The third South Africa Investment Conference was held on November 17-18in Johannesburg, bringing together powerhouses from public and private sector entities to discuss issues around the South African economy and drum up investment for the country. &nbsp;



In the past two years, R660 billion ($42.5 billion) has been raised by this conference and this year’s investment drive raised R109.6 billion ($7 billion). &nbsp;



The panels held over two days addressed participants both digitally and in person.&nbsp;



A total of nine discussions took place and each delved into a pertinent issue related to rebuilding the economy. The Director-General of the BRICS’ New Development Bank, Monale Ratsoma, announced that the bank would be investing&nbsp;$2 billion towards the development of South Africa’s infrastructure. Ratsoma was firm on the involvement of the government in ensuring regulatory compliance. &nbsp;



Kgosientso Ramokgopa, Chief Executive of Infrastructure South Africa, echoed Ratsoma’s sentiments, further emphasizing the need for the implementation of government strategy and action over policy development and discussions around this. Ramokgopa also highlighted the need for government to take actionable steps towards implementation instead of only theorizing the possibilities through the use of policy and regulations. &nbsp;



“We [the government] are very big on talk and policy articulation and there is very little attention on application and delivery,” said Ramokgopa.&nbsp;He&nbsp;said a step towards this would be collaboration with the private sector and reformation of structural procedures.&nbsp;&nbsp;



The message from day one was intertwined into the conversations on day two as Ramaphosa also outlined the need for “walking the walk over talking the talk”. The need for the localization of production was highlighted. &nbsp;



Ramaphosa also outlined the recovery plan which was going to deal with the reformation of the economic structure and stream-lining of industrial processes. Investors into the economy such as Amazon web services and Naspers outlined what their investments have provided to South Africa so far.&nbsp;



“In responding to the coronavirus emergency, South Africa has demonstrated its capacity for innovation, collaboration, and versatility,” said Ramaphosa in his opening speech on the second day. 



As the conference drew to a close, the evidence of its effectiveness or shortcomings will only be revealed in the coming months as the economy continues to tackle the challenges presented by Covid-19.&nbsp;

South African President Cyril Ramaphosa gestures as he delivers the opening address during the 3rd South Africa Investment Conference in Sandton

South Africa Investment Conference Bags $7 Billion In Commitments

What is the one investment you wish you had made?
One of the best investments anyone can make is to invest in him or herself. There are the formal qualifications, yes, but in my experience the real important one is the informal personal development throughout one’s life. It takes effort and discipline. There are so many excellent books that I have read, and courses that I have attended later in my life, on strategy, innovation, leadership, selling and persuasion, presenting, time management, and a host of other soft skills that I wish I could have made earlier in my life.
What are your investment tips for 2018? 
The biggest tip of all is to first create the capacity to invest. Open a gap between what comes in and what goes out, and the tip here is not to focus on the income side, which is often, over the short term, not so much within your control, but rather on limiting expenses and waste, which is much more controllable. Try to find your happiness outside of consumption, instead of trying to buy bliss.  There is no independence quite as important as living within your means. Then, focus on building a fund that will preserve your lifestyle for life. This is a firewall that should ensure that you are not one day old and poor.
What do you invest in and why?
My investments have mostly been in boring, diversified unit trusts in retirement fund vehicles. But over time it starts accumulating when compound growth starts doing its magic. Luckily I am not much of a wheels person, I have only replaced cars twice in my life, although I do have a motorbike and have made some sizeable ‘investments’ into road and mountain bikes. I have never sold a property in which we have lived, so we have three now, renting out two, but from an investment perspective it has performed very poorly. I believe the house in which you live should rather be seen as a lifestyle possession, not an investment. I do ‘invest’ quite a bit in the liquid asset category called wine – but find that it does not last that long in the cellar before it is consumed. Another investment that has eroded quite a bit of our family’s lifestyle preservation fund is travel and experiences.  I would like to believe these are investments with internal value – these adventures bond families and shape character.
What investments have worked best for you?
One of the best things one can do is to make full use of retirement funds and other tax free vehicles. The state does not tax you when you make the investment, there is no tax on interest, dividends or capital gains, no estate duty, and some of the withdrawals might even be tax free. It is also difficult to touch it, which is a good thing; it protects you from your short term gratification weaknesses.
What investment strategy do you recommend? 
It is often said that the best investment is to pay off debt. I agree, but only after you have first made contributions to hedge against catastrophes and after you have made investments in a diversified portfolio of quality financial assets. I have seen too many people who have paid off debt first, throughout their lives, and ended up with still nothing in an investment portfolio in their fifties. Then make sure that the risk-return trade-off of your portfolio allows you to sleep well.
<a href="http://www.forbesafrica.com/homepage/2018/03/01/money-dion-shango/" target="_blank" rel="noopener">READ MORE: Me &amp; My Money &#8211; Dion Shango</a>

