Environmental activist investor Tracey Davies of JustShare helped turn Sasol's AGM last week into a feisty affair. In the latest episode of Rational Radio, she reports back on the meeting, and explains her beef with SA's second largest polluter. The day after the Sasol slugfest, Davies went along to a far more relaxed FirstRand AGM where she got half what she wanted after the board endorsed a resolution relating to more reporting on climate change exposure. But the JustShare director and fellow activists face a tough task in their demand that the bank discloses information on the carbon footprint of those to whom they have lent. From a practical perspective, getting clients to agree to provide the information looks to be an insurmountable challenge. - Alec Hogg

Once in a while, the country's biggest investors lift the veil on their strategy, sharing ideas on how they intend applying the hundreds of billions entrusted to them. That's exactly what Allan Gray director and portfolio manager Duncan Artus did for us in the latest episode of Rational Radio where he discusses why the company is such a big investor in Naspers, and how its Sasol shareholding knocked a hefty 4% off the total return of its biggest unit trust last year. And he answers the criticism about the performance of Allan Gray and its global cousin Orbis over the past year. Fascinating insights from one of SA's most thoughtful money managers. - Alec Hogg

In today's headlines: SA is staring down a recession, says Bloomberg. South Africa’s economy contracted for a second quarter this year economy hasn’t expanded at more than 2% annually since 2013. SAA is on the brink of collapse. Its bosses are trying to buy more time by asking all the big lenders to help it with a cash crunch, while unions representing staff members are threatening to take action to push the airline into business rescue, a form of bankruptcy protection. Zimbabwe is deep into a vicious cycle of sky-rocketing malnutrition, the World Food Programme has warned. It plans to double the number of people it’s providing with emergency food aid in Zimbabwe, where half of the 14-million population is facing severe hunger, says Bloomberg. South Africa’s Public Investment Corp., the continent’s biggest fund manager, said it’s preparing court papers to try and force Steinhoff International to release PwC’s full report on what led to the retailer’s accounting scandal, reports Bloomberg.

Back in 2014, independent money manager Chris Logan spoke out publicly against the strategy being followed by KZN's leading company, Tongaat Hulett. He urged the board and executives to drop their approach of selling off prime commercial real estate to pump the cash into the sugar sector - an area Logan reckoned was the worst commodity to bet on. In this episode of Rational Radio he describes what happened as a tragedy; had those controlling the purse strings pursued a different strategy, Tongaat would still be a flourishing business. Logan has similar misgivings about Hulamin and Nampak, companies that he reckons are also guilty of massive mis-allocation of capital. - Alec Hogg

In the latest episode of Rational Radio, South Africa's favourite market commentator David Shapiro unpacked the massive (and complex) put and call options entered into this week by Discovery founder and CEO Adrian Gore. The trades reported on the Stock Exchange News Service relate to Gore's decision to borrow money to contribute his share of Discovery's R5bn right issue that was conducted in 2015. The biggest individual shareholder with ownership of over 7% in the R73bn business, to retain this share of the business Gore put up his shares as security for the loan to follow his 2015 rights. As David Shapiro explains, the options are in place to protect the bank which lent him the cash. Also in this interview, David shares his perspectives on SA Airways and the similarities between Tongaat and Steinhoff. - Alec Hogg

In the headlines today: President Cyril Ramaphosa has warned that South Africa faces a grave water crisis. In his weekly letter to citizens, he says: “Unless we take drastic measures to conserve water sources and promote efficient use, water insecurity will become the biggest developmental and economic challenge facing this country. Our current energy challenges will seem small by comparison. South Africa’s two biggest mobile-phone companies have been ordered to step up efforts to lower data prices within the next two months or face prosecution by the country’s antitrust regulator, reports Bloomberg. Vodacom and MTN have the potential to reduce tariffs by 30% to 50%, Tembinkosi Bonakele, the head of the country’s Competition Commission, said in Pretoria on Monday. Sentiment in South Africa’s manufacturing industry slipped in November, signalling contraction in the industry for a fourth straight month, reports Reuters. Absa’s Purchasing Managers’ Index, compiled by the Bureau for Economic Research, fell to 47.7 from 48.1 in October, the Johannesburg-based lender said in an emailed statement on Monday. Offshore investors sold a net R9.84bn ($669m) of South African stocks last week and R3.46bn of bonds, data from the Johannesburg Stock Exchange showed on Monday, says Reuters.

