Less noise? The UK’s University of Birmingham has unveiled a new design of urban wind turbine that produces energy 7 times more efficiently than any current model and revealed it was designed by AI.

In this Open Letter:

• New Types of Advice: Get advice without the hidden commissions.

• SA’s biggest back is in black, drop the VAT on the protein, pain from two pots.

• All the Finance Help: Fraction of the cost.

• Fake startup book: The results are in.

• Last chance for 40% off.  Join The Open Collab today.

Together with:

TRENDING NOW

Putting the Trust Back in Your Fin Advice

SA has a financial literacy rate of only 42%... 

When compared to the UK’s 67%, Australia’s 64%, Canada’s 68%, and Denmark’s 71%, it would make sense that many in SA would need help navigating our finances, especially when it comes to risk and retirement. 

This lack of financial literacy gave rise to an entire industry of financial advisors. 

In fact, in SA there are roughly 3,500 practising Certified Financial Planner (CFP®) professionals whose mandate is to advise on products their clients can buy from registered Financial Service Providers (FSPs).

The same goes for the nearly 200k reps we have working for the 11’750 of SA’s FSPs. All out there to sell you products…

Now, while there are certainly good financial planners who help people, a challenge with the industry is that the incentives are often misaligned. Financial advisors are often rewarded with large commissions for selling certain products over others and it’s hard to think that such an advisor might sell a product that offers less commission. 

And the problem for many investors is that there is no transparency into exactly how much commission or kickback such an advisor will get when selling said product. And some of these commissions can range between 3 and 8.5% of the total cost of the product - upfront!

(Never mind the ongoing payments and performance-based bonuses, alongside perks like trips and professional development…)

But what this commissions-based model does is create an obligation towards the financial institution - i.e. the organisation helping the advisor put food on the table. In other words, not necessarily you and I…

It’s so bad it makes you want to avoid Christmas lunch

One can imagine that quite a few people have been tricked into buying products they don't actually need simply because their cousin Jimmy started a new job as a CFP and needs money for the December holidays.

This begs the question: When you go see a financial advisor, how do you know anything they try to “sell” is really right for you?

The local player swimming upstream

Doshguide is a local platform looking to bring credibility back to the financial advice game by changing how advisors earn a living: Instead of commission on financial products you don’t need (or aren’t suited to your financial situation), Doshguide connects consumers with advisors for flat-fee, 100% unbiased, personal finance and investment advice.  

How it works is:

You book an initial 20-minute consult with Doshguide’s founder Rory Brachner (he’s been burnt by a financial advisor before, so you just know he’s gonna connect you with the right person…).

You then get matched with one of the advisors on Doshguide’s panel for between R450 and R6’000 per month, depending on the complexity of your finances.

And because the advisors work on a flat-fee basis (this is where your month-to-month sub comes in) - they’re not here to sell you any product. They help you find something that’s the right fit for you and your financial situation. There is no commission on products sold, just 100% unbiased advice.

They’re also able to work with all the major financial institutions as well for those products that need a financial advisor attached to them - they simply zero out the commission.

SA sorely needs more high-net-worth and money-savvy citizens. And platforms like Doshguide that enable 100% unbiased financial advice might just convince more South Africans that it’s worthwhile speaking to an advisor again. We’re watching this space…

CHECK THIS OUT

Close the Year Strong with Smarter Financial Planning

A 2024 report by Xero revealed that 24% of small businesses in South Africa face cash flow challenges, with 72% of them resorting to personal funds to sustain operations. Additionally, 46% of business owners spend one to two months chasing late payments, further highlighting the extent of the problem.

For many founders, these challenges are at their worst in December. Fewer workdays mean less income, and in many sectors, December feels like a standstill. It’s often the time when founders dip into personal funds to keep their businesses afloat—bye-bye holiday plans.

But it doesn’t have to be this way.

With the right planning during busier months, you can ease the stress and build reserves to confidently navigate the holiday slowdown. And let’s face it—strategic financial planning isn’t as simple as “just make more money in the good months.”

That’s where a CFO can make a world of difference. A seasoned CFO doesn’t just look at the numbers—they help you make the right strategic decisions to keep your business resilient, ensuring you can enjoy the holidays instead of stressing over cash flow.

Here’s the best part: You don’t need a full-time CFO.

With fractional CFO services, you can access world-class financial expertise without breaking the bank. Whether it’s maximising profits in busy periods, building reserves, or setting realistic strategies, a fractional CFO can help you navigate the complexities of financial management while keeping costs low.

Contact OCFO today to learn how their services can help you finish the year strong (or make sure next year is a strong one) and spend your holidays the right way.