Me & My Money: Izak Smit

In these trying financial and debt-ridden times, any money-making scheme sounds better than it should.
The purveyors of Ponzi schemes step in and millions of Africans hand over their savings. In a Ponzi scheme, Peter is robbed to pay Paul. It promises a return on investments, with a claim it is secure; but there is no real investment.
The operator of the scheme uses the money deposited by early investors to pay the first dividend, until investors feel comfortable and decide to invest more. Eventually the scheme falls apart as more cash is taken out and fewer people join.
Yoliswa May (not her real name), of Johannesburg, regrets the day she heard the word Ponzi.
“I should have listened to my inner voice,” she says after R30,000 (around $2,200) went down the drain.
“It’s upsetting to think of how much money I threw away. I lost more than I gained, because I reinvested my returns. I am like a person who walked out of their house with money and got mugged.”
Encouraged by family, she fell into the trap and joined MMM – a worldwide Ponzi scheme run by a convicted Russian fraudster Sergey Mavrodi, who swindled 10,000 Russians out of 110 million roubles ($4.3 million at the time).
“My sister told me of MMM [South Africa], because she had invested with it and received money back. The second time her investment matured, she showed me and said ‘join man, this thing works,’” she says.
<div id="attachment_31374" style="width: 1034px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-31374" class="wp-image-31374 size-large" src="http://www.forbesafrica.com/app/uploads/2017/05/GettyImages-514978632-1024x703.jpg" alt="" width="1024" height="703" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-514978632.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-514978632-300x206.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-514978632-600x412.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-514978632-768x527.jpg 768w" sizes="auto, (max-width: 1024px) 100vw, 1024px" />Mugshots of Charles Ponzi</div>
May, in a heartbeat, cashed in her savings and invested R20,000 ($1,520) in MMM and a month later had about R26,000 ($1,900) in her bank account.
“I was excited after I received the money. I believed that it works. If I didn’t receive the R26,000, I would have never invested again. I chose to invest more money because I was told the more you put in the more you get. So I did just that,” she says.
It promises 30% returns in a new world order with its own currency – the mavros – making it harder for law enforcement to pin it down. It works on a “get help and give help system”.
There is no centralized bank; one member transfers money to another.
May topped up her investment to R30,000 ($2,200). Then things got ugly.
“Two weeks later, our mavros were frozen. They still are. Apparently there was a panic, and a lot of people were withdrawing at the same time so there needed to be a restart,” says May.
“When everything was happening, at the back of my mind I knew that we were warned that things would end this way. The authorities warned us to stay away from MMM because once our money is gone, it would be untraceable, but we didn’t listen. However members remain positive that we will get our money back. It’s a lesson learned. I will never get involved with Ponzi schemes again.”
While May has her head in her hands, Sifiso Sithebe, of Durban, is on his way to the bank with a smile on his face.
“It changed my life. My life has just never been better,” he says.
Sithebe is a breadwinner for his wife and three children but was drowning in debt before he invested R1,000 ($78) in MMM.
“I needed to settle my debt. My family and I were struggling financially. But when I became a member, money was no longer a problem. I could do more than I had planned to with the money I received,” he says.
“I renovated my house and even bought myself a second-hand car. If I never joined, I would have never been able to do any of that; that is why I don’t regret joining.”
Loyiso Heart, a businesswoman from East London, went into MMM with the same hope.
Tired of low returns from the bank, she invested R20,000 ($1,500) in MMM and her confidence in the system grew.  Her next attempt, however, was disastrous.
“My mother and I got together and invested R50,000 ($3,900). Two months later our money went down the drain. The stupid thing that I did was to move to MMM Nigeria after the MMM South Africa saga… I was devastated.”
Heart says, for a long time after both systems collapsed, she had hope it would recover.
“I don’t think they will ever return,” says Heart now.
