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Private Wealth: Banking On Climate Change In Africa

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Patrick Odier of Swiss wealth management firm Lombard Odier on why Africa offers immeasurable possibilities for investors, particularly those not risk-averse.


Climate change events such as floods, drought and cyclones have had a cataclysmic effect on the lives of Africans and their economies, with many having to rebuild with little to no resources, placing more strain on economies that are already over-burdened.

But are there ways to forecast these events so people are better able to weather the storm? Wealth management firm Lombard Odier thinks it has what it takes to minimize risk on the continent, and they have the years of experience to back it up.

“We are a 223-year-old company. In the financial industry, it means we have probably learned how to weather turbulences and financial market crises – we’ve survived 40 already,” Patrick Odier, chair of the board of directors at Lombard Odier, says.

“We have made South Africa central to our strategy. I think South Africa has a long history with entrepreneurship. This idea of organizing wealth, planning and optimizing the responsibilities between the members of the families – all that belongs to it.”

With that said, the bank still holds firm to its roots of running a lean organization where the idea is not to grow in quantity, but rather in quality.

“We cannot be everywhere. We don’t want to be, we’re not a giant. We are private. It makes it a bit different from other organizations where the concerns are more operational… we are purely a service-oriented company,” Odier says.

With a client-based outlook where the bank focuses on investment advisory, execution and fiduciary services, each client is handled based on their unique circumstances, but what does this mean for Africa?

“We are trying to look at the African continent with a very open eye, to look at how we can add value to those potential clients or families who may want to organize their estates and perhaps, diversify their risks. I think agriculture, together with new technologies, will represent new opportunities.”

READ MORE | The Big Bank Theory: South Africa’s Banks Of The Future

Odier says the interests of the firm are based on enhancing and not disrupting banking ecosystems that exist in the African environment.

“While Lombard Odier occupies over 2,500 people, we are still of a modest size as a financial institution. So we really want to focus on our existing client base and not disperse ourselves too much. We are not in the business of buying infrastructure banks and trying to take over. We are not in the business of competing with the local banks. We believe in teaming up, or perhaps diversifying the offering. I think when it comes to investing, we can be very useful to this market

“We believe the best institutions to serve the local market are the local ones. We are here to bring something else, which is basically, what is not offered here,” he says.

However, the continent, like any other, has challenges unique to it and thus, require nuances in resolving. It should not be discounted that, although Africa has made gains in catching up to the rest of the globe, a vast majority of its nations are still developing. 

READ MORE | Explainer: South Africa’s Central Bank – Ownership, Mandate and Independence

“The world in general is changing. You see it in everything in your life. You see it in the way you consume, the way you expect your employers to treat you and the way you think of prices. Unfortunately, you’ve seen it the way water becomes scarcer in some periods, you see also how difficult it is to produce electricity correctly, in some respects, and you see it in how climate change is affecting your life.

“All those elements are part of mega-trends we believe as a firm we could try to interpret quicker and better than some. We are transforming the way we invest to invest more sustainably. In South Africa, we want to be a leader in bringing this approach to investing in resources.

“Some say you have to have luxury to think this way, I say not doing it will create much bigger risks than doing it,” Odier says. 

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Trevor Noah Is Laughing All The Way To The Bank

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South African Comedian Trevor Noah Is The Fourth Highest Paid Comedian In The World. Here’s how he did it.


With earnings of a staggering $28 million Trevor Noah has become the fourth highest paid comedian in the world.

According to Forbes the Daily Show host, “earned the bulk of his income this year through stand-up, making him eligible for our list”.

Forbes’ methodology is using all earnings estimated from June 1, 2018 to June 1, 2019.

Burna Boy’s The African Giant Debuts On The Daily Show With Trevor Noah

“Figures are pretax; fees for agents, managers and lawyers are not deducted. Earnings estimates are based on data from Pollstar Pro as well as interviews with industry insiders,” they said.

He is signed to host the Daily Show until 2022.

