suedafrika.org - RSS: Wirtschaft http://www.suedafrika.org/ Wirtschaft/Economy News de suedafrika.org - RSS: Wirtschaft http://www.suedafrika.org/fileadmin/tt_news_article.gif http://www.suedafrika.org/ Wirtschaft/Economy News TYPO3 - get.content.right http://blogs.law.harvard.edu/tech/rss Thu, 23 May 2013 15:03:00 +0200 Budget Vote 36 for the Department of Trade and Industry by Minister Rob Davies (MP), at the Old Assembly Chamber, Parliament on May 2013 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1151&cHash=fc7209439434e009c9fba4b3974cf018 Addressing this Council in the past, we noted that a historical feature of the South African economy most of the national gross value-add (GVA) is concentrated in a few regions of the country. ... nd National Conference in Polokwane and the manifesto we were elected on in 2009, this administration tabled the New Growth Path, within which the Industrial Policy Action Plan (IPAP) was identified as the manufacturing job driver. IPAP has become the centrepiece of the dti’s work with all our actions being co-ordinated or aligned to it. Over the course of this administration, we have institutionalised the tabling at the start of the financial year of a new iteration of IPAP covering the financial year in question and the two outer years.  IPAP has moved far beyond vision statements or diagnostics to identify Key Action Plans with defined timeframes to be implemented by various entities developed after consultation with industry players. Last month we released the 5th iteration of IPAP covering this ANC led government’s last full financial year.  Accordingly we highlighted a number of key lessons we have drawn from our efforts over the past five years as well as identifying the broad direction we believe a higher impact IPAP would need to traverse in the future. One of our major conclusions is that where government has acted purposefully to implement programmes developed in consultation with industry players, business as well as labour – concrete positive results have been achieved. Among our significant achievements has been the finalisation of the transition from the Motor Industry Development Programme (MIDP) to the Automotive Production and Development Programme (APDP) which now includes the Medium, Heavy and Commercial vehicle segments of the automotive industry, including SA’s domestic Original Equipment Manufacturer in the sector – Bell Equipment. Providing incentives to promote competitiveness and localisation in this important sector of the South African economy has seen production volumes increasing to 539,424 units and exports reaching 277,893 units in 2012.  Furthermore, this change in focus in incentive to support and encourage deepened local component manufacturing, has resulted in 128 projects supporting or sustaining 57,197 jobs. As a sign of confidence in the steps we have taken and in the future of this sector, private investments of nearly R16bn have been secured.  These have included both new investors and new lines of operation, by existing investors. Among the new investors in the sector, we have welcomed the First Automobile Works of China which is constructing a truck plant in Coega and the Beijing Automotive Works which is building a taxi assembly line and distribution centre are examples of existing investors expanding their operations. We also saw important new investments by long established OEM’s including Mercedes Benz’s new C-class production in East London, BMW’s increased production capacity in Rosslyn, Ford in Silverton and GM in Port Elizabeth. The Clothing, Textiles, Leather and Footwear industry experienced a remarkable turn-around, directly attributable to a radical change in our incentive programme with the introduction of the Clothing & Textile Competitiveness Programme 12,205 new permanent jobs have been created in companies benefiting from this programme. A pleasing new development has been key local retailers committing to local procurement in support of manufacturing companies. Over 469 companies were assisted under the CTCP with R1.5 billion worth of applications approved. Approximately 49,888 existing jobs are being retained through the support of the CTCP. The roll-out of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP) has under-pinned significant investments in renewable energy component manufacture.  Significant investments in wind tower manufacturing facilities and solar power plants have been made – including DCD (R300m), Mainstream Renewable Power (R4.6bn) and Sun Edison (R2.6bn). Mr Speaker, in 2009 we said that the threat of de-industrialisation loomed large and that we must confront this danger with interventions that will promote industrialisation in a systematic and sustainable manner.  We also said that the infrastructure roll out, which is our main countercyclical response, must be a tool of industrial development. Accordingly we have sought to strengthen our procurement system to support increasing local industrial production.  In this regard we can point to the designations of sectors for local procurement under the Preferential Procurement Policy Framework Act as introducing a sea change in industrial development in South Africa. The first wave of designations has already seen significant new investments in sectors such as transport and capital equipment, and companies are actively ‘tooling up’ to ensure that they are well positioned to take up the opportunities, which arise from the localisation programme. Sectors already designated include:
  • Rail rolling stock (locomotives, wagons and carriages);
  •  Power pylons;
  •  Bus bodies;
  •  Textile, Clothing, Leather and Footwear;
  •  Canned Vegetables;
  •  Furniture;
  •  Certain Pharmaceuticals and
  •  Set Top Boxes.
Furthermore, localisation is now fully entrenched in a number of key procurement programmes such as the renewable energy generation programme and the fleet procurement processes of State Owned Companies (SOCs). Moving ahead, work has already begun on assessments of sectors and products for designation including the designation of Valves, Manual and Pneumatic actuators; Power and Telecommunication Cables; and Components of Solar Water Heaters. In addition to the strategic use of localisation in Government procurement, the dti also uses a variety of incentives to support and encourage investment in the manufacturing and value-added services sectors. A case in point is the Manufacturing Competitiveness Enhancement Programme (MCEP). Grants to 214 enterprises have been approved valued at R1, 35 bn; 41, 626 jobs are expected to be retained as a result with a total investment outcome of R5.37bn. I am pleased to report that the MCEP is currently operating on an average of 2 months turnaround time. Considering the large numbers of applications and the amounts of funding involved this is an excellent rate and the feedback I am receiving from a range of firms is very positive indeed. Through the 12i Tax incentive, we have supported 26 projects involving investments valued at R32, 6bn, creating or sustaining 3,326 jobs over the last four years. Additionally, we can report that the European Outsourcing Association awarded SA its prestigious Offshoring Destination of the Year Award. Over the past three years, we have seen investments in Business Process Services with a value of R1, 3bn supporting 4,500 new jobs. Our change in the support programme for Business Process Services attracted key foreign investors such as Amazon, and SERCO, which opened its International Business Process Outsourcing (BPO) service delivery centre at Newspaper House in Cape Town with 500 seats and plans to increase to 1,500 – 2,000 seats to service a R1bn contract for Shop Direct in the UK. Significantly, the skills development support provided by the dti has led to a high proportion of young people finding employment in the sector, and we have accepted the target in the Youth Employment Accord of ensuring that at least 80% of new jobs created in the sector go to young people. Mr Speaker, at the beginning of this administration, we identified the film industry as having significant potential. Our efforts to work with industry to unlock this potential have resulted in an impressive roster of locally shot blockbuster films. They include Chronicle, Safe House, Jock and the Adventures of Zambesia.  I recently had an opportunity to see some of the rough cuts of the film “Mandela”: Long Walk to Freedom” and can report that we can be proud to have been associated in supporting what I have no doubt will be one of the very most important films South Africa has ever produced. Mr Speaker, in short we believe that our record speaks to what can be achieved from industrial policy and that we have laid a basis to strengthening our efforts to reindustrialise our economy in the future.  As the current iteration of IPAP argues, industrial development in the future will need to be built on 6 pillars. These include:
  • Beneficiation of mineral products;
  •  Regional economic development and industrial integration;
  •  The steady roll out of the infrastructure development programme;
  •  Developing new export markets;
  •  Local Procurement and Supplier Development; and
  •  Partnerships with BRIC countries.
We believe that what we need in future is a higher impact industrial policy rather than a lighter touch programme called for by some of our critics. South Africa’s history does not however, allow us to grow the economy, to industrialise, without addressing the legacy of disadvantage, discrimination, and underdevelopment left by Apartheid. However, while one element of economic transformation is consistently about redressing the injustices of Apartheid, it is important to recognise that there are also sound socio-economic reasons for aspiring to a much more inclusive and egalitarian economic model. The dti considers entrepreneurship, cooperatives and SMME development as not only central to broadening economic participation but also as key to efforts to ensure a more vibrant and effective productive economy. In other words, by broadening economic participation to encompass participants excluded in the past, we develop a stronger entrepreneurial base for the future. It is for that reason that in 2009 all SMME support programmes were reviewed to improve outputs and impact. One result of this exercise was that we decided to prioritise incubation programmes based on the evidence both in SA and elsewhere that such programmes which seek to actively support productive SMMEs in their start up phase dramatically improve survival chances. In line with this new priority and to leverage private investment, the dti introduced the Incubation Support Programme (ISP) in September 2012 with the aim of establishing 250 incubators by 2015/16. To date 13 projects have been approved with a total project value of R373 million in renewable energy; information and communication technology; agro-processing; chemicals; mining; and clothing and textiles sectors.  Currently, the seda Technology Programme (STP) has 42 Incubation Centres in the 9 provinces in different sectors such as biotechnology, mining, agro-processing, construction, jewellery, automotive, metals and renewable energy. To date, 376 new enterprises have been created, 2,247 SMMEs were supported, 28% of which are women-owned and 2,161 jobs were created. We will in future also encourage universities and science councils to host incubators. These incubators will be used to develop hi-tech and high-growth sectors. Honourable Members, since 2009, we have made steady but important progress to ensure that the Cooperatives sector receives the attention the potential of this sector deserves. We have reviewed the Cooperatives Development Act and when the new Amendment Bill is signed into law will establish a Cooperatives Development Agency, to provide more focussed development support to cooperatives.  We will also establish the Cooperatives Tribunal to adjudicate over conflicts as well as an Apex body to represent the interests of cooperatives. Honourable Members will be well aware of the efforts the dti has made over time to increase the participation of black people in the economy. In line with the changing landscape, BBBEE legislation and proposed new Codes of Good Practice were introduced in 2012. This BEE Bill seeks to eliminate fronting. It will establish a BBBEE Commission to deal with complex fronting and thus enhance compliance with the legislation. The Codes of Good Practice have been revised to incentivise stronger performance in enterprise development and supplier development becoming key features of broad based black economic empowerment. The shift to enterprise development and supplier development are intended to support a stronger symbiotic integration of black owned enterprises in key value-chains in the economy. It will ensure that big business plays a key role in developing a viable supplier base that will be able to take on opportunities in both domestic and international markets. The dti views women empowerment as one of its priorities and it is in the process of developing a National Strategic Framework on Women’s Economic Empowerment. Honourable Members, in 2009 we said that Industrial Policy requires a supportive regulatory environment to foster more competitive and dynamic industries and businesses, and prevent harmful market domination and abuse, and the exploitation of consumers. Consequently business regulation and the protection of vulnerable consumers over the last four years has been another area of focus. A key outcome has been the establishment of the Companies and Intellectual Property Commission (CIPC). We took the decision, which I believe has now been vindicated, to go ahead with the roll out of the new Companies Act despite reservations from some quarters. The new Companies Act gives SA:
  • a forward-looking regulatory framework that provides for simple, easy company registration,
  • enhanced governance and clarity on disclosure standards for business, and
  •  Measures to assist companies facing economic difficulties.
The innovative business rescue provisions have already shown their mettle as a tool to save otherwise viable enterprises facing cash flow problems from the previous inevitable fate of liquidation.  945 companies including Close Corporations were assisted and 6,624 jobs have been saved. We have also introduced other important legislative changes: These include: The Intellectual Property Amendment Bill for the protection of Indigenous Knowledge which was introduced to Parliament and public hearings commenced in May 2010. Key reforms to the operation of the National Lottery have taken place. We have responded to criticisms and suggestions made in wide consultation and Cabinet recently approved that the Lotteries Policy Framework and Bill be released for public consultation. In addition, we have introduced Regulations and a Directive to improve the accessibility of Lottery funds by needy communities and causes, improve governance structures on Lottery matters and ensure optimal distribution of Lottery funds for developmental purposes. The Consumer Protection Act was finalised and implemented during this Administration. Despite some initial teething problems, I am pleased to report that there is now overwhelming support for the work of the National Consumer Commission (NCC) especially in poorer communities which is where the worst abuses of consumer rights has been uncovered. Mr Speaker, as we look beyond South Africa and our immediate challenges we must not lose sight of the changing global economy. This Administration foresaw the importance of broadening developmental integration in Africa as well as of the emergence of new global powerhouses such as China, India and Brazil. Negotiations for a T-FTA between the SADC-EAC-COMESA countries are proceeding, but we have said that our efforts in this regard must be complemented by the promotion both of infrastructure development and cooperation to transform productive sectors and industrialise the continent. Infrastructure development has focused on the North-South Corridor with significant progress on upgrading road links. Projects have been identified for rail, border posts and port development. The T-FTA will combine the markets of 26 countries with a population of nearly 600 million people and a combined GDP of US$1 trillion. In summary, this key initiative will provide market scale that could launch a sizeable part of the continent onto a new industrialisation trajectory. The T-FTA will also form part of an Africa-wide FTA, which will create a market of US$2.6 trillion. Speaker the election of Roberto Azavedo of Brazil as the next Director-General of the World Trade Organisation creates an important new opportunity to advance a multi-lateral trade agenda informed by the mandate agreed at the 2001 Doha Ministerial to the place the needs and interests of developing countries at the heart of the work programme. We know Mr Azevedo well and actively supported his candidature particularly after the unfortunate elimination of the AU endorsed candidate in the first round. We congratulate Mr Azevedo and look forward to building a strong working partnership in advancing the WTO’s work, South Africa’s participation in the BRICS grouping, is a significant component in this diversification strategy as it  provides important opportunities to build South Africa’s domestic manufacturing base, enhance value-added exports, promote technology sharing, support small business development and expand trade and investment opportunities. It is for this reason that a key priority for us is to develop a work programme that will promote more value-added exports among the BRICS Members. In the coming year, we will focus on strengthening SA’s relations with BRICS and other fast-growing emerging economies. In addition, the National Export Plan will shift to the implementation phase as we seek to develop a new layer of emerging exporters to lead SA export diversification. Mr Speaker, in conclusion, are all these efforts bearing fruit or are the pessimists right? Let me just say that in one week last month, I participated in 3 key investment announcements, by Proctor and Gamble in Gauteng, Johnsons Controls in East London and Tellumat in Atlantis. Investment announcements by these three companies amount to R2, 4 billion. In fact over the period from 2010/11, the dti has facilitated investments of R125, 5bn. In the 2012/13 financial year, the department attracted R53, 5bn in investments, with the potential to create 20,000 jobs. However of greater significance than the value of the investment is the strong vote of confidence that these companies’ have provided in the SA economy. These are not investments that were made on the spur of the moment; these companies have rigorously assessed the SA market, considered the potential risks, and compared SA to other potential investment destinations. After considering all these factors, these companies - and many more like them – have chosen to invest and create jobs in the SA economy. These investors have not been put off by our challenges but recognise that Africa is the next growth frontier and that South Africa as the most industrialised country on the continent is of key strategic importance. They have accepted the necessity for broad based black economic empowerment, for them to be active in responding to our skills challenges, and they have not been put out by our industrialisation and localisation programme. In fact many of them have embraced these challenges and our initiatives as necessary developments that will lead to a stronger economy. Mister Speaker, in closing, I do not believe that we could have made these advances without the support of the people in the dti and its family of institutions. I am proud that what we have achieved, we have achieved with a staff that has a much more diverse profile than the dti of 1994. This new profile, so much more reflective of the demographics of South Africa is emerging as a strength that will lead us into the future.  Thank you to the Deputy Ministers and the Director General]]> Topnews Wirtschaft Presse Wed, 22 May 2013 11:40:00 +0200 Budget Vote 36 for the Department of Trade and Industry by Deputy Minister, Ms Elizabeth Thabethe, at the Old Assembly Chamber, Parliament on May 2013 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1150&cHash=2f2ca2ae5f39cbaaa8af773a05196a8b The current administration’s central focus has been on creation of decent jobs, economic transformation and creating an inclusive economic growth. These are some of the key strategic priorities...  MEC’s and Heads of Departments; 
 Officials of the Department Trade and Industry andits Council of Trade and
 Industry Institutions (COTII); 
 Members of SAWEN Leaders of Organised Business and Labour; 
 Distinguished guests; 
 Ladies and gentlemen.
 
