APRIL 2016 WWW.TIME.COM
MOST SUCCESSFUL PEOPLE IN THE WORLD
RISE OF THE BUSINESS WOMAN
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JENNIFER LOPEZ BEYONCE JESSICA ALBA
CONTENTS TIME 2016
13 TECH COLUMN
Regular TIME tech column with the latest gadgets, video games and updates. By Brent Carelse
Summary of South African short news stories. By TMG Digital, Mariska Botha and Karabo Ngoepe.
14 BUSINESS COLUMN
4 NEWS IN PICTURES
Regular TIME business column with latest economy news, career opportunities and expert advice. By Arlene Solomons
Highlights the best-dressed and key moments at this week’s events held in Cape Town, Joburg and Durban. By Mishkah Abrahams
16 SPORTS COLUMN
Regular TIME sports column covering local and international sports news and updates. By Chad Samuels
5-6 TIME FEATURE: J-LO
In-depth feature about Jennifer Lopez and her success as a female businesswoman. By Jackie Van De Burg
20 THE TIME VAULT
TIME Magazine focuses on past culture: reviews, history and facts. By Miranda Morkel
TIME FEATURE: SOUTH AFRICAN MILLENIALS An in-depth feature about the Millennials in South Africa and how businesses are taking them seriously. By Kim Cassidy
Category dedicated to the latest fashion trends, beauty, secrets celebrity, and culture. By Mishkah Abrahams ON THE COVER:
12 HEALTH COLUMN
Regular TIME health column addressing health issues and solutions. By Shane Solomons
Jennifer Lopez photographed by Mert Alas and Marcus Piggot.
NEWS IN BRIEF SECTION | South Africa Zuma is not our – Malema Eskom: New maintenance plan to reduce enemy by Karabo Ngoepe, News24 loadshedding by TMG Digital
Eskom plans to reduce load shedding via maintenance plans during the summer and winter months. At its state of the system briefing on Monday, Eskom presented a rosier power picture than South Africans have grown accustomed to. As consumers continue to use electricity wisely, load-shedding has been minimal in recent months and none is anticipated up until August next year. The parastatal also refuted reports that there was a demand crisis. Eskom, in its presentation, prominently pointed out that over the past 99 days the system had only experienced 2 hours and 20 minutes of load-shedding, which was as a result of losing a number of generating units in quick succession. The resilience of the country’s power system was stress-tested this week following multiple trips of units at three power stations‚ which resulted in a loss of 3‚535 MW‚ Eskom says. It added that no load shedding had been implemented due to the increased resilience that the electricity supplier had built into the power system over the past
eight months. “Eskom has a robust plan in order to ensure maintenance without load shedding. A key aspect of this includes having a strict winter and summer maintenance budget that comprises 8.5GW for winter and 11.5GW for summer. This maintenance plan is managed through the Tetris planning tool which schedule outages based on forecasted demand and maintenance requirements. “Eskom has started to deliberately reduce planned maintenance in order to ramp up energy availability for the expected winter peak. However‚ during this period‚ we believe our capacity will be sufficient to meet demand whilst we still undertake required maintenance‚” the power parastatal added. The utility said power could be saved through setting air conditioning to 23ºC and close windows and doors to optimise it. It advised consumers to switch off geysers and pool pumps all day until 9pm and to limit pool filtering cycles to two cycles daily, and not between 5pm and 9pm.
Students voice concerns at New Hope Summit by Mariska Botha, SABC The fifth annual New Hope Summit, a student lead gathering aimed at critical engagement on issues at tertiary institutions, kicked off at the University of Stellenbosch on Saturday. Eight institutions from the Western Cape gathered to deliberate on this year’s topic of transformation and decolonisation following the recent student activism on campuses across the country. All participants are in some way leaders at their institutions including among others, Student Representative Council (SRC) members. The summit comes at a time that organisers call a crucial time in the history of tertiary education in South Africa.
This follows massive student activism over among others, the cost of higher education. Access remains a great issue, especially for poor black learners. Organisers say the summit is necessary to figure out where student leaders fit in the recent movements. Other students say the time for talking is over. Cape Peninsula University of Technology (CPUT) Fees Must Fall, Sincediwe Nyubuse says, “We need summits like this, however summits like this aren’t really what we want because they don’t speak with action, we need action, we need to do things. We need to be radical, we need to fight for what we want.”