On the show, Noah usually sits down with the biggest headline-grabbers in politics and entertainment.

Noah also covers the biggest news stories in politics, pop culture and more.

Recently he trended after devising a viral conspiracy theory that President Donald Trump is targeting first lady Melania Trump with his immigration policies.

The Daily Show with Trevor Noah currently has over 5,3 million subscribers on YouTube alone and has had 1,9 billion views.

But apart from the show, the South African born comedian made more than 70 stops across the world and had his second Netflix special last fall.

His book Born A Crime, published in 2016, is still ranked as No.1 on the New York Times’ bestseller list for paperback nonfiction.

Africans across the globe celebrated Noah’s listing on social media with some expressing how inspired they are by him.

On the Forbes list, Noah follows after Jim Gaffigan earning $30 million, Jerry Seinfeld earning $41 million and Kevin Hart being the highest earner with $59 million.

On the top ten list the only woman on the list is Amy Schumer at the seventh spot with $21 million.

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Wealth

Jeff Bezos Unloads Another $990 Million Worth Of Amazon Shares In Early August

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Amazon founder and CEO Jeff Bezos sold over 530,000 Amazon shares in the first two days of August for $990 million. After taxes, he will net an estimated $750 million in cash from the sales. 

The sales on August 1 and 2 followed $1.4 billion (after-tax) worth of Amazon stock he sold in the final three days of July. 

As the richest man on earth, Bezos is now worth an estimated $110.1 billion, using Monday’s closing share price for Amazon.

READ MORE | Jeff Bezos Sells About $1.8 Billion Worth Of Amazon Shares In Three Days

A spokesman for Amazon has not commented on the purpose for Bezos’ last stock sales. The leading theory is that it is to fund Blue Origin, a space exploration company that Bezos founded in September 2000. Bezos told journalists at a space exploration conference in 2017 that he was funding Blue Origin by selling some of his Amazon shares.

According to documents filed on Monday afternoon with the Securities and Exchange Commission, the world’s richest man sold over 530,000 shares of Amazon when the stock price was around $1,900 a share. On Monday, the stock closed at $1,765 a share.

-Angel Au-Yeung; Forbes Africa

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Jeff Bezos Gains $2.8 Billion, Reaches Highest Net Worth Ever

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Feisty And Fearless Pioneers Thandi Ndlovu & Nonkululeko Gobodo

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Thandi Ndlovu and Nonkululeko Gobodo, moulded by South Africa’s apartheid past, tore their way into male-dominated sectors , leading them boldly through a quarter century of democracy. Failure was never an option.


On a sunny winter’s afternoon in a quiet suburb of Randburg in greater Johannesburg, a second white Mercedes-Benz pulls up in the driveway of a photographic studio, and finds a shady spot to park.

Already seated next to a pool glinting blue in the sunlight, an elegant woman dressed in black and white sips green tea and talks about her early life growing up in the former Bantustan of Transkei in South Africa.

Absorbed in recounting her story, she looks up as a tall, slender woman, also in a chic black and white ensemble, walks towards her. The two women beam in recognition. They are here to be photographed by FORBES AFRICA and to share their unique stories as businesswomen in two traditionally white male-dominated sectors – auditing and construction.  

This year, South Africa celebrates 25 years of democracy. As the country started shaking off the shackles of oppression in the 1990s, both these women embarked on their paths to greatness. Both had been moulded by the harsh final years of apartheid, gaining the strength and conviction to fight for what they believed in.

In the process, they built successful businesses, changed perceptions and became role models.

And as with all stories of achievement, their journeys came with times of adversity.

Nonkululeko Gobodo. Picture: Motlabana Monnakgotla

Nonkululeko Gobodo: The visionary in auditing

 As a young girl, Nonkululeko Gobodo had very low self-esteem. She was shy and quiet and as the middle child in a family of five children, she felt overshadowed by her very outgoing older siblings. Her mother made it clear that she thought Gobodo wasn’t “going to amount to anything”.

