The 101 of dying when you’re a Homeowner  — Lionesses of Africa

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by Sinal Govender and Claire Keet, cofounders of life.file in collaboration with property specialists, Araujo Attorneys

Buying a property usually involves a bit of creative thinking. You walk into a show house and start to imagine it as a home – your home. Your mind’s eye paints feature walls, open plans the kitchen and pictures your life – and all its big, happy moments – unfolding in the space. The last thing you’re likely to be thinking is: “what happens if I buy this home and then… die?”. People don’t like to think about and plan for the worst bits of life, like dying. (Who can blame us?!). But death and property ownership is a pretty big deal that we just don’t talk about enough. If you own property, or plan on entering the market, here are some of the most important things to know about kicking the bucket when you’re a homeowner…

So, what happens to my property if I die without a Will?

It’s actually pretty simple – if you die without a valid Will, your estate (and any properties in it) will be divided up according to the rules set out in our law. (A quick sidenote: your “Last Will and Testament”, usually just called your Will, is a legal document that says how, when and to whom your assets get dished out when you die. The people who inherit your assets are called beneficiaries. The assets you accumulate in life might include things like property, money, art, cars and businesses). South Africa’s rules say that if you die without a valid Will, everything you own will go to your spouse and kids. There’s even a formula to help figure out how much each beneficiary will get of what. If you don’t have a living spouse or kids, then your parents will get everything. If you don’t have parents anymore, then your siblings will get everything. If you die without a Will, your property will either be transferred to your beneficiaries (these are the people set out in the rules above, like your spouse or kids or parents) or it will be sold to cover your outstanding debt. But wait, the plot thickens… if you have no known blood relatives when you die, all your assets will go into a State run guardian’s fund. If your assets aren’t claimed within 30 years they are forfeited to the state. Your main takeaway should be this: if you die without a Will, you have no control of who will get your property when you’re six feet under.

And what happens to my property if I die with a Will?

This is exactly the position you want to be in when you die. (And your loved ones will thank you for it too). The great part about dying with a valid Will in place is that your property will be transferred to the person or people who you left it to in your Will. Easy peasy! If the property is not specifically mentioned in the Will, but you have left your entire estate to, say, your two children then the property would go to the two of them, in equal shares. 

What can my loved ones expect from the actual process of inheriting my property? 

Hang onto your hat… it’s quite a process with some really important information along the way. 

Step One: Once you’ve died, quite quickly your Executor will need to be formally appointed. Remember, your Executor is the person who you have (hopefully) appointed in your Will to wrap up your estate admin. If you die without a Will, then the people inheriting from you will have to choose an Executor. Once you’ve died, your Executor is “officially” appointed by the Master of the High Court by the issuing of Letters of Executorship. It’s now their job to take control of your estate assets and share them out accordingly.

Step Two: The next thing that gets done is that the estate (aka, your worldly possessions and debt) is reported by your Executor to the Master of the High Court in the area you were living 12 months before you died. It’s really, really important to know that at this stage, your estate is frozen. This means that no one can withdraw funds from your bank accounts or deal with any of the estate assets without permission from the Master of the High Court.

Step Three: Your Executor will draw up what’s called a Liquidation & Distribution Account or L&D Account. This is basically just a list that describes all of your assets (things or money that you own) and liabilities (things or money that you owe to others). The more organised you are before you die, the better. Making a list sounds easy, but it can take forever if your affairs are a shambles. (Imagine your loved ones trying to hack into your devices to figure out who you have accounts with. Or sifting through piles of paper trying to find your vehicle registration documents). Once the L&D Account is up to date, it’s now your Executor’s job to make sure that your assets are shared correctly and that all your debt is paid off. It’s at this point that your Executor will contact family members to tell them about inheriting your property. 

Step Four: The L&D Account is then submitted to the Master of the High Court for approval. It must be done within six months of your Executor being officially appointed. (Unless your Executor applies for, and is granted, an extension). Once it’s been approved, the L&D Account then has to “lie for inspection” for 21 days once the Master has approved it. This basically means that any people you might owe money or assets to can raise their concerns during this period of “inspection”, before things are well and truly wrapped up. The more organised you leave your affairs, the less chance there is of any surprises during this period of inspection. 

Step Five: If no one raises their hand during the period of inspection, and all is well with your L&D Account, then your beneficiaries will be paid. It’s also at this stage that the transfer of your property can take place. A conveyancing attorney will then attend to the transfer of the property into the name of the beneficiary. This will take the usual transfer period of approximately 3 months. It’s important to remember that transferring property is not a free exercise – the conveyancing attorney will also need to be paid.

What if I still owe the bank money on the property? Will my beneficiaries inherit my debt?

The answer to these questions depends very much on your personal circumstances. For instance, if you have insurance to cover your bond when they die, then your loved ones will usually inherit a property that has been paid off. Or, if you die with lots of extra money in your estate, then the bond can be paid off by your Executor. In situations where there isn’t money in your estate to cover the bond, your Executor will need to sell the property. Your loved ones will then inherit whatever money is left once the bank has been paid what is owed to them.

What happens if I leave one property to multiple beneficiaries? i.e. If I leave my holiday home to my three children. Do they each get an equal say in what happens to the property?

If you leave your home to three beneficiaries then yes, they will need to decide between themselves what will happen to the property. Either they each inherit an equal share in the property or they can choose to sell the property and inherit the money made from the sale. In a situation where one of your children wants to keep the property but the others would prefer the cash, they can all enter into what’s called a Redistribution Agreement. This agreement would say that one child would inherit the property and that the other children would inherit other assets or cash amounting to the same value as the property. If a Redistribution Agreement includes a property, it must be in writing. Your executor would help your children with this. 

What happens if the people I leave my property to don’t want it or can’t afford it?

If this was the case, the Executor would sell the property and your beneficiaries would inherit the proceeds of the sale. Your beneficiaries can, of course, also just inherit the property and then put it onto the market at a later stage themselves. 