A bit like a multinational Stokvel, the Washington-based International Monetary Fund acts as the banker of last resort for member countries which get themselves into difficulties. To prepare itself, the IMF has a regular programme of sending surveillance teams to assess its potential exposure - and where it finds problems, to encourage members to act before it's too late. The surveillance team, which visits South Africa twice a year, spent the fortnight to November 21 in the country, meeting with stakeholders from across the social and economic spectrum. On Rational Radio this week Economterix chief economist Azar Jammine explained why the IMF's warnings need to be heeded and how the Ramaphosa Administration is running out of time to convince its political allies to come on side - or reap some rather awful consequences. Because of the tough conditions it always applies, nobody likes having to approach the banker of last resort. Much better to make the changes before having to enter the last chance saloon.    

In today's business headlines: Companies are starting to lose faith that South African Airways can and will be saved.  Sanlam Travel Insurance Consultants said it would exclude SAA from its insolvency cover and Flight Centre has stopped selling SAA tickets. An investigation into alleged wrongdoing at Tongaat Hulett found that a group of at least 10 senior executives at the sugar maker used accounting methods that led to profits and certain assets being overstated. Former Chief Executive Officer Peter Staude, who headed the company for 16 years, was among those identified. Emerging Markets may need more than a surprise recovery in Chinese manufacturing to exorcise the pain of November. Bloomberg reports that there are too many risks for Emerging Markets to get a lift from data out of China. Former President Jacob Zuma’s long-awaited trial on corruption charges over a $2bn arms deal is set to go ahead in February next year after the Pietermaritzburg High Court dismissed an appeal that sought to prevent his prosecution on corruption charges. Zuma has the option to approach the Supreme Court in his push to dodge trial, but legal experts say his prospects of success are slim and Twitter Boss Jack Dorsey has announced that he will live in Africa for several months in 2020.

There's no business on earth which doesn't carry risk, says Orbvest chairman and co-founder Hennie Bezuidenhoudt. But after scouring the global property landscape for suitable offshore investment opportunities, Bezuidenhoudt and his Orbvest colleagues specialised in the US medical property market for good reason. In this insightful interview he explains why - and steps he takes to reduce the risk of an unexpected broadside in this ever changing world. - Alec Hogg

In today's business headlines: Eskom has posted a surprising R1.3bn profit in the six months through September, which is almost double that of the previous year thanks to higher tariffs. The Reserve Bank says there's a high likelihood that the South African government’s finances would deteriorate further posing a risk to the stability of the country’s financial system. President Cyril Ramaphosa withdrew from the Chairman’s Conversation, a signature annual event hosted by Power FM radio station, because of allegations the station’s owner, Given Mkhari, assaulted his wife. KPMG says it is winning back customers and no longer bleeding staff as the auditing firm tries to rebuild an image tarnished by a series of scandals. The firm secured a number of new mandates in industries such as telecommunication. Steinhoff shares surged by 25% yesterday. The company announced earlier this week that it had closed the sale of Unitrans, its automative operation to CFAO, a subsidiary of Toyota.

Piet Viljoen, top money manager and founder of RECM, linked up with old pal Alec Hogg in this week's episode of Rational Radio to talk about his alma maters Allan Gray and the recently renamed Ninety One (Investec Asset Management). He offers some scathing opinions on Tiger Brands - a company whose shares he has avoided for years - and puts it down to the way corporations are "gaming" the oversight-implications of indexation of investing. Fascinating insights as ever from the forthright value investor who also provides some insights into what might be the real reasons for the massive unbundling of FirstRand shares.

In today's business headlines: South African business confidence improved in the fourth quarter for the first time in almost two years owing to a recovery in residential activity and expectations of a good Christmas shopping season. The Rand Merchant Bank business confidence Index rose to 26 for the fourth quarter from a decade low of 21 in the previous quarter. South African Airways says the strike at the airline led to a sudden deterioration in its financial position. In a statement issued by the Department of Public Enterprises yesterday afternoon, SAA says the strike has rocked the finances to the point where the company can no longer continue to operate “as is.” Reserve Bank Deputy Governor Kuben Naidoo said if Moody’s Investors Service cuts the country’s credit rating to junk there could be a sell-off of between $5 and $8bn of its bonds. Two media houses, the Financial Mail and amaBunghane have launched an application in the Gauteng High Court for access to former President Jacob Zuma’s tax records. Brait SE, the owner of struggling UK apparel chain New Look has launched a sweeping overhaul as leading shareholder Christo Wiese seeks to salvage his investment after seeing his other retail assets plunge in value.

In today's headlines: How many wealthy people are there in South Africa? A new report suggests that there are just over 2,000 individuals with net assets of $10m (R150m) and more and just under 40,000 South Africans with net assets of about $1m (R15m) or more. In his weekly newsletter to citizens President Cyril Ramaphosa lambasted business for failing to hire enough senior black executives, but when it comes to improving female board representation, South Africa is right up there with countries that have performed best. Zimbabwe’s mining industry has appealed to the government for help, saying output is declining as fast as the state-owned power company fails to honour electricity-supply contracts, reports Bloomberg. Where do dogs come from? What is their relationship to wolves? Where do Homo sapiens come from? What is our relationship to other human species such as Neanderthals, Denisovans and Homo erectus? The secret is Survival of the Friendliest.