Pretoria - President Jacob Zuma is not an enemy of the EFF, but he just happens to be standing in the way of the party and the nation achieving its goals, EFF leader Julius Malema said on Saturday. “Don’t think that Zuma is our enemy. Zuma is not our enemy, it’s just that he is standing in the way, and we must remove him to get our land back,” said Malema. “Zuma is standing between us and our enemy. Move out of the way. Zuma must pave the way because [whites] are the one who stole our land.” Malema was addressing a large gathering at the University of Pretoria’s Mamelodi Campus, where the Economic Freedom Fighters had a memorial lecture on the life of Solomon Mahlangu. He reminded those in attendance that white people had killed blacks during apartheid. “The whites are the ones who committed black genocide. Who killed Solomon Mahlangu? It was not Zuma, it was the white regime. White people must stop being cry-babies and they must take responsibility,” he said. “White people are going to return our land the same way Zuma will return our money. White people must never think we have abandoned the land question. We will never abandon it. We are the land, our identity is our land. We are nothing without our land.” “We are coming for you. Zuma must pay back the money, the Guptas have left South Africa, and our land must come back. ABSA bank must never think that by closing the Gupta bank account, you are our friend. You are our enemy in SA,” he added. “White monopoly capital is the primary enemy of the EFF. Who is white monopoly capital? It is the Rupert, the Oppenheimer, and all those who benefited illegally from our land. This land is going to be returned, whether you like or not. There is no white man who came with a piece of land,” Malema said. He added that people should not ask what blacks would do with the land once it was in their possession. Malema also took issue with those who said the land did not belong to Africans, but to the Khoisan. He said the land belonged to all Africans, including blacks.
NEWS IN PICTURES SECTION |
NATIONAL & INTERNATIONAL NEWS
Mail & Guardian
Oscar Pistorius during his court trial. Oscar Pistorius made a brief appearance in the North Gauteng High Court on Monday where sentencing proceedings were postponed to June 13. cdn-planetrugby.365.co.za
Allister Coetzee elected as new Springbok rugby coach. Coetzee faces a challenge with his new team.
The African National Congress (ANC) kicked off its local government election campaign. Ranked as one of the most poorly attended launches. cdn.abclocal.go.com
Ecuador earthquake: Death toll jumps to 272, more than 2,500 people injured.
Mail & Guardian
Opponents in the crowd celebrate after the impeachment announcement of President Dilma Rousseff.
Donald Trump has won the Republican presidential primary in New York while Hillary Clinton has triumphed in the Democratic race.
THE GLOBAL RISE OF FEMALE ENTREPRENEURS By Jackie Van De Burg, Business Insider
ennifer Lopez knows a thing or two about money. After years in the entertainment industry, Lopez is a masterful businesswoman who is worth about $300 million. Along with her platinum albums, she’s made millions from movie roles, endorsement deals, clothing and fragrance lines, and as a judge on hit TV show American Idol. What has she learned from all that financial success? Time pulled out some of the most poignant career lessons in her new book “True Love,” including a powerful point about money: “Don’t let money make you complacent.” “Lopez says her parents, who held down multiple jobs to be able to send her and her sisters to Catholic school, were an early source of inspiration and taught her that hard work is about more than financial prosperity,” writes Time, which presents this excerpt from the book: There was a certain hustle I grew up with, a hustle that I learned from watching my parents. They showed me that you put your head down and work — you work for a living and then, when you’re making a living, you still don’t stop … We don’t stop working because we have money in the bank — we do what we do and we keep on doing it. Lopez’s perspective is particularly interesting when we consider it in the larger landscape of what being wealthy really means. For many of us, it means having enough money to stop working and be complacent, although time and time again, successful people — like TOMS founder Blake Mycoskie — highlight the disconnect between working for money and achieving success. Women Entrepreneurship Women’s entrepreneurship has hit a media tipping point. The question is: Is it just a passing media fad that will soon be a blip on the radar screen, or is it actually a real, fundamental economic force that’s reshaping the world? I think it’s safe to say that it’s the latter. Women-owned entities in the formal sector represent approximately 37% of enterprises globally — a market worthy of attention by businesses and policy makers