Who pays the rates and levies during the time between when I die to when my beneficiaries take over the property?

Any rates and levies will be paid by your Executor from your Estate, as long as there is enough money in the estate. Once the property transfers to your beneficiaries,  it’s on them to pay the rates and levies as the new owners of the property.

What will my beneficiaries wish they’d known sooner about inheriting property?

First, it is really important that your beneficiaries know about the running costs of your property – so things like rates, levies and any special levies. It is important that they know whether they can afford the running and maintenance of the property before becoming the owner so that it doesn’t become a big financial burden further down the line. Second, it’s important that they know that if your property is rented out that the lease does not just stop when the property transfers to their name. As the new owners, they would actually take over the lease agreement until the tenants give notice or finish their lease.

What property related documents will the beneficiaries of my property need one day when I die?

  • The Title Deed

  • The Notarial Deed (if there is an Exclusive Use Area registered like a Parking Bay or Garden)

  • A recent rates bill

  • A recent water and electricity bill

  • A recent levy statement

  • A copy of a lease agreement (if you have a tenant in your property)

Who would have these documents?

If there is a bond registered for your property, the bank will have the title deed and notarial deed. If there is not a bond registered for your property, then you should have these documents. These documents are critical for the transfer process. If your beneficiaries can’t find your Deed documents, then they’ll have to apply for a vault copy from the Deeds’ Registry Office. This process is what’s known as a Regulation 68 application. It will cost money and make the transfer process take longer. Motto of the story: get your ducks in a row. And make sure your beneficiaries and Executor know where to find them.

The long and the short of it is this:

  • Make sure that you have a Will.

  • In your Will, make sure that you leave your property to the people you want it to go to.

  • Make sure that your beneficiaries know what to expect from the process of inheriting your property – especially that it can take a long, long time, that there are costs involved and that they might struggle with cash flow while your estate is frozen.

  • Make sure that you’ve got your “ducks in a row”. There’s a lot of very important documentation that will be needed to wrap up your estate one day when you die. Make sure it’s up to date and that your beneficiaries know where to find it all.

This article was written by life.file in collaboration with property specialists, Araujo Attorneys.



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Fear, risk and being human — Lionesses of Africa

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by the Lionesses of Africa Operations Department

“If there be light, then there is darkness; if cold, heat; if height, depth; if solid, fluid; if hard, soft; if rough, smooth; if calm, tempest; if prosperity, adversity; if life, death.” — Pythagoras. “…if prosperity, adversity” or put another way, ‘if profit, there is risk’. Risk is there, it may be hidden, but it is there… you cannot have one without the other.

Last weekend we looked at our sub-conscious fear of the finite time we have on his earth (a mere 4,000 hours if you live to 80 – here) and how this fear, with the recognition that we simply do not have enough time for everything, sends our brains into a tizz and we end up procrastinating or being distracted. Yes, sounds totally counter-intuitive doesn’t it, less time means we waste more time, but no-one said our brains worked perfectly, we are after all only human!

Being human is the crux of our article this weekend, because our sub-conscious works in mysterious ways especially over fear and the understanding of risk. Following the 9-11 bombing in America, millions turned away from flying and drove instead, yet thousands more die in the USA from driving than through flight. Who knows how many extra people sadly lost their lives through that wrong fear-driven decision (some very clever Lioness owning and running an actuarial firm will we hope write in with the answer)!

We were looking this week at what makes a good Board decision, when we realized that a decision can only be as good as the information or data given to make that decision. If you remember back to the days of music being delivered through Vinyl records (time to dust down your old copies, they are now worth huge sums of money), it didn’t matter how good your actual system was if the needle you used was rubbish. For the purists, the needle, then the arm, then the turntable, then the amp and then and only then the speakers, is the order of where you would spend your money. This is because if you are not picking up the perfect information from the Vinyl, no amount of money spent on the rest of the system will improve this. It may increase the bass, treble, even become so loud it blows the roof off your neighbour’s roof, but the information will still have the taint from the cheap needle.

So too with decisions. We are told information and data are the basic starting points, but what if your subconscious gets involved and starts to cherry-pick the information it wants? What if your board is only getting half the story? Our minds have inbuilt biases and it is only if we become aware of these, can we really then look at the data with clear eyes. Why do we have these biases? It is a safety issue. At the root of it all is that we are herding animals, we love being part of a pack. This is safety in numbers, standing alone we can be picked off, but if we are in a herd or pack, or club, there is safety in numbers. Once we realize this, we can start to look at the biases and then recognize the risk these bring.

So what are the more obvious biases? Let’s start with the one all sales people love – The Anchor! The second hand car salesperson will often start by saying – “What a beauty, sold one last week at $10,000.” Bingo – your mind will start to think it is good looking (even if pink with purple spots is not quite to your taste), but more importantly, if someone else has bought there, we can’t look stupid also paying that price – so you start to think the car is worth $10,000. This is called anchoring. When the sales person says “Yours for $9,750!”, you immediately think of the saving of $250 (which believe us, is an imaginary saving), and how you ‘beat the other person’ (which makes you feel good), not of the massive $9,750 cost! That is a bias that your subconscious welcomes with open arms. Try it next time you want to steer the argument in your favour. The secret is simply to get your ‘anchor’ in early and then from that point onwards, the conversation will be ‘anchored’ by that level or information.

Confirmation Bias is one we like to publicize because it is so dangerous. We subconsciously search for data that confirms our initial belief. Many people have wrongly been arrested and put in jail because of this and then many years later released because new facts came to light (often ignored because the facts didn’t fit the initial belief). Shockingly true. In business facts also get ignored if they don’t fit the initial belief. Be very careful of this one. Picking the ‘facts’ that suit your argument.

