The South African president Thabo Mbeki greets government officials next to the Zimbabwe president Robert Mugabe (left) at Harare International airport.
The South African president Thabo Mbeki greets government officials next to the Zimbabwe president Robert Mugabe (left) at Harare International airport.
The South African president Thabo Mbeki greets government officials next to the Zimbabwe president Robert Mugabe (left) at Harare International airport.
The South African president Thabo Mbeki greets government officials next to the Zimbabwe president Robert Mugabe (left) at Harare International airport.

Mbeki holds crisis talks in Zimbabwe


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HARARE // The South African president Thabo Mbeki held talks with Zimbabwe's political rivals today as they edged closer to a power-sharing deal following Robert Mugabe's widely-condemned re-election. The Zimbabwe president Robert Mugabe, the opposition Movement for Democratic Change leader Morgan Tsvangirai, and Arthur Mutambara, the head of a smaller MDC faction, were all inside a central Harare hotel for the talks just before midday.

None of the leaders made any comment as they arrived separately. The MDC's chief negotiator Tendai Biti briefly spoke to reporters as he left the Rainbow Towers hotel, nodding when asked if any progress had been made. "I think we all need to pray," he said. Mr Mbeki, the mediator for the Zimbabwe talks, arrived in Harare late Saturday following more than two weeks of negotiations in South Africa in a bid to reach a power-sharing deal to resolve Zimbabwe's political crisis.

His trip comes amid signs the rivals were nearing a deal in the negotiations, with both Mbeki's government and Mr Mugabe reporting progress in recent days. Zimbabwean state media reported today that negotiators had reached agreement on key issues and Mr Mbeki's meetings today would focus on hammering out details of a new government. "Issues with the structure and scope of the new government are likely to take centre stage," The Sunday Mail newspaper said.

Quoting unnamed sources close to the talks, the government mouthpiece said negotiators for the ruling and opposition parties had already resolved issues related to land and other matters. Land distribution has long been a major issue in Zimbabwe following independence from Britain in 1980. Mugabe embarked on a chaotic land reform programme at the turn of the decade which saw some 4,000 white-owned farms expropriated by the state.

Mr Mugabe blames the country's woes on sanctions imposed by the EU and the US following presidential elections in 2002 which the MDC and Western observers charged were rigged to hand the Zimbabwe president victory. Power-sharing talks began after the political rivals signed a deal on July 21 laying the framework for negotiations following Mr Mugabe's re-election in a one-candidate poll in June, widely condemned as a farce.

Mr Tsvangirai boycotted the June 27 presidential vote despite finishing ahead of Mr Mugabe after the first round in March, citing rising violence against his supporters that had killed dozens and injured thousands. The opposition leader believes his first-round total gives him the right to the lion's share of power, but sources in his party said previously that Mr Mugabe's negotiators had only offered him one of several vice-presidential posts.

The ruling ZANU-PF party has insisted Mr Mugabe must be recognised as president as part of any deal, since he won the June 27 vote. Negotiations have reportedly included proposals for Mr Mugabe to take on a more ceremonial role as president, with Mr Tsvangirai being made executive prime minister. However, analysts question whether Mr Mugabe, as well as his allies among the country's highly influential security chiefs, will relinquish power and if the bitter arch-rivals could work together in a power-sharing government.

*AFP

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Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

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How much of your income do you need to save?

The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.

In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)

Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.

 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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