 I would like to specifically recognise:
  •  My 2012 Technogirls competition winners from Ponelopele Secondary School, in Ivory Park, Thembisa; and the Technogirl from the Northern Cape, Ms Boitumelo Olifant;
  •  Nomarika Motaung, my mentee;
  •  Kgotso Mokoele, an incubatee from SECOPA manufacturing hub;
  •  Mangqoba Katane- A young man who’s very passionate about small business development, currently working with an incubation centre known as SECOPA as a social media guru;
  •  Sister Jenny, the winner for South Africa and first runner up for Africa for 2012 Africa SMME awards, for her skin repair products for burns and wounds;
  •  Mamalolo, a beneficiary of our tourism support programme and a former lecturer who now owns a B ‘n B in SOWETO.
  •  Sister Jenny, the 2012 Africa SMME award winner.
The current administration’s central focus has been on creation of decent jobs, economic transformation and creating an inclusive economic growth. These are some of the key strategic priorities identified in the 2009-2014 medium-term strategic framework that was later translated into government outcomes. thedti further articulated these key priorities in its 2010-2013 Medium Term Strategic Framework. Therefore, it is imperative that we reflect on the achievements that have been recorded in these areas.   Women and Gender Empowerment  The National Development Plan identified poverty, unemployment and inequality as the major challenges facing our country. Women and youth have not been fully integrated into our economic system. The Department understands that economic emancipation should be broadened to include women and youth who were excluded in the mainstream economic activities of the country in the past.  It is against this backdrop, that the dti introduced programmes that are tailor-made for women, such as the Isivande Women’s Fund, Bavumile and Technology for Women in Business (TWIB). The Isivande fund aims to provide women entrepreneurs with affordable financial support. Between 2011/12 and 2012/13 financial years, the Fund supported 31 projects. The Bavumile Programme provides training to women in the clothing sector while TWIB with its awards programme recognises women enterprises which used technology to grow and develop their businesses.  While we recognize the need to afford women opportunities to participate in the economy, we need to encourage our young girls to pursue technology, mathematics, commercial and science related careers. The Technogirls programme is a vehicle that the Department is utilising to achieve this objective. In this regard, the dti has partnered with provincial departments of Economic Development and Education, SEDA and Cell C in delivering the programme.  In addition, the department will be tabling the National Strategic Framework on Women’s Economic Empowerment to Cabinet in the course of the 2013/14 financial year. The strategy aims to ensure the development and growth of women owned enterprises as well the integration of women enterprises in the mainstream economy through the provision of targeted interventions. Small and Medium Enterprises and Cooperatives  The Department considers entrepreneurship development as strategic to broadening economic participation since we understand that economic success and development of many economies is anchored around increased participation of Small, Medium and Micro Enterprises (SMME) in the mainstream economy. We believe that SMMEs form a principal driving force of economic growth and development. In this regard, we undertook to accelerate the delivery and up-scaling of support particularly to black-owned, rural and township SMMEs as well as cooperative programmes. Through SEDA’s network of financial service providers (known as Retail Financial Intermediaries (RFI)), we have further improved access to finance for SMME’s. Also through the Industrial Development Corporation (IDC),the ANC led government has been implementing the Risk Capital Facility (RCF) 2 in the last seven (7) years with the aim of granting risk capital finance to historically disadvantaged people. To date 3 400 BEE shareholder companies, 72 BEE empowered SMEs and 1 605 women shareholders have been supported resulting in a total of 7 024 jobs created.  thedti in collaboration with the Department of Cooperative Government and Traditional Affairs (COGTA) developed a red tape reduction programme to address regulatory constraints created by local municipalities. The programme seeks to lower barriers to entry and stimulate access to business opportunities by small enterprises.  thedti believes that sustained support to SMMEs should be an integral part of social and economic development. The merger of the national government’s major credit programmes for small and micro enterprise has been finalised and a new agency SEFA was established in May 2012.  It is imperative that the government continues to build entrepreneurial capacity in order to address the socio-economic challenges that are facing us. In this context, the dti through SEDA launchedthe Small business incubation programme in 2012.The programme seeks to nurture small, micro and medium enterprises into sustainable enterprises that can create jobs and contribute towards economic development. To this end we launched SECOPA (Seed Container Park) in SOWETO on the 27th of March 2013. It will ensure that SMMEs eventually graduate into the mainstream economy, creating successful enterprises with a potential to revitalise communities and strengthen local economies. The success of the programme will be measured by the number of enterprises that graduated into the mainstream economy and employment created. Currently, the incentive is supporting 13 projects to the value of R373 million in sectors such as ICT, agro-processing and clothing and textile amongst other. Together with the Foundation of African Business and Consumer Services (FABCOS) the dti launched agro-processing investments worth R1.2 billion to assist in growing sustainable HDI-owned or controlled SMMEs and support the retailer/supplier development model. These investments are in small-scale milling, malt plants, snack plants, blended foods and incubator farms.  We also launched the Emerging Organic Farmer/Retailer Programme, with Pick 'n Pay, Shoprite and Spar providing shelf space and support to emerging organic farmers' cooperatives.  We have also launched 4 walk-in-25 mini-markets in Gauteng. To fast track timely payment to SMMEs a call centre was established through SEDA to facilitate payment to SMMEs contracting with government within 30 days. The 30 day payment has been elevated to the Presidency with departments submitting their monthly reports. The SEDA call centre has performed well, facilitating the payment of over R300 million to SMMEs. Honourable members, we have reviewed the Cooperatives Development Act with a view to enhancing institutional mechanism such as the establishment of the Cooperatives Development Agency, the cooperatives Apex body and the cooperatives Tribunal. The agency will provide business development support to cooperatives while the Cooperatives Tribunal will adjudicate over conflict and the Apex body will represent the interest of cooperatives. The ANC led governmentis also serious about the informal sectorand youth empowerment and in this regard, the Youth Enterprise Development Strategy has been drafted and consultations with key stakeholders are at an advanced stage while the Informal Sector Strategy is being developed.   Black industrialists  The creation of black industrialists is one of the key priorities of the department of Trade and Industry. To fulfil this responsibility, as the Minister has indicated, the department has amended the BBBEE legislation and Code of Good Practice with a view to creating an enabling environment for the restructuring of the South African economy to enable a meaningful participation of black people, women, youth and people living with disabilities.  We have also partnered with UNISA and WITS University to offer a BBBEE Management Development Programme. The programme isaimed at professionalizing the BBBEE industry, more specifically the verification industry as part of creating an enabling environment conducive to the development of black industrialists. In conclusion, it is clear that the ANC led Government remains committed to the embetterment of the economic situation of our people.]]> Topnews Wirtschaft Presse Wed, 22 May 2013 11:31:00 +0200 Budget Vote, Minister of Economic Development Ebrahim Patel, 7 May 2013 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1143&cHash=457cac3813fa0464f77fde6c93f2b5a8 On 7 May 2013, Minister of Economic Development Ebrahim Patel submitted the Economic Development Department Budget's for vote in Parliament. The Berlin Mission herewith publishes the full text... gain of 44 000 new jobs in the first quarter of 2013.  Over the 12 months up to end of March this year, nearly 200 000 new jobs were created, in difficult domestic and global circumstances. The biggest job gains were in agriculture, followed by manufacturing and community services.  These figures show that our transformation policies are having some success despite the headwinds from the global slowdown. But unemployment levels are still stubbornly high. Our task is to consolidate these gains and accelerate job growth, for unemployment constitutes the biggest economic challenge for the country. We must begin to see a decline in the levels of joblessness. That is the task that we have taken on through the New Growth Path.  From October 2010 when the NGP was adopted, 646 000 new jobs were created. Of these, 366 000 new jobs were created for women, 57% of the new jobs. As South Africans we need to bank these positive trends and commit to do more.  Our GDP recovered from the 2009 recession and is now R750bn higher in current rands, or 9,4% in real terms than at the low-point of the recession. The economic output of no less than 38 other countries - including the UK, Holland, Spain, Italy and Portugal are still lower than before their recession. I wish to welcome one of our visitors today, Richard Matsomela, a worker at the BMW factory in Rosslyn. He was placed on special training financed through the Training Layoff Fund, one of the new tools created by government in 2009 to respond to the recession.  Production recovered, the company expanded and Richard now works again on the assembly line for the new 3-series BMW made in SA.  This is active partnership with the private sector.  The New Growth Path mapped out a labour-absorbing economic trajectory. Under the infrastructure jobs driver and through the leadership of the President, we developed a National Infrastructure Plan, coordinated by the PICC to which EDD provides technical support.  We made real progress to lay the physical platform for growth and development over the past year, working with Minister Nkwinti and other members of the Management Committee.  Construction levels are up.  Visitors in the public gallery illustrate what our programme is doing.  Ms Elakanyani Ndlovu, a 30-year old female electrical engineer, is part of a team building one of the world’s largest coal-fired power-stations, Kusile, near Witbank in Mpumalanga.  Ms Kedisaletse Maseko is a welder employed on the new locomotive build programme in Koedoespoort. Mr Thomas Solomon is a contractor who lays tar on roads in the Western Cape. They are part of more than 150 000 workers currently on PICC monitored construction sites across the country, building roads, power stations and dams, deepening our ports, building schools, laying broadband cable, manufacturing components,  changing the spatial patterns of the past.  The project-pipeline for new infrastructure projects has been developed into the 20-year R4 trillion plan, a blueprint for our generation.  Spending levels are up too.  Indeed, during this administration, we would have spent roughly R1 trillion on infrastructure, compared to half that sum in the previous five years, and substantially more than in the last five years of apartheid. Even when adjusted for inflation, this is a remarkable achievement.  We now monitor every quarter how much is spent, what construction has actually taken place and how many people are employed in construction projects worth nearly R900 billion rands. Working closely with Minister Gordhan through the PICC, R19bn of new money or reprioritised resources were identified for infrastructure projects over the next three years.  State capacity challenges identified in the NDP articulated by Minister Manuel, are being addressed, including improved environmental processes led by Minister Molewa and the new Infrastructure Development Bill, recently released for public comment.  Honourable Members We need to bring the cost of the infrastructure build down.  Private sector collusion and price-fixing cost the state many billions of rands in previous infrastructure projects, including the 2010 World Cup stadia . The competition authorities identified 300 cases of irregular and illegal behaviour by the private sector in the construction industry, on projects valued at about R47 billion. Eighteen construction companies, including the top six firms, have now confessed and are in discussions on settlements with the competition authorities. We are determined to ensure that we develop an affordable infrastructure build programme and that our tax rands do not improperly find their way into private pockets.  The competition probes extend wider than infrastructure and include input costs across the economy, to improve competitiveness and reduce costs for consumers. Following discussions with Minister Motsoaledi, I am pleased to announce that the Competition Commission will conduct a market enquiry into the private health-care sector. As ordinary working South Africans will know, private medical care is becoming unaffordable. The enquiry will use new powers under section 6 of the Competition Amendment Act of 2009 and will examine the pricing, costs and the state of competition in the sector. It is expected that the Enquiry will commence before the end of September this year. The authorities are ensuring that public interest tests in our law are met when companies acquire existing operations.  I welcome Mr Emmanuel Motumi, one of a few hundred workers reinstated by the Competition Appeal Court at Walmart following its purchase of a local retailer. Government’s efforts led to the Competition Appeal Court ordering the creation of a fund of up to R240 million for local supplier support by Walmart.  The judgement expanded competition jurisprudence and ensured that the central economic imperative of our time, namely jobs and local industrial capacity, is pivotal to competition policy.  It demonstrates our commitment to policy integration and coherence.  Trade policy is being harnessed to support infrastructure roll-out and to support agro-processing industries who are infrastructure users, ranging from poultry to tomatoes. More will however need to be done to support farming jobs and agro-processing as part of food security strategies. The Port Regulator introduced a differentiated port tariff that encourages export of manufactured goods rather than raw minerals.  We are using the infrastructure programme to address skills and industrialisation challenges. We now have a skills model for all major infrastructure projects over the next twenty years, developed through working closely with Ministers Nzimande and Nxesi, the engineering industry, the construction regulator and the private sector.  Honourable Members will be pleased to know that say for the Mzimvubu Dam in the Eastern Cape, we can quantify the number of bricklayers, carpenters and engineers we need per quarter over the five years of construction, to help universities and FET colleges plan their student intake and graduate output. On industrialisation, EDD has worked with Ministers Davies and Gigaba on measures to provide a major boost to local manufacturers through the infrastructure rollout programme. State owned companies deepened their supplier development plans.  Complementing these efforts, the IDC set up a localisation unit and increased its 5-year plan for industrial funding available to R102 billion.  Over the past two years, the IDC increased actual funding approvals substantially to about R27 billion, 48% higher than the previous two years.  We have success stories out of these interventions.  In the past, we imported buses for the infrastructure rollout of inner city public transport.  Last year, to implement one of the Accords, new policies were introduced that led the cities of Johannesburg and Cape Town to order 240 locally-assembled buses. I welcome Ricardo Truby, a production line worker for the Cape Town buses where the IDC provided bridging finance. The first locally-assembled bus for Johannesburg will come off the production line in June 2013 from a Germiston factory. This is real progress with industrialisation. When this administration came into office, all our minibus taxis were being imported. Today, two taxi assembly plants have been set up, by Toyota and BAW. I wish to recognise Ms Brenda Smith, a supervisor on Toyota's new taxi line who is here in the audience today. Honourable Members, by 2015, two out of every three new minibus taxis will come from local factories.  This is real progress with industrialisation. The country will expand rail transport very significantly in the next twenty years. The IDC is working with companies in the sector to use the R198 billion procurement to build coaches, locomotives and wagons and create jobs locally. We have already landed one export contract for trains, from Mozambique. These success stories in transport are replicated in other parts of the build programme, such as the new condenser unit commissioned from a local company for the Kusile power station.   Working with Minister Peters, we plan to improve the localisation impact of wind and solar energy, so that green energy creates local jobs.  The industrialisation drive is at the centre of our work.  Last year the IDC concluded a R3,4bn deal to take majority ownership of Scaw Metals, a large diversified manufacturer of steel products  for the infrastructure sector and industry, that employs about 7 000 people.  It is the only producer of locomotive frames in southern Africa. When Anglo American Corporation decided to divest from the asset, we ensured that this critical national asset was placed in local hands rather than asset stripped and closed down.  I am pleased to have Ms Patricia Mashigo, an artisan and production team-leader at a Scaw Metals factory present today, with a Group manager, Mr Paul Zinn.  Scaw Metals operations in South Africa have a crude steel production capacity of about 600 000 tons per year. It has manufacturing operations in Canada, Australia, Italy, Namibia, Zimbabwe and Zambia, which also serve as important distribution channels for its products.  A sophisticated industrial strategy as outlined in the IPAP requires the injection of foreign and local capital, know-how and innovation. I offer a few examples of success. Asia's largest commodities trading company, Noble Resources, is the main investor in one of two advanced soya crushing plants under construction. In the past 12 months, the company invested about R2,2 bn in the local economy. I acknowledge the presence of Mr Ronald Jettin, the local CEO. Later this week I will host the senior management of the company to consider additional investment in South Africa.  We attracted Turkish investment in manufacturing of stoves in East London, and to restart the Cape Town based steel mill CISCO, by August this year, with a R250m investment which points to a growing appetite by investors to manufacture goods in South Africa. I welcome Mr Turanli, the President of the new shareholding company of CISCO and Turkish Ambassador Kaan Esener who is with us today.  Honourable Members These efforts are supported by greater beneficiation of our natural resources.  By July this year, the largest Manganese sinter plant in the world, backed by the IDC, will open in the town with the quaint name of Hotazel in the Northern Cape. I welcome the major shareholder, Ms Daphne Nkosi, whose company will produce 2,4m tons of manganese sinter for ferro-manganese smelters. Honourable Members, following public consultation, I have decided to issue a trade policy directive in terms of section 5 of the International Trade Administration Act to limit the export of scrap metal so that this resource is used in South African foundries and steel factories, saving energy, creating local jobs and promoting infrastructure development. To strengthen regional integration, manufactured exports to the rest of Africa rose by about R20 billion or 21% in this past year, now accounting for more than 90 000 jobs in South Africa.  Tomorrow, South Africa hosts the World Economic Forum Africa Summit here in Cape Town.  BRICS countries are now the fast-growing part of the global economy. Our membership is the result of successful economic diplomacy and opens up many opportunities if we work at it.  The BRICS Summit hosted by President Zuma six weeks ago announced the establishment of a BRICS-led development bank and we signed a number of partnership agreements with BRICS members and investors, including to set up a new television and fridge factory in South Africa.  Honourable Members, the New Growth Path calls for greater economic inclusion, through small business development and youth employment. Policies before 1994 largely excluded young black people and small businesses from the economic mainstream.  Today 1,6 million more young people under 35 are working than in 1995, and school and university enrolment is dramatically higher, as even critics of government concede. As University of Stellenbosch research released a few weeks ago show, in less than a generation we more than doubled the number of graduates in the labour market.   Three weeks ago we signed a Youth Employment Accord at Hector Pieterson Memorial in Soweto, in front of a 2000-strong crowd of young people, bringing together the efforts of the public and private sectors.  The Accord provides for a comprehensive approach, which include incentives, commitments and action to address the problem from its starting point: inadequate skills formation. It provides for work experience through internships and, most importantly, new jobs for young people.  I welcome the delegation of youth leaders - led by Thulani Tshefuta and Yershin Pillay – in Cape Town to attend a workshop on youth entrepreneurship and the Accord.  To support the Accord, the IDC announced a R1 billion Youth Fund to provide concessional lending to youth-owned enterprises that create jobs.  I am pleased to announce today that the new small enterprise funding agency, sefa will make R1,7 billion available over the next five years for youth enterprises, with a target of R220 million in this financial year.  This combined 'fighting fund' of R2,7 billion is mobilised so that young people are mainstreamed in economy. My Small Business Advisory Panel has noted the substantial resources available to small businesses through various Budget Votes, but delivery is fragmented, costly, with little integration of funding and business support. We are beginning to address this, though our work is by no means done.  In April last year we launched sefa combining three small business programmes,  bedded down the institution and expanded the lending rate.  Sefa approved loans worth R435m, up by 106% on what its predecessors did the previous year.  Through sefa we created the machinery to vastly increase access, impact and the level of small business support. By next year, sefa plans to approve annual funding of more than R1 billion to more than 20 000 SMMES. I welcome Ms Magdalena Paledi, a female entrepreneur contracted by Anglo Platinum to build a school in Serafa Village in Sekhukhune. Her company is a beneficiary of sefa funding.  Over the next five years, sefa plans to provide R2,3bn for women-owned enterprises, with R295 million this year, so that women are more actively represented in the economy but also so that the economy can benefit from the energy and enterprise of women. We financed a training programme for 100 young people, in partnership with the SA Institute of Chartered Accountants. One of the graduates with us today, Ms Thandeka Nyani, is now working in the sefa Business Hub as an Accounting Clerk supporting small business clients.  I am pleased to announce that a further 170 young people will be enrolled in the programme, to which we are committing R9m. We will take the small business programmes to our people through 18 large community road-shows over the next ten months, with a special focus on youth and women.  To meet the numerical targets in the Youth Employment Accord, government entities will adjust regulations and tender conditions to bring more young people into infrastructure programmes, the green economy, call centres and other business process services.  Social dialogue has been stepped up.  Last year EDD provided support to the Presidency to conclude the October Social Accord that brought the strike wave in the mining sector to an end. Ministers Chabane, Shabangu and Oliphant are now driving the follow-up. I have released a report today on progress with the Accords on skills, the green economy, local procurement and basic education. I welcome learners from Litha Primary School – they are benefitting from one of the Social Accords through the adopt-a-school pledge.  Looking ahead, we need an Accord or social agreement to address industrial relations in infrastructure programmes.  Honourable Members The budget allocation for this financial year amounts to R772 million, of which R231m goes for small business funding, R193,8m for the competition authorities, R79,8m for trade administration and R108m to the IDC for the agro-processing fund.  The Department’s budget for operations and capital spending is R159 million.  The Budget Vote of EDD is a window across programmes in many different departments. I thank my colleagues in the Economic Cluster and the PICC, Deputy Minister Mkhize, the Director General Ms Jenny Schreiner and her predecessor, Saleem Mowzer, the agencies and DFIs and staff of EDD. Our work benefitted from the engagement with social partners: thanks to the shop stewards, managers and workers. Finally I thank my family for their support. I now table the Economic Development Department Budget for consideration by this august House.]]> Wirtschaft Topnews Fri, 10 May 2013 10:06:00 +0200 German Minister reaffirms R3.4bn SA investment plans http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1138&cHash=e05dfb064a6b028498ea0c6c85f971cb Federal Republic of Germany Foreign Affairs Minister Dr Guido Westerwelle on Monday reiterated the European country’s plans to invest about R3.4-billion in South Africa in 2012/13, noting that the...
The majority of this investment – R2.9-billion – was allocated for financial cooperation, with the remainder allotted to technical cooperation.

Speaking at the Department of International Relations and Cooperation’s offices, in Pretoria, during a working visit, he said South Africa was one of the new “heavyweights” in the economic world and Germany aimed to strengthen its strategic partnership with the country.

Germany’s direct investment volumes into South Africa’s automotive, chemicals and mechanical and electrical engineering industries, besides others, had reached in excess of R37.66-billion between 2003 and 2012. Further, over 71 German companies invested in South Africa, creating more than 18 000 jobs.

South African exports to Germany reached R37.9-billion in 2012, while imports from Germany increased from R77.6-billion in 2011 to R83.9-billion in 2012.

South Africa, Westerwelle said, was a symbol of how the world was changing and how new “centres of power” were developing in emerging economies, adding that Africa was a continent “full of opportunities”.

The European country, which supported South Africa’s National Development Plan and its ambitions, was also an important player in South Africa’s trade and investment priorities, International Relations and Cooperation Minister Maite Nkoana-Mashabane pointed out.

Germany was South Africa’s third-largest trading partner, its second-largest investor and its third-largest tourism market. In 2012, tourism flows from Germany increased substantially by more than 12%.

The German Foreign Affairs Minister had visited Ghana in the preceding week and, following the completion of bilateral discussions with his South African counterpart, would continue on to Mozambique. Edited by: Chanel de Bruyn]]> Topnews Wirtschaft Presse Tue, 30 Apr 2013 13:11:00 +0200 Ministers agree to six-month Brics Bank work programme http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1130&cHash=3bcc04896eb7f829ea47e757feeb9fbd Finance Ministers and central bank governors from Brazil, Russia, India, China and South Africa (Brics) agreed, during meetings in Washington in April, to an “intensive” six-month work programme to...
The programme, which was confirmed by South Africa’s Finance Minister Pravin Gordhan this week, was one of several initiatives approved following the ‘Durban Declaration’, which was issued by the heads of State after their yearly Brics Summit, in South Africa in March.

Gordhan said the work programme would interrogate the bank’s mandate and scope of operations, its capitalisation and the sources of funding, as well as where the new bank would be located and when it would become operational.

A report would be provided to the Brics leaders when they met in Saint Petersburg, Russia, in early September, where they would be assembling for the 2013 G20 Summit.

Reports suggest that the Brics countries aim to complete preparations for the bank in time for the 2014 Brics Summit, which is scheduled for Brazil. In fact, Reuters recently quoted Indian Finance Minister P Chidambaram as saying that “we hope to complete our homework” ahead that summit.

Representatives from the central banks of the five countries were also preparing the way for a treaty to deal with the contingency reserves arrangements agreed in Durban and Gordhan expected progress “over the next few months”.

A work programme had also been initiated on the development of a Brics trade reinsurance scheme, which would seek to diversify these activities away from European institutions. A technical paper would be produced, which would feature on the agenda of a Brics finance Ministers meeting scheduled for Moscow, in July.

Attention was also being given to the issue of improved tax and customs arrangements between the Brics participants.

Besides following up the Durban Declaration, the Brics finance Ministers and central bank governors also jointly raised concerns about the state of International Monetary Fund (IMF) reform.

They were particularly unhappy with the lack of agreement on a new ‘quota formula’, which determined a country’s voting strength within the IMF, and the “bias” in the current formula against certain emerging and development countries.

“Generally, the view is that European economies are over represented in the IMF, particularly given the new economic circumstances were you’ve got new and stronger actors emerging,” Gordhan said.

There was a particular concern that the current formula would result in the further erosion in the “voice and representation” of sub-Saharan African countries as the IMF sought to accommodate the bigger emerging economies.

“What we are fighting for here … is that Brics countries and developing countries more generally must be given a greater voice in the governance and other processes of the IMF. And from an African point of view, we are saying that, in the new formula, it is very important Africa doesn’t, once again, lose a quota share in order to benefit constituencies outside of Africa.” By: Terence Creamer    
Published: 26 Apr 13
Source: http://www.engineeringnews.co.za ]]> Topnews Wirtschaft Politik Mon, 29 Apr 2013 10:39:00 +0200 Statement by BRICS Leaders on the Establishment of the BRICS-led Development Bank http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1128&cHash=b77c694982e969a7c8bbc79a747444bf 27 March 2013, Ethekwini. We, the Leaders of Brazil, Russia, India, China and South Africa met on the occasion of the Fifth BRICS Summit on 27 March 2013 in eThekwini, KwaZulu-Natal. We... 27 March 2013, Ethekwini. We, the Leaders of Brazil, Russia, India, China and South Africa met on the occasion of the Fifth BRICS Summit on 27 March 2013 in eThekwini, KwaZulu-Natal. 

We considered that developing countries face challenges of infrastructure development due to insufficient long-term financing and foreign direct investment, especially investment in capital stock.

This constrains global aggregate demand. BRICS cooperation towards more productive use of global financial resources can make a positive contribution to addressing this problem.

In March 2012 we directed our Finance Ministers to examine the feasibility and viability of setting up a New Development Bank for mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement the existing efforts of multilateral and regional financial institutions for global growth and development.

Following the report from our Finance Ministers, we are satisfied that the establishment of a New Development Bank is feasible and viable.

We have agreed to establish the New Development Bank. The initial capital contribution to the bank should be substantial and sufficient for the bank to be effective in financing infrastructure.  In June 2012, in our meeting in Los Cabos, we tasked our Finance Ministers and Central Bank Governors to explore the construction of a financial safety net through the creation of a Contingent Reserve Arrangement (CRA) amongst BRICS countries. They have concluded that the establishment of a self-managed contingent reserve arrangement would have a positive precautionary effect, help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability. It would also contribute to strengthening the global financial safety net and complement existing international arrangements as an additional line of defence. We are of the view that the establishment of the CRA with an initial size of US$

100 billion is feasible and desirable, subject to internal legal frameworks and appropriate safeguards. We direct our Finance Ministers and Central Bank Governors to continue working towards its establishment.

We are grateful to our Finance Ministers and Central Bank Governors for the work undertaken on the New Development Bank and the Contingent Reserve Arrangement and direct them to negotiate and conclude the agreements which will establish them. We will review progress made in these two initiatives at our next meeting in September 2013.

I thank you.]]> Politik Wirtschaft Pressespiegel Wed, 03 Apr 2013 16:49:00 +0200 BRICS Summit in Durban: 26-27 March 2013 - A Milestone in the History of South Africa and the African Continent http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1133&cHash=90132a4b729d11b1f5cd85992ff3d583 Marking another milestone in the history of the country and continent, President Jacob Zuma hosted Her Excellency President Dilma Rousseff of the Federative Republic of Brazil, His... Dilma Rousseff of the Federative Republic of Brazil, His Excellency President Vladimir Putin of the Russian Federation, His Excellency President Xi Jinping of the People’s Republic of China and the Honourable Prime Minister Manmohan Singh of the Republic of India for the fifth BRICS Summit in Durban from 26 to 27 March 2013. A major outcome of the summit, outlined in the eThekwini Declaration, was the announcement of the establishment of the BRICS-led Development Bank to address the challenges faced by developing countries of infrastructure development due to insufficient long-term financing and foreign direct investment, especially investment in capital stock. The leaders said BRICS cooperation towards more productive use of global financial resources could make a positive contribution to addressing this problem. Another announcement, among several others, was the construction of a financial safety net through the creation of a Contingent Reserve Arrangement (CRA) among the BRICS countries. The self-managed CRA will have a positive precautionary effect to help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability. It is envisaged that Africa’s development will be enhanced through infrastructure development projects and the BRICS countries will play a pivotal role. This was affirmed during the discussions between BRICS and African leaders during a Retreat on 27 March in Durban post the summit.  The theme of both the summit, “BRICS and Africa: Partnership for Development, Integration and Industrialisation” and the retreat, “Unlocking Africa’s Potential: BRICS and African Cooperation on Infrastructure”, followed on the 2011 Sanya Summit commitment that discussions would continue on the role of BRICS partnering with Africa to support Africa’s infrastructure development and industrialisation. For more information on the summit and the eThekwini Declaration and Action Plan, visit www.brics5.co.za   |+| Statement by BRICS Leaders on the Establishment of the BRICS-led Development Bank]]> Topnews Presse Wirtschaft Politik Fri, 29 Mar 2013 11:45:00 +0100 Wanted: technological solutions to tackle basic supply challenges - Siemens Stiftung launches “empowering people. Award” at United Nations Conference on Sustainable Development Rio+20 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1077&cHash=5a2f8c7456f05389edf195b96be34d52 Today Barbara Kux, Member of the Managing Board of Siemens AG and Member of the Board of Trustees of the Siemens Stiftung, and Ulrike Wahl, Managing Director of the Siemens Stiftung, jointly launched...
Inventors and developer teams are called upon to submit technical products or solutions that help combat existential problems in basic supply. The entries will be evaluated and made accessible to practitioners on a central knowledge database empowering more people to actively improve social and economic environments. For the competition the international Siemens Stiftung is partnering with competent organizations from interdisciplinary backgrounds such as the KfW (business area development bank).

As from today innovators and developer teams can submit a proven product or solution that can help people in combating existential basic supply problems. Entries can be filed in the categories of Water & Waste Water, Energy, Food & Agriculture, Waste Management & Recycling, Housing & Construction, Healthcare, and Information & Communication Technology. The main objective of the competition is to make these solutions more easily accessible to practitioners and to empower more people to actively improve the social and economic environment.

The competition will honor the winner at the Awards Ceremony in June 2013 with a sum of 50,000 EUR. The second prize is valued at 30,000 EUR, the third at 20,000 EUR and a further 5,000 EUR will be awarded to 20 runners up. All intellectual properties will remain with the inventor or team. The entries will be evaluated by an interdisciplinary and international jury.

The entries submitted in this competition will be used to form the basis of a long-term knowledge database that, alongside research possibilities, will generate direct interaction between the public and private sector as well as the world of academia, including developers and practitioners. At the same time, the entrants and their projects will become visible to international partners and investors. The platform serves to link people with the aim of attaining collaborative success in development ventures, a declared goal of the Siemens Stiftung. Ulrike Wahl, Managing Director of the Siemens Stiftung stated: “As a foundation active in projects extending basic services to those in need, we are convinced that technological solutions are a key lever to sustainable development. The database we want to build is geared equally to bringing inventors in touch with organizations funding their idea, as well as empowering inventors and practitioners to link-up directly and thus speed up processes to tackle basic supply challenges. We invite everybody who has invented a technological solution for solving basic supply challenges to take part in the competition.”

Deadline for entries is 31st December 2012 at 12.00pm EST.

Further information and material is available at:
www.empowering-people-award.org/press

For updates on the competition, become a fan on Facebook: https://www.facebook.com/EmpoweringPeopleAward and follow us on www.twitter.com/Emp_Ppl_Award

For more information on the Siemens Stiftung, please visit:
www.siemens-stiftung.org


About the Siemens Stiftung
ENCOURAGE. empowering people. The Siemens Stiftung wants to empower people to actively address today’s social challenges and is dedicated to the values of Werner von Siemens. Together with partners, the foundation designs and implements local and international projects with the aim of promoting individual responsibility and self-initiative. The foundation is committed to enlarging basic services and social entrepreneurship, promoting education and strengthening culture. The Siemens Stiftung pursues an integrative approach and stands for responsible, impact-oriented and innovative project work.]]> Wirtschaft Wed, 12 Sep 2012 16:58:00 +0200 Germany, SA initiative to boost local innovation http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=1020&cHash=077acbe8d992e837e171ff4098658da5 Cape Town - A research co-operation initiative between Germany and South Africa can help South Africa develop more local innovations, the Minister of Science and Technology Naledi Pandor said on...
In her address to the German-South African Year of Science event at the Cape Town International Convention Centre, Pandor said though South Africa had made a significant contribution to technological innovation worldwide, the country remained heavily dependent on imported technology.

This was the reason why the country was building stronger science and engineering partnerships with a number of countries.

The German-South African Year of Science is an initiative between the Department of Science and Technology and Germany's Ministry of Education and Research.

The initiative honours the two countries' strong relations in science and research, which stretch back to 1996 when the two nations signed a science and technology cooperation agreement and led to a joint research fund established to support research and development (R&D) projects in several sectors.

Pandor, who admired Germany's well-funded research landscape - with about 230 institutes involved in basic and applied research, said The Year of Science would offer both countries an opportunity to attract young people to science, technology and innovation.