The Fireman’s Bias is next, which maybe a bit unfair on Firemen and Firewomen! All it takes is a group of people spending time together for views to start to all look and sound the same. It is called after Firemen/women because they tend to spend long hours together doing nothing and talking whilst waiting for the fire bell to go before bravely springing into action. It’s that slow drip of talking together that brings views in line until it becomes difficult to be a dissenting voice. Look out for those long court cases and the jury being out for days and days deliberating. Likewise if your top team has been together for years, perhaps they cannot see the wood from the trees, because they are all looking in the same direction…

Ratio Bias is another dangerous one. The mentioning of a number without giving context. Our HoF complains of people not mentioning the currency when they say: “4 million”. What does that mean? US$ 4 million is very, very different from 4 million Rand, or Naira, or Cedi, or Kwacha or Shilling…   

Likewise Covid has sadly killed 5.7 million people, yet the Antonine Plague (165-180AD) killed only 5 million and the Japanese Smallpox Epidemic a mere 1 million (735-737AD) seen here. Did we forget to mention that the proportion of the human race killed by the Antonine Plague was a whopping 2.6% of the world’s population and the Japanese Smallpox Epidemic killed a third of their population.  The Spanish Flu killed 45 million and that was 2.5% of the world’s population at the time (1919), Covid by comparison has taken out a mere 0.07% of the world. Whilst obviously not wishing to take anything away from the pain and suffering felt by millions over these past three years, in business when someone misses the context (often because they want to dramatically make their point), how can anyone make a decision? (To add context for those interested, the Black Death killed 51% and Smallpox just over 12% of the population)

Fear sells, sadly this is a factor of life. Fear of missing out, fear of not being prepared, fear of not being part of the gang. Once fear has taken hold, confirmation bias does the rest as you will only take in that which confirms your first suspicions. If you think that this doesn’t have an impact in our lives, there are some Politicians who constantly use this and social media then feeds the fears. We have all heard: “You must do it or we will lose the client”, or “Our competition is doing this – we must too…”. Take a deep breath, fear is no way to run a company.

On top of all of these biases, the problems become magnified (here) when:

  1. Rubbish! You simply refuse to see the risks. They are hidden in plain sight. It is only when you welcome a new employee into the company that they see what has been ignored for so many years.

  2. No Chance! There is a denial of the risks. Such a denial was seen by the banks who lent out money into the mortgage market of 2006/2007 and then packaged these loans and sold them on. It was so popular that anyone could get a mortgage. The risk of a loan default was denied in the rush to package and sell. Then 2008 happened, the world of finance collapsed and many companies went bust. Thanks!

  3. Who cares? Or ‘Risk Inertia’… Sadly this has hit us all at one time or another. It must be true – look here on my excel! Not only the world’s most used business tool, but also the world’s most risky business tool. The massive global investment bank JP Morgan dropped dramatically in size when they misjudged risk because there was a mistake on their excel spreadsheet. Misjudged risk by a massive US$6 Billion by the way. Did not check until it was too late. Oooops!

  4. Finally Let’s just look the other way – it’ll never happen! Or ‘Risk Compromise’. So the risk has been evaluated and the boss says the company cannot pay and anyway it’ll never happen (this after paying expensive experts to tell you that this is a risk that should be covered!). “In 2016 the UK Department of Health ran a stress test to cope with a surge in demand for services due to a novel virus. Exercise ‘Cygnus’ found that the NHS would be overwhelmed and needed substantial resource upgrades to meet public demand. In 2020 when Covid-19 struck it was found that the risk had subsequently been downgraded and investment reduced by the Treasury.” Cash saved in 2016 in the millions, cash spent to rectify, in the billions…

In the excellent book simply called ‘Risk’ by the award-winning investigative journalist, Dan Gardner  here, he says having recognised that risk is an everyday part of our lives, the solutions are:

  1. “The first step in correcting our mistakes of intuition has to be a healthy respect for the scientific process.” i.e use data – that does not mean search on Dr.Google or Professor Wikipedia (although to be fair, the references listed at the bottom of the page are often an excellent source), but use the company’s data, search for verifiable information, never assume (which as all know just makes an ‘ASS out of U and ME’).

  2. “The next step in dealing with risk rationally is to accept that risk is inevitable…It is often possible to make something safer, but safe is usually out of the question”

  3. “We must learn to think hard” and please question the obvious.

And finally:

“If Head and Gut still don’t match up, swallow hard and go with Head”.

Never be afraid of pushing employees, managers and your c-suite to explain, to investigate deeper, to question – even if you agree with them, to test their conviction in their information, because ultimately you make the decisions and those can only be better made if information and data given is provided needle sharp.

Being part of the crowd is just part of being human, but just make sure it is a crowd you (not your or their sub-conscious) want to be part of.

Stay safe.



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An Entrepreneur’s Guide to Success, Impact and Legacy by Caroline G Nuttall — Lionesses of Africa

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Book Review

In her book, Big Fish: An Entrepreneur’s Guide to Success, Impact and Legacy, Caroline G Nuttall believes it has never been easier to be ignored. Glazed over with the unconscious, habitual swipe of a finger. No matter the industry, we are swimming in a sea of commoditized competitors rapidly expanding every day as technology, pandemics and other external forces remove all barriers to a vast virtual world. How we are marketing is not only wasting our time and money, but it is making us more irrelevant with each passing minute. In today’s tactic-overload marketing landscape, we have blinders up to the only problem we have to solve: nobody is listening. And the reason nobody is listening is because we’re all saying the same thing, which means we’re all saying nothing.

Caroline G Nuttall’s book, Big Fish, is a refreshingly entertaining business book that serves up the perfect blend of transformational strategy, inspiration and humor while fundamentally changing the way we think about business growth and marketing. It will help you stop using antiquated methods of trying to get customers to buy what you sell, and start attracting raving fans with your individual persona, unique perspective and original ideas. By the end of this book, every CEO, entrepreneur, and business leader will ask themselves the only question necessary for success circa now: What do I stand for?

