Business
Billions in Unclaimed Dividends: Could You Be Owed a Share of South Africa’s R4.5 Billion?
A national mystery in plain sight
South Africa is sitting on a financial time bomb that many households do not even realise exists. The Johannesburg Stock Exchange (JSE) has confirmed that R4.5 billion in shareholder dividends remains unclaimed. To put that into perspective, more than 10,000 people have already been matched with unclaimed payouts, yet the money is still gathering dust.
The reality is that ordinary South Africans, and in many cases their families, may have money tied up in forgotten shares or investments. According to Vuyo Lee, the JSE’s Director of Marketing and Corporate Affairs, the problem comes down to a mixture of outdated information, lack of awareness, and the complications of deceased estates.
Why so much money is going unclaimed
There are four main reasons dividends fall through the cracks. Banking details change, and when the company pays out, the funds bounce back. Addresses also change, meaning letters and notices never reach shareholders. Many people simply do not realise that their shares earn dividends at all. And perhaps most significant of all, shares left behind in deceased estates often remain untouched for years.
Lee explained that around 52,000 of the cases flagged so far involve deceased estates. This paints a sobering picture of wealth that should have been passed down to families but is instead sitting idle.
What is a dividend anyway?
For those unfamiliar with the concept, a dividend is a slice of a company’s profits given back to its shareholders. If, for example, you owned 100 shares and the company declared R10 per share, you would be entitled to R1,000 before tax. After South Africa’s 20% dividend tax, that leaves you with R800 in your pocket. Companies can declare dividends quarterly, biannually, or annually.
But none of this matters if your personal details are outdated. Without current banking and contact information, your payout gets pushed into the growing pool of unclaimed dividends.
A campaign to reconnect families with their money
The JSE has launched a national claimant campaign, urging South Africans to check whether they or their relatives are entitled to a share. The process, Lee insists, is far simpler than people fear. All you need is your South African ID, proof of address, and proof of banking details. Once verified, payouts typically take just five to seven working days.
For deceased estates, things get trickier. Families will need to provide additional documents such as a death certificate, proof of relationship, and an executor’s letter. Without a will, the process is even more complex, underlining how crucial it is for South Africans to keep their financial affairs in order.
Public reaction and what it means for you
The revelation has sparked interest on social media, where many South Africans expressed shock at how much money has gone unclaimed. For some, it has served as a wake-up call to check family investments, while others questioned whether enough awareness campaigns had been run in communities outside the major metros.
The message is clear: this is not a niche issue for wealthy investors. Everyday families may be sitting on unclaimed funds that could ease financial strain in tough times.
How to check if you are owed
The JSE is encouraging anyone curious to visit its online portal or call the claimant campaign line at 0861-401-105. Even if you are not sure, a quick check could confirm whether you or your family are part of the R4.5 billion puzzle.
Also read: Washington Turns Up the Heat: Second US Bill Targets ANC and South Africa’s Trade Future
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Source: Business Tech
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