<img loading="lazy" decoding="async" class="alignleft wp-image-31375 size-large" src="http://www.forbesafrica.com/app/uploads/2017/05/GettyImages-599310874-copy-1024x681.jpg" alt="" width="1024" height="681" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-599310874-copy.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-599310874-copy-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-599310874-copy-600x399.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/GettyImages-599310874-copy-768x511.jpg 768w" sizes="auto, (max-width: 1024px) 100vw, 1024px" />
National Consumer Commission (NCC) spokesman, Trevor Hattingh, says Ponzi schemes are popular because the returns on investment are high, but so is the risk.
“Investing money in a pyramid scheme is a risk because such schemes do not offer any guarantee that you will get your money back. The returns are also not guaranteed, and because the scheme is not registered as a business, or have physical offices, you will not easily be able to track them down if they do not pay you out,” he says.
They are also illegal.
“You run the risk of being prosecuted by law enforcement and other regulatory authorities in South Africa because pyramid schemes are prohibited in terms of Section 43 of the Consumer Protection Act… Consumers should note that they have no legal recourse when a pyramid collapses and they run a risk of losing all their invested money. A pyramid scheme is essentially a get-rich-quick scheme and people join it to make a quick buck. In doing so they obviously do not consider the risks involved,” says Hattingh.
Hatting warns consumers to be cautious with their money.
“Consumers looking to invest money should do due diligence on schemes before deciding to invest in them. Do research about companies and most importantly establish if they are registered to offer financial services. The objective of [Ponzi schemes] is to defraud participants. People are drawn into participation and end up losing their money. There are always more people that lose money than those who gain or benefit from the scheme,” he says.
The problem is so widespread that African governments are discussing working together to get rid of the illegal schemes.
On its website, MMM claims that it is a “community” of people that are simply assisting each other when in need.  It claims it’s a stokvel. A stokvel is an investment society to which members regularly contribute an agreed amount and from which they receive a lump-sum payment.
Worryingly, MMM has all the signs of a Ponzi scheme but its participants are adamant it’s a stokvel.
Miziyonke Mtshali, COO of the National Stokvel Association of South Africa (Nasasa), says this is common.
“We have seen Ponzi schemes that pose as stokvels in order to gain acceptance and support in the communities. We usually learn of new schemes through customers who contact our call center to verify the registration of the schemes they have been approached to join,” says Mtshali.
“In order to gain the trust of the public, these schemes claim that they are members of Nasasa.”
Mtshali warns people to be vigilant as they work with the National Prosecuting Attorney (NPA) to fight such schemes.
Despite these investigations, Mavrodi warns his participants on the MMM South Africa website not to pay attention to ‘negativity’.
“We’re fighting against the world financial system, helping ordinary people, breaking the rules and declaring it expressly – what is to be expected then? It’s only natural they are going to throw all kinds of obstacles our way. Have you seen what happened during Trump’s election campaign when he decided to go against the rules? Have you seen the river of lies and slander the “fair and independent” media poured down on him? It’s about the same thing,” he says.
While Mavrodi claims that all MMM participants have a good story to tell, May is still waiting for her money.
<h3>The Godfather Of The Ponzi Scheme</h3>
Charles Ponzi is the Italian father of Ponzi schemes. He swindled about $7 million, in the early 1900s, from new investors to existing ones. 
Born in Italy in 1882, he moved to Boston, United States, in 1903 and worked as a clerk. He was no stranger to fraud and corruption. He scammed people by promising them a whopping 50% interest in 45 days, or 100% in 90 days. He earned $15 million and became a millionaire in just six months. 
His scam was based on the purchase of International Reply Coupons (IRC), which postal senders provide to receivers to pay for the cost of a reply. 
Justice eventually caught up with Ponzi and he was charged with 86 counts of mail fraud and faced a lifetime in jail. He pleaded guilty to mail fraud and spent 14 years behind bars. 
He died on January 18, 1949, in Rio de Janeiro, Brazil.

