How This Financial Ecosystem Can Assist The President of South Africa in His Quest To Create Jobs and Turn the Country Into a Productive Powerhouse
Reference: The State President’s Opening of Parliament Address on 18 July 2024
Author: Roger Herbert CAIB(SA) – Retired Commercial Banker – General Secretary: Banking Association of Southern Africa Invoice Financing Division – Retired
Much of the State President’s Speech was directed at the need to create jobs and revitalize the South African Economy.
This paper introduces an additional tool inspired political and financial leaders can use to help bring the State President’s vision into reality.
Introduction
Many South Africans, over the past decades, became very perplexed because of the loss of productivity, and jobs, and the apathy that crept into our way of life, exacerbated by corruption.
The recent election has heralded an improved outlook for all South Africans as the State President laid out his vision for the country in his Opening Address to Parliament on 18 July 2024 as he remembered the birthday of our modern nation’s Founding Father, Nelson Mandela.
Despite all our challenges, storms, fires, crime, and an ailing economy, etc., he reminded us that:
“We are one people. We share a common destiny!”
That is absolutely true. It is up to us to rebuild South Africa to its fullest potential under renewed and inspired leadership in all fields, not only in the political and financial fields but in education, health, justice, and other activities that enhance our collective life experiences in our great country.
To achieve these ends the State President informed us that the Government of National Unity has formed a Medium Term Development Plan to restore PRODUCTIVITY and jobs to alleviate the POVERTY in our country.
How Our Ecosystem Started
These same thoughts that the President has here in July 2024 have been in the minds of many for decades.
Among those wanting to improve the lives of South Africans, are two men, now in their 80s who have wrestled with these challenges together with their associates and colleagues for more than 20 years!
This team of individuals, after years of Research and Development coupled with a substantial investment of Capital, has produced something astonishing, capable of assisting not only the State President’s broad vision but can quickly revitalize businesses and help create the jobs that are so desperately needed everywhere.
Not only that, the Ecosystem is a product that can be exported, bringing help to neighbouring countries and even those further afield.
This Ecosystem is designed to enhance the work of our hands, our PRODUCTIVITY in other words. But not only that it is designed to restore PROGRESS and PROFITABILITY too!
What Prompted The Ecosystem’s Establishment?
Briefly . . . . .
- Business Surveys, year after year, brought one undeniable fact to the fore:
- The backbone of South Africa’s enterprises, SMME’s, SME’s, and even larger businesses prime stumbling block was . . . the difficulty in creating Working Capital for the businesses.
- The situation was made worse because big buyers, including Government, State Owned Enterprises, Chain Stores, and other large Buyers for their own reasons delayed paying their Suppliers forcing many to go into unnecessary liquidation causing job losses by the thousands!
- This state of affairs caused financial institutions to become extremely cautious making Working Capital difficult to obtain without collateral security.
- The result, is an ailing economy with little progress, a complete lack of opportunity for young people . . . a condition known as stagflation.
In the team mentioned above, the following skills are evident:
- Ordinary commercial trading in manufacturing and distribution.
- Property development.
- Software development
- General Financing
- Commercial Banking • Financing of Invoices
- Marketing etc.
Applying our collective skills to the challenges facing our country brought the Ecosystem together out of dire necessity.
Now it exists and is operating.
Who can really benefit from the Ecosystem?
1. Politicians and Monetary Authorities as they work to revitalise the economy.
2. Suppliers: i.e. Manufacturers, Distributors, Importers, Clearing Agents, Transport and Logistical Companies and Service Providers. – As invoices are created, copies go electronically to a central point that validates the veracity of the transaction, and establishes when payment and to what bank account (that can be controlled by a Financier)
3. Buyers: Government Departments, State Owned Companies, Chain Stores, and other large buying organisations . . . . Through the system’s Buyer Gateway they can elect to pay their supplier invoices early to secure valuable Early Settlement Discounts and enhance their reputations as Buts who pay on time every time.
4. Banks and other Financiers: They mitigate their lending risks by only exposing themselves to credit-worthy names who have promised to pay (validated) on a future date to a bank controlled account.
5. Other Opportunities: In certain circumstances an entrepreneur who sees the vision of the Ecosystem and the potential income that can be generated by promoting the system, they can apply to become a Joint Venture holder.
Who controls this Financial Ecosystem?
Cash Flow Systems in association with Payment Accelerator Holdings SA, was created to perpetuate the spirit of and support a wide spectrum of causes and uplift the lives of many by establishing a better life for SMEs and larger business enterprises.
Our aim is to continually benefit our defined area by contributing in a meaningful way toward individuals and small business owners, and larger businesses as required.
OUR MISSION
TO PAY APPLICANTS IN 24 HOURS after Corporates and/or credit-worthy Buyers validate their Supplier’s invoices and contribute towards creating a conducive economic and business environment for commercial enterprises in South Africa to obtain ACCESS TO FINANCE and in the process create employment and grow the SA economy. We will achieve this by delivering excellence in all we do through our dedicated people, financial expertise, IT systems, operational processes, and sound stakeholder relationships, all underpinned by ethical governance principles.
OUR VISION
To be recognized as “the” BUSINESS PERSON’S ACCESS TO FINANCE Facilitator and voice of entrepreneurs to create an improved Working Capital ecosystem environment in South Africa and abroad.
RESOURCE BOX FOR MORE INFORMATION
Cash-Flow Systems website: https://cash-flow.systems
Payment Accelerator website: https://paymentaccelerator.co.za
Cash Flow Systems (Pty) Ltd
Director: Carlos Batista – Email: [email protected] – Mobile: + 27 82 219 4110
Director: Roger Herbert – Email: [email protected] – Mobile: +27 82 927 9153