Yet, there were factors in her upbringing, at home and in her community, which shaped her and prepared her for a future as a captain of industry.

Her mother was very hard on her. “I’m someone who needs affirmation and she did the opposite of what I needed. Fortunately, my father was doing that, he was doing the affirmative things.”

As an educator, her father was excited when she achieved “goodish” results at school, even slaughtering a sheep in celebration.

“When my parents were running shops, I used to be the one who would help in running the shops during the holidays. And I was quite young to be given the responsibility. My mother was literally taking a holiday, and I would run the shop perfectly, no shortage or anything like that. So, in spite of the fact that she was too hard on me, she must have thought she was nurturing this talent and making me strong.”  

Growing up in the then independent Transkei (now the Eastern Cape province of South Africa), Gobodo was largely sheltered from the impact of apartheid in other parts of the country.

“I lived in this world where you were sort of cushioned from what was happening in South Africa. So you were socialized to be a fighter, to be strong. My parents used to say that we should never allow anybody to tell us there were things we cannot do,” she elucidates.

It was an everyday thing to see black people running a variety of formal businesses like hotels, garages and wholesalers.

“I suppose I was very fortunate in that I was raised by these parents who were in business, who were working very hard during those times and with very strong personalities, both of them. Within the Xhosa tribe itself, although there is patriarchy and all that, Xhosa women are very strong and they are sort of equal partners with their husbands.”

Still very young, Gobodo fell pregnant. Her parents insisted on marriage. The marriage would end several years later, after the birth of three children, when she was 34 years old.

While taking a gap year working at her father’s panel-beating shop in Mthatha (then Umtata), during her first pregnancy, Gobodo discovered her calling. While her parents thought she would be well-suited to a career in medicine, she found joy in accountancy.

The gap year also revealed her innate strength to stand up for what she believed in. For the first time, she encountered racism. White managers remained in place when her father bought the business from the Transkei Development Corporation (TDC).

“They were really so upset by these black people who had taken over this business, and they were just bullying everyone. So I was able to stand up to them and then I realized I’m actually smart, I’m actually not this thing that my mother was saying, that I’m not just smart, but I’m strong, I’m tough, I can stand up to these men during apartheid years and it was not because my father owned the shop, but it was this thing of suddenly discovering who you are for the first time and just waking up to who you are and suddenly knowing what you wanted to do. Oh wow, accountancy, I didn’t know about that,” she smiles.

She was also inspired by the fact that black auditors did the books for her father’s business. They were WL Nkuhlu & Co, owned by Professor Wiseman Nkuhlu. Her father supported her decision to study BCom and she enrolled at the University of Transkei (now Walter Sisulu University).

Gobodo became a star performer at university and her confidence grew. After qualifying, the university offered her a junior lectureship. While there was no racism in the academic environment, it was here that she had her first taste of gender discrimination. A male colleague instructed her to do filing. She thought this was ridiculous considering her position, and she refused. He treated her as an equal from then on. 

“I made a decision to fight the system differently,” she says. “I was sure there was no system that would determine who I am and how far I can go. I used to say this mantra to myself: ‘Your opinions of me do not define me. You don’t even know who I am’. So I never allowed those things to get to me.”

Early on, she already had a vision to have her own practice, so she was not distracted by her peers complaining while doing their articles. She was determined to take advantage of the opportunity to get the best training she could get. “Those guys never became chartered accountants, so it was a wise thing not to join them,” she smiles.

In 1987, she made history when she became South Africa’s first black female chartered accountant.

Working at KPMG, she grew to rapidly build her own portfolio of challenging assignments.

“It was my driving force right through life to prove to myself and others that there was nothing I couldn’t do. And for me, being black really gave me purpose. I can imagine that if I was living in a world that was readymade for me, life would have been very boring,” she says.

She was offered a partnership eight months after her articles. She would be the first black partner, and the first woman. It was very tempting. But she remembered her vision to start her own practice and taking the partnership would be “the easy way out”. 