GettyImages-87252136-copy

I’m Like A Person Who Walked Out Of My House And Got Mugged

They call themselves Geeks on a Plane and they landed in Africa with hope and money in the middle of uncertainty. Many of these investors and entrepreneurs are based in Silicon Valley, one of the biggest US business hubs, known for its start-up ecosystem, high-tech innovations and scientific developments. They have been touring Africa looking for investments.
“Successes are infrequent, maybe 20 to 30 percent of our investments will probably return some capital but the majority of the significant outcomes will be less than 10 percent of our portfolio and the really big outcomes will be under one and two percent,” says Dave McClure, the founding partner of 500 Startups, the venture capital and seed fund accelerator that organized Geeks on a Plane.
The company was launched seven years ago. It has created business opportunities for about 18,000 companies, making around 500 investments a year, says McClure.
“This is our eighteenth trip around the world. We usually take between 20 and 40 people to the different markets in the world and try to expose them to what is happening. We learn about the local market, we meet entrepreneurs and investors, and we tell them what is happening back in Silicon Valley. It’s a great way to get to new markets and meet new people.”
It has been four years since the first investment in Africa. Since then there have been at least 10 investments in sub-Saharan Africa, in payment infrastructure, mobile technology and services. The investment, per company, ranges from $25,000 to $100,000. McClure says some of their investments have failed, but they encourage companies to work hard to break even, as soon as possible, to attract other investors.
<div id="attachment_31484" style="width: 210px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-31484" class="wp-image-31484 size-medium" src="http://www.forbesafrica.com/app/uploads/2017/05/3W0A0759-200x300.jpg" alt="" width="200" height="300" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/3W0A0759-200x300.jpg 200w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/3W0A0759-300x450.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/3W0A0759-600x900.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/3W0A0759.jpg 683w" sizes="auto, (max-width: 200px) 100vw, 200px" />Dave McClure</div>
“To create the right risk appetite [is all] about hope and trust. When you think about trust, it’s when you sort of build a network of investors together… We have investors coming in and spending three weeks with us and we showcase some of our start-ups and what we have seen is that those people that are meeting for the first time are creative, so of a similar interest. One of the companies didn’t raise the money before, but with the class they raised $500,000,” says Bedy Yang, the Managing Partner at 500 Startups.
“You often see that intersection with a local founder and a local investor, it is not only among people on the same trip and same small circle, but the idea we open those circles. The reason we come to Geeks on the Plane is we want to map up those circles and narrow the trust quickly and say ‘I want to do something people believe in and write the cheques’.”
Monique Woodard, one of the first black female venture capital partners in the United States, says the best women in business are African women. Despite this, they are often rejected by banks and investors.
“I would say they need to start [considering women entrepreneurs] because I am coming to take those deals… The position of women in business in Africa is quite good when you look at large corporations or family run businesses. When you look at start-ups, we are still at the very beginning of seeing women entering,” she says.
Woodard says in a developing market they first look at telecoms, transportation, broadband, financial services, e-commerce and media.
“The sub-Saharan ecosystem is still emerging and developing market. There’s a playbook of how the developing markets of sub-Saharan Africa can grow and we have done it in other areas as well. I expected it to be different but not impossible,” says Woodard.
Woodard acknowledges fewer girls are taking science and mathematics at school but says she’s hopeful that will change. They have partnered with companies, like Andela in Kenya, to train and place women in the software development industry.
“That’s not something unique to Africa, that’s very much across the board. So, there are things we should be doing, figuring out how to encourage girls to continue with computers science degrees and then continue to be in the tech industry and start their own companies. When it comes to education, we play are role in investing in companies that provide education outside the public school system,” she says.
The company has helped many in Africa, including Hanan Abdel Meguid, an Egyptian businesswoman. In the early 1990s, Meguid, then a student at the American University in Cairo, took a leap of faith when she enrolled for a computer science degree despite not being familiar with computers. She discovered the field was male-dominated, but she stayed in the course.
“I started my first company with friends, right after university, because our dreams and our capabilities were much bigger than the opportunities in the market. A similar experience is happening for Arab youth this day. IT has become a catalyst for change,” says Meguid, who’s now based in Silicon Valley and mentoring in advisory and seed investment programs.
500 Startups has an appetite for risk – amid the turmoil of the week they landed in South Africa, it was just as well.