During a recent call for initiatives under the German-South African programme, more than 200 applications were handed in by the science community of both countries. 

Of all applications 41 initiatives have been jointly agreed on which represent all thematic fields of the German-South African Year of Science 2012/2013 and receive funding. 

These include a collaboration between the Bauhaus-Universit,t Weimar and the North West University on sustainable resource-based sanitation and organic waste and a project between the University of Pretoria and the Fachhochschule Kiel aimed at promoting gender equality in sciences by financing a woman's science conference.

She said she hoped the partnership would among others things, help increase joint ventures between the two countries and help to establish a platform to expand and deepen bilateral science, technology and innovation cooperation.

The focus of the year would be on several strategic areas, including climate change, human-capital development, the bio-economy, megacities, astronomy, health innovation and social sciences and humanities.

"Social innovation or innovation for development is a key component of our collaboration. Projects such as the Communal Water House of the Ikwezi local community in the Eastern Cape, intended to support management of water resources, is one such example," she said.

She also thanked her counterpart for helping to set up the Southern African Science Service Centre for Climate Change and Adaptive Land Management (Sasscal) - a joint initiative between Germany, South Africa and several neighbouring African countries to address the challenge of climate change. 

Germany's Minister of Education and Research Annette Schavan said the initiative aimed to pool both countries' scientific capacity and strengthen existing research partnerships in Germany and South Africa.

She, however, pointed out that money alone was not the most important thing when it came to boosting innovation and research, but that strong vocational training of students by business was essential.

Companies had to be open to receiving new students for research-type positions, said Schavan, pointing out that the 600 German companies in South Africa were an ideal place for graduates to get good on the job training.

Speaking after her address, Pandor said she hoped that the decision as to who will host the Square Kilometre Array (SKA) radio telescope project, would be made on the next expected date.

The decision was delayed at the beginning of the month and a new date has been set for the middle of May.

Pandor said if South Africa won the bid to host the SKA, it would turn the continent into a place of research, would motivate more children to become interested in science and innovation career paths and would also result in improved internet bandwidth for businesses.

"If we have someone winning the Nobel science prize, because using the SKA in Africa they discovered who's out there and they get the prize because of the SKA, I think that will just be the cherry on the top..." she said.  Source: BuaNews]]> Pressespiegel Wirtschaft Fri, 20 Apr 2012 10:27:00 +0200 South African producers at Ambiente in Frankfurt 10 - 14 February 2012 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=990&cHash=a6cbe91d4ed6d5ad8676736189827e8d Auf der Ambiente Messe in Frankfurt vom 10. - 14. Februar 2012 stellen 27 südafrikanische Kunsthandwerksfirmen in drei Hallen groß aus. Besuchen Sie uns auf folgenden Ständen: Halle 11.0 Stand...
  • Halle 11.0 Stand B40 and B50
  • Halle 9.3 Stand C62,
  • Halle 8.0 Stand F19
    • 27 South African arts and crafts producers exhibit at large scale at Ambiente fair in Frankfurt from 10 - 14 February 2012.  Come visit us at the following stands:
    • Hall 11.0 Stand B40 and B50
    • Hall 9.3 Stand C62,
    • Hall 8.0 Stand F19
    For a list exhibitioners please see |+|]]>     Wirtschaft Südafrika in Deutschland Pressespiegel Presse Mon, 23 Jan 2012 10:41:00 +0100     ICT Seminar at the Embassy http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=988&cHash=97030989063e357e2365fada24ba6de0 Berlin, 17 January 2012. The Embassy of the Republic of South Africa hosted a one-day seminar arranged by the South African Department of Science and Technology (DST) to showcase South Africa’s...
    The event is aimed specifically at promoting collaboration opportunities for German researchers in South Africa's ICT and Climate Change research programmes, with the further view of strengthening research collaboration between German and South African researchers in the two areas. The science and technology road show will also visit the UK, Netherlands and France.

    The seminar was also in preparation for the South Africa-German Year of Science, a joint cooperation project between the Department of Science and Technology and the Federal Ministry for Education and Research that is scheduled to be launched in April 2012 in Cape Town.   The seminar is a further confirmation of the excellent cooperation between South Africa and Germany in the field of science and research.  This relationship was formalized in 2006 with the establishment of the Binational Commission and where a Working Group on Science and Technology was established. The seminar will further contribute to the meeting of the next Binational Commission planned for 2012 in Berlin, Germany. 
    For more information, please visit the following websites:
    www.esastap.org.za www.saccess-project.eu (This document is available in English only)]]>     Botschaft Wirtschaft Bilaterale Beziehungen Pressespiegel Presse Mon, 23 Jan 2012 10:31:00 +0100     Südafrika kulinarisch erleben auf der Anuga in Köln vom 8. bis 12. Oktober 2011 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=952&cHash=31e89795222d20bbd9442b1b9a2f3ca2 Auf der Anuga in Köln stellen 37 südafrikanische Aussteller aus: Feinkost/Lebensmittel, Säfte, Öle, Konserven, Gewürze und Straussenfleischspezialitäten und anderes mehr. Besuchen Sie den... Südafrika ist der weltweit führende Anbieter und Lieferant von Straußenfleisch. Südafrikanisches Straußenfleisch ist gesundes, mageres und geschmackvolles Fleisch fast völlig ohne Cholesterin und Fett sowie dazu extrem populär bei den Lifestyle Produkten für gesundheitsbewusste Verbraucher.
    Die südafrikanischen verarbeiteten Obst- und Gemüseprodukte sind bekannt für ihre hohen Standards und Premiumqualität. Diese werden in Produktionsstätten hergestellt, die Weltklasse Produktionspraktiken angenommen haben in Erfüllung sowohl aller Produktqualitäts- wie auch Lebensmittelsicherheits-Zertifikate. Hiermit gepaart werden die natürlichen Attribute südafrikanischer Rohstoffe, nämlich Geschmack, Textur und Farbe, werden diese Produkte unter die besten der Welt eingeordnet.
    Der Südafrika-Pavillion auf der Anuga 2011 ist eine Bühne der Vielfalt von Lebensmittelprodukten, die in dem Land zu wettbewerbsfähigen Preisen produziert werden und kritischen Konsumenten angeboten werden, die Qualitätslebensmittel zu wettbewerbsfähigen Preisen würdigen. Mit 37 Ausstellern auf dem Südafrika-Pavillion dieses Jahr ist die größte Firmenzahl auf einer Anuga bisher überhaupt vertreten. Die ausgestellten Produkte schließen einheimische Tees wie Rooibos und Honeybusch mit ein wie Fruchtsäfte, Dosenfrüchte, Marmeladen und Eingemachtes, Saucen, Chutneys, Gewürze, Süßwaren, Trockenfrüchte und Nüsse, Straussenfleisch und Wild sowie diverse Bio- Produkte.
    Besucher werden auf dem Südafrika-Pavillion auch einige so einzigartige Produkte kosten können wie Aloesäfte und -Marmeladen, dazu Schokoladen-überzogene Aloewürfel und Snackriegel aus Baobabbaumextrakten hergestellt oder Macadamianusssplitter.   Besuchen Sie die südafrikanischen Aussteller in Halle 9 Stand B50-A05 und in Halle 11.1 Stand A51-C59. Weitere Informationen zu den Ausstellern verfügbar unter www.suedafrika-wirtschaft.de English version: South Africa’s well-developed food and beverages industry continues to be recognized as a global player in this market. An increasing number of South African producers and exporters of a wide variety of processed foodstuffs are growing their brands on international markets, particularly in the gourmet food sector. A number of these firms have gained worldwide recognition for their innovation in terms of packaging, presentation and branding, winning awards at the major global events for the world’s food industry. This includes brands such as Ceres, Nomu, Banditos, Peppadew, Mrs Balls, Ina Paarmans, Sally Williams and Gold Reef, to name but a few. Many of these will be present on the South African National Pavilion at Anuga again this year.    
     
    South Africa is the world’s leading producer and supplier of ostrich meat. South African ostrich meat is a healthy, lean and tasty red meat with almost no cholesterol and fat and is extremely popular in the lifestyle market for health-conscious consumers. 
    The South African processed fruit & vegetable products are renowned for their high standards and premium quality. These are manufactured in production facilities that have adopted world class manufacturing practices in full compliance with both product quality and food safety certifications. Coupled with this, the natural attributes of the South African raw materials; namely taste, texture and colour - rank these products as some of the best in the world.    
    The South African Pavilion at Anuga 2011 is a showcase of the variety of the food products produced in the country at competitive prices and available to discerning consumers who appreciate quality food products at competitive prices. With 37 exhibitors on the SA National pavilion this year, this will be one of the largest official South African participation at Anuga ever. Products to be displayed on the pavilion this year include indigenous teas, such as Rooibos and Honeybush, fruit juices, canned fruits, jams and preserves, sauces, chutneys, spices, confectionery, dried fruits and nuts, ostrich & game meats, as well as different organic products. 
     
    Visitors to the South African Pavilion at Anuga will also be able to taste some unique products such as Aloe juices & jams, in addition to chocolate coated Aloe cubes and snack bars made from the baobab tree extracts, and also macadamia nut brittle.    Please visit the South African exhibitors in Hall 9 stand B50-A05 and in Hall 11.1 stand A51-C59. For further information on the exhibitors please consult: www.suedafrika-wirtschaft.de

     
    ]]>     Südafrika in Deutschland Wirtschaft Mon, 19 Sep 2011 16:58:00 +0200     Speech by Ambassador Reverend MA Stofile on "Tasks, Challenges and Ideas" http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=937&cHash=e53fb760ff994b21fb6fd4ef538ec739 Berlin, 28 June 2011. The Ambassador of the Republic of South Africa Reverend MA Stofile was the keynote speaker at a reception co-hosted by German Africa Foundation (Deutsche Afrika Stiftung e.V.),... Reverend MA Stofile was the keynote speaker at a reception co-hosted by German Africa Foundation (Deutsche Afrika Stiftung e.V.), German Chamber of Commerce and Industry (Deutsche Industrie und Handelskammertag e.V.), Afrika-Verein (Afrika-Verein der Deutschen Wirtschaft e.V.)  and the Siemens AG with the theme: “Tasks, Challenges and Ideas” . In front of an audience of German politicians, industry representatives, media and clerical representatives the Ambassador outlined tasks, challenges and ideas of the German- South African relationship and his vision for his time as Ambassador in Germany in line with the South African government. The Ambassador´s speech was followed with many questions from the audience and a lively discussion. Please find the speech below, for a CV of Ambassador Reverend Stofile please click |+| here

    Introduction
    From time immemorial since the evolution of societies and nation states, human relations have always been defined by access to resources for livelihood and wellbeing. The search for resources, their protection and later ownership of e.g. land, minerals, animals (for hunters), roots and fruits (for gatherers) have always defined relations. In the modern era the situation has not changed but has become more sophisticated. “National Interests” have replaced what old sociologists called “human needs”. But the essence of what defines relations remains basically the same.

    The ancient world relied on might and power of the armies to resolve contestations. Modern times have seen the ascendance of the power of the pen and debating fora for resolving relations among nations. Multi-laterals, bi-nationals and a plethora of Resolutions and Protocols have become very important tools for good neighbourliness and world peace. Force has not exactly been cancelled by these peaceful tools. But it has been immensely limited.

    I have sketched this background to answer the question of why South Africa has a Mission in Germany. Such diplomatic Missions are established with the mutual consent of two states (Germany and the RSA). Our functions in Germany are largely the same with those of our counterpart in Pretoria, Dr Haller. They are:
    • To represent the RSA in Germany:
    • To protect in Germany the interests of the RSA, within International Law;
    • Negotiating (when necessary) with the Government of Germany;
    • The promotion of friendly relations between the RSA and Germany and our peoples;
    • To develop and facilitate strong economic, cultural and scientific relations between our two countries.
    These are the tasks I have been assigned and I mean to carry them out diligently and with great humility. Honourable Public Representatives (MPs) will be our important partners as we tackle these tasks.

    As part of the large team of Ambassadors and High Commissioners that South Africa has deployed to many countries, here in Germany we must:
    • Strive to consolidate the African Agenda. This means that we must promote and popularise NEPAD and its programmes. This way the economic growth and development of Africa will be enhanced. The African trade and investment must be aligned to regional and sub-regional Strategic Plans. It is also our task to support good governance and democratisation initiatives in Africa. This, in partnership with the German Government and institutions.
    • Strive to strengthen our co-operation with Germany. Our two countries have cordial and dynamic relations based on mutual trust and equal partnership. Germany is our largest economic partner in Europe and our number 4 in the world. We have been instructed by President Zuma to strengthen this relationship. Of course, as we do so we shall also be contributing to a strong South – North cooperation. Minister Westerwelle correctly pointed out (15 June 2011) that Germany will strengthen existing relations whilst also forging new ones. This is normal for all countries of the world.
    • Together with Germany we are confronting such challenges as poverty, underdevelopment in Africa, skills transfer, post conflict reconstruction and peace and security. As non-permanent members of the UNSC we consult regularly to develop a common approach to our endeavours to reform the UN and other Institutions of Global Governance. We work closely in promoting human rights and in promoting the global political and socio-economic stability within the multi-lateral system.
    What are we going to do? (Challenges)
    After centuries of colonial conquest followed by many decades of segregation, protest, resistance and brutal repression, our country is on the way to a fully functional and participatory democracy.  A significant progress has been made towards making our country a more just and inclusive society. Or political institutions have been entrenched through four national and provincial and local government elections. Such institutions as an independent Judiciary, a Public Protector, Auditor General, Human Rights, a Gender and Electoral Commissions are strong bulwarks for our democracy. But much more must be done still.

    Divisions of race, gender and class remain. More often than not inequality reflects these lines of division. The continued social and economic exclusion of millions of South Africans is our biggest challenge. These have a historical basis in apartheid and are driven by a poor quality of education for many blacks which leaves a lot of people unemployed, poor and unemployable. Improving the supply and relevance of skills is desperately needed at home.

    So Honourable Members, we are challenged to grow the level of German investments in South Africa and vice versa. We are challenged to come up with innovative technologies that will provide more jobs and skills for our people. The agreements between Germany and South Africa on Education, Science and Technology, Skills training, Provinces/Lände and City/City co-operatives must be made to work smarter and faster. MPs could assist by organising South Africa or Africa days in their constituencies. This way, our challenges can be properly and broadly explained. Potential entrepreneurs could also see how to participate in the R11 billion scheme announced by Government to boost infrastructure development and to promote innovative technology-driven industries.

    Next week Germany and South Africa are hosting a very important Climate Change Conference. This is another effort to build a solid consensus as we move to COP17 in Durban, South Africa during November/ December 2011. All agree that a global, legally binding agreement is the first prize for Durban. But all concerned, agree the journey is not going to be easy. But we must walk that road, together.

    Conclusion
    We are cognisant of the immensity of our responsibilities. But we also know what happens when we work together. Preparations and the hosting of the 2010 FIFA World Cup started with Germany and South Africa working together since 2004 already to prepare for the 2006 World Cup in Germany. The history of South Africa / German relations is very long. Of course it has not always been positive. But that is what diplomatic missions are for:  to iron out problematic areas. Some German Companies have been in South Africa for more than 150 years. We have climbed many hills together. We dare not stop now. (Document available in English only)]]>     Wirtschaft Botschaft Politik Topnews Presse Wed, 29 Jun 2011 12:38:00 +0200     Südafrika auf der GIFA in Düsseldorf vertreten http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=929&cHash=137e0e4563d243792903e4e6fc465ffa Die Republik Südafrika ist mit 13 Ausstellern auf der GIFA / Newcast-Messe (die 12. Internationale Giesserei-Fachmesse) in Düsseldorf vom 28.6. - 2.7. 2011 in Halle 13 Stand B22... http://www.suedafrika-wirtschaft.de/index.php?&pageID=87]]> Botschaft Wirtschaft Südafrika in Deutschland Topnews Mon, 20 Jun 2011 00:00:00 +0200 Budget Speech by Minister of Finance Pravin Gordhan, Parliament, 23 February 2011 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=896&cHash=12a02a5ec1476ea69ef124ed932ab04b The following is the Budget Speech delivered by Minister of Finance Pravin Gordhan at Parliament, 23 February 2011. Honourable Speaker, It is my privilege to introduce the Second Budget...
    Mister President, you outlined our programme of action in the State of the Nation Address two weeks ago. Your vision for the future is abundantly clear: “We want to have a country where millions more South Africans have decent employment opportunities, which has a modern infrastructure and vibrant economy and where the quality of life is high.”

    This Budget, Mister President, reflects the collective determination of the Government to address with energy the challenges of creating jobs, reducing poverty, building infrastructure and expanding our economy.

    The Budget sets out a financial framework for implementing this vision, a framework that is sound and sustainable. It recognises that building South Africa is a multi-decade project that must invigorate our capacity to grow, and must include all South Africans in that growth. 

    This Budget sets us on a path, Honourable Members, that will be neither easy nor uncontested – hard work and difficult choices lie ahead. But the journey is under way. We have embarked on the long walk to economic freedom. All South Africans aspire to these freedoms: 
    • Freedom from poverty,
    • Freedom from need,
    • Freedom to exercise our talents and thrive as individuals,
    • Freedom to work together as communities, as organised social formations, as business enterprises, as a proud and forward-looking nation.
    This Budget is about making South Africa work smarter, harder, and differently.

    What does this Budget offer?

    Mister Speaker, the 2011 Budget ensures
    • That government can intensify activities that make a difference to the lives and prospects of all South Africans,
    • That priority programmes required for implementing the New Growth Path are funded,
    • That macroeconomic stability is maintained, with necessary adjustments supporting enterprise and job creation. 
    In tabling another weighty load of documentation today, our aim is to display transparently how South Africans benefit from government’s programmes and policies and how their tax contributions are spent.

    For the poor, the Budget continues to expand spending on housing, rural development, better community services and social assistance grants for the elderly, the disabled and children in need.

    For workers, the Budget emphasises job creation and expenditure on the “social wage,” including access to health services, education, social security, transport and municipal infrastructure.

    For the business sector, the Budget expands investment in modernising our infrastructure and transport logistics, accelerating further education and skills development and supporting research, technology and industrial investment.

    For the small business sector, there are targeted financial and enterprise development programmes, and tax relief measures.

    For the youth, there is expanded access and financial assistance for further education, and a range of initiatives aimed at expanding job opportunities.

    All of this, and more, we must do within a sound fiscal framework. We must also recognise that we are taking steps, this year and next, on a long-term growth path, a decades-long transformation and expansion of our social and economic possibilities.

    In reflecting on commitments made in last year’s budget, we can point to progress on several fronts:
    • Savings have again been identified in low-priority categories of spending, releasing over R30 billion to frontline service delivery allocations.
    • Support for the Industrial Policy Action Plan is further enhanced. Tax and spending measures are proposed to improve investment and trade performance, enhance science and technology, accelerate job creation, boost small enterprise development and to strengthen rural development and emerging farmer support.
    • Education and skills development are bolstered over the period ahead through expanding further education colleges and student financial assistance, and a new school building programme.
    • Spending on economic and social infrastructure of over R800 billion is projected over the next three years.
    • A new community-based family health-care programme is to be introduced as part of national health insurance, while work is proceeding on the design and consolidation of our social security arrangements.
    • At Parliament’s request, we are tabling guidelines on long-term fiscal sustainability and debt management.
    An opportunity to create hope for young people

    Mister Speaker, we live in an extraordinary time in human history – a time of immense transition, of profound risks, but also of great opportunities.

    We are in the midst of epoch-changing shifts in the global economy as large fast-growing countries, particularly China and India, have become major world producers and consumers. Their weight in world trade, finance and investment and in restructuring the world’s industries affects every country, every firm and every family.

    Fast-growing economies that are raising living standards and creating jobs have one thing in common. They are continually moving into new products and improving the ways of producing the things they sell. Adaptation to the disciplines and the productive possibilities of the new global economy opens up new vistas of opportunity for improving living standards and expanding employment. But it also presents great challenges.

    We shoulder the responsibility to build a better South Africa. We have taken on the challenge that the legacy of apartheid left us – a legacy of disempowerment, landlessness, inequality of opportunity, and millions of unemployed young people who cannot see a realistic prospect for a decent life. Confronting these realities is not about blaming the past or denying our own shortcomings.

    It is about recognising that now is the time to do extraordinary things, in dealing with our particular development circumstances. It requires new ideas and bold efforts from all: government, business, labour, communities and every family. 

    We must show, across the economy, the game-changing strengths we have shown on big issues, from creating our democracy to hosting Africa’s first Soccer World Cup festival.

    Now we have to ignite the flame of higher inclusive growth, and sustain it.

    We cannot view the fact that 42 percent of young people between the ages of 18 and 29 are unemployed as merely a statistic. Young men and women in cities, informal settlements, towns and villages may not have jobs, but have skills in life. They possess the awareness and the ability to learn, they drive fashion and inspire with their music, yet they know their local traditions. And they have hope, and look to us to give meaning to that hope. 

    In response we must take measures to ensure that our young people can look forward to decent work in productive, competitive enterprises. It means that we will continue to strengthen social expenditure, enabling families to commit to participating in education and community activities, while supporting the old and sick.

    Inclusive growth means strenuous efforts to cut back poverty and shrink the inequality that continue to blight us. The South African growth path we envision is not measurable by GDP alone. It must be an inclusive growth, which especially benefits the many South Africans who have been left behind.

    Inclusive growth also means addressing the climate change challenges that confront the long-term global outlook. This year South Africa will host the 17th United Nations Conference of the Parties on climate change. Our own efforts to green our economy will come under special scrutiny. Mitigation initiatives are not just about reducing the dangers associated with a hotter future, but they also offer significant opportunities to create jobs and reduce costs in our economy.

    And so in mapping a New Growth Path that will lead to rapid creation of jobs, that will ensure an equitable distribution of benefits, that will reduce inequality, ignite industrial development and transform rural and urban communities – in charting this course, we are mindful of the specific realities of our circumstances and the changing shape of the global economy.

    As comrade Chris Hani so rightly said, “We want to build a nation free from hunger, disease and poverty, free from ignorance, homelessness and humiliation, a country in which there is peace, security and jobs.”

    It is time to celebrate and embrace the potential of our unemployed young, knowing that they are our future. How we meet this challenge will shape the quality of life that our children and their children will enjoy. 

    Economic outlook
    Mister Speaker, there are encouraging signs of stronger recovery in the global economy as we enter 2011. But it remains essentially a two-speed recovery. There is moderate growth in the United States and parts of Europe again, whereas China and many other emerging economies continue to expand rapidly.

    The roots of this divergent growth pattern lie in the unbalanced structure of world growth in the years leading up to the financial crisis. World growth came to rely too heavily on countries that exhibited overly high consumption, financed by countries with high savings and large trade surpluses.

    The financial crisis and subsequent recession brought painful adjustments. However, the shift in world trade, investment, manufacturing, incomes and consumption is a structural transition that will take many years, as a multi-polar world evolves.

    Up until the turn of the century, developing countries accounted for about 20 percent of global output. This will increase to 40 percent by about 2015.

    Developing economies in Africa, Latin America and South Asia will play an increasingly important role in the global economy in coming years as incomes rise and poverty falls.

    South Africa’s invitation to join the BRIC economies [Brazil, Russia, India and China] reflects this broadening of the sources of economic growth. Over the next five years, these economies will account for 36 percent of world economic growth. We have to construct our own growth and development strategies to propel our economy forward, create jobs and compete on the global stage.

    The New Growth Path outlines our approach to accelerate growth and employment, focusing on several key drivers:
    • Continuing and broadening public investment in infrastructure,
    • Targeting more labour-absorbing activities in the agricultural and mining value chains, manufacturing, construction and services,
    • Promoting innovation through “green economy” initiatives, and
    • Supporting rural development and regional integration.
    The latest estimate released by the Statistician-General is that the domestic economy grew by 2.8 percent in 2010. Strong commodity prices, low interest rates, and faster global growth, have been the main forces behind our economic recovery. Improving household consumption and accelerating investment will support an increase in economic growth over the medium term.

    Real GDP growth is projected to reach 3.4 percent in 2011, 4.1 percent in 2012 and 4.4 percent in 2013.

    Steady employment gains – of about 2 percent a year – will raise disposable incomes, supporting household consumption and investment.

    Private gross fixed-capital formation increased in the second and third quarters of 2010 – a marked turnaround after five successive quarters of decline. Total investment is expected to grow by 3.9 percent in 2011, rising to 6.8 percent in 2013. The buoyancy of the investment recovery is an important determinant of future economic growth.