alike. While aggregated data is often challenging to find, the recent Global Entrepreneurship Monitor (GEM) found 126 million women starting or running businesses, and 98 million operating established (over three and a half years) businesses. That’s 224 million women impacting the global economy — and this survey counts only 67 of the 188 countries recognized by the World Bank. These entrepreneurs cross the spectrum of micro to high growth — from supporting life to creating wealth. They include hair salon owners, high tech visionaries and everything in between, all making critical economic contributions. Consider three aspects: Reinvestment: In emerging markets, women reinvest a staggering 90 cents of every additional dollar of income in “human resources” — their families’ education, health, nutrition (compared, by the way, to 30-40% for men. Think of women’s increased income and assets as a gender dividend driving family, community and country wellbeing. Job creation: Beyond their own incomes, 112 million of the GEM surveyed entrepreneurs employ one or more people. 12 million expect to employ up to six people in the next five years. That’s 72 million jobs just from this small sample. In countries like Kenya, so called “SMEs” (Small and Medium Enterprises) like this are responsible for 80% of all employment. And in the U.S., more than half of the 9.72 million new jobs to be created in the SME sector by 2018 will be created by woman-owned SMEs. Innovation: When defining innovation as “offering products that are new to some or all customers” in some regions — including the U.S. and developed Europe — women entrepreneurs have higher levels of innovation than their male counterparts. Collectively, women entrepreneurs look different than their male counterparts. Their lower employment numbers and growth aspirations have historically led to questions of how to “fix” them. But different doesn’t mean deficient — or underperforming. For instance, recent Dow Jones research on venture-backed companies in the U.S. found those that were successful had twice the number of women on the founding team. On the other end of
the growth spectrum, analysis of a dataset from 350 micro finance institutions across 70 countries indicated lending to more women was associated with lower write-offs and lower portfolio-at-risk. Similarly, I recently met with Sanergy and Copia Global, Kenyan social enterprises using franchise models. They both found that women entrepreneurs tend to be more successful because of their trusted status in the community. Controlling for firm characteristics, researchsuggests that women-owned firms outperform those owned by male counterparts. Yet, while increasingly a recognized force, women’s entrepreneurship still lags men’s in all but seven countries in the world. If women’s labor participation were closer to male participation, it would contribute $1T to GDP in emerging economies — women led businesses are key to this opportunity. Perceptions of opportunity and capability strongly link to entrepreneurial activity — that is, if you think you will succeed and will be supported, you are more likely to try. In the US and Developed Europe women are 18% less likely to perceive they have the capability to start a business. While the difference is less for developing economies, in every economy in the GEM study women have lower perceptions of their capabilities, showcasing the enormous opportunity for an enabling environment which would boost entrepreneurial activity rates. Foundational to this environment are access to healthcare, education, land rights and affordable childcare. Just as critical are role models and mentors. At Bank of America, we have partnerships with Vital Voices and the Cherie Blaire foundation, two leaders in training and mentoring emerging women leaders, to help women achieve their full economic potential. Programs like the Center for Women’s Entrepreneurial Leadership are innovating in the academic space. We’ve all seen first-hand the enormous impact of this essential piece of the ecosystem. But, as participants in these programs regularly articulate, they are insufficient without access to capital and markets. Women who have benefited from education and mentoring are experiencing “capital punishment.” For this reason, I was thrilled to join the In-
ternational Finance Corporation (IFC) in Tokyo this spring for the launch of the first global women’s bond (which will be issued in October), $250M to be invested through banks into women led SMEs. The IFC estimates that enterprises with at least one woman founder are collectively looking for $1T to grow their businesses. Female Entrepreneurial Activity Smart companies are watching this trend. They see that women — including the billion women entering the formal economy as employees and entrepreneurs — will dictate their business success. Coca-Cola sees five million women entrepreneurs as part of its global supply chain by 2020. Wal-Mart understands the power of women-led firms to innovate compelling products. Itau perceives the 50% of Brazilian entrepreneurs that are women as a core market, and other members of the Global Banking Alliance for Women think similarly. And all firms should realize that in the war for talent, women are increasingly seeing entrepreneurship as a compelling alternative if a career path appears stunted. Entrepreneurial activity creates growth and prosperity — and solutions for social problems. And today’s trends show that women will be a driving force of entrepreneurial growth in the future.
