S&V Weekly Newsletter Vol. 4 No. 38, September 25, 2018

This Newsletter is sponsored by SAFLIA

The S&V land line numbers, +27 (0)31 209 7505/6, were knocked out in a thunderstorm on Sunday night. Please use my cell number, +27 (0)83 757 4627. Emails are unaffected.

Please note: Click on any ad to go to the advertiser’s website

Urbanart's Kwesta TV Commercial

ABSA forecast

'Rand will strengthen by year end'

From Mike Keenan, FX strategist, ABSA
The dramatic sell-off of emerging market (EM) currencies in recent months has been on the back of board-based USD strength, tightening global monetary conditions, subdued commodity prices and escalating global trade tensions. The ZAR and the Turkish Lira (TRY) have been particularly hard hit, because both currencies have sizeable twin deficits, which become very onerous to fund when there is flight to quality. Indeed, the ZAR is falling victim to both equity and bond portfolio outflows, not to mention that foreign bond holders are not reinvesting their coupons either.
       Although we believe that the market is too hawkish on policy rates and worry that many local exporters have already repatriated their USD earnings, we believe that a lot of bad news is already priced into the ZAR at current levels and that both valuations and market positioning are conducive to ZAR short covering. Our structural model (which captures SA’s sluggish GDP and rising CPI backdrop) suggests that the ZAR fair value is currently at ZAR14.87/USD, while our PEER model (which accounts for the global unwind of global carry and soft commodity prices) suggests the fair value is at ZAR14.18/USD. Therefore, we believe that the ZAR will recover from current levels to ZAR14.25/USD by year end.
Note: This is the first of a regular series of forecasts on economic issues by ABSA for the S&V Newsletter.

'Millions stolen' from Eckstein fortune

According to a report in the Sunday Times on September 16, an accountant stole more than R29 million from the deceased estate and other entities linked to Roy Eckstein, formerly the owner of Jaguar Shoes and Springfield Footwear, who died in 2012.
       The accounting firm in which Gareth Ducler was a partner is in liquidation, and the report said "criminal complaints were being formulated".

Chic: IDC bill was R85m

Cape Town (SA) – The Industrial Development Corporation (IDC) invested R85 million in Chic Shoes over 12 years, not R70 million as we have been reporting.
       In an official response to S&V's query on what the money had been used for, Zama Luthuli, divisional executive for corporate affairs, wrote:
       "IDC’s relationship with Chic shoes spans over 12 years. We contributed to start-up capital and other related costs to get the business up and running. Kindly refer to information provided in our previous correspondence. Total funding provided to Chic Shoes to date amount to R85m.
       "Funding facilities were approved for the following:
* Assets
* Land and building
* Revolving credit facility
* Retrenchment costs
* Preservation costs
* Working capital."
       In response to last week's report, where it was suggested the liquidators may already have sold some of Chic's equipment, liquidator Jochen Eckhoff wrote:
       "Kindly be advised that we have not sold any assets in the estate..please note the auctioneer's response hereunder:
       “I refer to the above and previous correspondence herein and would like to advise that we have not included our full list of assets on the website but have stated that a FULL list is available on request.”

Zimbabwe: Some optimism

Bulawayo (Zimbabwe) – Footwear and leather goods importer House of Kara thinks it will be feasible to begin manufacturing again.
       MD Manish Mithal wrote "We [House of Kara] are traders only. My brother [Ajit, Karasons Footwear] took charge of the footwear production from 2002 following a family reconstruction, but we intend to go back into production in the future as the country recovers and currency becomes available.
       "So after all those years in the industry, I've wanted to and have stayed connected! The Kara family's roots here date back to 1903. Can't give up without a fight."

Movements

Gilletts (SA) – Tanning chemical supplier Fredisco Dyes & Chemicals has appointed Matt Schneider as financial director of the company. A CA, he has been with the company for 4 years, and he is the youngest son of managing member Peter Schneider.

Durban (SA) – Former Bata Retail women's footwear buyer Natasha Naidoo in August joined the Ideals chain as men's and women's footwear buyer. She was with Bata for 9 years.

Midrand (SA) – Nigel Prout, former sales director of Opal Sports, has joined his son Garreth in GL Sports, which specialises in water polo.
       Brad Vilas, son of MD Anne Vilas, has taken over his position at Opal. He was previously sales manager for golf, but now heads all Opal's lines, GM, Unicorn,  Power Glide, Summit and Conti.

Send us the links

As we update the annual S&V Directory, it is heartening to see the number of businesses - including smaller ones - which have developed electronic portals of one sort or another. As an example, have a look at http://dominionoutfitters.co.za/, the website of Dominion Outfitters, a men's outfitter in Durban's CBD.
       We invite readers to submit examples of websites, Facebook pages, or other media - their own or belonging to other businesses - which they feel are effective. We would like to publish links each week.