Author Quotes

We have two choices, stand out in the sea of sameness or drown.

No matter the industry, we are swimming in a sea of commoditized competitors rapidly expanding every day as the pandemic, technology and other external forces remove all barriers to a vast virtual world. And yet, nearly all of us continue to market and grow our businesses the same way we always have.

This book will fundamentally change the way we think about marketing and business growth in today’s oversaturated environment. It will shift our mindset so we can stop following antiquated methods of trying to get customers to buy what we sell, and start attracting raving fans with our individual personas, unique perspectives and original ideas. 

You have the opportunity right now to leave your competitors frantically splashing in the rearview and become a BIG FISH who attracts revenue, creates impact, and builds a lasting legacy.

About the author

Caroline Nuttall is a sales executive, keynote speaker, and market-making entrepreneur. As well as founding, building, and selling a successful print and digital media company, Caroline Nuttall was a Hollywood publicist for some of the world’s biggest and most beloved brands. She served as CEO of the world’s first talent agency for marketing thought leaders before joining the team at ForbesBooks as a VP of sales to help CEOs and business leaders build and promote their authority through book publishing and speaking. Today, with her sales ability and strategic growth mindset, Caroline helps the world’s greatest companies do great things in the world.

www.carolinegnuttall.com 



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The distributed energy future is here!  — Lionesses of Africa

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Impact Partner Content / Absa

We recognize Africa’s vulnerability to climate change, and together with like-minded individuals and organisations, we will contribute to creating sustainable, value-creating solutions to some of Africa’s greatest environmental challenges. 

The call to make a sustainable, equitable and just world is either a challenge or the biggest opportunity of our time. It will require our collective bravery, draw on our individual passions and ask all of us to be ready. It’s a call that we have to answer, because that’s Africanacity. That’s Absa.

The distributed energy future is here! This future is more than pushing solar widgets. It is the New Energy Industry, where distributed solar, energy storage, energy efficiency, electric vehicles, analytics and energy literacy are coming together with comfort and lifestyle to transform the lives of everyday people.

Since 2020, many businesses and households had to navigate through the challenges brought about by continued lockdown restrictions, to curb the impact of COVID-19 and then, in 2021, had to deal with the addition of unrest across the nation. These uncertainties contributed to the current health and economic constraints experienced by citizens and the country as a whole. And yet, despite historic declines in our economic activity, we still saw a high intensity of load shedding. Driven by Eskom’s aging power plants, we are seeing a continued decline in the energy availability factors (the amount of energy available compared with the total energy generation). 

To limit the risk of load shedding going forward, we need new generation capacity, as we cannot currently rely on the old and poorly maintained existing fleet. Furthermore, increasing tariffs by Eskom (~15%) and municipalities (~18%) have forced businesses to focus on renewable energy generation and energy efficient interventions. Renewable energy technologies continue to become more cost-competitive and are seeing increasing use and acceptance across the globe.

As we start 2022, Eskom pushes for higher tariff increases, with an increased risk of load shedding due to additional generation units planned to go offline for maintenance. These major factors have put sustainability and investment in energy production at the top of many business and household agendas.

Furthermore, there is continued momentum in South Africa’s ”just transition” from fossil fuels to renewables for power generation, with greater levels of private sector participation in energy generation. There is a strong positive sentiment in the sector, given the regulatory developments that have taken place over the past 12 months. Such as, small-scale embedded generators (SSEG) or installations of less than 100 MW no longer needing a generation licence and only needing to register with NERSA and their utility, this increased certainty and clarity is supportive of growth in investment. We feel that investment by businesses in renewable energy solutions are likely to grow strongly in the next 12 months and beyond. 

Aligned to our ongoing focus, customer education and awareness continue to be important components of our approach to driving renewable energy adoption. Through our engagement with employees, clients and industry, we have noted the need for insights and content that focuses on the technology, the resource availability in South Africa, financial considerations for investment in these technologies (including operation and maintenance), suitable implementations, as well as some of the regulations that must be kept in mind. 

We bring these insights to our Absa colleagues though training sessions around solar PV, renewable energy and energy efficiency, both digitally and in person, equipping them with the knowledge to best solution Absa clients. We continue to build on our insights base through a dedicated team of specialists who focus solely on renewable energy, and we share these insights through customer testimonials (including in the ENCA Gamechangers series), dedicated events and webinars as well as multiple thought-leadership articles.

This year, we are proud to be associated with Solar Power Africa, Africa’s premier exhibition and conference for the Solar PV and Energy storage sectors.  The event is powered by SAPVIA (The South African Photovoltaic Industry Association) and endorsed by SAESA (The South African Energy Storage Association).  

The event will take place between the 16-18 February 2022, at the Cape Town International Convention Centre, bringing together an extensive alliance of local and internationally renowned industry leaders, stakeholders and experts with the aim of discussing and unpacking strategies that aim to provide greater access to solar power and clean energy solutions on the continent.

The conference is aimed at all industries, both public and private, forming part of the renewable energy industry value chain. This includes installers, contractors and producers, major utility companies, energy storage experts, smart energy professionals, finance, industry bodies and government.

Solar Power Africa consists of free-to-attend seminars on the exhibition floor with content aimed at small to medium-sized businesses as well as to provide practical, skills training for the installer markets. 

The event also consists of a paid conference consisting of eight plenary sessions and over 12 specialised breakaway streams, covering a range of topics. Download the conference agenda: https://solarpowerafrica.za.messefrankfurt.com/content/dam/messefrankfurt-southafrica/solar-power-africa/2022-conference-agenda/SPA%20Conf%20Prog-200122.pdf 

Don’t miss this opportunity to meet with us and network with industry leaders, and learn about the latest regulations, technology, trends and opportunities in this rapidly growing market.