IN SHORT

Some lekke facts to gooi around the watercooler…

🍯 Two-Pot Pain. JSE-listed financial services group Alexforbes has seen an increase in operating costs since the implementation of SA’s Two-Pot retirement system, with withdrawals seeing the company’s tech costs (two-pot system implementation, software and licensing costs, and an increase in outsourced services) increase by 13% Y-o-Y, and personnel expenses up by 12% to handle increased claims volumes.

🧱 BRICS Brickwall? SA’s Department of International Relations and Cooperation (DIRCO) has said there are no plans to create a “BRICS currency” in response to incoming US President Trump’s tariff threat to impose 100% tariffs on BRICS nations that support the creation of an alternative currency to the US dollar.

🍗 VAT-Free Chicken. SAs might feel the pinch of rising food costs lessen if a proposal to remove VAT from frozen bone-in chickens & portions, and fresh and frozen chicken offal, is successful. The proposal, submitted on behalf of the South African Poultry Association (SAPA) and the Association of Meat Importers and Exporters (AMIE), aims to expand the basket of essential foods free from VAT, and those that would benefit poorer households.

👆Back in Black. Naspers-owned Prosus has announced half-year profits with group adjusted earnings (before interest and taxes) hitting US$60 million. This comes off the back of the group selling stakes in Trip.com in China, food delivery company Tazz in Romania, and Superbalist back home in SA.

⚔️ Musk v OpenAI. Attorneys representing Elon Musk and his AI startup xAI have filed for a preliminary injunction against OpenAI to prevent it from converting into a fully for-profit business. Musk’s legal team is arguing that OpenAI should be prohibited from “benefitting from wrongfully obtained competitively sensitive information or coordination via the Microsoft-OpenAI board interlocks.”

🎯 Founder Focus. Every year, more than half of entrepreneurs put their company’s future at risk by failing to take a proper break over the holidays. Our friends at Metavolve are hosting a free, game-changing, hands-on 2-hour workshop on 11 December with practical steps to end off 2024 in a way that allows you to take a good break this Christmas so that you can come back on fire and ready to dominate again in January – register here for free.

BUILDING TOGETHER

Happening over at The Open Collab

Our community of SA founders have been buzzing…

• We welcome 12 new members who made most of our schweet Black Friday 40% off.

• Helped Pieter find the best international SMS provider.

• Coordinated to meet at AfricArena this coming week.

• Discussed the current trends of ghost engineers and heard some horror stories.

• Had a great time in chat roulette brainstorming how to overcome challenges together.

  Thinking about joining The Open Collab?

• Supercharge your network in the SA startup landscape — get that introduction, get that customer, or meet that partner.

• Get feedback on your products, services and/or offers from others who have built and are building their own products right now.

• Join all our online and in-person events for free!

• Exclusive 1-on-1 sessions with startup consultants.

SA’s only dedicated tech startup and scale-up founder community. 40% off the annual plan until midnight!

HAPPENING SOON

Upcoming Events

4 December 2024 - In Stellenbosch? We are partnering with the Stellenbosch Network for a business speed networking event. It's going to be a great deal of fun, and there are only a few tickets left; come join in!

6 December 2024 — AMA with Alan Knott-Craig: After our LinkedIn Live with Allan, you voted to an Ask Me Anything session — Join The Open Collab community to attend for free.

13 December 2024 — Sales Masterclass — Online: Part 3: Keep your B2B sales pipeline filled with this Masterclass session with sales expert, Sebastian Chapman — Join The Open Collab community to attend for free.

View all our upcoming events here.

FRIDAY’S GAME RESULTS

The Books That Founders Need

We asked which book is NOT a SA startup/business book, and you almost got it… 

🟥⬜️⬜️⬜️⬜️⬜️ Stalking Giants

🟥🟥🟥🟥🟥⬜️ Life Lessons 

🟥🟥🟥🟥🟥🟥 Upstart 

🟩🟩🟩🟩🟩⬜️ Township Tech 

⬜️⬜️⬜️⬜️⬜️⬜️ The First Kudu 

Correct answer: Township Tech… man, we wish it was real though.

The others are all real:

• Stalking Giants is also new: A look at how Capitec managed to take on the Big Four Banks.

• Life Lessons is the new book by Alan Knott-Craig, known for CellFind, iBurst, Mxit, Herotel and now fibertime.

• Upstart is a book by the then-25-year-old founder of DigsConnect.

• The First Kudu is the remarkable story of SA’s first would-be unicorn, HouseME.

And you should totally get yourself a copy – all great stories!

Your 2 cents…

You nailed it, Karabo! 💡 It’s actually not a book — well spotted! 🎯

Us too, Nashe! 🙌