    Real growth in exports is expected to average 6.5 percent a year over the medium term as commodity exports benefit from strong demand and high prices.

    Inflation is forecast to remain within the target range of 3 – 6 percent, edging towards the upper end of the range in 2013 as the economy strengthens.

    Increasing food and oil prices represent risks to the inflation outlook. The price of Brent crude reached US$107 yesterday – further increases will put upward pressure on prices more broadly.

    The improved terms of trade for South Africa contributed to a better current account deficit for 2010 than was expected a year ago. As it widens from the 3.2 percent of GDP expected this year to 5 percent in 2013, we would like it to reflect rapidly rising investment rather than higher consumption.

    Macroeconomic stability in an uncertain world
    Mister Speaker, the growth and transformation of financial markets in recent decades has seen increased volatility of exchange rates and capital flows.

    Global commodity markets now account for significant fluctuations in prices for our energy imports, mineral exports, and food supplies.

    The macroeconomic environment facing South Africans – through interest rates, exchange rates, inflation, and credit conditions – can be destabilised by those international shocks. The macroeconomic policy task is to provide a stable and predictable economic environment by offsetting such shocks as far as possible.

    Our monetary policy, designed to target inflation, has been conducted successfully by the South African Reserve Bank, achieving the current low rate of inflation and interest rates.

    Fiscal and monetary policy will continue to work in partnership. Monetary policy, operated by the Reserve Bank, will continue to be focused on controlling inflation, and we will continue to ensure that fiscal policy is countercyclical within a sustainable long-term framework.

    Movements in the exchange rate affect different sectors of the economy in different ways, and present difficulties in macroeconomic policy for many countries.

    Recognising the impact of rand strength on the manufacturing industry, in particular, we announced measures in October to moderate the potential effect of capital inflows.
    • Foreign exchange regulations were amended to permit greater foreign investment by South African institutions.
    • Stepped up foreign exchange purchases by the Reserve Bank have partially offset upward pressures on the rand.
    As a result of these policy adjustments, and in line with shifts in investor sentiment globally, the rand depreciated from December 2010 to mid-February 2011 by about 10 percent against the US dollar, the euro and sterling.

    During 2010 South Africa received net inflows of R92 billion in liquid foreign capital, which contributed to upward pressure on the exchange rate. Since the fourth quarter of last year, South Africa experienced capital outflows. Along with uncertainties and volatility in global financial markets this contributed to the depreciation of the rand.

    Furthermore the increase in oil and food prices is posing new risks to the inflation outlook. 

    Government will continue to assist the Reserve Bank to accumulate foreign exchange reserves when market conditions are favourable and engage in foreign currency swaps to moderate the effect of capital flows on the exchange rate.

    Overly rapid currency depreciation carries risks to macroeconomic stability, however, and so we expect the Governor of the Reserve Bank to be vigilant in monitoring inflationary pressures and ensuring that monetary policy is effective in meeting our inflation targets. The credibility of monetary policy in achieving our target inflation range, combined with our commitment to fiscal discipline, are important foundations for moderating exchange rate volatility.

    Changes in the volume and direction of capital flows may be significant over the year ahead, and are largely beyond our control or influence. We will allow the actions announced in the MTBPS to have their full effect and continue to monitor capital flows.

    Other countries, too, experienced high capital inflows in 2010. Several, including Brazil, South Korea and Thailand, introduced tax or regulatory measures to deter such investment flows and currency speculation. We have examined these options and their impact, and will continue to monitor the adjustments made in other countries, while recognising that circumstances vary from country to country. National Treasury is cognisant of the risk that financial instability and currency volatility can arise from large capital movements. If necessary, appropriate steps to moderate these effects will be taken, together with the Reserve Bank.

    Transformation of the financial sector
    Mister President, you pointed out in your State of the Nation Address that our financial sector proved to be remarkably resilient in the face of the recent financial crisis and the global economic meltdown.

    In line with global developments, there are further steps to be taken to enhance the regulatory framework and improve financial services. The proposed reforms include a shift to a “twin peak” system of financial regulation, with market conduct under the Financial Services Board, and prudential regulation in the Reserve Bank. An inter-agency financial stability oversight committee will be formed, and a Council of Financial Regulators. A policy discussion paper sets out the new framework for how the financial sector could better serve South Africa.

    Among the issues to be addressed are the findings of Judge Jali’s Enquiry into Competition in Banking – findings that are echoed by many people’s complaints that bank charges are high and opaque. As senior citizen Mr Bill Nobile wrote to me last week, “We do not fully understand the complexity of the payment systems for credit and other cards but there does appear to be considerable leeway in reducing costs to the consumer, including the elderly.”

    I have met with the chief executives of our banks to take up this issue, and I believe it is time to put in place measures that will ensure that banking charges are fairly set, are transparent and do not create undue hardship.

    As part of the work of modernising and harmonising our investment framework, Treasury is releasing two further discussion papers – one on the regulation of foreign direct investment, and another on the prudential framework for institutional investors. We look forward to consultation with stakeholders on these issues over the coming months.

    The fiscal framework
    South Africa adopted a counter-cyclical fiscal stance two years ahead of the crisis. We entered the recent recession with a healthy fiscal position and a comparatively low level of debt. This allowed us to maintain government spending despite a sharp deterioration in revenue.

    Government spending continues to grow over the next three years, though at a slower rate than in the recent past. Since the Medium Term Budget Policy Statement, several additional spending allocations have been made, including provision for a response to the damage caused by last year’s floods. 

    The impact of slightly slower growth in revenue and the additional expenditures is that the deficit for next year is half a percentage point of GDP higher than we projected in October. The trend remains downwards however, with a deficit of 3.8 percent of GDP expected in 2013/14. This reduction in the deficit over the next three years is consistent with stabilising the growth in our debt and the conduct of a countercyclical fiscal policy. National government net debt is set to rise from R526 billion at the end of 2008/09 to over R1.3 trillion in 2013/14.

    Mister Speaker, to ensure that our spending on schools, hospitals and roads is not crowded out by an ever-rising interest burden, government debt needs to be managed sustainably. We don’t want an unmanageable increase in expenditure, nor do we want the severe austerity measures some western countries have had to adopt.

    In view of these considerations, Parliament asked the National Treasury to investigate how we might reinforce long-term sustainability of our public finances. For the further consideration of the House, I will be proposing a set of fiscal guidelines, informed by three principles:
    • A counter-cyclical fiscal stance, to counteract variations over the business cycle,
    • Long-term debt sustainability, to ensure that financing costs do not crowd out expenditure on public services, and
    • Inter-generational equity, so that our children’s wellbeing is not compromised by short-term interests.
    Developing fiscal and budgetary guidelines will strengthen parliamentary oversight, encourage transparency and enhance accountability.

    Division of revenue
    Mister Speaker, our Constitution sets out specific criteria for the sharing of nationally-raised revenue between national departments, provinces and municipalities. Proposals for this division are set out in the Division of Revenue Bill.

    Total expenditure from the National Revenue Fund of R889 billion is provided for in 2011/12, which is 9.8 percent more than the revised estimate for 2010/11.
    • Debt service costs will amount to R77 billion next year, rising to R104 billion in 2013/14. Though our overall debt burden remains moderate, the size of the budget deficit at present results in debt service costs rising faster than any other category of spending over the period ahead.
    • In keeping with established practice, the budget framework includes an unallocated contingency reserve of R4 billion in 2011/12, R11 billion in 2012/13 and R23 billion in 2013/14. This allows for unforeseeable and unavoidable spending requirements next year, and future policy priorities over the medium term.
    • This leaves R808 billion to be allocated between national, provincial and local government in 2011/12, up from R743 billion in 2010/11 and rising to R926 billion by the end of the MTEF period. National departments are allocated 47 percent of the total, provinces 44 percent and municipalities just under 9 percent. National transfers to local government have increased substantially, and will amount to over R70 billion in budgetary assistance and infrastructure grants in the 2011/12 year.
    Revisions to baseline, savings and reprioritisation
    Mister Speaker, the proposed medium-term expenditure framework has been structured to enable government’s policy priorities to be implemented, in accordance with delivery agreements.

    The 2011 Budget makes available R94 billion in addition to baseline allocations over the next three years. Savings of R30.6 billion were identified, of which R21.6 billion was reprioritised within departmental baselines to meet existing commitments. In order to accommodate additional funding for the National Student Finance Aid Scheme, all departments were required to effect unprecedented spending cuts of 0.3 percent, amounting to R6 billion. I want to place on record our appreciation to Cabinet colleagues and departmental accounting officers for their co-operation.

    Part of this revision to baseline allocations is the carry-through cost of the 2010 wage agreement, which requires an additional R39.4 billion for remuneration of employees over the MTEF period. The public service salary bill has doubled over the past five years, from R156 billion to R314 billion. This constitutes just under 40 percent of consolidated non-interest expenditure. 

    Consolidated government expenditure
    Members of the House will know that the spending plans of national government departments, public entities and social security funds are set out in considerable detail in the Estimates of National Expenditure. Estimates of consolidated government expenditure for the period ahead are set out in chapter 8 of the Budget Review.

    Consolidated expenditure is projected to increase from R897 billion in 2010/11 to R1.2 trillion in 2013/14, with non-interest spending on public services growing by an average of 8 percent a year.

    Creating jobs
    As you have emphasised, Mister President, our aim is to put development first, and not dependence on welfare. The Budget therefore proposes a range of measures to accelerate employment creation over the period ahead:
    • As announced by the President, R9 billion has been set aside over the next three years for a Jobs Fund to co-finance innovative public- and private-sector employment projects.
    • Further education and training colleges are allocated over R14 billion for the period ahead, and student financial assistance will be stepped up.
    • Over R20 billion goes to Sector Education and Training Authorities and R5 billion to the National Skills Fund, which have key responsibilities for training work-seekers.
    • The expanded public works programme is R73 billion over the next three years, including community-based projects, environmental and social programmes and maintenance of roads and infrastructure.
    • Tax incentives have been renewed for manufacturing investment of R20 billion, with a focus on job-creation potential.
    • Investment will be increased in housing, and residential infrastructure and services.
    • Small enterprise development initiatives will be strengthened, including a focus on employment activation by the National Youth Development Agency.
    • Initiatives are under way to promote rural employment, and provide stepped up support for agricultural producers.
    • Funding is allocated for renewable energy, environmental protection and “green” economy initiatives.
    • As promised last year, details of a R5 billion youth employment subsidy are set out in a discussion paper, for further consideration in the House and at Nedlac. We must offer young work-seekers real hope where at present there is despair. 
    We need to do things differently. We need to have the courage to pilot new approaches and build new partnerships, promoting innovation throughout our economy.

    Improving the quality of education
    Education takes up the largest share of government spending – 21 percent of non-interest allocations – and receives the largest share of the additional allocations.
    • An amount of R8.3 billion over the MTEF period is added for schools infrastructure. A programme to address backlogs in school facilities over a three-year period will be administered by Minister Motshekga’s department.
    • Just under R1 billion is added for funza lushaka teacher bursaries and bursaries for postgraduate students in natural sciences.
    • R9.5 billion is provided for expanding further education and training colleges and skills development.
    Including adjustments for the remuneration of teachers, a total of R24.3 billion will be added to education and skills spending over the next three years, which rises from R190 billion next year to R215 billion in 2013/14.

    Minister Nzimande and Minister Motshekga exercise stewardship, Mister Speaker, over the largest network of service providers in our economy, and the most important programme of investment in future growth and redistribution.

    Enhancing health services
    Several further steps in implementing Minister Motsoaledi’s ten-point plan for reform of health services are accommodated in this Budget.

    Total spending on public health services has increased strongly over the past three years, from R63 billion in 2007/08 to R113 billion projected for next year.

    In addition to provision for higher personnel expenditure over the period ahead, over R8 billion is added to specific health service interventions, laying the foundations for National Health Insurance. This includes:
    • R1.2 billion to introduce family health care teams, 
    • R2.9 billion to improve quality in health facilities, medical equipment and hospital systems,
    • R1.4 billion for improved district-based maternal and child health services,
    • A new Office of Standards Compliance to inspect and certify hospitals,
    • Funding for the Department of Health to lead the necessary institutional and management reforms,
    • Revitalising health infrastructure, including a new infrastructure grant for provinces,
    • Expanding capacity to train medical doctors and nurses.
    Total expenditure on the Comprehensive HIV/Aids conditional grant will amount to R26.9 billion over the MTEF period, based on an increase in the number of people on treatment from 1.2 million this year to 2.6 million by 2013/14.

    The phasing-in of National Health Insurance will require substantial reforms to address imbalances across the public and private sectors and expand health professional training. The financial and organisational implications of these reforms are being jointly addressed by the Department of Health and the Treasury.

    Making communities safer
    Additional resources are also allocated to the safety and security cluster led by Ministers Radebe, Mthethwa, Cwele and Mapisa-Nqakula for the period ahead.

    A total of R12.8 billion goes to the departments of Police, Justice and Constitutional Development, Correctional Services and the Independent Complaints Directorate. The budget provides R2.1 billion for the increase in police personnel to 202 260 in 2013/14, from about 190 000 at present. An additional R670 million is allocated for the upgrade of information technology over the MTEF period, and R490 million is for construction of courts, including new high courts in Nelspruit and Polokwane.

    Total expenditure on public order and safety functions will amount to R91 billion next year, rising to R105 billion in 2013/14.

    Defence
    On Minister Sisulu’s Defence vote, further allocations are made for assistance in safeguarding the country’s borders, and to upgrade and maintain border facilities and equipment.

    Additional funding of R1.3 billion in 2011/12, rising to R2 billion in 2013/14, will bring total expenditure on defence and state security to R38.4 billion next year, rising to R43.9 billion in the outer year.

    Economic development and industrial promotion
    Additional allocations in support of industrial and economic development over the period ahead include:
    • R600 million for enterprise investment incentives,
    • R735 million for the Competition Commission and other economic regulatory agencies,
    • R250 million to the Industrial Development Corporation to support agro-processing businesses,
    • R120 million for the national tooling initiative,
    • R282 million for the Micro-finance Apex Fund, and
    • R55 million for Khula Enterprises to pilot a new approach to small business lending.
    Under the guidance of Minister Davies, about R10 billion will be spent on Industrial Policy Action Plan investment promotion over the MTEF period, including the automotive production and development programme, clothing and textiles production incentives, the film and television production incentive and support for small manufacturing and tourism enterprises.

    Small businesses are an important source of jobs. Businesses that employ fewer than 50 workers account for 68 percent of private sector employment.

    We need to get our small business sector growing. Allow me to share just a few inspiring examples.
    • Mlondolozi Kosi is a young man with a passion for building skills in his community, Willowvale. He has set up a small ICT training Centre where he has trained more than 120 people IT skills.
    • Norman Mpedi is an ex-MK combatant, who after being forced to live off the bush in Angola discovered the umviyo fruit and has grown this into a thriving juice-making, Nguni Juice.
    • Antonio Pooe started Exactech Fraud Solutions in 2007 as a small one-man business operating out of his home and has since grown it to a company with offices in Johannesburg, Cape Town and Durban and he now employs 24 people.
    These are a few examples of thousands of small and micro businesses which have taken root and fill a vital place in our economy. In many instances they have been supported by financing from both the private sector and programme of the Department of Trade and Industry.

    Rural development and agriculture
    Under Minister Joemat-Petterssen and Minister Nkwinti, government’s land reform and agricultural development programmes are focused on rural job creation and poverty reduction, while expanding agricultural production and improving food security.

    Additional allocations amounting to R2.2 billion go to these functions, including a further R400 million for the comprehensive agricultural support programme and the land care programme grant and funding to enable a further 5 000 recruits into the National Rural Youth Services corps.

    Including provincial allocations for agricultural support, a total of R19 billion will be spent on rural development and agriculture in 2011/12, rising to R21 billion in 2013/14.

    Transport
    Additional allocations of R10.3 billion are made over the MTEF for transport infrastructure and services on Minister Ndebele’s vote.
    • This includes R3.8 billion for maintenance of the coal haulage road network, financed from the increased levy on electricity collected from Eskom.
    • An additional R1.5 billion goes to provinces for road maintenance and weighbridges, as part of a new conditional grant for roads infrastructure.
    • Funds are also stepped up for the Passenger Rail Agency of South Africa, for replacing signaling infrastructure and refurbishing rail coaches.
    • A further R2.5 billion goes to municipalities for public transport systems and infrastructure.
    Consolidated government transport spending will amount to R66 billion next
    year, rising to R80 billion by 2013/14.

    Environmental protection and adapting to climate change
    Funding amounting to R800 million has been set aside over the next three years for “green economy” initiatives. Specific allocations will be made in the Adjustments Budget.

    Additional allocations for research into energy-efficiency technologies are proposed, efforts to prevent wildlife trafficking and improved air quality, waste disposal and coastline management. A total of R2.2 billion is allocated for environmental employment programmes over the medium term period and funding is provided on Minister Molewa’s vote for hosting the Conference on Climate Change in November this year.

    Total spending on the integrated national electrification programme will increase to R3.2 billion in 2013/14.

    Housing and community amenities
    Mister Speaker, recent research published by the Development Policy Research Unit confirms that significant progress has been made in the delivery of housing, water, sanitation and electricity.
    • The proportion of poor households living in formal dwellings has increased from 47 percent in 1994 to 66 percent,
    • Households with piped water have increased from 28 percent to 53 percent,
    • Those with electricity for lighting, from 20 percent to 75 percent, and
    • With flush or chemical sanitation, from 18 percent to 37 percent.
    Additional allocations to Minister Sexwale’s vote for human settlements upgrading and municipal services amount to R4.9 billion over the MTEF period.

    Two new grants to provinces and municipalities are proposed under Minister Shiceka’s oversight, to respond more rapidly to disasters.

    A further R3.6 billion is added for water infrastructure and services, including funding for the acid water drainage threat associated with abandoned underground mines. A report on this by a team of experts has been approved by Cabinet, and Minister Molewa is taking the lead in consulting with industry on a shared and coordinated response.

    Government aims to upgrade 400 000 homes in informal settlements by 2014. 

    A new urban settlements development grant contributes R21.8 billion over the next three years for these projects.

    Total spending on the housing, water and community amenities social wage will amount to R122 billion in 2011/12, rising to R138 billion in 2013/14.

    Social protection
    The social protection budget is another substantial part of the social wage. This practical expression of a caring society amounts to R147 billion in 2011/12, rising to R172 billion in 2013/14. Income support to poor households has been extended over the past decade, mainly through the phased extension of the child support grant to older children.

    At present close to 15 million fellow citizens receive social grants on Minister Dlamini’s vote, equivalent to more than a quarter of the population. Social grant payments mainly go to pensioners (38 percent), children in poor households (35 percent) and the disabled (19 percent). 

    With effect from April:
    • The monthly state old age grant and the disability and care dependency grants will rise by R60 a month to R1 140,
    • For pensioners over the age of 75, the old age grant will rise by a further R20 a month to R1 160,
    • Foster care grants will increase by R30 to R740,
    • The child support grant will increase from R250 to R260 in April, and to R270 in October.
    • Revisions are also proposed to the means test thresholds, which will benefit households with modest incomes that reduce their grant entitlements.
    Social protection also includes unemployment insurance, occupational injury compensation and the road accident fund. Proposals are now well advanced for alignment and consolidation of these social security arrangements, together with the introduction of a mandatory basic retirement savings plan. Over R9 billion a year is currently spent in administering our fragmented social security system. An integrated and better coordinated social security system will offer better protection to vulnerable households, at a lower administrative cost.

    Revenue estimates and tax proposals
    Let me turn, Mister Speaker, to the revenue required for these spending plans.

    Members of the House have been very patient, and may be thinking of the need for liquid refreshment, and the cost thereof! I will say something about that in a moment. But first let me report on revenue.

    Revenue outcomes and tax expenditures

    I am pleased to report that tax revenue has recovered during 2010/11. The revised estimate is R672 billion, or 12.3 percent higher than last year.

    Personal income tax has increased strongly as have VAT receipts and customs duties. However, corporate income tax revenue has remained below projections, indicating the effect of the 2009 recession on company profits. 

    Total budget revenue, including provincial receipts, and income of social security funds and public entities, is R755 billion, or 13.6 percent above the 2009/10 estimate.

    This Budget Review includes, for the first time, a tax expenditure statement.

    This is a summary of potential tax revenues foregone as a result of various tax incentives. The purpose of the statement is to make transparent those fiscal incentives or indirect subsidies that lie behind the headline revenue and spending numbers. The initial estimate puts the value of tax expenditures at R78 billion a year. We are also publishing the latest edition of the annual Tax Statistics which provides the most detailed view to date of our tax base and revenue contributions and helps to complete the overall picture of the budget system.

    Tax proposals – individuals, trusts and non-business entities Mister Speaker, revisions to the personal income tax brackets and rebates are proposed which represent relief for individuals of R8.1 billion. These adjustments compensate for the effects of inflation for the coming year and the balance of the fiscal drag effect that could not be accommodated last year. 

    From March 2011:
    • Tax will be payable only on income above R59 750 for taxpayers below age 65, and R93 150 for those 65 and older.
    • A third rebate of R2 000 per year is proposed, increasing the tax threshold for taxpayers aged 75 and older to R104 261.
    • An increase in the annual tax-free interest income to R22 800 for individuals below 65 years is proposed, and to R33 000 for individuals 65 years and over. The treasury is exploring the possibility of incentivised savings schemes for housing or for education as alternatives to this exemption.
    • The tax-free lump sum benefit upon retirement will increase from R300 000 to R315 000.
    As in past years, inflation-related increases will be made to the monthly thresholds for tax-deductible contributions to medical schemes. These deductions and those for qualifying out-of-pocket medical expenses will be converted into tax credits with effect from March 2012. A tax credit is more equitable since it provides for an equal benefit to all taxpayers regardless of their income.

    Changes to the tax treatment and administration of contributions to retirement funds are also proposed. These will simplify administration and improve the fairness of the system. There will be extensive consultation on the matter. The proposals include treatment of employer contributions as a fringe benefit, limits on tax deductible contributions and alignment of the tax treatment of provident and pension funds.

    From March 2012, an employer’s contribution will be treated as a taxable fringe benefit, and employees will be allowed to deduct up to 22.5 percent of taxable income for contributions to approved retirement funds. A maximum of R200 000 a year will be deductible. With a view to protecting workers’ savings, it is proposed that the one-third lump-sum withdrawal limit applicable to pension and retirement annuity funds should also apply to provident funds.

    The following capital gains exclusion amounts will be increased from 1 March 2011:
    • For individuals and special trusts, from R17 500 to R20 000 annually,
    • On death, from R120 000 to R200 000,
    • On disposal of a small business when a person is 55 years or older, from R750 000 to R900 000.
    The annual trading income exemption for public benefit organisations will increase from R150 000 to R200 000, and for recreational clubs from R100 000 to R120 000.

    Withholding tax on gambling winnings
    Mister Speaker, last year we indicated that the taxation of gambling winnings would come under review. With effect from April 2012, all winnings above R25 000, including pay-outs from the National Lottery, will be subject to a final 15 percent withholding tax. This is in line with practice in a number of other countries, such as the United States. I hope it will assist in discouraging excessive gambling. Despite the obvious merits of this argument, I expect vigorous debate during the Parliamentary process.

    National health insurance
    Proposals are under review for a national health insurance system, as part of the broader restructuring and enhancement of health services. There will be substantial cost implications. We will consider and consult on options for meeting the funding requirements, including a payroll tax (payable by employers), an increase in the VAT rate and a surcharge on individuals’ taxable income. The fiscal and financial implications of health system reform, and alternative revenue sources, will be examined in the year ahead.

    Tax proposals – businesses
    For businesses, the following is proposed:
    • As indicated in previous years, a dividends tax will take effect on 1 April 2012, replacing the secondary tax on companies.
    • Dividend schemes that undermine the tax base will be closed by treating the dividends at issue as ordinary revenue. These include dividend cessions, where taxpayers effectively purchase tax-free dividends without any stake in the underlying shares.
    • Government introduced the concept of a venture capital company into the Income Tax Act in 2009, but the response has been poor. The approach will be refined so as to facilitate greater access to equity finance by small and medium businesses and junior mining companies.
    • From March 2011, the turnover tax for micro businesses with annual turnover up to R1 million will be adjusted so that tax will be payable only if turnover exceeds R150 000 a year. The rate structure will also be reviewed.
    • Also, from 1 March 2012, micro businesses that register for VAT will no longer be barred from registering for turnover tax.
    • The learnership tax incentive, designed to support youth employment, will expire in September 2011. Government proposes to extend this for a further five years, subject to an analysis of its effectiveness with all stakeholders.
    • A youth employment subsidy is proposed. Subject to completion of consultations, it will take the form of a tax credit costing R5 billion over three years to be administered by the South African Revenue Service through the PAYE system.
    • To support the objectives of the industrial policy action plan and the New Growth Path, certain investments qualify for tax relief.
    Consideration will be given to expanding such incentives for labour-intensive projects in Industrial Development Zones (IDZs).