To book for the show, you can visit the event website at https://solarpowerafrica.za.messefrankfurt.com/ and click on Register here to attend. You will then be able to register for the conference or book to visit the expo for free. We look forward to seeing you there. 

Image: courtesy of Absa



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Claudia Folgore-McLellan, a South African creative entrepreneur helping brands connect with audiences — Lionesses of Africa

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Share a little about your entrepreneurial journey. And, do you come from an entrepreneurial background?

I do believe I am a born entrepreneur; it takes a certain type of person to weather the storms of owning one’s own business – I think it also takes a fair dose of madness. I have always had a desire to be self-employed. My ultimate goal, however, is to build a resilient, sustainable business that ultimately contributes to the greater success of our country and economy.

What are your future plans and aspirations for your company?

I would like to grow Visual 8 and have it become an umbrella brand for a number of other related business ventures I’ve taken an interest in over the years. I have a few ideas that may come to fruition this year, with some skillful collaborations. I would ideally like for Visual 8 to also extend its reach globally – I’d love to work with clients through Africa, UK and Europe.

What gives you the most satisfaction being an entrepreneur?

Knowing that everything I have, I have worked for myself – the satisfaction and pride that comes from having achieved, even the smallest of goals, when running your own business cannot be described. With every step, you realize your potential is greater and it often feels like you’re trying to beat yourself in a challenging game of chess. The learning that comes daily with entrepreneurship is invaluable.



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Farmer lays a solid foundation in poultry operation – African Farming

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Phuti Mphelo left Joburg after a seven-year stint as a chartered accountant for Transnet and then for Ernst & Young. Phuti and her husband, Dr Sello Mphelo, left the City of Gold to follow their dream of opening a business in the mining town of Lephalale in Limpopo. Here they built successful businesses in health and medical services before they diversified into agriculture in 2018 with the launch of their family-owned egg business, Mae Eggs. Peter Mashala chatted to Phuti.

In 2010, when Phuti Mphelo and her husband, Dr Sello Mphelo, moved to Lephalale, the rapidly growing town was alive with opportunities. The once-quiet small farming town, formerly Ellisras, in Limpopo’s Waterberg municipality was surrounded by new megaprojects in the electricity and coal-mining sectors. These projects had attracted people from all over South Africa and from other countries, and Lephalale was a boom town.

The timing was right for the young couple, who planned to establish themselves in the health and medical services industry. “The Limpopo government supported my husband through his medical studies,” says
Phuti.

“So when the time came for him to do his community service, we chose to settle in Lephalale, where there was major growth and development driven by the construction of the Medupi and Matimba power stations, and the establishment of coal mines in the area to supply the power plants.”

ADAPTING AND DIVERSIFYING

Phuti and Sello, who both hail from Limpopo, had worked in Johannesburg, in finance and medicine respectively. Phuti, a chartered accountant, worked for Transnet and Ernst & Young in the city for about seven years. When Sello told her of his idea of settling in Lephalale to establish a health and medical services business, it made a lot of sense to her.

Phuti left her job to run their new business, where Sello worked as a doctor while he also put in time after hours at the local state hospital. The Mphelos set up two medical centres with the idea of opening more as the town grew. Then construction at the Medupi power station came to an end, and with this Lephalale’s growth was arrested.

“I knew we had to diversify our business, and this is how we started Mae Eggs,” explains Phuti. Going into farming was ideal, she says, because there was a market on their doorstep. Eskom’s multi-billion-rand projects had increased the town’s population by an estimated 60%, which meant a guaranteed demand for food.

“Many people in the rural areas and in the townships eat eggs for protein when they don’t have meat, and they prefer farm-fresh eggs,” says Phuti. “My husband and I had no farming background; we both did poultry courses to learn about running a poultry business. But we are surely getting the hang of it now,” she says with a smile.

She saw that setting up a farming business was also a way to build a legacy for their children. Since 2018, when they started the business, Mae Eggs has grown from a 1 000 layers to a 3 000-layer operation. Their clients are mainly local retail grocery stores, guest houses, hotels and hawkers.

“We currently employ two fulltime staff members, but we are working hard towards becoming a more significant employer,” Phuti says. The Mphelos lease land from a developer, who bought it for housing but did not build on it because of the stagnation in the town’s growth. The husband-and-wife team cleared the 2ha area of bush, put up facilities with the capacity to house 6 700 birds, and started operating in August 2018.

Phuti says they chose layers for a start, based on the resources they had and their non-existent agricultural experience. “Also, we don’t have the land or the water to plant crops, so a laying operation seemed like the best choice.” According to her, they deliberately avoided broilers because they felt that sector was oversupplied with operators.

  • Phuti has two permanent workers, Mexideck Matutu (left) and Mike Matutu, who see to the day-to-day running of the farm. Her future plans include creating more jobs and further expanding her business interests.
  • After clearing the bush, the chicken houses were erected on 2ha of leased land. The two houses have a carrying capacity of 3 350 birds each.

A PROFITABLE BREED

Mae Eggs buys Hy-Line Brown pullets at point of lay (aged 18 weeks) from a supplier in Witbank. “By the time they get here, they are ready to start laying,” says Phuti. The daily egg collection rate is just above 80% – and she feels it could be improved upon. They had a collection rate of more than 90% in their first cycle, which she attributes to the quality of the first layers they got from their supplier.

“We bought the second batch in the middle of the Covid-19 hard lockdown, when there was a real shortage of good stock. I think, because of this, we got a lower grade of layers, hence the drop in production,” she explains.

Quality is very important in a laying bird and Hy-Line Browns have a reputation of being excellent birds. Phuti chose this breed because the hens can produce eggs up to the age of 100 weeks. “This is a prolific layer with excellent feed-conversion ability, which makes it more profitable for the farmer,” says Phuti.