Risk? So What?

Kenya’s economy is set to grow at a faster pace than previous years. The World Bank’s Kenya Economic Update (KEU) estimates that Kenya’s economy is poised to grow by 6% this year, 6.6% in 2016 and 7% in 2017, making it one of the fastest growing economies in sub-Saharan Africa. Similarly, in a review of Kenya’s economic performance, the International Monetary Finance (IMF) forecasts real GDP growth of around 6.5% this year, supported by rising infrastructure investments, lower energy prices and a dynamic private investment environment.
The country’s past growth has also had a strong showing, especially after rebasing its economy. Average annual growth for 2007 to 2013 was 5% in the new GDP series, up from 4.3% in the old series. This single event also increased its economic size by 25% to an estimated $55.2 billion making it the ninth largest in Africa (up from 12th, surpassing Ghana, Tunisia and Ethiopia) and fifth largest in sub-Saharan Africa (after Nigeria, South Africa, Angola and Sudan).
Relative growth comparisons also show an above average performance. Average growth between 2010 and 2013 stands at 6.2% compared to a 5.3% average for sub-Saharan Africa. The IMF’s latest Regional Economic Outlook: Sub-Saharan Africa projects regional growth at 4.5% this year, which is two percentage points lower than its Kenyan forecast. The World Banks’s Country Director for Kenya, Diarietou Gaye, cited the country’s expansive fiscal and monetary policies as having played a huge role in making Kenya the growth center of East Africa.
To add to the momentum, the recent renewal of the African Growth and Opportunity Act (AGOA) by United States President Barack Obama for a further 10 years further supports the growth story. Kenya, which is already a leading exporter of garments to the United States, expects to earn about $10 billion before the 10 years are over. With the new deal, Kenya also expects to offset sluggish demand from its traditional European export markets which have struggled in recent years. Through AGOA, Kenya can also hope to generate the much needed foreign exchange revenues to help narrow its widening current account deficit currently standing at about 10% of GDP.
However, risks exist. Security concerns have seriously affected the tourism sector, a key foreign exchange earner. Contraction in the sector is partly blamed for the slowed GDP growth. Data from the Economic Survey 2015 indicates that earnings from tourism were down 7.3% to 918 million. Agriculture, which accounts for around 25% of the economy, is another sector that has had mixed performance. Often vulnerable to bad weather and volatile world commodity prices, the sector frequently suffers from fluctuating production and revenue levels.
The manufacturing sector also had a less than optimal performance. Commenting on the KEU report, the World Bank’s Finance and Private Sector Development Specialist, and a co-author of the report, Maria Paulina Mogollon, cautioned Kenya on the need to increase competitiveness of its manufacturing sector so that the country can grow, export, and create much-needed jobs. In recent years, manufacturing’s contribution to Kenyan exports and growth has lagged.
Despite the challenges, Kenya still has a good chance to become Africa’s great success story. From its growing and youthful population, stable macro-economic environment, a dynamic private sector, a new constitution and its pivotal role in East Africa, Kenya is undoubtedly the new regional growth center.