    Indirect taxes

    • The transfer duty exemption threshold will be increased from R500 000 to R600 000.
    • Excise duties on alcoholic beverages will be increased by between 4.5 and 10.3 percent – an increase of 6.4 cents for a 340ml can of beer, 13.5 cents per bottle of wine, or R2.86 for a bottle of spirits.
    • Taxes on tobacco products will increase between 6 and 10.2 percent – 80 cents more for a packet of 20 cigarettes.
    • Currently there is an ad valorem excise tax on new motor vehicles. The rate increases as the price of the vehicle increases. These rates will remain unchanged below a purchase price of R900 000. For vehicles above R900 000, the tax rate will increase to a maximum of 25 percent, from 20 percent at present.
    • The general fuel levy will increase by 10 cents a litre on both petrol and diesel on 6 April 2011.
    • The Road Accident Fund levy will be increased by 8 cents to 80 cents a litre.
    • Increases will take effect on 1 October 2011 in the air passenger departure tax on flights to international destinations.
    • The levy on electricity generated from non-renewable and nuclear energy sources will increase by 0.5c/kWh to 2.5c/kWh from April 2011.
    The increase should not impact on electricity tariffs, as it has already been taken into account in the National Energy Regulator’s approved tariff structure.

    Tax administration
    Mister Speaker, allow me to pay tribute again to the continued support received from millions of honest taxpayers. Their contributions are reflected in the recovery of tax revenue this year. We have been able to expand spending where other nations have been forced into austerity adjustments. Even those who have not contributed fully to date have begun to come forward to take advantage of the Reserve Bank and SARS’s voluntary disclosure programmes.

    Others who wish to have until the end of October this year to join the 1200 applicants to date.

    Administrative reforms will continue to focus on ensuring that all those who earn an income through employment or other economic activity pay what is due to the fiscus.

    This year, SARS will turn its attention to enhancements to the business tax process including corporate income tax, VAT and an enhanced Turnover Tax for emerging businesses. As with personal income tax, a pre-requisite for these improvements is an accurate picture of all business entities no matter their size or tax liability. SARS, in partnership with other state institutions, will make significant improvements to the business registration process this year – including conducting a door-to-door drive in the informal sector to help complete the picture.

    Tax and customs evasion remains a serious threat. Working together, the police, the prosecuting authority, the Financial Intelligence Centre and SARS ensured that more than 200 taxpayers were convicted of fraud and tax evasion during the last six months.

    Recently, customs officers with the support of the police impounded nearly 3 000 illegally imported second-hand vehicles, two significant tobacco smuggling rings have been snuffed out and a tobacco manufacturer has been shut down in the last month. We are also, in conjunction with the tobacco industry, investigating a new method of marking and authenticating legal cigarettes with a counterfeit-proof digital system to replace the current “diamond mark”.

    Mister Speaker, the sector most visibly affected by the illicit economy in recent years has been the clothing and textile industry, resulting in significant loss of jobs in local manufacturing plants. In the coming months a multidisciplinary task team comprising representatives of the manufacturing, importing and retail industries and a range of public sector stakeholders, will begin interventions across the entire supply chain to clamp down on illicit clothing and textiles imports.

    Measures to combat fraud and corruption
    Mister Speaker, public procurement plays a significant part in the economy and is central to government service delivery. However, citizens and taxpayers do not get full value for money, because this is an area vulnerable to waste and corruption. This compromises the integrity of governance and frustrates the pace of service delivery.

    Alongside the work of the competition authorities in addressing supplier collusion and tender-rigging, a strong procurement framework is critical to boosting jobs and service delivery.

    The first round of measures announced in October will come into effect this year:
    • Government departments will be required to establish rigorous demand management procedures, including submission of advance tender programmes for the next financial year to the relevant treasury authority.
    • Limits will be prescribed for variation orders, to restrict significant changes to procurement orders and bring our system in line with international standards.
    • Companies bidding for tenders will be required to disclose the identity of all directors, to determine whether any of the directors are government officials or tax non-compliant.
    There are currently 53 investigations involving procurement irregularities, involving contracts worth R3 billion. Minister Radebe recently reported that 65 people linked to some of these investigations have been arrested and brought before the courts. More than R250 million has been seized by the state. SARS is investigating another 9 cases of tender fraud, with a total value of approximately R1.7 billion.

    SARS has also increased its analytical capacity with the aim of ensuring that vendors winning state contracts satisfy their tax obligations fully. As at the end January 2011, SARS had identified some 13 000 vendors who have won state contracts and who owe taxes amounting to over R1 billion.

    Mister Speaker, we have a shared responsibility to prevent corruption and we call on all citizens to blow the whistle on corruption and to report any procurement irregularities to the relevant authorities.

    Equally important is the call of this Government to its managers to ensure that our communities and our taxpayers get full value for their money. Poor delivery and stealing from the fiscus are never acceptable. Senior managers of our institutions and municipalities are expected to work actively to improve their procurement processes and oversight.

    Infrastructure investment, city planning and development finance

    Public sector infrastructure spending
    Mister Speaker, government and state-owned enterprises will spend more than R800 billion over the next 3 years on new power stations, road networks, dams and water supply pipelines, rail and ports facilities, schools, hospitals and government buildings. This builds on the steady progress made over the past decade which saw the contribution of government and public enterprises to gross fixed capital formation rise from 4 percent of GDP in 2000 to 8.6 percent in 2009. These are long-term investments in the future of our country, and in the capacity of the economy to grow and create jobs for generations to come.

    Major projects under way include:
    • Medupi power station, which will generate 4 700 MW at a projected investment cost of R125 billion,
    • The R23 billion Transnet multi-product pipeline which will secure our inland fuel supplies,
    • And the R21 billion freeway improvement scheme, which has already significantly eased congestion on Gauteng roads.
    These investments are largely financed through borrowing, with costs recovered from future electricity consumers and road-users.

    As part of a long-term strategy for modernising public transport in metropolitan areas, the Passenger Rail Agency of South Africa is embarking on an 18-year programme to replace its coach and locomotive fleet, at an estimated cost of R86 billion.

    While infrastructure spending in the lead-up to the Soccer World Cup assisted in moderating the impact of the recession on South Africa, there has been an apparent deterioration in government construction spending over the past year. 

    The challenge of intensifying infrastructure spending over the period ahead will require attention to planning, budgeting and contract management in national and provincial departments and municipalities.

    Planning and financing cities for inclusive growth
    It is time for special initiatives to accelerate growth and development in South Africa’s cities, which have immense potential for inclusive growth and are home to many millions of poor people.

    The public finance challenge is to balance investment in expanding urban capacity while also providing key public services – electricity, water, sanitation, refuse removal and public transport. An efficient and cost-effective public transport system is crucial because the majority of our people live too far from where job opportunities are. In addition, through better land use management, we need to deliver integrated human settlements that break from the apartheid past.

    A start is made in this budget, in the allocation of funds directly to cities to upgrade informal settlements. Minister Sexwale will implement the accreditation of municipalities which have demonstrated their capacity to manage the low-income housing subsidy system. The public transport function, including the management of rail, has been delegated by Minister Ndebele to metropolitan municipalities in terms of the National Land Transport Act. These are steps that create direct responsibilities for city councils, and open up opportunities for accelerating investment and change in the urban landscape and how cities promote their local economic development.

    Development finance institutions
    Mister Speaker, a Development Finance Institutions Council has been established, as recommended by a review committee. One of its primary tasks is to ensure alignment between the programmes of these institutions and government’s development agenda.

    Members will recall that in last year’s budget we agreed to support an expanded lending capacity of several development finance institutions. The recapitalisation of the Land Bank is under way. So far, R1.7 billion has been transferred to the Land Bank, and its finances are improving. The Land Bank board has agreed to step up the Bank’s support for emerging farmers. In cooperation with the Departments of Rural Development and Land Reform, and Agriculture, Forestry and Fisheries, steps are in progress to turn failing farms that were transferred to emerging farmers under the land reform programme into successful business enterprises.

    The lending capacity of the Development Bank of Southern Africa has also been enhanced, by providing an interim guarantee while processing the necessary legislative amendment. The DBSA is now working closely with National Treasury and the departments of Health and Water Affairs, amongst others, on strengthening infrastructure project management – revitalising five major hospitals and their medical faculties, and preliminary planning of nine bulk water schemes. The Bank also plays a key role in supporting municipal financial capacity, and will assist in operationalising the new Jobs Fund. Our agreement is that the delivery capacity and excellence we mobilised at national level to build stadiums and host the World Cup, will be the benchmark for undertaking these initiatives.

    Including the investment and lending capability of the Industrial Development Corporation, our development finance institutions are ready to expand financing substantially over the next three years. The challenge is to ensure available funds are allocated effectively and efficiently, to contribute to raising productive capacity and to complement the investment activities of the wider financial sector.

    Conclusion
    Mister Speaker, I extend my sincere appreciation to the President and Deputy President for their unwavering support and wise counsel. Keeping our country on a steady course through the Great Recession has been a challenging task for all of us and the support of the Presidency has been both indispensable and inspirational.

    I would like to thank my Cabinet colleagues for their support. The Budget is our collective statement. Your positive and encouraging contributions have been most helpful.

    The Members of the Ministers Committee on the Budget have shouldered an immense responsibility to restructure and reform our fiscal system and make bold recommendations to Cabinet. Theirs has been an excellent and enduring team effort.

    Deputy Minister Nene has offered wise insights and shared many responsibilities. He forms an invaluable part of a maturing ministry.

    Thanks also go to the MECs for Finance, who play a vital role in managing over 40 percent of the budget.

    Our collective thanks go to:
    • Governor Gill Marcus and the staff of the South African Reserve Bank,
    • Commissioner Oupa Magashula and the South African Revenue Service,
    • Jabu Moleketi, chair of the DBSA, and CEO Paul Baloyi,
    • The Financial and Fiscal Commission and its acting chair Bongani Khumalo,
    • NEDLAC, its Managing Director, Herbert Mkhize, and representatives of the business, labour and community constituencies on the Public Finance and Monetary Chamber,
    • The Honourable Thaba Mufamadi and Honourable Charel de Beer who chair the Standing and Select Committees on Finance respectively and to the two chairs of the Appropriations committees, the Honourable Eliot Sogoni and Honourable Teboho Chaane,
    • Lesetja Kganyago and the National Treasury team, who continue to surpass their own high standards and remain wonderful examples of loyal and professional public servants, and are an invaluable asset to our democratic state,
    • Staff of the Ministry who make my work easier and give vital support daily.
    I thank my family for their support and sacrifices so that I may serve our country.

    Once again, my sincere appreciation to the wide range of South Africans who provide positive feedback and ideas on how government could work better and differently.

    Fellow South Africans, the President has clearly stated that job creation is our number one priority. This budget outlines what government’s capabilities and finances can do to support the delivery of jobs.

    Now it is time for all of us to say “making South Africa work begins with you and me.”

    Giving every South African the dignity of a job, the security of an income, the prospect of training, the support to launch new businesses, the confidence to be an entrepreneur and the sheer passion and optimism to break the shackles of unemployment – is the best legacy this generation can leave for the next.

    The world is full of opportunities. Ours is the task of transforming these opportunities into real, tangible outcomes which all of our people can experience and call their own.

    Or as Mandisa Motha-Ngumla advised me in a budget tip: “Government must teach its people to fish; not be suppliers of fish. The latter is not sustainable; the government pond will never be able to supply more fish in twenty years than it is doing now to the ever growing masses of people of this country. Let’s work to reduce dependency and give back dignity that was eroded by our past.”

    We repeat, with jobs comes dignity. With dignity comes participation. And from participation emerges prosperity for all. In Madiba’s words “In judging our progress as individuals we tend to concentrate on external factors, such as one’s social position, influence and popularity, wealth and standard of education… It is perfectly understandable if many people exert themselves mainly to achieve all these. But internal factors may be even more crucial… Honesty, sincerity, simplicity, humility, pure generosity, absence of vanity, readiness to serve others – qualities which are within easy reach of every soul.”]]>     Wirtschaft Topnews Thu, 24 Feb 2011 14:24:00 +0100     The South African Handmade Collection at Ambiente 2011 in Frankfurt from 11 – 15 February 2011 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=887&cHash=5a19f3f8102fcd0090d33282f4dfd31f The South African Handmade Collection will again be represented at the world’s biggest international trade show in the consumer goods sector – Ambiente 2011. This time, all together 41 South African... |+| Read more ]]> Wirtschaft Tue, 28 Dec 2010 16:46:00 +0100 2nd German-South African Business Forum - 1st to 2nd November, 2010 (Lagoon Beach Hotel, Cape Town) http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=872&cHash=fc2eac5121fd3967a1031134750ce227 The 2nd South Africa-German Business Forum which is supported by the German Federal Ministry of Economics and Technology is scheduled to be held from 1st to 2nd November 2010 at the Lagoon Beach...
    The 2nd Business Forum is being organised in association with the German-African Business Association (Afrika-Verein); the Southern African-German Chamber of Commerce and Industry, together with the Federation of German Industries (BDI); the Association of German Chambers of Industry and Commerce (DIHK) as well as the Southern Africa Initiative of German Business (SAFRI).

    The two days conference will provide participants with comprehensive information about recent developments in South Africa and the opportunity to make personal contact with high ranking representatives from Government, private sector and political institutions. The forum will focus on the following industry sectors:- Transport and Logistics; Doing Business in Germany; Renewable Energies; Public and Private Sector Health Care; Corporate Social Responsibility; Energy Efficiency; Skills Development & Education and Natural Resources.

    Latest information about the German-South African Business Forums is available at http://www.dsawf.de/en/index.php Picture: Ambassador Funde speaking at the 1st German-South African Business Forum, 30th November to 1st December, 2009, at Siemens AG, Otto-Hahn-Ring 6, 81730 Munich.]]>     Topnews Wirtschaft Fri, 01 Oct 2010 17:04:00 +0200     Moses Mabhida stadium has generated over R4 million http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=813&cHash=8f3eb99b24549cfbf8d9907a6f8e9649 Durban's Moses Mabhida Stadium has generated over R4 million through its sky car and bungee jumping facility in the past few months, the city said on Thursday. "This proves that our...  
    "This proves that our stadium will never be a white elephant.

    The over R4 million does not include money generated by businesses at the stadium,” said city manager, Mike Sutcliffe.

    The stadium, which was completed months before the World Cup, had become one of South Africa's tourist attractions, he said.

    He said more than 80,000 people had made the trip to the top of the 106-metre arch with a sky car to experience stunning views of the city and Indian Ocean.
     
    “More than 25,000 people have taken the stadium tours to discover what goes on behind the scenes at a stadium and almost 3000 have taken the 550 steps to the top of the arch,” he said.

    Source: Sapa; SA GoodNews]]>     FIFA WM 2010 FIFA WM 2010 Infos für Fans Wirtschaft Pressespiegel Wed, 12 May 2010 13:35:00 +0200     Africa’s first high-speed train to open ahead of World Cup http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=812&cHash=95a903c1a358bfccad63853d4fe59038 Gautrain arrives at O.R. Tambo International Airport outside of JohannesburgThe Gautrain, Africa's first high-speed rail line, will launch on June 8 in South Africa three days before the opening... The Gautrain, Africa's first high-speed rail line, will launch on June 8 in South Africa three days before the opening match of the 2010 football World Cup, the developers said Friday.

    French construction giant Bouygues said the train's first segment, linking OR Tambo International Airport and the posh Johannesburg suburb of Sandton, will open in time for the June 11 kick-off of Africa's first World Cup.

    The segment "will be handed over on June 8, three weeks ahead of our original schedule," said Christian Gazaignes, Bouygues' executive director.

    For R100 (13 dollars, 10 euros), World Cup visitors will be able to ride the 15 kilometres from the airport to the Sandton hotel district in less than 15 minutes.

    In rush-hour traffic, the same trip takes more than an hour by car.

    When finished in mid-2011, the 80-kilometre regional express train will link the capital Pretoria with national economic hub Johannesburg, running at speeds of up to 160 kilometres (99 miles) an hour and enabling commuters to make the trip in 42 minutes.

    "It's going to give the country a beautiful image of modernity," said Laurence Leblanc, international director of RATP Dev, a subsidiary of French group RATP, the company awarded a 15-year concession to operate the train.

    "The Gautrain isn't specifically a World Cup project. It doesn't serve the stadiums," said Leblanc. "But it's a superb project for South Africa's image. That's why we're knocking ourselves out to get ready."

    The Bombela Consortium, an international group that includes Bouygues, Canadian firm Bombardier and two South African companies, began construction on the project in 2006.

    The developers say they have "worked like crazy" to finish the first section before the World Cup, making up time lost to strikes and construction delays.

    The 3.2-million-dollar Gautrain is the first high-speed rail line in Africa. The north African cities of Casablanca, Algiers and Cairo all have metro lines, but none runs as fast or as far as the Gautrain.

    South African transportation officials say the train will form the backbone of a new public transport network that will help take traffic off the notoriously congested roads of the greater metropolitan area.

    "We're targeting people who have the means to own a small car but would prefer to avoid traffic jams," said Leblanc.

    RATP says it is targeting South Africans with a monthly income of 1,030 to 2,580 dollars (about R7000 to R20 000), and predicts 16,000 passengers a day will use the new rail line.

    To get them to the train, the company plans to roll out a network of shuttle buses serving the population centres around the train stations.

    RATP has set the price for the airport-Sandton route relatively high at 13 dollars (R100). But the Sandton-Pretoria segment will cost just 4.5 dollars (about R30), rivalling the price of the mini-buses that currently provide most of area's mass transit.

    Officials hope the price scheme will help turn South Africans onto public transport, in a country where mass transit systems languished for decades under apartheid policies designed to keep whites and blacks apart.

    RATP also promises tight security on the trains, using closed-circuit TV cameras, 400 security guards and 50 police officers to convince South Africans to abandon the protective shell of their vehicles.

    Source: Sapa-AFP ; SA GoodNews]]>     FIFA WM 2010 Wirtschaft Tourismus Pressespiegel Wed, 12 May 2010 13:33:00 +0200     South Africa at Ambiente in Frankfurt from 12 – 16 February 2010 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=764&cHash=97341ef3a7a13c702c1b0a11e71b8574 The South African Handmade Collection will again be represented at the world’s biggest international trade show in the consumer goods sector – Ambiente 2010. This time, all together 27 South African... South African Handmade Collection will again be represented at the world’s biggest international trade show in the consumer goods sector – Ambiente 2010. This time, all together 27 South African Arts & Crafts companies will showcase their products in Frankfurt from 12 – 16 February 2010. Handmade products like candles, jewellery, handbags and belts, garden decoration, wooden bowls, tableware, wire baskets, bowls and platters, cushion covers, table runners and throws and Christmas decoration produced by using traditional techniques and/or material will be exhibited in the area “Gifts Unlimited” in hall 9.2. Design oriented interior decoration like sofas and chairs, mirrors, pendant lights and standing lamps, daybeds, ottomans and carpets, wall decorations, wire beaded bowls and ceramics as well as designer handbags, belts and jewellery will be exhibited in the Loft, hall 11.0. |+| read more]]> Wirtschaft Topnews Wed, 09 Dec 2009 15:47:00 +0100 First German-South African Business Forum in Munich http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=771&cHash=d49227b3893c5c24d2a3a14921a1b16d The Ambassador of the South African Embassy in Berlin Sonwabo Eddie Funde speaking at the first German-South African Business Forum. The two-day forum took place on 30th of November and 1st of... Botschaft Wirtschaft Topnews Sat, 05 Dec 2009 17:22:00 +0100 Recovery in sight for SA as recession tapers off http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=742&cHash=fa314cfafdb45eb6eafbbb2f296545fa THE recession extended into the second quarter, latest gross domestic product (GDP) figures showed yesterday, but the economy is not shrinking as fast as before, suggesting that recovery is in sight,...
    The economy contracted at an annualised 3% in the second quarter, compared with the 6,4% decline in the first quarter, according to Statistics SA figures.

    This is the first time since 1992 that SA has experienced three successive quarters of negative growth.

    But when comparing this year’s first half with that of last year, the economy is down only 2%. It is expected to stabilise next quarter, and move back into growth by the fourth quarter, making it unlikely that the full-year decline will be as bad as the 2% plus that more pessimistic economists had predicted.

    “The worst is over,” FNB economist Cees Bruggemans said yesterday. “There are no undue concerns about a lingering or a deeper recession.

    “All we are arguing about is the shape of the cyclical turnaround.”

    Econometrix economist Azar Jammine said that if the volatile agriculture and mining sectors were excluded the economy actually improved by as much as four percentage points to negative 2,4% in the second quarter from negative 6,2% in the first quarter.

    Construction, government and personal services (such as healthcare) carried what growth there was, and export-oriented sectors of mining and manufacturing did better than in the previous quarter.

    But the big disappointment was the retail and wholesale trade sector. It did far worse than expected with its decline accelerating to 4,5% in the second quarter from 2,5% in the first.

    “That tells you the consumer is not in good shape,” said Sanlam group economist Jac Laubscher. Despite 500 basis points in interest rate cuts in the past nine months, job losses were having an effect, the household debt ratio remained high and the figures suggested consumers were finding it difficult to bring down their debt.

    The GDP figures confirmed SA still lagged some Asian countries, which have reported strong second quarter rebounds, as well as France and Germany, which showed slight growth in the second quarter.

    Laubscher said one reason for the lag was that those economies were benefiting largely from higher exports of manufactured goods. “That is not our strong point.”

    The manufacturing sector contracted again in the second quarter, but at 10,9% against the first quarter’s steep 22%. The financial sector, the economy’s largest, also contracted again, at about 2,5%.

    Mining, however, expanded 5,5% after the first quarter’s 32% crash as it started to benefit from better commodity prices.

    Agriculture was down 17%, off a high base; without it, the economy would have contracted at only 1,9% in the second quarter.

    Growth is expected to pick up later this year as the global recovery gains pace and the monetary and fiscal stimulus the government put in place work their way through the system. Interest- rate cuts take six to 18 months to have their full effect on demand.

    When the Reserve Bank’s monetary policy surprised the market with another interest- rate cut of 50 basis points last week, it was thought the committee might have had sight of the latest GDP figures from Stats SA and might have been responding to the economic weakness these indicated.

    However, Stats SA’s head of economic statistics, Rashad Cassim, said yesterday that this was not the case.

    There was a Reserve Bank team that works on national accounts with Stats SA, but it has no link to the monetary policy committee, and was not supposed to discuss the figures before they were released to the market.

    The committee would have relied on the bank’s own forecasting models, Cassim said.

    The rand was at R8,06/, down from R8,05/ before the GDP report and up from R8,16/ on Monday. With Bloomberg

    By HILARY JOFFE Source: http://www.businessday.co.za/articles/Content.aspx?id=78923
    ]]>     Pressespiegel Wirtschaft Wed, 19 Aug 2009 15:35:00 +0200     Top-class business course for SA http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=703&cHash=c71d6de448682774af571584229e32bb ONE of the world’s top business management qualifications will be available in SA in September, jointly offered by the University of Stellenbosch Business School Executive Education (USB-ED) and the...
    The World Executive Education Alliance (WEEA) programme is the brainchild of the GSBA, which partners with business schools on five continents, and USB-ED’s joining the programme brings it to Africa for the first time, said USB-ED marketing head Willemien Law.

    USB-ED is a public company within the University of Stellenbosch Business School.

    A number of South African business schools had associations with single overseas institutions, but the WEEA programme was the only one that linked business schools across five continents in a single programme “linked together for mutual exposure to a globalised world economy”, said USB-ED CEO Prof Frik Landman.

    Participants can choose to do one or all of the six available modules and would receive a certificate for each module, and an acknowledgement from GSBA if all six were completed within two years, she said.

    Participants can study human resources at USB-ED, marketing at the University of Chicago’s Booth School of Business, finance at the Moscow International Higher Business School, logistics at the Indian Institute of Management, Lucknow, corporate strategy at the International Business & Administration Education Centre in Rio de Janeiro and information technology at the GSBA.

    Membership of the alliance ensured a uniform module structure and quality, and the modules were offered on a continuous basis at the six institutions, Law said.

