Finweek English Edition - - INVESTMENT -

The JD Group trad­ing up­date, and pro­posed r ights is­sue of R1.3bnR1.5bn, raises the same ques­tion that is be­ing asked around African Bank. Has the group been legislated out of busi­ness? The Na­tional Credit Act and Con­sumer Pro­tec­tion Act cou­pled with other leg­is­la­tion around lend­ing and sell­ing of re­lated in­sur­ance prod­ucts frankly means that its old busi­ness mod­els (sell­ing fur­ni­ture in or­der to sell high-mar­gin loans and in­sur­ance prod­ucts) no longer work. Leg­isla­tive risk is one of the is­sues that we have

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