21 year old Aphelele Mvamva lives with her sister in the Kayamandi township just outside Stellenbosch. It means “nice place” in iXhosa but the hostel that she lives in, is anything but. As a little girl, she was shuttled between the Eastern Cape and Stellenbosch where her mother Nokalothi was a vineyard worker. This lifestyle meant she was forced to adapt to many different places and schools. She landed in the Red Cross Children’s Hospital after she contracted TB and was suffering from malnutrition. In her teens she went through a terrible bout of depression but poetry in her mother tongue, isiXhosa helped her to reflect on her feelings and she eventually took part in provincial and national competitions in which she excelled. Aphelele is determined not to be defined by poverty and this hunger to succeed has landed her a fast-track career in wine when she was selected as the first Drostdy Hof Graduate for a year-long mentoring programme. It is an achievement she earned after graduating from the Pinotage Youth Development Academy (PYDA). She stood out among her peers for her combination of academic performance, strong interpersonal skills and a burning desire to succeed. During the year, she will be guided among others by Distell head wine-maker, Andrew Freeborough and has the chance to meet leaders in the wine trade and be exposed to wine-growing and cellar practices. - Linda van Tilburg

Absa, one of South Africa's biggest banks, turned a blind eye to money laundering. That's abundantly clear from the evidence Forensics for Justice founder Paul O'Sullivan has pieced together. Absa is hiding behind technicalities to avoid explaining its role in state capture and corruption at Eskom, which is the state entity that is the most troublesome for South Africa and the one which is arguably the biggest obstacle to improving economic growth. Absa has been relatively unaffected by state capture, with its annual profits looking robust. In this interview with BizNews founder Alec Hogg, O'Sullivan explains how a senior Eskom figure withdrew an average of R2m a month and on some days several millions in cash from Absa. And the bank turned a blind eye. O'Sullivan has a reputation for nailing major crooks, including ensuring that  former police chief Jackie Selebi was put behind bars. So far, Absa has shrugged off the scandal and has not bothered to provide a detailed response. - Jackie Cameron

Fireworks are likely when two of South Africa's top companies host shareholders at their annual general meetings this week. Tracey Davies, an environmental lawyer turned shareholder activist (LLB at UCT, LLM at NYU), intends peppering questions at the directors of Sasol (Wednesday) and FirstRand (Thursday). In the latest episode of Rational Radio the executive director of JustShare explains what she'll be asking the companies about, and why their responses thus far have been inadequate. Particularly Sasol, where the company's promise to cut 10% off pollution emitted at its Secunda plant is deemed unacceptably modest. - Alec Hogg

After getting a blast last week over his Sasol comments from an environmental activist, David Shapiro spent time investigating the hot new trend among investors called ESG - Environmental, Social, Governance. He concludes that the business of business is no longer just business. This has significant implications for investible assets as Shapiro explains in this fascinating contribution to the latest episode of Rational Radio. - Alec Hogg

The International Monetary Fund, which has slashed its growth forecast to just above zero for South Africa, warns that only radical reform will turbo-charge the country's economy. President Cyril Ramaphosa is at the centre of a race row. First he appointed a white man to head Eskom, and in the next breath he slammed the business sector for not doing more to hire senior black executives. Eskom has been slammed for its appalling pollution record. Zesa, Zimbabwe's 'Eskom', has given up on electricity, ordering solar power for its head office in Zimbabwe. Uber shares slumped on news that the taxi-type company has been banned from operating in London.

Friday's report from ratings agency S&P switched its outlook on South Africa from "neutral" to "negative" - signalling another credit downgrade is on that cards. That would take the country's sovereign debt rating to three notches below the all-important Investment Grade level. Most analysts are focusing on another of the Big Three ratings agencies Moody's whose analysts still have SA debt at Investment Grade. But that's a mistake, says respected economist Azar Jammine, who in an interview on Rational Radio this week warned about the consequences. As there is a correlation between lower ratings and higher interest rates - and regardless of what Moody's decides, if S&P were to downgrade SA once again, it would have a major impact on the overall cost of servicing the country's debt. Jammine says a rabbit is desperately needed to be pulled from SA's hat... - Alec Hogg

A storm has erupted around around a front page Sunday Times report that SABC's directors resolved to approach the State Security Agency to help address "leaking" of board minutes. Harvard-educated SABC chairman Bongumusa Makhatini reacted aggressively, accusing the newspaper of pursuing a commercial agenda and using fake news to attack the national broadcaster's credibility. On Rational Radio, we approached the issue from a different perspective - probing why the organ charged with protecting national security should busy itself with leaked board packs; and given the SSA's history with the national broadcaster, asking whether the Sunday Times was, rather, acting in the national interest. There's some good news in all the noise - there's clearly a new sheriff in the SABC town who won't countenance the behaviour of his predecessors.     