    “The beauty of it is that you can choose what you want to do and if September doesn’t fit for you, you can go back (at another time and do the module),” she said.

    Each module makes use of a “living case study” in which a local business would be analysed by those participating in that particular module, which meant that local companies had a unique opportunity to benefit from the analysis and experience of executives from across the world, with their diverse experiences, said Landman. “It is a diversified programme through which local business can gain a lot,” he said.

    Source: http://www.businessday.co.za/articles/Content.aspx?id=75636
     
    Author: SUE BLAINE 
    ]]>     Pressespiegel Wirtschaft Tue, 14 Jul 2009 12:37:00 +0200     Vuka Scuta races into Africa http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=696&cHash=cec855a149c212d4340f9f3b69f914c4 Not content with revolutionising the way South Africans commute, locally developed Vuka Scuta is now branching out into other Southern African countries. The company has started marketing its motor...
    Launched in 2006, the nippy Vuka (isiZulu, meaning "wake up" or "get moving") two-wheelers have become increasingly popular, especially in light of the unpredictable cost of fuel, high interest rates, and often unbearable congestion of South Africa's urban roads.

    The stylish scooters are manufactured in China but assembled in South Africa and have been developed for South African conditions, with features such as increased legroom when compared with Chinese scooters. Vuka evaluated 14 Chinese scooter models before deciding on the right models for the South African climate.

    Scooters arrive in a semi-disassembled state in crates from China, and after months of perfecting the process, assembly staff can put a vehicle together in less than an hour. All vehicles are tested before moving on to the retailer, and the mostly manual assembly and testing processes have enabled Vuka to create a number of new jobs.
    Ideal market

    The first outlet to sell Vuka scooters beyond South African borders opened in Maputo in June 2009.

    Vuka seeks to follow the example set by a number of South African retailers and manufacturers, who have moved out across the continent. Mobile provider MTN, brewing giant SABMiller, fast food chains Nando's and Steers, and retailers Woolworths and Shoprite Checkers, among others, have all set up shop in other African countries.

    Vuka MD Thinus Lamprecht said in a statement that the company foresees a large and potentially lucrative market in the African continent, since it offers a viable transport solution to people looking for ways to ease the effects of the current global economic downturn.

    "We felt that it is essential to develop and establish potential new markets to enable Vuka to continue its growth and to broaden our brand footprint," said Lamprecht. "Although each African country presents its own challenges and requirements, we feel confident that we have the necessary experience and products to tackle these markets successfully."

    Mozambique is the ideal market in which to launch an African operation, he added, because fuel in that country is expensive, roads are becoming increasingly congested as the economy gathers momentum, and many people in rural areas travel long distances to get to work in the cities.

    Initially the cost-effective vehicles will be sold to government departments, NGOs and the agricultural industry. A second Vuka outlet is due to open before the end of July in Inhambane, located 470km northeast of Maputo in southern Mozambique.

    The expansion plan, said Lamprecht, should see the company's staff complement grow from some 160 currently to between 500 and 600 by 2011.
    Taking over the continent

    Vuka has plans to begin operations in the east African country of Kenya, as well as Angola and other West African countries. In the Southern African region, Botswana, Swaziland, Lesotho and Zimbabwe may soon see the colourful scooters zipping around their streets, as the company is following up a number of enquiries.

    As in the case of South Africa, scooter models will be adapted for the specific market, fuel and road conditions found in other African countries. The company will also follow the trend it has set in its South African operation by establishing assembly plants in various other regions.
    Changing the lives of commuters

    Cape Town-based Vuka Scuta captured a 20% market share in its first two years of business. Vuka states that its goal is to "revolutionise personal mobility" and change the lives of hard-pressed South African commuters by selling top quality scooters at the lowest possible prices.

    The company is wholly owned by the Luna Group, a 23-year-old diversified business founded by entrepreneur Barney Esterhuyzen and his family trust; as well as Titan Nominees, part of the Titan group run by retail masterminds Christo Wiese and Renier van Rooyen. A small stake is held by Vuka's Hong Kong agent.

    Scooters are sold all around South Africa through a network of 32 outlets and dedicated dealers. In mid-2008 the company claimed to be selling one scooter every 26 seconds during normal business hours. All retail outlets are backed up by trained and accredited service centres that carry a wide range of spare parts and can competently attend to any problem.

    Vuka's cheapest model is the economical and fuel-efficient EL90, which sells for US$696 (R5 499). The flagship ML150 sells for $1 643 (R12 999). There are four more scooters and four motorcycle models in the range.

    Vuka scooters have been developed and tested to ensure a comfortable ride and excellent stability. Quality checks at licensed manufacturing plants overseas are followed by equally stringent tests at the local assembly facilities. Each vehicle offers storage areas and quirky but useful features such as a red light that blinks to alert the driver of an incoming mobile call.

    * Do you have queries or comments about this article? Contact Janine Erasmus at janinee@mediaclubsouthafrica.com. Source: http://www.mediaclubsouthafrica.com Image: The stylish Vuka XT150, a nippy performer with a powerful engine that is ideal for freeway cruising. (Image: Vuka Scuta)
    ]]>     Wirtschaft Pressespiegel Wed, 08 Jul 2009 16:53:00 +0200     Solar power lights the way http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=695&cHash=eb3a92bd88f720095b736fd61592d934 Pretoria-based businessman Michael Addinall is something of a solar lighting pioneer in South Africa. Not only are he and his four business partners and their company Betta Lights responsible for the...
    Two years ago Addinall was on the site of a low-cost housing development in the Mogale City municipality, west of Johannesburg, to consult with the city council on the installation of smart metering for water and lights.

    Smart metering takes metering to the next level, with advanced features such as power outage notification, real-time measuring, and two-way communication with the local utility for billing purposes.

    The group was still there after darkness had fallen, and Addinall was struck by the fact that none of the houses had electricity. Municipality staff at the scene explained that because most of the residents were indigent, the council would not allocate money for infrastructure, and in any case the national power provider Eskom could not supply power to the site.

    Addinall entered a nearby house and was horrified to see two children battling to do their homework in dim candlelight, while their mother cooked supper on a paraffin stove. With the progression of technology in the 21st century, he thought, people should not have to struggle so.

    "I believe in poverty eradication through education," he said, "and children can't study in the dark."
    The power of the sun

    That was the beginning of Betta Lights and the Betta.Life.Light solar lighting system. Specifically designed to work around situations where people were not connected to the national grid, the system uses South Africa's ample supply of sunlight to illuminate a small house of about 50m².

    Betta Lights's stated mission is poverty alleviation and a better life for those in poor and rural communities, while contributing to the reduction of greenhouse gases by developing, supplying and supporting specialised solar solutions.

    All components, wiring and brackets for Betta.Life.Light are supplied in a single package and are guaranteed for one year. Installation is easy and well within the capabilities of the handyman of the house.

    The system comprises five lights - four ceiling lights and a reading lamp - plus a mobile phone charger and adapters for popular phone brands.

    All units are powered by a solar panel that is has an expected life of 25 years and is connected to a controller unit, which in turn feeds to the lights and a rechargeable 6-volt battery.

    Betta Lights use batteries which are kinder to the environment, are more robust and have a longer life than the conventional lead acid batteries. This is important for people who are already financially challenged.

    Each light contains 22 light-emitting diodes (LEDs) which are far more efficient than even the compact fluorescent lamps that most people use now. LEDs use very little power and efficiently convert electrical energy into light. Because they are made of non-toxic materials, are recyclable and have a long life, LED lights are environment-friendly.

    Betta Lights claims that with all five lights on simultaneously, the system will function for up to 15 hours even if there is no sun.

    The Betta.Life.Light installed cost would be approximately US$379 (R3 400 exclusive of vat). Addinall acknowledges that this may be out of reach of poor families and is working to enlist government's help in making it more accessible.

    "Government should be giving this to people at no charge," said the businessman, adding that light was a basic necessity of life and that the cost of a retrofit system will be recouped in six years, while a new installation, replacing fuel based lighting, will pay for itself in about three years.

    "Certain households qualify for 50 free units of electricity a month," he said, "but that is used up within days. These people then stand in queues to buy R5 or R10 worth of prepaid electricity. We can offer a realistic solution."
    Serving the community

    Betta Lights is also responsible for South Africa's first solar-lit police station. The Boschkop police station in Pretoria now boasts solar lighting in a number of areas, including the trauma centre, holding cells, weapons safe, public toilets and walkways, parking areas for staff and visitors, and charge room. The external security lights are theft- and weather-proof.

    "Police stations should never have to shut down because of a power outage," said Addinall. "During power cuts the Boschkop police station stands out like a beacon in the dark. Before we installed the system, the station had been waiting two years for the Department of Public Works to fix the lights."

    He added that currently there are between 30 and 40 police stations without power around South Africa. Boschkop was a pilot project and the South African Police Service has since acknowledged the value of solar power at police stations, thus allowing them to efficiently serve their communities.
    Recognition

    In March 2009 Addinall travelled to Shanghai, China, to attend the fourth Asia Solar Photovoltaic Exhibition. Betta Lights was the only African exhibitor out of 362 from more than 20 countries. With its flagship Betta.Life.Light system, the company was one of just two to offer a practical solar solution in addition to showing off their technology.

    Betta Lights is now in the running for the 2009 eta Awards, given annually by Eskom and the Department of Minerals and Energy in recognition of those companies or individuals who lead the way in the efficient use of energy. The award ceremony takes place in October 2009.

    Products developed and made by Betta Lights have been endorsed by the Central Energy Fund, a division of the Department of Minerals and Energy.

    * Do you have queries or comments about this article? Contact Janine Erasmus at janinee@mediaclubsouthafrica.com. Source: http://www.mediaclubsouthafrica.com ]]>     Wirtschaft Südafrika Pressespiegel Wed, 08 Jul 2009 16:49:00 +0200     Ramos named African Businesswoman of the Year http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=693&cHash=044de2d10ba5eff39f475dd8fb43dfde Absa group chief executive, Maria Ramos, has been recognised as the Outstanding Businesswoman of the Year at the African Business Awards 2009, the banking group said on Tuesday. The awards took...
    Organised by the Commonwealth Business Council (CBC) and African Business magazine, the African Business Awards highlighted the achievements Africa was making in the world of business, Absa said.

    "Over the last decade, Africa's rapid economic growth has propelled the continent centre stage in the world of business and investment," said Omar Ben Yedder, associate publisher of African Business magazine.

    "It is the hardworking individuals behind leading African companies who have carried out this substantial transformation and the African Business Awards highlight their outstanding achievement to Africa and the world at large," Ben Yedder added.

    Absa Group chairwoman Gill Marcus described Ramos as an inspiration and a role model.  "We are confident that she will not only continue to inspire women to achieve their full potential, but also motivate each of us to achieve the levels of dedication and professionalism that our millions of clients, and all our stakeholders, expect of us," Marcus said.

    Source: Sapa, SA GoodNews]]>     Südafrika Wirtschaft Pressespiegel Wed, 08 Jul 2009 16:45:00 +0200     State of the Nation: economy http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=680&cHash=01be7bf6045e9aa3431ee9419e7edd9f “The current global contagion presents us with an opportunity to transform and restructure our economy so that we can take full advantage when the tide turns,” South Africa’s new Minister of Finance...
    Honourable speaker
    Mr President
    Deputy President
    Honourable members
    Introduction

    Mr President, your administration takes office during one of the toughest economic times in living memory. South Africa is facing its first recession in 17 years and we are witnessing global economic conditions last seen during the great crash of the stock market in 1929 and the depression that followed. This is a reality we must accept.

    Thanks in part to the health of our public finances, this is not a paralytic constraint. We remain committed to the goal of a better life, inclusive economic growth, decent jobs, and dignity and social justice for all our people.

    Adversity and challenge have always inspired South Africans to reach greater heights. Ours is a long-standing culture of resilience, creativity, and a passion to deliver and to overcome the odds.

    The new challenge you put to us is to focus on better delivery, and to work together in the spirit of cooperative governance and partnership with all sections of society. We remain mindful that the collective sum of a well-directed programme of action is far greater than the sum of its individual parts.

    Mr President, you have inspired us to ask the tough questions, to be humble and reflective about our shortcomings. The current challenges require us to find new ways of doing things. We must be willing to shift or transform our paradigms so that we can be more focused and effective in delivering the priorities outlined in the State of the Nation speech.
    The global economic crisis

    According to the IMF, "The global economy is in a severe recession inflicted by a massive financial crisis and an acute loss of confidence. While the rate of contraction should moderate from the second quarter onward, world output is projected to decline by 1.3% in 2009 and to recover only gradually in 2010, growing by 1.9%. Achieving this turnaround will depend on stepping up efforts to heal the financial sector, while continuing to support demand with monetary and fiscal easing."

    The global crisis is not of our making. However, the virus of this crisis affects the entire globe. The damage has spread from the financial sector in developed countries to the real economy all over the world. It is now accepted that the crisis we are facing today can be traced back to the early 1980s with the deregulation of many financial institutions. Some institutions became “too big to fail”. Unconstrained greed and the failure of risk management and corporate governance are hallmarks of this crisis.

    The impact of the financial crisis on the real economy and the depth of uncertainty have evoked questions and debates about economic models. There are now calls for a fundamental change to the relationship between governments, citizens, capital markets and the rest of the economy. The crisis is challenging conventional wisdom amongst economists, ratings agencies, and the financial sector itself. Deputy President Motlanthe and Minister Manuel have engaged with the G20 and other institutions to develop a global response.
    South Africa is weathering the storm

    Like the rest of the world, South Africa has not escaped the effects of the global recession. Since the last quarter of 2008, our economy has been in decline, export earnings have fallen and jobs have been lost. Nonetheless, we are better off than many other countries in the world.

    The immediate implication for fiscal policy in South Africa is that, despite the best efforts of our Revenue Service, tax revenues, after adjusting for inflation, are expected to decline. Needless to say, there will be limitations to what we can spend. Our ability to borrow from the capital markets is now limited by higher borrowing costs.

    We are compelled therefore to separate in the programme of action those things that need to be done urgently, from those that will have to await a more favourable economic outlook. We must also ensure that every rand that the government spends achieves the set goals and has the desired impact.

    In February this year, taking account of the global economic slowdown, government tabled its most expansionary budget in our short history. As a result our economy is weathering the devastating storms only because of tough decisions taken earlier. As we weather the storm we must also address more fundamental issues impacting on job creation.

    We must "never waste a good crisis". The current global contagion presents us with an opportunity to transform and restructure our economy so that we can take full advantage when the tide turns. The budget provided for a deficit of 3.8% of GDP and, together with the borrowing requirement of state owned enterprises, the public sector borrowing requirement is set to reach R186-billion.

    Foremost amongst our responses to the economic crisis is our R787-billion infrastructure investment programme. In general, the major projects are on track and are being funded. The National Treasury is working with Eskom, Transnet, the National Roads Agency and our water authorities to ensure that these enterprises can borrow the required funds in the capital markets with state support, where necessary.

    The budget also announced a significant step-up in spending on public works programmes. I want to reaffirm a commitment made by my predecessor, Minister Manuel, in this regard. We also welcome the inclusion of a community works programme under the auspices of the EPWP and we will endeavour to support this new stream of projects.

    Our approach will continue to ensure fiscal sustainability. We will find creative ways of funding government's programmes. We are determined to root out corruption and inefficiencies. We will ensure that government gets value for the money it spends. We will create better synergies and effective partnerships both within government and with other stakeholders.

    In addition to these measures, National Treasury is working with other departments to implement recommendations made by the Joint Presidential Economic Working Group in response to the global economic crisis. Job creation is the joint outcome of several things: industrial and trade promotion, labour market arrangements, skills development, macroeconomic management, investment in technology, rural development, land use planning, housing and urban development.

    Parliament has revived the Appropriation Bill, allowing for the 2009 budget proposals to take effect.

    Other legislative procedures include the revision of the list of department names in terms of section 14 of the Money Bills Amendment Procedure and Related Matters Act which Minister Baloyi is finalising. Government's spending programmes for the present year are well under way. We have also identified the need for strategic alignment between state-owned enterprises and development finance institutions in order to maximise capital investment in the domestic economy. The capital resources and delivery mandates of development finance institutions will be better coordinated to facilitate and give impetus to the development programmes in our economy.

    Better alignment of these institutions with government's strategic priorities will strengthen our developmental agenda. In the course of this year, I will table proposals to a committee of ministers overseeing our development finance institutions to consider how we can draw private sector financial institutions into appropriate co-financing and risk sharing arrangements, in support of infrastructure investment and broader access to credit.

    Over the past decade considerable progress has been made, Honourable Speaker, in improving our tax system and broadening the tax base. Government is still required to raise revenue, even in these difficult times. This would require of all of us to pay our fair share of taxes, and stop the abuse of our tax system. I am happy to report to this House that as at 31 May 2009 we have seen a 10% increase in the number of tax compliant employers, demonstrating that even in the face of the crisis more companies are willing to do business legally. The South African Revenue Service (Sars) will intensify its efforts to detect and contest non-compliance.

    This is in accordance with international best practice: the IRS of the USA has been asked to hire 10 000 more auditors to raise more taxes and combat off-shore tax schemes! It is imperative that we deal with all forms of leakage from the state, especially at a time when every cent needs to be properly used for its intended purpose. Accordingly, the National Treasury will establish a unit to monitor and investigate corruption in public procurement processes. It will focus on both government employees and private sector involvement in these crimes.
    Our priorities going forward

    Let me turn briefly to some of the areas of public expenditure and service delivery that will enjoy priority in the period ahead. One of the strengths of our current fiscal structure is the social assistance system that brings relief to households that would otherwise be without income support. Considerable work has been done by an interdepartmental task team on options for improving both savings and contributory social security in partnership with the financial services sector.

    I look forward to working with my Cabinet colleagues and this House on a more integrated social security system that encourages savings and broadens the coverage of risk benefits. Of particular importance is the approach we take to financing health services. We face immense challenges in this area, not just because of the burden of diseases associated with HIV and tuberculosis, but also because modern comprehensive health services are expensive and highly complex. We have to find cost-effective solutions to the challenge of providing and managing health services, and we have to find better ways of working together with the private sector in building the infrastructure required, managing services and training professional staff. Following the State of the Nation Address on Wednesday, I have set up a task team at the National Treasury to work with health officials to explore models for broadening public-private partnerships in the health sector.
    Conclusion

    We are fortunate, Honourable Speaker, that our fiscal position is strong, public debt is moderate and the foreign reserve position of the South African Reserve Bank is in good health. These are considerable blessings, due in large measure to the foresight and wisdom of my predecessor. These strengths mean that we are able to continue with the expanding infrastructure investment programme announced in recent budgets and overseen by the boards of Eskom, Transnet, the National Roads Agency and other public entities. And we are able to continue with the broad-based social assistance programmes that are provided for in the national budget.

    These are fiscal strengths, to which we should add the technological and financial capability of the South African business sector, and the collective vision and mobilising power of organised labour and civil society. To these formidable strengths, Speaker, we can surely add the great disciplines of modernising societies – hard work, a culture of savings, and respect for social institutions and shared family values, nurture of the land and the natural environment – and payment of taxes when they are due.

    Our development path is about building state capacity, and about strategic alliances with partners with business, labour, civil society; strategic partnerships that may be local, regional or global in their reach. Our development path is about restoring economic growth, decent jobs and livelihoods, and about a clear understanding of the respective roles of government and the private sector that support the dynamic of an enterprise-based economy while continuing to invest in the institutions and enabling arrangements of a just and inclusive society.

    So, Honourable Speaker we reaffirm our commitment to finding lasting solutions, wiping away the hunger and fear on children's faces and eliminating the hopelessness and despair of being jobless. That, Honourable Speaker, is our commitment to the people of South Africa.

    Issued by National Treasury
    4 June 2009 Picture: South African Minister of Finance Pravin Gordhan ]]>     Wirtschaft Mon, 22 Jun 2009 10:10:00 +0200     SA to revise down growth forecasts, says zero growth would be positive http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=617&cHash=3105ae3fd5461d5e265a554be17b9ac5 The South African government would revise down its earlier growth forecast of 1,2% for 2009, but would only make this forecast known when it released its Medium Term Budget Policy Statement in either...
    National Treasury would not alter its stance on producing only two growth forecasts yearly, despite continually emphasising that economic circumstances had changed materially since February, when the initial growth forecast was made by the then Minister of Finance Trevor Manuel in his Budget address.

    Speaking at an extraordinary media briefing in Pretoria, convened specifically to enable the National Treasury to comment on the fact that South Africa had descended into its first recession in 17 years, Kganyago said that government did not have the “luxury” of being able to adjust its forecasts on a daily basis.

    He noted that, at the time of the Budget, the global economy was still expected to expand by 0,5%. That figure had been revised several times by the International Monetary Fund, which now expects a contraction of 1,3%.

    “What we are going to continue to do as the Treasury, is to monitor all the high-frequency data that comes out and we will then take a view . . . on our economic forecast,” he said, adding that, come the Budget Policy Statement, “we will revise growth downwards”.

    “And, if we do record zero per cent growth, we would be doing very well,” he added.

    Recovery Hinges on Many Moving Parts
    Government also had limited visibility of when the economy would recover, with much hinging on a recovery in the global economy and the responsiveness of the domestic economy to the fiscal and monetary measures taken.

    The fortunes of mining and manufacturing – which declined by 9,3% and 22,1% respectively in the first quarter of 2009, and were key drivers of the worse-than-expected 6,4% contraction recorded for the period – were inextricably tied to those of the international markets.

    “Those sectors that recorded growth, are those which depend on domestic economic activity, rather than on foreign demand,” Kganyago explained, adding that there was growing consensus that a recovery in such demand could begin showing through in the second half of 2009, or during the first half of 2010.

    The sensitivity of the South African economy – which prior to the fourth quarter of 2008, had experienced 40 consecutive quarters of growth – to government’s fiscal stimulus interventions and the central bank’s monetary easing, would be the other key determinant of the pace of South Africa’s economic recovery.

    Kganyago argued that South Africa had dedicated significant fiscal resources to stimulus initiatives, pointing to a recent International Monetary Fund study of G20 countries, which found that South Africa’s so-called discretionary stimulus expenditure amounted to 1,8% of gross domestic product, before the inclusion of the expenditure of the large State-owned enterprises. When these amounts were included the figure rose to 4,5%.

    Further, the South African Reserve Bank had dropped interest rates by 350 basis points since December, which should begin affecting domestic demand in 12 to 24 months.

    Revenue Impact
    The other imponderable was what the slowdown would mean for revenue collection, which had expended strongly under the stewardship of Pravin Gordhan, who was named by President Jacob Zuma as South Africa’s new Minister of Finance on May 10.

    “We are only seven weeks into the new fiscal year. Generally April is not such a good revenue month, May is modest . . . [but] what is going to be crucial here is to see what happens [to the deficit] once we have received the June revenue and expenditure figures. [Because] that’s when we start to take in some significant corporate income taxes,” Kganyago explained.

    He said there would be some “compensatory effects” of inflation having declined slower then first hoped, because “that means we will still be able to pick up some significant revenue than would otherwise have been the case.” Edited by: Shona Kohler Source: http://www.polity.org.za/article/sa-to-revise-down-growth-forecasts-says-zero-growth-would-be-positive-2009-05-26 ]]>     Pressespiegel Wirtschaft Wed, 27 May 2009 12:36:00 +0200     Reason to be more positive about economy — Mboweni http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=574&cHash=0c92b90b9975e01f7207d80868b725f4 RESERVE Bank governor Tito Mboweni has suggested it is time to be a bit more upbeat on SA’s economic outlook as there are “tentative signs” the worst of the global recession may be over. “The general...
    “The general prognosis is we should begin to be a bit positive ... things are not as bad as they were,” he said yesterday.

    SA’s situation was still “a bit difficult”, but hopefully the fiscal and monetary stimulus provided to the economy would help, he said.

    Mboweni was speaking at the release of the Bank’s twice-yearly monetary policy review, after returning from talks at the Bank for International Settlements in Basel.

    The Bank’s review painted a gloomy picture for the economy this year, but indicated inflation would continue to subside, suggesting interest rates could fall further.

    The review did not say whether SA would slip into recession this year, as most analysts expect.

    But it made it clear that “adverse” global conditions would persist for “some time”, with a “palpable threat” of worsening, which would mean more negative fallout for SA.

    “There is a general expectation that domestic growth will be quite disappointing in the first two to three quarters of 2009 due to weaker domestic and international conditions,” the Bank said.

    “The global and domestic economic slowdown has had a significant moderating impact on the inflation outlook.”