They Said It

"Tony, I will never do that. It is YOU that is always welcome at our events, no matter how big or small. Just feel free to bring your camera, to keep beside your glass of wine " - Prenisha Dukhipersad, PA to SAFLEC executive director Nerisha Jairaj. I had grumbled that an invitation to attend a function was in fact addressed to my camera, not me.

PASA congress date change

The dates of the Podiatry Association of SA's 12th biennial congress 2019 have changed from June to August 9-11. - http://www.pasacongress.co.za/

Exchange rates

Source: http://www.x-rates.com/calculator/

24/09/1944: Ron MacNiven, retired, formerly Decofurn, Durban.
24/09/1964: Hester Meijer, Berklee Fashion Clothing, East London.
24/09/1977: Ridwaan Moola, Foot Focus, Durban.
25/09/1965: Mahomed Dawood Kaka, Skoen Boetiek, Lichtenburg.
25/09/1973: Michael Cloete, Resource Fashion Trading, Cape Town.
25/09/1974: Yousuf M Jadwat, Fast Forward Clothing Co, Bellville.
25/09/1979: Zaid Paruk, City Express Stores, Durban.
26/09/1934: Siva Pillay, Allateens Bopsi Footwear, Durban.
26/09/1940: Cedric Novis, emigrated, formerly Bolton Footwear.
26/09/1944: Dick Smyth, designer, Durban.
26/09/1948: Melt van Niekerk, Checkmate, Secunda.
26/09/1970: Brett Pengelly, Trail Mix Trading, Durban.
27/09/1943: Rashid Mayet, agent, Johannesburg.
27/09/1933: Mussa Hajat, retired, formerly Footwear Centre, Blantyre, Malawi.
27/09/1973: Tracy Lopez, Lopez Leathers, Cape Town.
27/09/1988: Sylvester Chetty, Spunlok, Pinetown.
28/09/1938: Mervin Bloom, retired, formerly Meroda Footwear [closed], Cape Town.
28/09/1946: Richard Bryant, Fusion Leather, Cape Town.
28/09/1963: Loll Bishoon, agent, Johannesburg.
28/09/1967: Rajesh Morar, Quik Serv Shoes, Pietermaritzburg.
29/09/1942: Moon Govender, Arc Footwear, Durban.
29/09/1957: Monica Hoffman, Chafkins, Benoni.
29/09/1959: Ismail Haffejee, Capri Bag, Durban.
29/09/1962: Venessa Schmid, The Whatnot, Cape Town.
29/09/1963: Gavin Wilkins, formerly Eddels Shoes, Pietermaritzburg.
29/09/1967: Hitesh Motiram, Nakuls, White River.
29/09/1968: Milton Zwart, Ribtech, Pietermaritzburg.
29/09/1964: Denzil Spolander, African Gameskin Group, Cape Town.
29/09/1976: Brad Isaacson, agent, Durban.
30/09/1934: Ben Peters, Tuftex, Pinetown.
30/09/1942: Cassim Shaikh, Hopewell Footwear, Durban.
30/09/1944: Dennis Wilkens, retired, formerly Martin Johnson [closed], Pietermaritzburg.
30/09/1950: Mohamed Farouk Limbada, Kirimon Traders, Durban.
30/09/1966: P ‘Segie’ Govender, Image Footwear, New Germany.

In Memoriam this week

24/09/2003: Werner Fehr, agent, Cape Town.
26/09/1994: Cinnie Bonthuys, Crown Footwear, Pinetown.
29/09/2012: Richard McCulley (b. 14/09/1964), agent, Cape Town.
29/09/2004: Noel Eric Teifel (b. 06/03/1928), NE Teifel & Co, Midrand.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

ABSA Agri Trends 14/09: Hides & skins prices

The average hide price over the past week was R4.65/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. The average price for Dorper skins was R30.00, and for Merino skins was R99.36.

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

Classified Adverts

Sales Rep wanted for Western Cape

To cover Cape Town, north up to Vredendal, the central Cape to Beaufort West, and the Garden Route to Plettenburg Bay. You will carry the Angels range of ladies' comfort footwear.
Send your CV to Jeff Bodill, corvari@telkomsa.net.

Position sought

Devrajah 'Teddy' Moodley, former pattern room manager at Froggie and with 31 years experience, seeks a position in footwear manufacturing. He has a vast knowledge in the shoe Industry. - 083 280 6915, moodleyteddy8@gmail.com

In need of a boardroom?

SAFLEC, situated at 6 Stedman Mews, 128 Jan Hofmeyr Road, Westville, has a boardroom for hire.
       It seats up to 12 people around a table, and has space to add up to 15 more chairs in the room. You are welcome to view the room before hiring.
       For more information, please contact Louise on 031 266 1473 or louise@saflec.co.za.
We look forward to being of service.

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: October 1, 2018.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

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