So she moved on to the TDC, where at the age of 29, she was promoted from internal audit manager to Chief Financial Officer within three months. Again in 1992, she decided to break “the golden chains” of the TDC to pursue her destiny. But first, she restructured her department and empowered five managers; thoroughly enjoying the work of developing leaders, and setting the tone for the business she runs now – Nkululeko Leadership Consulting.

READ MORE : WATCH | The Making Of The New Wealth Creators Cover

 At the time, her father questioned her decision to leave such a lucrative position to take the risk of starting a business. “Everybody was so scared for me and was discouraging me. I realized these people were expressing their own fears. I have no such fears. And it’s not saying I’m not fearful of the step I am taking, but I’m going into this business to succeed.”

The best way to do that was to step into the void without a safety net. So, no part-time lecturing job to distract her from her vision. “If I had listened to them, how would I have known that I could take my business this far?”

She describes herself as a natural entrepreneur. Yet, the responsibility of leading a business is not a joke.

“It sobers you up,” she says. “You realize you have to make this work, otherwise you’re going to fail a whole lot of people. But when you have the courage to pursue your dream, things sort of work out. Things fall into place.”

Eighteen months into the practice, she took on a partner and felt an “agitation for growth”. It came with a “massive job” from the Transkei Auditor General, and things changed overnight. With only four people in their office, they now needed 30 to complete the assignment and they hired second and third year students who attended night lectures at the university.

“At that time, as a black and a woman, you had to define your own image of yourself, and have the right attitude to fight for your place in the sun. And I can’t take for granted the way I was socialized and raised by my parents. My father was such a fighter. And he shared all his stories at the dinner table. He used to say in Xhosa: ‘who can stand in front of a bus?’, so you just have those pictures of yourself as a bus. Who can stand in front of me and my ambitions in life,” she laughs.

This self-confidence, belief in herself, direction, purpose and her clear vision steered her ever further.

“Unfortunately, I had a fallout with my partner Sindi Zilwa [co-founder of Nkonki Inc, a registered firm of auditors, consultants and advisors], and that was a hard one, a very difficult one. I used to say it was more difficult than my divorce, because that happened almost at the same time. First, the divorce started and a few months later, I divorced with my partner,” she says.

“It was a lonely time. It is amazing that out of hardship, we find an opportunity to grow and move to the next level.”

She went on a five -week program with Merrill Lynch in New York in 1994. On her return, she saw herself being cut out of negotiations to establish a medium-sized black accounting firm. While these plans were scuppered now, her vision still survived and no one could take that away from her.

She approached young professionals who were managers at the big accounting firms in Johannesburg to join her. “But you can imagine, they were young, they were fearful. It took about eight months to persuade and convince them.” 

Gobodo understood their fears as she herself had to overcome her doubts about moving from a small community in the Transkei to the big city. But the visit to New York had helped her overcome her fear. If she could make it there, she could make it anywhere.

Gobodo Incorporated was established in 1996. It was the third medium-sized black accounting firm.

The others were Nkonki Sizwe Ntsaluba and KMMT Brey.

She believes that providence has always sent “angels” to her at the right time in her life. Peter Moyo, a partner at Ernst & Young at the time, gave his time and invaluable experience leading to the establishment of Gobodo Incorporated. Chris Stephens, who was the former head of consulting for KPMG, facilitated bringing a fully-fledged forensics unit to the firm. They took up a whole floor at their new Parktown, Johannesburg offices instead of the planned half-floor.

From a small practice in Mthatha, Gobodo Inc. grew to a medium-sized company with 10 partners, 200 staff and three offices – in Durban, Cape Town and Johannesburg. It was an exciting time.

Gobodo firmly believes that visions are not static. Once a summit is conquered, there will always be another one waiting for you.

The next summit beckoned her 15 years later. Black Economic Empowerment (BEE), a program launched by the South African government to redress the inequalities of apartheid, was firmly established and accounting firms were compliant, and Gobodo Inc. started losing out on opportunities as previous joint-audits done in partnership with the big accounting firms fell away.