BRINGING DOWN FEED COSTS

The couple feed their chickens BarnLay mash from BarnLab Layer range from the day they arrive. At first they bought feed from local suppliers, but this became very expensive. “Then we started our own feed shop, Lephalale Feed Depot, with a friend who is a broiler farmer in Vaalwater. We bought feed in bulk for resale and to use in our own operations in Lephalale,” explains Phuti.

This helped reduce the costs and had a positive impact on their profit. Phuti has since pulled out of that business, but is still buying in feed from her former partner. “I get it at a reasonable rate and he gives me credit when I need it, which is really helpful,” she says.

The poultry population at Mae Eggs has a very low mortality rate of below 0.01%. The pullets are fully vaccinated when they come in and do not need many more inputs for the rest of the cycle. “We put aloe extract in their water; it works like a natural antibiotic,” Phuti says. “We haven’t lost any chickens to major diseases, and we’ve had only one scare with fowlpox, which we got on top of immediately. We cull the chickens at about 18 months.”

SPREADING RISK

About 55% of the eggs are supplied to the informal market, including spaza shops, hawkers and individual clients, whereas the rest goes to the formal market – hotels, guest houses and supermarkets. Phuti says their initial plan was to sell all the eggs on the informal market, but that got off to a rocky start.

“Because we were unknown in the market, we found ourselves with lots of unbought stock, some of which we had to give away while the rest rotted.” This forced the Mphelos to change their strategy and sell stock on the formal market.

The disadvantage of the formal market, on the other hand, according to Phuti, is in the pricing. The formal market buys eggs at a fixed price while the price of feed fluctuates all the time. “On the informal market you can change the egg prices with changing feed prices. But the formal market does offer a steady demand, which keeps the cash flowing,” she points out.

They have since worked hard to establish a good reputation and have grown their informal market share to 55% of their product, with 45% going to the formal market. Phuti says they would like to maintain these percentages or perhaps to push sales in the informal market to 60% while they continue to grow the business.

“Lephalale is a migrant town, and in December and during other major holidays people go home. So we do need the backup of the formal market,” she adds. Excess stock is no longer a problem – in fact, the business now battles to meet demand.

“The hard lockdown restrictions and thevirtual standstill of the hospitality industry had a negative impact on the poultry sector. When deliveries to the town were stopped or came in late, I jumped in to fill that small gap and I’ve managed to keep my spot,” she says.

Phuti says they selected the Hy-Line Brown breed because these quality birds are known for their prolific egg-laying and exceptional ability to convert the minimum amount of feed into the maximum number of eggs.

BUSINESS TRAINING AND FUTURE VISION

Phuti values opportunities to upskill and to participate in various development programmes. “I’m a member of Fetola, which is an enterprise development initiative aimed at helping small black-owned businesses, run in partnership with the SAB Foundation,” explains Phuti.

She says the initiative trains small business owners using practical methods to help them understand various aspects of business, including pricing. “As someone new to business, you need to understand how production costs affect your pricing.” There are times when big orders coming in from the formal market can look very exciting.

“But if, for example, their offer works out at R1 per egg and you don’t understand how much one egg costs you, you can fall into a trap where you will lose money.” Phuti says they would like to scale up to 10 000 birds per cycle in the next five years. “Our idea is to start rearing our own day-old chicks to point of lay or even to go as far as hatching our own birds. We just need to do it gradually and patiently,” she says.



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Up close and personal with Phuti Mphelo – African Farming

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WHAT IS THE BEST ADVICE YOU HAVE EVER BEEN GIVEN?

“The fear of the Lord is the beginning of all wisdom.” (Psalm 111: 10)

WHAT WOULD YOU HAVE DONE DIFFERENTLY IF YOU COULD?

I would have trusted my instincts more – and gone into business earlier.

WHAT HAS BEEN YOUR BIGGEST ACHIEVEMENT TO DATE?

Successfully launching my businesses and not having to rely on a pay cheque for more than 10 years. And using the same businesses to create employment for others.

WHO HAS MADE THE MOST IMPORTANT CONTRIBUTION TO YOUR SUCCESS SO FAR?

My husband.

DO YOU HAVE A GOOD RELATIONSHIP WITH YOUR NEIGHBOURS? DO THEY PLAY ANY ROLE IN YOUR BUSINESS?

The farming community is naturally supportive. Our neighbouring farmers help with security on the farm.

WAS IT A STRUGGLE TO SECURE FINANCING, AND DO YOU HAVE ANY TIPS FOR OTHER FARMERS IN NEED OF FUNDING?

It is still a struggle to an extent. It’s challenging to get the necessary finance to take your operation to commercial-farmer levels. I’ve been fortunate to have a good relationship with my banker, who understands farmers’ needs. The grants from the Department of Agriculture for chicken feed have also helped enormously.

And I have received grants from enterprise supplier development (ESD) programmes. A word of advice: financiers want an audit trail of performance and some indication of a good track record. So it’s important to make sure the operation is compliant with the relevant regulations and that complete records are kept up to date.

ARE INPUT SUPPLIERS, LIKE FEED COMPANIES, SIGNIFICANT TO YOUR OPERATION?

They don’t play a direct role, but I’m indirectly affected whenever there are delays in deliveries on their side, or general price increases for commodities like maize.

WHAT ADVICE WOULD YOU OFFER THE MINISTER OF AGRICULTURE?

To prioritise funding and technical support to emerging farmers so they can become commercial farmers. Without scale and volumes, it’s near impossible to remain profitable and sustainable in the long term.



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Are you a People Pleaser? — Lionesses of Africa

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by Paula Quinsee

Do you find it difficult to say no to others? Do you find yourself agreeing to things that you don’t want to do or functions you don’t want to attend? Are you constantly worried about what others might think of you and that you don’t want to disappoint or let others down? You might very well be a people pleaser. The important thing here is to know the underlying causes of what has contributed to this type of behaviour.

People pleasers are good at tuning in to what others are feeling and are generally empathetic, considerate, and caring people. However, these positive qualities can also be closely followed by the tendency to overachieve, a poor self-image and, or a need to be in control.