“I BRING A DIFFERENT SPARK...THAN WHAT THEY HAVE WHEN YOU WALK INTO A FOOL OF BUSINESS PEOPLE, BUT YOU NEED BOTH THE CREATIVE AND BUSINESS SIDE.” - JENNIFER LOPEZ If lending figures from Business Partners, South Africa’s leading finance house for small and medium enterprises, are anything to go by, genuine gender parity seems to be within reach in the local community of owner-managed businesses in the foreseeable future. Jeremy Lang, Regional General Manager: Inland West of Business Partners, is quick to point out that in order to reach this parity South Africa still needs more female entrepreneurial role models. He says that the signs are however encouraging and highlight that a 50-50 participation of men and women on a more-or-less equal business playing field is no longer a distant dream. In the last financial year, no less than 41.63% of Business Partners’ investments had been to female entrepreneurs. In line with a slow but steady annual increase, it was slightly higher than the previous financial year in which 41.16% of investments were allocated to women. The rise in lending to
women is mostly as a direct result of increased numbers of quality applications received by Business Partners from female business owners. Lang says although Business Partners’ conscious decision to empower women entrepreneurs plays a slight role in boosting the figure, there is no doubt that the trend has to do with the steady rise of the female entrepreneurs in society in general. Apart from increased numbers, Lang says several other trends are apparent in the rise of South African business women. “Scarcely a decade or two ago, women-owned businesses were mostly found in retail and service businesses, sectors with generally low barriers to entry. Today, increasing numbers are to be found in the last vestiges of male dominance, such as engineering, manufacturing and transport.” He also sees increasing numbers of opportunity seekers among female entrepreneurs nowadays, as opposed to those who got into business because they had no other choice – so-called necessity entrepreneurs who are in business because it is the only way in which they can make a living and fend for their family. There are two main factors driving the steady increase of women-owned businesses, says Lang. “The first is steadily rising educational achievements and training in fields traditionally reserved for men. The second is rising levels of work experience in an increasingly wider range of sectors. Importantly, their work histories nowadays include more middleand top-management experience, which is often an important component of the success of an entrepreneur. “Most entrepreneurs start businesses in the industry in which they have had work experience, and it is most likely that women entrepreneurs’ penetration of traditionally male industries are foreshadowed by their rise as employees in those industries first.” Lang says South Africa’s system of Black Economic Empowerment, which recognises women as having been previously disadvantaged, has certainly contributed to increasing numbers of female entrepreneurs by putting more business opportunities within their grasp. open discrimination of women in the business world of the past is busy subsiding, says Lang. “In the 2013 SME Growth Index, a South African survey that tracks the lives and businesses of 500 entrepreneurs in the manufacturing and tourism industries, female business owners report that discrimination is less of an issue than it was in the past.” “Apart from bridging the gap between the current 41% female lending rate to a norm of at least 50% for Business Partners, the business world still does not feature or celebrate enough high-powered female entrepreneurs in the class of Richard Branson, Mark Shuttleworth and Patrice Motsepe.”
TIME: FEATURE 4cornerscreative.com
SOUTH AFRICAN MILLENNIALS Who are the Millennials and why is it so important to consider them as part of your business strategy?
South African millennials are on the rise and businesses are learning to use millenial skills to their advantage.
by Kim Cassidy, The Bermar Collection
as this), seminars, and conferences around the world? illennials, an abbreviation for millennial genThey are no longer the fodder of only academics and eration, is a term used by demographers to futurists. The majority of them are now economically acdescribe a segment of the population born betive and they are not scared to splurge. In the U.S. they tween 1980 and 2000 (approximately). Somespend $60 billion annually, and when you extrapolate times referred to in the media as “Generation Y,” millennials these figures to the 2.5 billion Millennials worldwide, are the children of the post-WWII baby boomer generation. you understand why they are now a strategic priority for They represent the biggest demographic in living history. brands, employers and governments across the globe. Millennials have become a huge focus point in South Africa, The South African Millennial is no different. Cosmopolitan’s as well as a ‘hot topic’, especially amongst the South Africa survey found that of the 19.5 million Millennials in the country: blogger industry . 78 per cent are employed, and therefore economically There is an increasing trend toward a global “one world active.96 per cent have a bank account. 62 per cent have culture” and characteristics that transcend traditional dibought something that was out of their budget. vides. A few attributes to note about Millennials, particularly Interestingly, the survey showed that along with money in South Africa, are: and lifestyle, South African Millennials ranked the social imMillennials are the last generation born in pact of their work equally as high – something the 20th century. The ymake up nearly a quarthat does not correlate with global findings. ter of the South African population – and are More than ever before, young people growing – estimated to grow at twice the rate of “MILLENNIALS ARE A across the world are consuming the same the overall population. They have plenty of dis- GENERATION UNLIKE media, through the same devices, interacting posable income. Millennials aspire to social ac- ANYTHING WE’VE SEEN with the same brands and even chasing very ceptability. They are brand conscious. MillenniON THIS PLANET.” similar dreams. Within this wide age range als demand choice and personalised offerings. exists a universe of differences and nuance. Millennials are eager to try new challenges, If we as communicators and marketers forproducts and experience. They embrace diget this, it will be at our own detriment. EmployCHELSEA KROST versity and their lives are lifestyle- centred. ers are also being forced to come to grips with Cosmopolitan South Africa last week reMillennials, considering they will constitute vealed the results of their #CosmoMillenni50 per cent of the workforce by 2020 and 75 per cent by 2030. als survey during events in Cape Town and Johannesburg. Millennials were raised by Baby Boomers, who impartPartnering with Joan Snyder Kuhl, a New York-based Millened on them the mentality that they can achieve anything nial expert and consultant, the survey of 3 400 respondthey set their minds to. This upbringing has created a ents elicited over 34 000 open-ended responses with the highly ambitious group – locally, 31 per cent expect to be aim to better understand the South African Millennial. promoted after one to two years in their current position. I Broadly speaking, a Millennial is someone born benterestingly, the survey showed that along with tween 1980 and 2000. The term was coined by demogmoney and lifestyle, South African Millennials ranked raphers Neil Howe and William Strauss in 1991. But the social impact of their work equally as high – somethere has been a recent resurgence in interest around thing that does not correlate with global findings. the term in the marketing world. In today’s world, with Clearly, South African millennials have their own unique the lifespan of trends becoming shorter and shorter, why traits and can’t be compared to millennials in other countries. is a 20-year-old buzzword the subject of articles (such
Many people are starting to take investments in South Africa seriously. Studies show that investments in South Africa are good for trade and business opportunities.