She started talks with Victor Sekese of Sizwe Ntsaluba to merge the two medium-sized firms.

Again, people questioned the wisdom of the move. What if the market was not ready for a large black accounting firm?

There was somewhat of a culture clash when the “somewhat older, disciplined, bottom-line” Gobodo Inc. and the “younger, more creative” Sizwe Ntsaluba teams came together.  A new culture combining the best of both emerged. Ironically, while no people were lost during the merger, some were uncomfortable with the culture change and left. 

In the beginning, “a lot of sacrifices had to be made to make this thing work. Like the name. My partners were saying Nonkululeko’s name should be in front because she’s the only remaining founder,” explains Gobodo.

Sizwe Ntsaluba wanted their name up front, and it was a deal-breaker. She decided the vision was bigger than her and she wouldn’t allow anything to jeopardize it. The company name was agreed on: SizweNtsalubaGobodo. The business grew to 55 partners and over 1,000 staff. 

“I think we underestimated how hard it would be,” she says. “Mergers are difficult in themselves, around 70% of mergers fail. People were laughing at us saying ‘ah, black people, they’re going to fight amongst each other and fail’, so we were determined not to fail. Failure was not an option.”

When they did their first sole tender, “you could smell the fear in the passages. There was so much fear”. Then the call came from the chair of the audit committee of Transnet to say the board had decided to appoint SizweNtsalubaGobodo as the sole auditors.

Gobodo had led the way to the establishment of the fifth largest accounting firm in South Africa. Her vision had been realized.

“It was just so fulfilling, really so fulfilling,” says the grandmother-of-three. “So it was time to move this thing forward.”

 She was the Executive Chairperson and Sekese was the CEO. She commissioned partners to find the best governance structure for the firm. Their recommendation was for one leader to lead the firm forward, and a non-executive chair.

“That was going to be boring for me. If I was not going to be part of driving this vision forward, it was time for me to leave,” Gobodo says. “There comes a time that the founders must leave and hand over to the next generation.”

Although she had achieved her dream, it was not easy to let go. The separation took three months.

“I learned a lot about letting go at that time. We have to let go layer by layer. I had to accept that they would do what they had to with the legacy. And here they are now, having merged with Grant Thornton. The dream was to be a true international firm, and now with SNG Grant Thornton, it is still basically a black firm going into the continent. The dream does not die. This is still a black firm taking over an international brand.”

Gobodo now heads Nkululeko Leadership Consulting, a boutique, black-owned and managed leadership consulting firm. Here, she can live her passion for developing leaders. She also sits on the boards of PPC and Clicks. The future awaits her with more promise.

READ MORE : Businesses Of The Future: 20 New Wealth Creators On The African Continent

Side bar: ‘The World Is Not Kind To Strong Women Leaders’

What were the greatest challenges she faced during her career?

“Making a success of your life in the South Africa of the past. As a black person, you always started from a place of being dismissed, as a woman, you always started from a place of being dismissed. So you had to be true to yourself and find yourself for you to be able to succeed. And that was hard. I don’t want to make it as if it was easy.

“The second thing was being a strong woman leader. The world is not kind to strong women leaders. And for me, being a strong woman leader was the hardest thing because both men and women don’t accept a strong woman leader. So you have this big vision, you are driven, you have to move things forward and if you’re a strong man, you’re accepted.

“But if you’re a strong woman, you are not. So you had to grow up and mature and try to find that balance of still moving people forward to achieve your vision, because I realized early that I would not get to the finish line without them. I could not leave them behind. So I always had to find that balance and sometimes, I didn’t do it well.

“Because there was this urgency of moving forward and you have to drag people with you. And they didn’t take kindly to that. Do I regret it? No, not really. I don’t think I would have achieved what I had. I had been given these gifts as a strong woman for a reason. I just feel sorry for strong women leaders, because it is still not easy for them today.”

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