There are a number of factors that could be contributing to this kind of behaviour:

Poor self-esteem

Someone who lacks self-confidence can constantly be looking for external validation and doing things for others will give them a level of approval and acceptance.

Insecurity

Feeling insecure about oneself can result in a person wanting to please others because they worry that other people won’t like them or want to be with them, so they go above and beyond to make them happy, often at the cost of their own happiness and needs.

Perfectionism

Wanting everyone to be happy all the time, always having a good time, including how they think and feel can be a symptom of perfectionism and the need to be in control. This can cause a lot of stress and anxiety about the slightest detail or event.

Past experiences

Our upbringing or traumatic experiences can also play a role (e.g. growing up in an abusive environment) can cause a person to want please others as a way of keeping the peace so as not to trigger abusive behaviour or reactions and make them upset or angry.

Dr Caroline Leaf says: “people-pleasing can be traced back to childhood where you were taught that love only comes when you sacrifice yourself and the space.”

Often this can result in one not being able to have a healthy attachment with others especially when it comes to romantic relationships. People pleasers crave connection and by people pleasing, it is a way to feel validated or liked. By making sure people are happy, they feel as if they are useful or needed and valued.

The consequences of being a people pleaser can leave one feeling:

  • Anxious and stressed – constantly worrying about what others are thinking.

  • Frustration, anger and even resentment – feeling they are being taken advantage due largely due to their own inability to say no or establish boundaries.

  • Not being authentic – going along with what others say or want due to wanting to be accepted and liked.

  • Depleted energy or willpower – constantly trying to please everyone and the stress that goes with that can leave one feeling mentally and emotionally drained and unable to focus on their own goals, dreams and needs.

I myself was a people pleaser for many years before I put steps in place to change this. It’s also some of the tools I share in my books: Embracing Conflict and Embracing No.

Part of what contributed to this behaviour was due to my childhood where I lost my mom at age 7, and growing up in a home where there was very little validation and acknowledgement and my father being emotionally unavailable (you can read my personal story here).

A crucial part of moving out of people-pleasing behaviour is to become aware of when and why you do it. If you have been doing it for years, it can be an automatic default without realising it due to the underlying need to serve the needs of others at the expense of your “self”.

So what are some of the way’s to change this behaviour and shift from having a people pleaser mindset?

Start with small “no’s”

Learn to implement boundaries by starting off with a small no e.g. no thank you I do not want a second helping of food, I am full.

Have a healthy relationship with yourself

Practice self-care and self-love behaviours so that you understand your own needs, likes and dislikes which can help you establish boundaries.

Question your motives

Observe your motivations and intentions as to why you are doing something. Is it because you fear rejection or want to gain the approval of others?

Establish healthy boundaries

There is nothing wrong with being a kind and caring person, but on your own terms. Kindness doesn’t demand attention or rewards and at the cost of yourself. Manage your expectations and do things because you genuinely want to do them not because you feel obliged or are looking for validation.

If you feel that you might be a people pleaser but are not sure where to start with exploring this, seek the help of a professional in your area. Alternatively reach out to me and let’s get you the clarity and support to shift you into finding a balance, a healthier mindset and better choices in your life.



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How Strong are your Boundaries? — Lionesses of Africa

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by Kathy Mann 

One of the things that contributed to my recent health collapse is poor emotional boundaries. I didn’t have strong boundaries established and that meant that anyone could impose almost anything on me. I wasn’t firm enough, even with my children, in articulating what is for me and what is for them. 

If you’re wondering what I mean, I’ll give you an example. I set up a small office at home that leads off my bedroom. Somehow our exercise bike became part of the furniture also. My children like to follow me around and they end up bringing dolls, marbles, toys and a myriad of other things into my tiny office. You can imagine what happens when they start fighting over the toys and how much work I can get done. So from now on, my office is off limits. They can knock but they can’t come in. This is my space. This is where I write and think. This is where I can control the noise level, the ambiance, the scent. It is in fact the only tiny space of the house that I can make my own.  

I let them overflow into my space without being clear that this is for me and it is not a playroom. I’m happy to sit with them in their rooms or the TV room to play and to create things together. But not in my office. That is my space and my space only. Now to find another spot for that exercise bike…

My office boundary is a physical one – it is a room. The most important of boundaries are emotional boundaries that define healthy relationships. Unhealthy relationships have unclear boundaries or boundaries that are encroached upon repeatedly. Is someone taking your time, money or energy that you’re not comfortable giving? You might also be subject to unwelcome advances from a colleague or friend. 

Establishing and maintaining boundaries takes energy, of which I have very little at the moment. I have put up boundaries to protect myself and to improve the relationships in my life. And it has been difficult, given my need to please others and my aversion of conflict. However, I am slowly making headway and ensuring that my energy is not drained by emotionally or financially needy people. 

A strong sense of self goes hand in hand with boundaries. When your own boundaries are weak or when you overflow into spaces where you’re not welcome, relationships suffer. Being clear of who you are and what you want, helps to define healthy boundaries. Prioritising your own needs is not selfish, it is vital for maintaining a strong sense of self. And if people see me as difficult or selfish, they will need to move further from my inner circle. Years of allowing others to encroach over my boundaries has eroded me and that is not sustainable. 

One hears about creating ‘me time’ a lot lately. Spending time alone helps to build the sense of self and helps to let others know that your needs are important. I would strongly encourage everyone to take some time for themselves, once a week at least, to safeguard your sanity and strengthen your identity. 

Relationships are probably the greatest source of happiness in our lives. They take work and they need to be give-and-take. Think about the boundaries in your life: professional, friendships and family. Make sure your boundaries are firm and that people know where they stand. Expect some backlash when you’re establish new boundaries as people do try to keep you as they want you to be. 

But in the words of Robert Frost, “Good fences make good neighbours”. 



