South Africa's securities lenders seek collateral clarity

Collateralisation in South Africa can be achieved using either a pledge or outright transfer – but the former does not provide complete protection and the latter can attract tax. The securities lending industry is pressing for an overhaul. Clive Davidson reports

Budget speeches are always a mixed bag. Governments typically try to give something to everyone, but no-one gets everything they want. So it proved with South Africa’s budget, delivered by finance minister Pravin Gordhan, on February 27. Faced with a shortfall in revenues, the government is opting to cut spending rather than raise taxes – affecting a range of programmes – but there were also some neat ideas to spur longer-term growth, such as tax incentives for businesses to get the young and