarises the SAP and encourages Wild West shootouts, VIP bodyguards feel free to attack journalists going about their lawful business, the blue light bullies go about their merry way with impunity.  People have already been killed.

The greatest portent is the way in which the arrogant  bumptious Mini Me’s of government consider themselves to be so high and mighty that they are above the law and Parliament.  They ignore court subpoenas, parliamentary committees, policy, procedure and governance. 

Keep buying the M&G.  Twitter your opposition to the threats to media freedom with the #SpeakZA tag, visit http://www.thoughtleader.co.za/siphohlongwane.