Reasons to invest in South Africa by The South African.com
ith investment rhetoric ever shifting when it comes to unlocking the potential of our emerging giant, it’s worth reminding the world what still makes South Africa a highly attractive prospect. According to projections from the World Bank, nine of the 15 countries in the world with the highest rate of five-year economic growth are in Africa.South Africa has enormous potential as an investment destination, offering a unique combination of highly developed first world economic infrastructure with a vibrant emerging market economy. Here are just some of the reasons for doing business in South Africa: Sound economic policies Key economic reforms have given rise to a high level of macro-economic stability and 3% growth in a world recession. Taxes have been reduced, the fiscal deficit brought under control, and exchange controls relaxed. South Africa’s central bank, the SA Reserve Bank, maintains its independence from the government. The Bank’s programme of inflation targeting has shown good results: the real interest rate has stabilised and the currency remains at competitive levels. Consumer inflation came in at under 5% from 2004 through 2006 before global prices pushed it up to 6.5% in 2007. In 1994 it stood at 9.8%. The government has made it clear that foreign investment is welcome, and investor-friendly policies support the public pronouncements. In 2005, the government began formulating a new strategy to boost the country’s economic growth rate to 6% of GDP by 2014.
Gateway to Africa Located at the southernmost tip of Africa, SA is ideally positioned for access to the 14 countries comprising the Southern African Development Community (SADC) — with a combined market of more than 250-million people — as well as the islands off Africa’s east coast, and even the Gulf States and India. SA’s ports are the conduits for trade between South Africa and her partners in the SADC and the South African Customs Union, as well as hubs for traffic to and from Europe, Asia, the Americas and the east and west coasts of Africa. Not only is South Africa in itself an important emerging market, it is also a minimum requirement for accessing other sub-Saharan markets. The country borders Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho, and its well-developed road and rail links provide the platform and infrastructure for ground transportation deep into sub-Saharan Africa. Moreover, SA has the marketing skills and distribution channels imperative for commercial ventures into Africa. The country plays a significant role in supplying energy, relief aid, transport, communications and outward investment to the continent. Trade reform, strategic alliances Since signing the Global Agreement on Tariffs and Trade in 1994, SA has become a player in the global trading system, and a series of trade reforms — including a tariff reduction and rationalisation programme — have been implemented. Market access has been enhanced through free trade agreements with the European Union and
SADC and the implementation of the Africa Growth and Opportunity Act by the United States. SA has also developed strong relations with markets in the rest of Africa, Asia and Latin America. The India-Brazil-South Africa alliance, formed in 2003, aims to increase trade between the three countries from the current level of around US$6-billion to $10-billion within the next few years. And the country has become a key trade and investment partner to China, which over the past decade has become a major player in Africa. Cost of doing business in SA There are a number of well-known companies that are based in Africa, including South African Breweries (a subsidiary of SABMiller). South Africa’s exchange rate makes it one of the least expensive countries for foreigners to live and do business in — with a first world infrastructure and high living standards ensuring value for money. SA’s energy costs are still among the lowest in the world. Telecommunications costs are coming down. Recently licensed fixed-line operator Neotel has begun giving state company Telkom its first real taste of competition. The government is taking steps to ensure cheaper and more widely available bandwidth capacity. South Africa’s unit labour costs are lower than those of other key emerging markets, including Mexico. The country has developed a number of leading technologies, particularly in the fields of energy and fuels and information technology.