In today's business headlines: South Africa could fall deeper into junk territory after Standard & Poor's Global Ratings agency cut the outlook on its assessment of the nation’s debt to negative, citing slow growth, the upwardly revised fiscal deficit and a growing debt burden. South African Airways restored a full flight service yesterday. It follows after agreement was reached in the industrial dispute between the airline and three of its largest unions ending an eight day strike. South Africa is blocking arms sales to Middle Eastern countries, including the United Arab Emirates, Saudi Arabia, Oman and Algeria due to an inspections dispute. The state has asked the Pietermaritzburg High Court to avoid further delays so that former President Jacob Zuma can stand trial as soon as possible. Former New York Mayor Michael Bloomberg has announced he is running for the Democratic Presidential nomination; and The UK Spectator magazine’s index of female graduates in science, technology, engineering and maths, the so-called STEM subjects put South Africa second on the list beating several Western countries.

In today's business headlines: Former State security minister Bongani Bongo has been arrested in a case related to bribery at state owned companies in what is seen as Cyril Ramaphosa’s first action to end corruption. Bosasa assets cannot be put up for sale. That is according to Jared Watson, the nephew of company CEO Gavin Watson after liquidators, Sechaba Trust advertised an auction from 4-6 December of Bosasa assets. The Reserve Bank has held its benchmark interest rate at 6.5% and signalled that it may only start easing again in the second half of next year. With Remgro and Rand Merchant Holdings spinning off their stakes in FirstRand, Africa’s biggest bank by market value just became a possible takeover target. But Bloomberg reports that it comes at a time when potential buyers are scarce. Budget retailer Mr Price’s interim profit dropped by more than 10% as its apparel division was affected by what the retailer termed an imbalance in its product assortment and weak economies at home and abroad. Old Mutual is under fire again, this time over a corpse. This after a grieving family from Eshowe in Kwazulu-Natal brought a dead body to one of its branches so that the company would process a claim for funeral payments.

There is a strong school that believes those who have accumulated wealth make great philanthropists because they understand how to leverage their resources for maximum impact. In this fascinating interview, Perry Feldman shares a practical example of this by unpacking an innovative homeowner focused project championed by the South Africa's Free Market Foundation. By applying grants from supporters - Richemont chairman Johann Rupert among the most prominent - the FMF's Khaya Lam project has been attacking administrative blockages and municipal red tape to secure title deeds for thousands of beneficiaries. Having these important papers has transformed the lives those who have sometimes occupied self-built homes for decades without enjoying the benefits of legal security of tenure. With 6m other South Africans in a similar position, some might ask why the FMF bothers when the odds are stacked so heavily against it. But like the little girl on the beach throwing back one of thousands of stranded starfish, while the impact might appear small, the difference for the one supported is life transforming. - Alec Hogg

In today's business headlines: The government has ruled out intervention in the ongoing battle between South African Airways and unions leading the strike. Assets belonging to several entities of Bosasa, which include the company's former headquarters and a copper plant will be auctioned off over three days in December. Former Prasa head, Lucky Montana says the seizure of assets at his home including two luxury cars was a “vindictive” action by SARS and that it was “unethical.” South Africa’s annual inflation has dropped to its lowest level in nine years. Consumer price growth slowed to 3.7% compared to 4.1% in October; and Remgro’s share price had one of its best days in the past five years after the company announced that it is planning to distribute its 28% stake in RMH to shareholders.

After a short break, my weekly Rational Radio returned to a new Monday lunchtime slot with a bonus added to the usual hour. The extra time was to ensure space for this interview with the independent financial advisor being threatened with an unyielding “rules-are-rules” edict by an unbending Sanlam bureaucracy. I’ve known Capetonian David Melvill for some years. He is a regular at Biznews investment roadshows and although our views on gold usually differ (he just loves the yellow metal), for the rest, we’re on the same page. He has also written insightful articles well read by the Biznews community. David’s misery revolves around the employment of his son, also a financial advisor, to help with admin while the youngster was serving a 12 month banning order from Sanlam. The life assurer claims young Melvill broke the terms of his suspension. Dad says that’s rubbish. Having read correspondence from both sides, it’s impossible not to side with him. Despite meetings with numerous Sanlam bigwigs, Melvill senior has had his contract with Sanlam cancelled and is now threatened with debarment. Sanlam have since lifted Melvill Jnr’s suspension, so the “cause” of the problem can once again sell life assurance. Some believe corporates stuck in the past don't deserve a licence to operate in the future. Wonder if that particular penny has dropped in the Sanlam boardroom. - Alec Hogg