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The 101 of dying when you’re a landlord — Lionesses of Africa

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by Sinal Govender and Claire Keet, cofounders of life.file in collaboration with property specialists, Araujo Attorneys

“Buy an investment property,” they said. “It’ll be a fantastic long term investment,” they said. Before making this enormous life decision, it’s important to think about all the aspects of being a landlord. There’s a lot to consider – like calculating when you’ll start turning a profit, finding (and keeping!) a reliable tenant, handling a lease agreement, becoming a member of a body corporate, hiring a managing agent, dealing with burst geysers, furnishing (or not furnishing) your property. A lesser discussed item on the list is what will happen to your properties and tenants when you kick the bucket one day…

What actually happens to my tenants when I die?

The short answer is “nothing”. If you’ve got a proper lease agreement with your tenants then they should carry on occupying your property as if you were still around. The reason is that when you die, your estate is bound by the terms and conditions of any lease agreements that you had in place while you were alive. (A quick sidenote: your estate is made up of all of your assets (things or money that you own) and liabilities (things or money that you owe to others) on the date that you die. This includes your properties and any lease agreements you might have in place). Unless you’ve specifically included a clause in your lease agreement that says that “the lease terminates upon the death of the landlord”, then the tenants will carry on “as is” for the duration of the lease. Of course, it goes both ways – your tenants will still need to fulfil the terms and conditions of the lease agreement as they would do under normal circumstances. 

Who takes over the leases with my tenants when I die? 

First, your Executor will take over the administration of your estate when you die. Remember, your Executor is the person who you have (hopefully) appointed in your Will to wrap up your estate admin. Once your estate has been wrapped up, the rights and obligations of your lease agreements will pass to your beneficiaries (aka the people who’re going to inherit from you). If your beneficiaries accept their inheritance, then they’ll take over your lease agreements and take the reins as landlord. 

Does someone need to tell my tenants that I’ve died? Who normally does this? 

Definitely. It goes without saying that you won’t be able to tell your tenants about your “change of circumstances”. This is where your Executor comes in. They’re the person who should get in touch with your tenants and tell them about your death. If you had appointed a managing agent to look after your property and tenants, then your Executor should tell them (and the body corporate) that you’ve died. The reason it’s important that your tenants know that you’ve died is that they’ll now need to pay their rent into your estate’s bank account. This bank account will be opened and managed by your Executor. 

How does it work if I die and have a managing agent overseeing my properties? 

If you’ve appointed a managing agent to look after your property and tenants, then they’ll just carry on as is. (A reminder that your estate is bound by the terms and conditions of any agreements or rental mandates that you had in place while you were still alive). If any changes need to be made to the rental mandate that you had in place while you were alive, then it’s between your Executor and the managing agent to reach a new and mutual agreement.

How does it work if I die and don’t have a managing agent overseeing my properties? 

Your Executor, as the person looking after your estate admin, will take over and manage things. They’ll oversee your properties, together with your beneficiaries where it’s applicable. Once your estate is wrapped up, your beneficiaries will take over and manage the properties (and any tenants) they get as part of their inheritance. It will, of course, be up to your beneficiaries to decide if they want to carry on leasing the property or sell it once the lease is up.

What happens to my tenants if my estate takes a really long time to wind up? 

Not much, really. Your tenants should carry on paying their rent and stay on until their lease expires. If your tenants decide they’d like to stay in your property, then they’ll enter into a new lease agreement with your beneficiaries. If your estate still hasn’t been wound up and the property still hasn’t transferred to your beneficiaries, then the new lease agreement will need to be signed by your Executor. The tenants could also decide that they don’t want to renew the lease, in which case they’ll just communicate this to your Executor or beneficiaries and move out when their lease expires.

What happens if my tenants stop paying rent after I’ve died? 

If this happens, then your Executor can terminate the lease agreement in terms of the breach clause in the lease agreement. They might choose to give your tenants notice to vacate your property or even institute eviction proceedings. (Sidenote: reason #403 why you should always, always have a solid lease agreement in place with any tenant living in your property. Legal agreements (the good ones, anyway) should protect both sides equally, while managing expectations and providing a clear framework for how the relationship should go forward. It’s important to understand that a legal agreement is just that – an agreement between two people or entities. Get it right from the onset and you should set the tone for a mutually beneficial relationship and also safeguard against things going belly up). 

What happens if my beneficiaries who inherit my leased properties don’t want the tenants to live there anymore?

As the new landlords of your property, your beneficiaries will be bound by any lease agreements you had in place with your tenants while you were alive. Your beneficiaries can give the tenants reasonable notice to hit the road – but only in terms of the lease agreement. Once the lease expires, your beneficiaries could, of course, decide not to renew it. 

What should I make sure to have covered in my lease agreements with my tenants in case I die? 

Having a well drafted lease agreement in place is really important for lots of reasons. One big reason is that it’s the legal document that sets out what will happen to your tenants if (or when) you kick the bucket. Make sure that your lease agreement includes whether the lease agreement will continue or terminate “upon the death of the landlord”. 

What property related documents will the beneficiaries of my leased property / properties need one day? 

  • Current Lease Agreement

  • Managing Agents rental mandate, if applicable,

  • Tenants details & Fica information, if self-managed

  • Copy of Title Deed

  • If Sectional Title, then Body Corporate rules / levy information

  • Municipal Accounts

  • Property Plans

  • Home Owners Association rules / annual levy information etc

The long and the short of it is this:

  • Make sure that you have a properly drafted, legally sound lease agreement in place with all of your tenants.

  • Make sure that your lease agreements make it clear what happens to the agreement if you die one day.

  • In your Will, make sure that you leave your property to the people you want it to go to, as they’ll be the new landlords.

  • Make sure that your property documents are updated and safely stored in a well organised life.file.

  • Make sure that your Executor and beneficiaries have access to your life.file.

This article was written by life.file in collaboration with property specialists, Araujo Attorneys



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