Onwards and upwards

People often say “life is short” as a justification to do or buy something immediately rather than waiting. But the truth is, life is not short. Life is long. The average life expectancy for an American male is 76.2 years, and 81 years for a female. A thirty-year-old discussing a short life may actually be looking at another 50 long years.
This is good news! And, financially speaking, a long outlook on life is important, because the decisions we make early on have a significant impact on the remainder of our lives. Specifically, these decisions can make or break our retirement plans.
Here are seven important financial decisions 30-year-olds make that could come back to haunt them in their 50s:
&nbsp;
<h4>The company you work for</h4>
There are many things to consider when choosing a job, but the retirement benefits offered are vital to wealth-building in the long term. A 30-year-old who doesn’t carefully research his or her benefits and chooses to work for a company with no company match or retirement contribution could  be way behind someone who works for a company with robust benefits. For example, a 30-year-old making $75,000 a year who saves 10% of his or her income in a 401(k) and earns an 8% average return would have a balance of just under $600,000 at age 55.  Compare that to a 30-year-old who saves 10% at a company that matches 5% and adds a profit sharing contribution that averages 5% a year. He or she would have almost $1.2 million in their retirement account – double our first example’s amount – at age 55.
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<h4>Your starting salary</h4>
Even a slightly higher starting salary can jump start your earning potential. A study by George Mason University and Temple University showed that employees who negotiated their starting salaries averaged a $5,000 increase compared to those who didn’t negotiate. Due to the effects of compounding, the researchers estimate that an employee who starts his or her career with a salary of $55,000 instead of $50,000 (with 5% increases each year) would earn over $600,000 more in income over a 40-year career.
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<h4>Your choice of a partner</h4>
Who you marry is one of the most important financial decisions you can make. I’m not advocating you marry for money – quite the contrary. Marrying for love and staying together is a smart financial move. Whether the 50% divorce rate is an accurate statistic or not, we can all agree that when it happens to you, it is devastating both emotionally and financially. The divorce itself can be expensive and dividing financial assets unravels your financial planning. Just ask Robin Williams, who is returning to television after two expensive divorces!
Your choice of a mate isn’t only about love and commitment; it’s also about financial compatibility. If you and your partner are compatible money-wise and commit to setting up a financial plan to save, invest and build your future, you can enjoy life and create financial security at the same time.
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<h4>When you have children</h4>
Americans are delaying having children. In fact, according to National Health Statistics Report, more than one in three college-educated women will have children after the age of 30. In the past few decades, the average age of American first-time mothers has increased by four years, and first-time fathers are aging at the same rate. Since the recession in 2008, the only age group that has continued to have more babies than in years past is the “over 40” group.
In Sheryl Sandberg’s book, Lean In, she encourages women not to pass up promotions because of plans to have children. If you have plenty of support at home, this can be a great idea. Another way to look at it is, if you plan on having children, don’t wait because you are focusing on your career or waiting for financial security. There are advantages to having children earlier.
One reason has to do with timing of kids’ expenses. Consider a couple that has children when they are 25 years old. Before they hit their 50s, their kids are past the very expensive college years. These parents, still young themselves, have 15 years to focus on their own retirement savings if they plan to retire at 65. Couples that have children when they are 35 years old may not see the light at the end of the “empty nest” tunnel until they are 60 – much closer to retirement age.
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<h4>How you invest</h4>
Investing in high-cost managed accounts can take a heavy toll on investment returns over time. According to Forbes contributor Rick Ferri, founder of Portfolio Solutions, those fees can add up to 40% of your return each year. Rick shares an example of how, with annual mutual fund management fees of 1.1% and an additional advisor fee of 1% (on the first $1 million of your assets), an investor trying to squeak out a return of 5.3% (the expected return) of a portfolio of 60% global stocks/40% U.S. bonds could actually pay 40% of that return in fees. Make sure you weigh the long-term impact of fees when investing; consider choosing low-cost mutual funds or index funds for retirement savings.
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<h4>Whether you rent or buy a house</h4>
There are instances when it is better to rent than to buy a house. If you need mobility, don’t plan on staying in your area for long or aren’t interested in potentially being a long-distance landlord, you may be better off renting. However, in the long term, owning your home can be a coup for pre-retirees. Without even taking home equity into account, a homeowner with a fixed-rate mortgage won’t have to worry about a rent increase. Having a fixed housing cost is increasingly important as you get older, since rents can increase with inflation and you are attempting to estimate future expenses. As a homeowner, the mortgage will eventually be paid off and your housing budget will only have to cover taxes and repairs, so there may be more money to enjoy during your retirement.
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<h4>How you pay attention to your dollars</h4>
If I could take back what I spent in the past twenty years on coffee, clothes I bought on sale but rarely wore and my “guilty pleasure” books, I’d be a wealthy woman. Tracking expenses to see where your money is going which you can do with your bank, Quicken, or in the LearnVest Money Center (*disclosure – I work for LearnVest Planning Services) and identifying blind spots can help you save more and spend less. First of all, when you are tracking expenses, you have a heightened awareness of your money and subsequently are more reluctant to part with your dollars.
I hear clients exclaim all the time, “I had no idea I spend $600 a month on restaurants (or $800 a month on shopping). I am shocked!” When tracking, you can more easily identify areas for cost savings and put those savings toward your financial goals.
Mickey Mantle said, “If I knew I was going to live this long, I’d have taken better care of myself.” I suggest that if 30-year-olds knew just how young they’d feel in their 50s and how much life is left to live, they’d take much better care of their finances.
Life is long. Make decisions accordingly.