    Prospects of lower inflation give the Bank scope to cut interest rates again to help kick-start the flagging economy after a cumulative 3,5 percentage point reduction since December. Its next policy meeting is in two weeks, and another cut in the repo rate, which stands at 8,5%, is expected.

    Growth would improve “moderately” next year and in 2011, the Bank said. SA’s economy shrank 1,8% in the fourth quarter of last year, its first contraction in nearly a decade. The pace of decline is likely to have quickened in the first quarter of this year.

    “Recent indicators suggest that the economy, and the manufacturing sector in particular, is likely to remain under pressure for some time,” the Bank said.

    Factory output and retail sales, which account for nearly a third of economic output, have plunged at record rates so far this year.

    Growth in the real disposable income of households was set to remain “subdued” after contracting in the third and fourth quarters of last year, the Bank said.

    But infrastructure spending by the government would help underpin investment, the other engine of economic growth.

    Consensus forecasts from a Reuters poll yesterday predict SA’s economy will shrink 0,6% this year, worse than estimates of a 0,3% fall last month. That would mark the country’s first recession since 1992, but is quite modest relative to the contraction of 1,3% which the International Monetary Fund expects for the global economy this year.

     “Inflation is expected to continue to trend downwards,” the Bank said. The “output gap”, which is the difference between potential and actual growth, would help keep prices low.

    The Bank’s review played down the risks to SA’s near-term inflation outlook, which it said has deteriorated due to upward pressure from wage settlements and administered prices, especially for electricity.

    Inflation has exceeded its 3%-6% target range for two years, and rose to 8,5% in March, the most recent month for which official figures are available.

    Mboweni defended SA’s policy of inflation targeting, which is being questioned by labour unions. New Finance Minister Pravin Gordhan has said the policy is up for debate, but that it will stay in place. Mboweni also criticised commercial banks for keeping the spread between prime lending rates and the repo rate at 3,5 percentage points, saying that it was the first time in 10 years he was making this public.

    “Moral suasion hasn’t worked. It’s time for all of us to cry out and beg about that differential,” he said.

    Mboweni appeared to be referring to the margin on prime lending rates that the banks charge their customers.

    The Bank revealed more details about its latest inflation forecasts, presented to the monetary policy committee last month.

    Inflation, as measured by the annual rise in the consumer price index, was likely to decelerate to an average rate of 6,2% in the third quarter of this year, the Bank said. By MARIAM ISA
    Economics Editor

    Source: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A1000255 ]]>     Wirtschaft Pressespiegel Mon, 18 May 2009 09:50:00 +0200     2010 to give SA a $2.5bn boost http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=538&cHash=29942055b16935af6c52d5e999734aac The 2010 Fifa World Cup is to inject an additional R21.3-billion (US$2.52-billion) into South Africa's gross domestic product (GDP), according to research by the Department of Environmental Affairs...
    Of the projected growth, R12.7-billion ($1.5-billion) is attributed to direct investment and tourist spend will contribute the remaining R9.5-billion ($1.13-billion).

    But Dr Azar Jammine, Econometrix chief economist, expects GDP growth to be even higher. “It is an underestimate because capital inflow will be much more substantial,” he said. “The current estimate only amounts to 0.8% of the GDP.”

    The 2009 Fifa Confederations and 2010 World Cup couldn’t come at a better time for South Africa. “Given the economic crisis, South Africa would have been in a very different position without these events,” he said.

    The country is already enjoying the benefits of large infrastructure projects that wouldn’t have gone ahead if it weren’t for the Fifa World Cup. Besides Fifa events, the Indian Premier League cricket tournament and the British and Irish Lions rugby tour will also generate substantial revenue for the country.

    The latest foreign tourism figures show negative growth, but Jammine is confident that this situation is only temporary. “Tourism will pick up again with people coming to South Africa for the events.”
    Customer service

    The completion of major infrastructure developments in time for the Fifa World Cup has been under the spotlight for months. But according to Accenture SA, organisations shouldn’t neglect the importance of customer service throughout the event.

    Accenture has taken an extensive look at the effects that the Fifa World Cup will have on customer experience. “The aim of the event should not only be to get people to come to South Africa, but to encourage them to return,” said Nikki Tyrer, head of  customer relations management at Accenture SA.

    Tyrer pointed out that customer service will be a key differentiator during the World Cup. “We must position the country to maximise the benefits of the event beyond the actual tournament. Tourists only have a few weeks here, but the event is a phenomenal marketing opportunity for the country.”

    The financial services sector, health, safety and retail will be under pressure with the influx of visitors to the country. It is estimated that the World Cup tournament will bring approximately 3-million tourists to South African shores, from across Africa and the rest of the world.

    “These potential customers all have expectations in terms of customer service. Additional value added services will go a long way in meeting these expectations,” she said.

    The retail sector will benefit greatly, with an international tourist expected to spend some R1 400 ($166) daily, while domestic visitors will spend about R750 ($89) daily. Thousands of tourists will be visiting shopping malls across the country, and Tyrer believes that retailers have to ensure that visitors have a positive experience of South Africa.

    The most critical aspect is communication, she says. Organisations can enhance the customer’s experience by ensuring that foreign and local customers are catered for in their own languages.

    One of the areas in need of attention is banking automatic teller machines (ATMs). She said although South Africa has a good ATM network, the supply chain relies on historic usage patterns. This is problematic, as more people will be making use of ATM facilities throughout the World Cup.

    “This means ATMs will run out of money more quickly and we have to find ways around this,” she said.  The shoe and clothing retail sector will also have to make provision for tourists requesting information on sizing differences.

    She emphasised that South Africa does have pockets of excellence as far as service is concerned. However, to ensure that the event has long-term benefits, operators and service providers need to develop and implement marketing, sales and service strategies that meet the needs of a diverse consumer base. By Wilma den Hartigh Source: MediaClubSouthAfrica.com Picture: Cape Town International Airport undergoing refurbishment to allow for the expected influx of visitors for the 2010 Fifa World Cup. South Africa is already enjoying the benefits of large infrastructure projects that wouldn’t have
    gone ahead if it weren’t for the tournament. (Image: Rodger Bosch, MediaClubSouthAfrica.com. For more free photos, visit the image library.)]]>     FIFA WM 2010 Wirtschaft Pressespiegel Fri, 08 May 2009 16:12:00 +0200     SA takes antidumping action against China and Malaysia http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=487&cHash=c30b7ec036f649686df2320dc0b1edb6 SA HAS slapped provisional antidumping penalties of 62% and 96% respectively on stainless steel kitchen sink imports from China and Malaysia. The provisional payment was gazetted by the International...
    Franke wants trade measures against cheap and subsidised imports, which it said had severely undercut the price of kitchen sinks in the local market and cost it market share.

    Itac found in a preliminary determination that the local industry was suffering material harm as a result of dumping. It also determined a residual subsidy margin of 35% for Malaysian manufacturers that did not participate in the investigation.

    While the dumping duties for the two countries are relatively high, lower levels of duties have been imposed on two individual Chinese companies and one Malaysian company that had participated in an investigation conducted by Itac in those countries at the end of last year. The companies are presumed to be the predominant exporters of the kitchen sinks into the southern African market.
    This is only the third time that provisional dumping duties have been awarded to a local manufacturer against imports from China, since SA granted that country market economy status two years ago and agreed to enhance debate with China on dumping investigations.

    Previously, provisional duties had been awarded in complaints against the dumping of polyvinyl chloride and welded steel chain.

    The provisional antidumping payment will give Franke temporary respite.

    Itac chief commissioner Siyabulela Tsengiwe said on Friday that the commission still needed to make a final determination on the matter.

    However, the South African Revenue Service has been asked to institute the provisional duties.

    Kitchen sinks are already subject to an import duty of 20%, which means imports would now attract duties of up to 116%.

    Importers of kitchen sinks have argued that Franke previously had a de facto monopoly in the local market, and that a successful application would reinstate Franke’s monopoly.


    The secretary of the European Brassware and Sanitaryware Manufacturers and Importers Association, Wouter Swanepoel, told Business Day that items such as heavy-duty stainless steel kitchen sinks for hotels and restaurants, and even hand basins for the change rooms of the 2010 Soccer World Cup stadiums, were categorised under the same tariff heading as domestic kitchen sinks.

    This meant imported product would be penalised by additional duties even where Franke did not manufacture these products locally.

    Franke first brought an antidumping application in June last year, saying dumped products were threatening 500 jobs in the industry.

    According to Franke, Chinese and Malaysian products were undercutting the price of local products by 24% and 39% respectively, leading to price suppression, which meant the company could not recover manufacturing cost. Local manufacturers’ output decreased as a result, and they sacrificed considerable market share.

    Franke could not be reached for comment at the weekend.

    MATHABO LE ROUX
    Trade and Industry Editor
    Source: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A988756

    ]]>     Pressespiegel Wirtschaft Tue, 28 Apr 2009 16:49:00 +0200     Top marks for SA auditing http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=477&cHash=098ad15007f05aa202ea4580b6dd7c24 South Africa officially has one of the best auditing systems in the world. The World Economic Forum’s 2008-2009 Global Competitiveness Report recently ranked the country fourth in the world for...
    The forum ranked South Africa’s auditing systems as better than those of economic heavyweights such as the US and UK, while Hong Kong, Austria and Australia took the top three positions.

    The main goal of the report is to evaluate countries’ economic environment and their ability to achieve sustained levels of prosperity and growth. South Africa came in at 48th place out of 137 countries in the report’s overall ranking, the second-highest place after Tunisia among African countries and ahead of large economies such as India and Russia.

    Bernard Agulhas, CEO of the Independent Regulatory Board for Auditors, said the ranking should be reassuring for South African businesses, financial institutions and international investors. 

    The global financial crisis has increased the need for regulators and standard setters to provide peace of mind for investors and the general public. According to Agulhas, maintaining appropriate audit standards would ensure that investors and capital providers have access to reliable and credible information.

    The high ranking was no surprise to Dr Azar Jammine, director and chief economist at Econometrix. “South Africa’s auditing has always been of a very good standard,” he said.

    He agreed that good auditing and reporting standards are crucial to draw investors. “People often say South Africa is lacking in many things, but what it does have is that it is relatively easy to do business here. Investors will certainly feel confident to do business here,” he said. Jammine added that the country’s sound regulatory framework is also attractive to investors. 

    Professor Harvey Wainer from the School of Accountancy at the University of the Witwatersrand said South Africa has managed to attract more investors to the country in the past few decades.

    “Investment has increased and these standards also help to eliminate risk for the investor,” he said. He added that South Africa also did well to be one of the first countries to adopt international standards for accounting and auditing.  “In doing this it enhanced our ability to attract foreign investment.”

    He pointed out that South Africa should also be proud that its chartered accountants are in demand in countries such as the UK and Australia. “Our chartered accountants are very mobile because we offer such outstanding training,” he said.

    Bill Lacey, an economic consultant for the South African Chamber of Business, explained that investors usually rank a country’s investment potential according to seven criteria: political stability, economic strength, government policy and bureaucracy, infrastructure, labour environment, strength of banking and the financial sector and the local business environment.

    Lacey said South Africa is performing fairly well in all seven categories.

    “Our infrastructure development is well above that of other African countries and, although we are going into an election, our politics are reasonably mature.”

    But for South Africa to continue performing well in these categories, it must contain its inflation rate.

    South Africa also performed well in other categories such as business sophistication, quality of air transport infrastructure, soundness of banks, availability of latest technologies and capacity of innovation.

    The annual survey is considered the largest poll of its kind. The World Economic Forum has been conducting the survey for nearly 30 years. This year, 12 297 top management business leaders in 134 countries between January and May completed the survey. This represents an average of 91 respondents per country. By Wilma den Hartigh Picture: http://en.wikipedia.org/ Source: www.mediaclubsouthafrica.com ]]>     Topnews Wirtschaft Fri, 24 Apr 2009 12:45:00 +0200     Manuel ‘ready to carry on as finance minister’ http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=391&cHash=333dd1ce6d556377d116e2f9687f3fd8 FINANCE Minister Trevor Manuel hinted yesterday that he may be willing to carry on serving in his post if asked to by the country’s new president, although he could not “carry on forever”. He told...
    Manuel is fourth on the list of 100 nominees, which means he is likely to stay in Cabinet.

    “You can’t do a job like Finance Minister forever and I think that’s a discussion that the incoming president can better answer,” he said in reply to a question on his future. “But I wouldn’t have agreed to go on the ANC list without indicating my preparedness to continue serving.”

    Manuel first took his post in 1996 and has received much of the credit for the prudent economic policies that have won SA respect in global markets.

    Manuel told members of SA’s Greek, Italian, Lebanese and Portuguese community that SA was weathering the global crisis “remarkably well”, partly because it was a commodity exporter. But he also gave credit to tough economic decisions taken in the past decade —- such as reducing public debt, raising interest rates and regulating the financial sector.

     “The economy is holding up remarkably well. I’m not suggesting there won’t be job losses and I’m not suggesting the world economy has already touched bottom,” he said .

     “I think we’ve still got a little way for the global economy to bottom out and we’re likely to be affected but there is actually no reason to panic.”

    Most analysts expect the economy to contract this year for the first time since 1992, as global demand for local exports wanes and consumers in SA continue to rein in their spending.

    But the dip is likely to be quite mild compared with what is happening in many other developed economies —- consensus forecasts are betting that SA’s output will shrink by less than 1%.

    Manuel said the big challenge facing SA was to improve service delivery to the country’s poor, using existing financial resources and against a backdrop of scarce skills.

    There was still a “constitutional imperative” for black economic empowerment, but it should not take place at the expense of achieving those goals, he said.

    “If the objective is school nutrition so that poor children can eat so that they can learn … you should shelve empowerment and focus on how much food you can get. Those are the kinds of issues we have to work through,” he said. Empowerment “can’t be leveraged by debt with the hope that share prices move forever upwards”, Manuel said.

    He emphasised the need to improve service delivery in both healthcare and education but said it was unlikely that the ANC would achieve its stated aim of putting a national health insurance scheme in place within five years.

    Public health service was “lousy” but there were pockets of excellence, he said. Manuel laughed off a question on whether state utilities would remain owned by government.

    “Does anyone want to buy an airline?” he said, referring to loss-making South African Airways. By MARIAM ISASource: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A981628]]>     Wirtschaft Pressespiegel Thu, 16 Apr 2009 15:26:00 +0200     JSE open to Zimbabwe firms http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=307&cHash=70719b7e98ea56ef6ba6615fd2a5eeb0 FIRMS listed in Zimbabwe may now have an opportunity to raise foreign capital through listing on the Pan African Board, a segment of the Johannesburg Securities Exchange, the Herald in Zimbabwe...
    Companies would be allowed to list a minimum of 20% while 10% of issued shares would be transferred to the SA register to guarantee settlement.

    Citing the ZSE’s chief executive Emmanuel Munyukwi, the report said firms wanting a secondary listing would, however, need to comply with requirements of their home listing. The secondary listing would improve liquidity in shares and enhance profile through the JSE’s extensive marketing and global share price dissemination, the report added.

    "Counters trading on the PAB would also be visible to more investors through exposure to the JSE’s large local and foreign investor base."

    Local companies in Zimbabwe were struggling to raise working capital and the PAB could be a good chance for them to so, Munyukwi told the Herald.

    "We have a number of companies whose performance have been seriously affected by so many factors including working capital constraints. I think it is an opportunity (for companies) to raise capital in a way of listing some of its stock on PAB," he said.

    Source: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A965896

    ]]>     Pressespiegel Wirtschaft Tue, 24 Mar 2009 11:46:00 +0100     SA may be excluded from EU partner deal http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=255&cHash=de1dcf3070fb3558442b20a12b9ce148 THE European Union (EU) is likely to move towards the official signing of an interim economic partnership agreement, known as an EPA, with countries of the Southern African Development Community...
    A source close to the talks, who declined to be named, said it was likely the EC would ask to be given the go-ahead to prepare to sign the interim deal as all attempts to bring SA back into the talks had failed. This will see Botswana, Lesotho, Namibia and Swaziland sign the deal, leaving SA, the only other member of the Southern African Customs Union, out of the deal.

    The EU agreed to favourable terms for infant industry protection, which could see the countries in the SADC configuration exclude sectors earmarked for development from liberalisation. The EU also allowed for existing export taxes — used by countries to encourage beneficiation — to continue and gave scope for new export taxes to be introduced.

    The EU also modified its demand on the quantitative restrictions of exports in favour of the SADC group, and the parties agreed on the free circulation of goods to facilitate easier trade in the region.

    Sources close to the process said Namibia — which shared SA’s concerns — had been won over by the EU’s concessions and indicated it would sign, clearing the way for the commission to propose a date for signature to legitimise trade relations between Europe and the region.

    The EU has been unilaterally extending preferences to the region in breach of World Trade Organisation (WTO) rules since the expiry of a waiver on the Cotonou agreement in December 2008. Europe is anxious to bring its trade relations with the SADC group in line with trade rules to avoid a WTO challenge.

    Jorge Peydro-Aznar, the European Commission (EC) head of trade in Pretoria, said the meeting was positive. “Good progress was made on most concerns. We remain hopeful of a deal, because we need to address the WTO compatibility issue as a matter of urgency,” he said.

    SA’s chief trade negotiator, Xavier Carim, was also positive about the talks but said no movement had been made on the most-favoured nation (MFN) demand and the legal status of the parties. Under the MFN, concessions made to countries whose trade exceeded more than 1% of world trade would, in future trade agreements, be automatically extended to the EU.

    “ We did well on most issues. There is scope for further progress, but it is not clear if we will get another chance to talk ,” Carim said.

    The EC was to report back to member states on the status of the talks on Friday.

    Eight major issues were discussed at the Swakopmund meeting and only two were unresolved — MFN and the fact that the SADC region was negotiating EPAs under four different configurations, which SA argued would hamper plans for future regional integration.

    The EC last week offered to raise the threshold of countries’ portions of world trade to 1,5% and agreed to limit the MFN requirement exclusively to customs duties, but this was still not acceptable to SA. MATHABO LE ROUX Trade and Industry Editor Source: http://www.businessday.co.za/articles/economy.aspx?ID=BD4A960093]]>     Wirtschaft Pressespiegel Mon, 16 Mar 2009 14:04:00 +0100     SA firm wins inventor award http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=252&cHash=842160c33e683146f49235aa29c219a6 Durban-based light aircraft engine manufacturer Adept Airmotive has been named 2008 Autodesk Inventor of the Year for its development of a revolutionary aviation engine with the help of digital... Adept Airmotive used the technology to develop the 320T, a 320 horsepower general aviation engine with a compact design that offers low vibration and high structural integrity. The new engine is lighter than a traditional piston engine of comparable horsepower, allowing the 320T to achieve significant fuel savings.

    Selected by peers
    Each month, design software innovator Autodesk nominates an Inventor of the Month from more than 800 000 users of Autodesk Inventor software, which is the foundation for digital prototyping. Winners are selected for their engineering excellence and groundbreaking innovation.

    Members of the manufacturing community around the world voted for the 2008 Inventor of the Year winner on the Autodesk manufacturing community website. Adept received nearly two-thirds of the votes cast.

    "The fact that our peers voted us into the winning position makes the award even more gratifying," Adept MD Richard Schulz said in a statement this week. "We're thrilled to demonstrate that South African engineering is world-class as part of the global exposure that accompanies this prestigious award."

    Digital prototyping
    The digital prototyping capabilities of Inventor software helped Adept produce accurate 3D models of the 320T before anything was actually built, reducing the number of physical prototypes that had to be constructed.

    According to the statement, processes that once took hours - such as changing the wall thickness of an engine component - were completed almost instantaneously with Inventor software. As a result, engineers were able to spend less time constructing geometric models and more time creating innovative designs, and then simulating the performance of the designs under real-world conditions.

    "I'm thrilled that a South African entrant won the competition," said Autodesk Africa MD Errol Ashwell. "Adept distinguished itself in a very competitive field of nominees in 2008, earning the praise of the manufacturing community for its ground-breaking engine."

    Stressing the value of intellectual property (IP), he said companies, like Adept, that invest in creating IP would reap dividends in the long-term. "Unfortunately, South African companies still spend billions a year on licence agreements and royalties," he said.

    In the face of shrinking markets, he encouraged manufacturers to differentiate themselves by offering delivery times their competitors can’t match, without compromising the quality of their goods.

    "Engineers around the world rely on digital prototyping to develop and validate their designs in a digital format, minimising the need for physical prototypes and helping to get their products to market faster."

    Runners-up
    Runner-up positions in the Inventor of the Year poll went to US-based company Sound Devices LLC, a leading manufacturer of professional audio recording and mixing equipment, which received 13% of the votes.

    British Antarctica Survey (BAS), which received 6% of the votes, is responsible for the United Kingdom's national scientific activities in Antarctica, and uses digital prototyping to design tools that allow the organisation to more effectively carry out research and provide insight into key 21st century challenges such as climate change, ozone depletion and rising sea levels. Source: http://www.sagoodnews.co.za ]]>     Wirtschaft Topnews Mon, 16 Mar 2009 10:33:00 +0100     Minister Manuel Slams US, Rich Countries http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=243&cHash=9814be759d7cf2b13ce85f0d9e054d6e Finance Minister Trevor Manuel hopes advanced economies will not act with arrogance when Finance Ministers from the Group of 20 developed and developing nations meet this weekend to discuss the world... Pressespiegel Wirtschaft Fri, 13 Mar 2009 12:18:00 +0100 Treasury unveils tax breaks for industry http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=230&cHash=4fe730be9310dc9bb4d5286a9a7fbbd8 THE Treasury has finally released the structure of tax incentives worth about R5bn to encourage large industrial projects in support of SA’s industrial strategy. The tax incentives were mooted in...
    They are aimed at larger industrial investments and complement the Enterprise Investment Programme, launched last year, which earmarks small and medium-sized manufacturing and tourism investments valued between R5m and R200m for funding.

    Deloitte director Duane Newman said the incentive was clearly designed with bigger projects in mind. Under the SIP, projects with a value capped at R600m qualified for funding, while the tax incentive earmarks projects capped at R1,6bn.

    “They are clearly targeting mega projects. A project size of R1,6bn can qualify for a tax break of up to R250m, so that clearly could make a difference to someone’s project,” he said.

    In the draft regulation, the emphasis is heavily slanted towards projects that promote job creation, skills and enterprise development and energy conservation.

    According to a point system, an industrial policy project will achieve “qualifying status” if it achieves at least five out of a total of 10 points and a “preferred status” if it achieves at least eight out of a total of 10 points.

    Projects with qualifying status may deduct from their taxable income an additional 35% of the costs of the investment in manufacturing assets, up to a maximum of R550m, while projects with preferred status may deduct 55% of the cost of the investment in manufacturing assets, up to a maximum of R900m.

    A project can score two points each if it advances energy efficiency, direct job creation, skills development and procurement from small and medium-sized businesses.

    Innovative processes, business linkages and, in the case of greenfield investments, being in an industrial development zone would each score a project one point.

    But while Newman welcomed the broad thrust of the tax incentive, he said its alignment with the national industrial policy framework was tenuous at best.

    “There is no link between the tax incentive and broad-based economic empowerment requirements, which means there is a disconnect between the tax incentive and industrial strategy.”

    In terms of black economic empowerment ratings, firms were required to procure from empowerment companies, Newman said, while industrial projects needed to procure from small and medium-sized enterprises to qualify for the tax incentive.

    So firms were required to follow two procurement systems, which would push up the cost of compliance.

    The draft regulation also makes no mention of the lead sectors — capital equipment and metals; automotives and components; chemicals and pharmaceuticals; and forestry, paper and pulp and furniture — identified for prioritisation in the industrial policy.

    MATHABO LE ROUX
    Trade and Industry Editor

    Source: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A956711

    ]]>     Wirtschaft Pressespiegel Thu, 12 Mar 2009 12:18:00 +0100     Employers still upbeat on hiring, albeit ‘very cautious’ http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=228&cHash=785f1b0abee0fa5bd396d5fb1960d613 SOUTH African employers in nine of 10 sectors surveyed by an international body said they expected to hire new employees in the second quarter of the year, with only the construction sector...
    This puts SA ahead of the pack internationally as the survey of nearly 72000 employers across 33 countries and territories worldwide showed only 13 of the 33 expected some positive hiring activity in the quarter from March to June.

    While the net employment outlook for SA was one of the weakest since SA joined the international survey in the final quarter of 2006, it had improved by one percentage point to 14% from the first quarter of the year, said Manpower SA MD Jan Coetzee.

    The Manpower Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It claims to be the most extensive forward-looking survey of its kind.