7 financial decisions made in your 30s that may haunt you in your 50s

How did you become Africa’s 18th richest person?
Our group has invested steadily and has been very consistent, which has had a compound effect on our investments and the kind of assets we have. And also by the sheer nature that FORBES showed interest in Uganda, or has done more research in Africa and has taken more interest.
Tell us your story.
One of the first businesses we started dealing in was salt and the other was in beer—a rare and very fast-moving commodity—followed by other commodities… very soon we became one of the largest beer dealers in the country and this went on until about 1989. That is when the breweries refurbished themselves and started the production of beer. When they started production, they lobbied to the government to stop importation to protect the local industry and jobs. The government obliged… we had built up a huge clientele&#8230; all the hotels in town would buy beer from us;  we would have expatriates buying beer from us. At the time, foreign exchange was not allowed for luxury items like beer. So what would happen is that people would rent their houses in foreign currency. When they received their rent they would come and change it with us. In the meantime, the expatriate community needed to buy local provisions for their daily requirement. They would buy beer and other things from our store, they would also come and exchange foreign currency. We needed this foreign currency to pay for the importation of beer…
<div id="attachment_1613" style="width: 210px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-1613" class="size-medium wp-image-1613" src="/wp-content/uploads/2017/04/Sudhir-11-grayscale-200x300.jpg" alt="" width="200" height="300" />Sudhir</div>
After the closure of the beer business there were lots of people who wanted to change money with us. We started buying this currency and would actually deal with a trader who would need foreign currency to buy certain types of goods, we would swap this with local currency. Come 1990, Uganda liberalized the formal market, it was the second country in Africa to do so—Ghana was the first. We opened the first foreign exchange bureau called Crane Forex Bureau. Within six months we were doing more business than the banks’ foreign exchange departments. What transpired in the next two or three years was that the banks worked together and formed a cartel that would hit the forex bureaus by levying high charges and restraints. I realized that in order to sustain us we needed to go into the banking business so we eventually opened the first branch of Crane Bank on August 21, 1995. We had accumulated a lot of funds, so we were buying a lot of real estate. We bought our first property in 1991… The government nationalized all real estate, then the NRM [National Resistance Movement] government decided to return the Asian properties to its former owners but a lot of these people had settled in the West. They were doing well and had their families there, not all of them had intentions to come back. At that time there was an excess supply of real estate. The Asians who had property here never dreamed that this property would be returned to them so they came and cashed their money in. In the beginning, a lot of people were very skeptical about buying into the property: they were not sure about what would happen in the future. Now, we have a surplus of real estate in the country and people did not want the risk. I was one of the very few people at that time, who had faith in myself and I started investing at that time. Ever since then, we [Ruparelia Group] never looked back.
What is your view on the current state of the economy?
At the moment we are going through a restructuring. I guess this is always a good thing to do—a time to relook at all your businesses, trim them and flush out any inefficiencies. The problem here at the moment is that the politics are delaying the passing of a law, which will regulate the oil industry. Uganda desperately needs to pass these oil laws so when the oil comes, it is regulated and there is a transparent process it goes through. They don’t realize that every day they delay it, it costs the country a lot in lost revenue. So the government needs to clear that up.
What is the biggest weakness of the Ugandan economy now?
The left doesn’t know what the right is doing, unfortunately. The decision-making process of this country has gone very bad. Although there are a lot of processes, unfortunately these checks and balances have been misused, thereby the people have been scared into making decisions. The only way people feel they will survive in the job is by not making decisions and that’s very bad.
Recently donors have cut back on aid. Will this hurt the economy?
We don’t have only the issue of donors cutting aid; we have the issue of interest rates and of exchange controls – the foreign exchange rates. Now, Uganda cannot afford to have low interest rates at the moment because there will be capital flight out of the country. At the same time, it will have an effect on the foreign exchange rate. The currency depreciated by 8% at the end of last year. When you have further bad news by donor countries holding onto aid, it will have a negative effect on the country. I think Uganda gets about $800 million in aid and that is quite substantial as far as the budget support is concerned.
What should the Ugandan government do to promote entrepreneurs like yourself?
I think it’s always nice to have a government which has departments that make decisions. I think the decision-making process has deteriorated, that’s number one. Number two: the government needs to seriously finish all the regulatory bodies that are needed for the oil to take off. That’s the savior of this country. And if they can’t make decisions on how to solve oil regulation within the ministry then we are not going to go anywhere.
And the entrepreneurs? What can government do to promote businessmen such as yourself?
The only way any country can come out of unemployment is to support private industries, private entrepreneurs, who will then create jobs. They can’t solve all the problems of the nation but it will reduce unemployment and the other issues that go with it. Government went through one phase in 1990 when they first came in to support the industries and private enterprises. They brought in a lot of incentives, which has helped this country to get to where it is now. All it needs now are proper policies and if its oil is sorted out then industries will come here. Government does not need to do much more, just clean up its oil industry. If the oil is controlled and regulated and being produced you will see people queuing up to invest in this country.
What are your plans for 2013?
We have a lot of investments in real estate and we will continue [to invest]. We have projects of more than $150 million in the pipeline and we will fulfill those within the next 18 to 20 months. And hopefully, target a lot of service industries, which will service the oil industry; accommodation, education.
Do you think you will grow in the ranks in 2013?
Definitely. We have a lot of oil in this country and you can imagine that we have not even had one drop of oil come out, and the kind of resources that we have mobilized within the group.
Do you think you’ll be in the top 10 next year?
I am not sure but I am very happy to be at number 18 this year. The next few years will definitely have some kind of an impact. Crane Bank is expanding rapidly, it has 27 branches. By the end of this year, it will have 40 branches and then the year after, another 10, and it will continue to grow by at least 10 branches a year.

Tag: Investments