    Internationally, the survey has been running for 45 years. In SA it is conducted by Manpower SA, the local subsidiary of the New York Stock Exchange-listed Manpower.

    While overall employment growth was expected in SA, local employer s were being “very cautious”, Coetzee said.

    “We have found that many of our clients are very cautious about hiring permanent staff at the moment. Also, many of our multinational clients specifically have hiring freezes in place at the moment, or are reducing staff,” he said.

    The healthiest growth was expected in the electricity, gas and water supply industry, where employers expected head count to expand by 10 percentage points over the past quarter to 27%, and in the transport, storage and communications sector, where head count was expected to grow to 24%, an eight percentage point increase.

    Growth was also expected in the agriculture, hunting, forestry and fishing sector (16%); the finance, insurance, property and business services sector (8%); manufacturing (11%); the mining and quarrying sector (11%); the public and social sector (11%); restaurants and hotels (13%); and wholesale and retail trade (19%).

    Quarter-over-quarter hiring intentions had increased in five sectors, while the mining and quarrying sector was predicting a weaker hiring climate, with a decline of 13 percentage points over the past quarter.

    Year-over-year hiring prospects were weaker in nine of the 10 sectors surveyed, with the exception being the transport, storage and communications sector where the outlook had improved by seven percentage points.

    The sharpest year-on-year decline was reported in the mining and quarrying sector — 22 percentage points — followed closely by the construction sector’s 17 percentage point decline, Coetzee said.

    SUE BLAINE
    Education Correspondent Source: http://www.businessday.co.za/articles/economy.aspx?ID=BD4A956696

    ]]>     Wirtschaft Pressespiegel Thu, 12 Mar 2009 12:16:00 +0100     Mercedes SA feels the pinch http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=210&cHash=a903200883d7c5fdbfb077f9895e67ea MERCEDES-Benz SA, the local unit of Germany’s Daimler, said yesterday sour loans in its financial arm had risen last year, and warned it expected this year to pose challenges with a worsening slump...
    The finance division financed one in three of Mercedes-Benz cars sold last year and 40% of all Mercedes-Benz commercial vehicles. Niefer said nonperforming loans stood at 2,6% compared with the 3%- 5% market average.

    He said the group could manage this increase in bad loans, but would not give a total. Mercedes-Benz SA, like its peers, is grappling with depressed new vehicle sales, which fell just more than 36% year on year last month.

    The economy contracted 1,8% in the fourth quarter last year, signalling more troubles for vehicle makers.

    Niefer said Mercedes-Benz C-Class, which is exported to the US, was directly affected by the recession there.

    The local group, which includes Debis Fleet Management, Sandown Motor Holdings and Atlantis Foundries, had turnover of R35,6bn, 3,7% lower than the previous year.

    The group’s performance was better than expected in the light of economic slowdown, inflation, high interest rates and low consumer demand. But Niefer said Mercedes-Benz SA expected this year to prove more challenging than the latter half of last year.

    Niefer said the group’s Flexifix product, set up last year in conjunction with the Industrial Development Corporation and the National Empowerment Fund, offered one of the best financial solutions in these times of volatile interest rates.

    He said the finance fund, which forms part of Flexifix product, had allocated R300m to emerging transport firms. Plans were in place to expand this product portfolio. Artwell Dlamini
    Transport Correspondent Source: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A952496

    ]]>     Pressespiegel Wirtschaft Thu, 05 Mar 2009 09:27:00 +0100     Global crisis starts to take toll on SA economy http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=179&cHash=89728c02246a4fd3df5fbed715496490 SA’s trade deficit swelled to a record R17,4bn in January as exports plummeted, showing that the global recession was starting to take a heavy toll on the country’s economy. The news on Friday...
    Market forecasts had predicted the shortfall would widen to R6bn from R1,6bn in December.

    “January’s trade data were truly shocking,” said Rand Merchant Bank’s currency strategist John Cairns. “The feed-through of the global crisis into the local real economy is worse than expected — growth expectations may have to be revised downwards.”

    Exports plunged by 25% during the month, while imports rose by 6,9%, figures from the South African Revenue Service (SARS) showed. Seasonal factors were partly to blame, but many analysts expect the poor performance to carry on, as most of SA’s main trade partners — the US, Britain, Japan and Europe — are grappling with a recession. SARS said that during the month, car exports dived 53%, electrical equipment 36% and precious metals 32%.

    Imports were buoyed by an 18% rise in mineral products — mainly oil — along with a 49% leap in textiles, a 54% jump in footwear and a 19% rise in base metals. Compared with the same month last year, imports rose 8,2% while exports fell by 7,9%.

    “All the signs are that there is even worse news yet to come,” said Standard Chartered economist Razia Khan. “Given the picture of broad-based weakness everywhere, there are few expectations for any sort of turnaround in the trade balance soon.”

    Weaker oil prices would not be enough to offset the threat to the trade gap, she said.

    Slowing domestic demand will help curb imports but this is being offset in part by the government’s huge infrastructure spending programme, which requires capital goods and machinery.

    Exports account for roughly a third of SA’s economy so their collapse does not bode well for the view that the country will escape a recession this year. A growing number of economists are revising their forecasts for growth this year to below 0,5%, which means it will be touch and go whether the economy does not shrink.

    Figures last week showed that gross domestic product contracted by 1,8% in the fourth quarter of last year, led by a record 22% dive in factory output.

    The dismal figures help back the case for the Reserve Bank to slash interest rates ahead of its next scheduled policy meeting in mid-April. That could weaken the rand, but in the past week the unit has been responding more to investor perceptions of SA’s growth prospects.

    On a more positive note, analysts think that the deficit on SA’s current account — its broadest measure of trade in goods and services — is still likely to narrow this year. That is largely because dividend outflows are set to decline, on falling company profits and foreign sales of local shares.

    SARS decided last month to start excluding temporary imports of gold from its trade data, as they were not being counted as exports and produced a misleadingly large deficit. Mariam Isa Economics Editor Source: http://www.businessday.co.za/articles/economy.aspx?ID=BD4A950074

    ]]>     Wirtschaft Pressespiegel Mon, 02 Mar 2009 14:48:00 +0100     South Africa in the Perana Z-one http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=173&cHash=b3a4cac299e0800a36e512c853ac8171 For the first time ever, a car conceived, designed, engineered and developed in South Africa, will be launched at an international motor show. The Perana Z-one, brainchild of Jimmy Price of Hi-Tech...
    They had a little international help — the sports car was styled by Zagato of Italy, one of the world’s foremost automobile styling studios — but this is a genuinely South African project.

    The global demise of low volume car manufacturers and new European legislation created the opportunity for Price to realise a long standing ambition: not to produce just replicas of famous sports cars, but with the assistance of his team at Hi-Tech, to design, develop, engineer and manufacture his own brand.

    To fund his dream, he called upon a group of friends who are also well known motoring and racing enthusiasts to join him in the development of the new product, and the Perana Performance Group was established. At the same time, Price called upon his friends at Zagato in Milan to style his dream car.

    And finally, the Perana Performance Group bought the Perana name, a well known modified Ford high performance range produced in the late 1960s.

    The result is a traditional front-engined, rear wheel driven two-seater coupe with a 6.2-litre V8 engine that produces 330kW and allows the Perana Z-one to accelerate from 0-100km/h in under 4.0 seconds and reach 160km/h in under 10 seconds.

    But it's not all down to the engine. Zagato's styling heritage of “simple, light and aerodynamic” has been applied to the South African car. So visually you get uncomplicated flowing lines, while technically the car benefits from lightweight construction methods and a return to purist racing traditions where driver input reigns supreme.

    The Perana Z-one is intended to be a limited production model and only 999 a year will be built in Port Elizabeth. So don't uhm and aah about getting one. Staff Reporter Source: http://motoring.iafrica.com/content_feeds/telkom/1533723.htm]]>     Wirtschaft Pressespiegel Topnews Wed, 25 Feb 2009 14:05:00 +0100     South Africa ranks among top 20 in protecting property rights http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=171&cHash=f9572feab52dc368a37c92a25afcea9f A new study shows that South Africa ranks among the top 20 countries that have a good track record in protecting property rights. The International Property Rights Index compared the protections of...
    It shows that countries that protect property rights enjoy nearly nine times higher GDP per capita than countries that rank lowest in property rights protection.

    Property Rights Alliance’s Anne Dedigama says, "The foundation of this report is that there is a link between protection of property rights, both physical and intellectual, and the country's economic growth."

    The Property Rights Alliance, which produced the report, says a stable political and legal environment fosters an environment where property rights are respected. "I think I would be concerned if I was in the bottom quintile where the property rights systems seem not to work well and the scoring is quite low, so South Africa being in the first top 20 indicates that there's more space for improvement," said Dedigama.

    Most of the data used to compile the report was sourced from institutions such as the World Bank and the World Economic Forum. At the very top of the index are countries from Western Europe and North America. Five of the 10 countries at the bottom of the index are in Africa and are Angola, Zimbabwe, Burundi, Chad and Nigeria. Manelisi Dubase, WashingtonSource: http://www.sabcnews.com/]]>     Wirtschaft Pressespiegel Südafrika Wed, 25 Feb 2009 14:01:00 +0100     Key players agree on SA’s crisis plan http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=167&cHash=e7a1eebcb906f00e938e3cba0a2ac6ee CAPE TOWN — Government, business, labour and community organisations have agreed on a comprehensive plan to deal with the effects of the global economic crisis. Sectors needing targeted interventions...
    The government and its social partners have delivered on Motlanthe’s promise that a plan would be agreed on before the end of this month.

    Planned public sector infrastructure investment remains the central pillar of the plan, but it promises a new look at how these resources are concentrated and traditional lags in getting plans implemented are eliminated.

    The plan includes using the money available in the Sectoral Education and Training Authorities, a national jobs initiative and getting development finance institutions such as the Industrial Development Corporation (IDC) to be more accommodating in the way they respond to businesses and sectors in distress.

    Making the Unemployment Insurance Fund more efficient was also identified as a priority so that those workers who did lose their jobs did not have to wait for months before receiving benefits.

    Trade and Industry Minister Mandisi Mpahlwa said after the meeting of the presidential joint economic working group that the plan provided that the IDC would report within a month on sectors that were under pressure and where there was a high potential for job losses.

    “We will then know where to make interventions.” He said that the agreed plan was about a combined effort to limit the effects of the crisis and to provide a plan for making early recovery possible.

    A business representative, Anglo American nonexecutive director Bobby Godsell, said the agreement was made in a new spirit of shared sacrifice to save jobs, homes and businesses.

    The liquidity of a major employer in the economy, the small-, medium- and micro sector, needed attention, and all the interventions made needed to be done in such a way as to lay the foundation for continued shared growth. Wyndham Hartley Parliamentary EditorSource: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A943723]]>     Wirtschaft Pressespiegel Fri, 20 Feb 2009 13:53:00 +0100     Task team proposes to curb ‘cheap imports’ http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=159&cHash=c0c48b06a8ebc37cffc84784caef7950 A JOINT government, business and labour task team is proposing a clampdown on “cheap imports" into SA as part of a raft of measures aimed at helping local companies retain jobs and stay afloat...
  • That business pledge to do everything in its power to avoid retrenchments;
  • Retraining people who face retrenchment;
  • Creation of 2-million full-time jobs through the Expanded Public Works Programme;
  • Using the Nedlac forum to lobby the Reserve Bank to discuss the interest-rate regime and ways of lowering the cost of capital; and
  • Emergency food relief.
    • A draft plan, to be submitted to President Kgalema Motlanthe this week, is intended to minimise expected job losses and ensure that the poor do not bear the brunt of the financial crisis. SA’s retrenchment estimates range between 35000 and 250000. The plan outlined in draft 58, dated January 29 and seen by Business Day, will also enforce stricter competition measures and encourage discussions on monetary policy. The parties have committed to a jobs strategy that would respond to any contemplated large retrenchments — more than 50 employees — through a mix of support from the trade and industry department and other government agencies. The report also deals with sectors where there are early signs of job losses and distress, such as electrical and electronics, engineering and building materials. According to the document, phase two of the programme will target 1-million unemployed youngsters and women and focus on public employment programmes such as home-based care, school cleaning and renovation, tree planting and school feeding. In an attempt to create stable employment, the government will be discouraged from outsourcing and using casual labour. A special national jobs initiative is also planned, bringing together development finance institutions such as the Industrial Development Corporation and government departments. It will co-ordinate and fast-track financing of industrial and special employment and social measures to avoid job losses. Employers will have to commit to retraining workers who would otherwise be retrenched, to keep them employed and afford them the opportunity to be employable when the economy improves. A targeted emergency food relief programme will enhance food accessibility and affordability. Lungisa Fuzile, head of asset and liability management at the Treasury, yesterday detailed some of the official support for the Development Bank of Southern Africa (DBSA) and Land Bank, to help them ramp up their lending. The Treasury was ready to boost the “callable capital" of the DBSA — which works like a guarantee — from R4,8bn to help it to reach the R38bn limit which its balance sheet allows. “They can go for a while without support, but we are looking at stepping in sooner," Fuzile told Business Day. Most of the increased lending provided by the DBSA would go to municipalities, which are not part of the official R787bn infrastructure lending programme. Fuzile said the Treasury was likely to provide the Land Bank with a capital injection of “at least" R1,3bn by year-end. Karima Brown and Amy Musgrave. With Mariam Isa www.businessday.co.za]]>     Wirtschaft Pressespiegel Wed, 18 Feb 2009 16:45:00 +0100     Task team proposes aid for struggling sectors http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=157&cHash=00e0b8155d1cf83b5fd77d29c7ee6783 CAPE TOWN — Business, the government, labour and community organisations have devised a plan to rescue struggling sectors of the economy and reduce the estimated loss of 250000 jobs this year. A... Linda Ensor - Political Correspondent

    www.businessday.co.za]]>     Wirtschaft Pressespiegel Tue, 17 Feb 2009 16:42:00 +0100     Wirtschaftskonferenz zum südlichen Afrika http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=144&cHash=c803dedd4c8428826e55854097cc734c "Geschäftschancen für deutsche Unternehmen im südlichen Afrika"Zeughaus Neuss, 3. März 2009, 16 Uhr. Laden Sie hier den Flyer zur Veranstaltung herunter:|+| Flyer Wirtschaftskonferenz zum südlichen... Zeughaus Neuss, 3. März 2009, 16 Uhr. Laden Sie hier den Flyer zur Veranstaltung herunter:
    |+| Flyer Wirtschaftskonferenz zum südlichen Afrika |+| Link zur Konferenz-Webseite]]>     Südafrika in Deutschland Wirtschaft Thu, 12 Feb 2009 10:52:00 +0100     Südafrika auf der Ambiente '09 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=47&cHash=897973658263dc642fadde5ff9b0bbe5 Besuchen Sie Südafrikas Pavillon auf der Ambiente 2009, Halle 3.1, Stand B80, Frankurt a.M. 13-17.02.09. Auf der internationalen Weltleitmesse für „Dining“, „Giving“ and „Living“ möchten wir mit...
    |+| http://www.suedafrika-wirtschaft.org/index.php?&pageID=38 ]]>     Wirtschaft Südafrika in Deutschland Topnews Fri, 06 Feb 2009 10:30:00 +0100     SA banking sector healthy: Coovadia http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=133&cHash=4cb4578fea097bbcca2f5de861e49c6e The Banking Association of South Africa says the country's banking sector is recognised internationally as healthy compared to other banking sectors. The Association’s Managing Director, Cas...
    Coovadia was quick to point out that our international counterparts have been less cautious in terms of credit extension. He also commended the regulatory authorities for working with the banking sector to put in place appropriate legislation. "The National Credit Act, sound regulation and supervision of banks by the Registrar of Banks have contributed to the ability of our banking sector to somewhat withstand the crisis."

    Coovadia says he has noted recent negative media articles casting aspersions on the health and role of the banking sector in South Africa. He says bank-bashing exercises are inaccurate and counterproductive for the socio-economic transformation of the country. Coovadia also maintained that the local banking sector plays a pivotal role in local development and there is no evidence of local banks acting as a monopoly, despite media inferences.

    Tangible contributions

    According to Coovadia, reports submitted to the Financial Sector Charter Council by individual banks between 2005 and 2007 revealed "extremely tangible contributions" from the banking sector for the benefit of South Africans. These included the existence of 2,6 million Mzansi and equivalent low cost savings accounts, as well as expanded infrastructure so that at least 80% of the LSM 1-5 (low income) population was within 10km of a transaction point and 15km of a service point.

    Other benefits included the extension of R43,3 billion of housing-related finance to 931 714 lower-income borrowers, consequently housing 4,6 million people; and the extension of  R9,8 billion in finance to black small and medium enterprises. Furthermore, South African banks had extended R1.5 billion in agricultural finance to resource poor black farmers.

    He added that the sector also implemented other transformation initiatives in relation to control, infrastructure development, Black Economic Empowerment transaction financing, staffing, procurement, training and corporate social investment. - Sapa

    http://www.sabcnews.com

    ]]>     Pressespiegel Wirtschaft Tue, 03 Feb 2009 15:55:00 +0100     Südafrika auf der Fruit Logistica 4.-6. Februar 2009 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=95&cHash=b8020027e65e261d665921bb382b0511 Besuchen Sie uns auf der Fruit Logistika in Berlin, am Südafrika Stand, Hall2 5.2, vom 4. bis 6. Februar 2009. Seit dem 17. Jahrhundert wird in Südafrika Obst und Gemüse auch für den Export angebaut.... |+| http://www.suedafrika-wirtschaft.org/index.php?&pageID=47
    Fruit Logistica: Leitmesse des Internationalen Fruchthandels

    Den Branchen rund um den Frischfruchthandel bietet sich mit dieser Fachmesse die Chance zur Darstellung ihrer Leistungsvielfalt in der gesamten Wertschöpfungskette vom Anbau bis zum P.O.S. Kurze Laufzeit, konzentrierte Zielgruppenansprache und somit höchste Effizienz sind die Hauptmerkmale der FRUIT LOGISTICA.

    Sie eröffnet auch den Ausstellern der neuen Wachstumsregionen der Welt sowie den Newcomern aus Mittel- und Osteuropa eine erstklassige Möglichkeit, sich dem internationalen Fachpublikum zu präsentieren und Abschlüsse zu tätigen.

    Mehr Effizienz für Aussteller und Fachbesucher! Erstmalig ab 2009 findet die FRUIT LOGISTICA wochentags von Mittwoch bis Freitag statt.]]>     Wirtschaft Thu, 29 Jan 2009 14:31:00 +0100     Südafrika auf der Cebit http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=6&cHash=394cb756f4b88c6c4b9c28ac4ece1e2f Besuchen Sie uns auf der CEBIT, am Südafrika Stand, Hall 5, Stand E48 vom 3. bis 8. März 2009 in Hannover und lernen Sie die dynamische und erfolgreiche IT Branche und ihre Hauptvertreter... CEBIT, am Südafrika Stand, Hall 5, Stand E48 vom 3. bis 8. März 2009 in Hannover und lernen Sie die dynamische und erfolgreiche IT Branche und ihre Hauptvertreter kennen. http://www.suedafrika-wirtschaft.org/index.php?&pageID=44]]> Wirtschaft Südafrika in Deutschland Topnews Wed, 28 Jan 2009 16:50:00 +0100 Sponsors still ‘firmly on board’ for 2010 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=69&cHash=8a13bc03e326a3f17d1094128b2e936a FUNDING for the 2010 Soccer World Cup will not be affected by the economic downturn, with all sponsors still firmly on board for the tournament, according to Fifa secretary-general Jerome Valcke....
    Speaking at a press conference in Johannesburg yesterday, Valcke said major sponsors for the World Cup were signed up until 2014.

    “Business is good,” he said. “We have not received a single call from one of our sponsors and all the broadcasters, including SABC, are on board. No one has come to us in the present crisis to say they want to discuss or renegotiate their deal with us.”

    Valcke said that with the exception of ticketing-system partner Satyam Computer Services, which is embroiled in a scandal over inflated profit reporting, they had no concerns about their partners. Fifa has thrown its support behind Satyam but has said it would monitor the situation to ensure that India’s fourth-largest software exporter was able to meet its obligations.

    The six main corporate sponsors are Sony, Adidas, Hyundai, Coca-Cola, Emirates Airlines and Visa, followed by second-tier sponsors that include MTN, Continental and McDonald’s.

    Provincial and Local Government Minister Sicelo Shiceka, Deputy Safety and Security Minister Susan Shabangu, Deputy Foreign Minister Sue van der Merwe and treasury director- general Lesetja Kganyago replace Essop Pahad, Jabu Moleketi, Sidney Mufamadi, Charles Nqakula and Aziz Pahad on the board of the local organising committee (LOC).

    LOC chairman Irvin Khoza said the new appointments would not affect progress as most of the legwork was being done by department officials who had not been removed. “The capacity lies with the departments and they have the know-how,” he said.

    The CEO of the LOC, Danny Jordaan, also reassured the public that the LOC believed that transport would be up and running in time for the tournament next year.

    On the issue of the taxi industry’s opposition to the bus rapid transit system, Jordaan said the LOC had met the transport ministry to encourage them to engage taxi organisations in a bid to resolve the impasse.

    The transit system “is part of the effort to strengthen the country’s transport system and is vital to the World Cup”, he said. Chantelle Benjamin and Calli Roberts]]>     FIFA WM 2010 Wirtschaft Tue, 27 Jan 2009 11:02:00 +0100     Motlanthe signs bill for SA space agency http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=51&cHash=9944f19d362c1b3603a5e406c038b4cf President Kgalema Motlanthe today signed a Bill which will see the country set up its own space agency, the Department of Science and Technology said. Spokesperson Nhlanhla Nyide said the Act could... Wirtschaft Politik Pressespiegel Mon, 19 Jan 2009 13:01:00 +0100 Offshore professionals queue for SA jobs http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=50&cHash=a4d5cac8c93df826693e38b8fbdb1937 Recruitment agencies have reported a dramatic increase in the number of international professionals and South Africans living abroad who are seeking employment in South Africa after the waves of... www.busrep.co.za ]]> Wirtschaft Südafrika Pressespiegel Mon, 19 Jan 2009 12:54:00 +0100 Optimism beats pessimism in SA business http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=49&cHash=f541e89c90af6b382faeeef1577ae595 The Grant Thornton consultancy group released a survey showing that South African owned businesses are the 6th most optimistic in the world for 2009. Last year South Africa was ranked 9th of the 36...  
    Dennis Dykes, Chief Economist of the Nedbank Group, says that the results of the survey are not surprising. “Sentiment around the world has turned overwhelmingly negative as the effects of the financial crisis started becoming apparent. South Africa has been relatively shielded by a healthy banking system as well as the fixed investment boom ahead of the FIFA 2010 World Cup. Additionally, the 2010 event should continue to soften the effects of the global crisis, and lower interest rates and oil prices should help a modest recovery in the second half of the year.”
     
    South African business expectations saw marginal declines in selling prices (down from 64% in 2008 to 60% in 2009) and exports (down 25% to 20%). There were more dramatic declines in employment expectations (down from 43% to 11% year-on-year) and profitability (down from 53% optimistic in 2008 to 21% in 2009). South Africa is not alone in being optimistic about 2009. Botswana is the only other sub-Saharan country which participated in the IBR 2009, and the country’s business optimism soared from 66% in 2008 to 81% in 2009. This ranked Botswana as the second most optimistic country in the survey, behind India, and the country whose business optimism levels increased the most from 2008. http://www.sagoodnews.co.za]]>     Wirtschaft Südafrika Pressespiegel Fri, 16 Jan 2009 12:50:00 +0100     Sub-Saharan Africa's economy grew by 5.4% in 2008 http://www.suedafrika.org/index.php?id=58&tx_ttnews%5Btt_news%5D=43&cHash=015ce866f5c89ebaddc596f66e04816d Sub-Saharan Africa's economy expanded 5.4 percent in 2008, the first time in more than 45 years that growth exceeded 5 percent for five years in succession, and despite substantial deterioration in... Sub-Saharan Africa's strong economies
    According to the World Bank's Global Economic Prospects for 2009, GDP gains in the subcontinent have been broad-based and less volatile, even in oil-importing economies, as strong commodity export revenues and capital inflows underpinned domestic demand. "Another notable and encouraging feature of the recent growth spurt is the sustained contribution of fixed investment to growth, which carries positive implications for long-term potential growth. "Strong external demand, high commodity prices, and relatively robust private capital inflows invigorated growth across a large spectrum of economies, whether resource rich or resource poor," said the report. Oil-importing economies, outside of South Africa, grew 5.2 percent in 2008, down from 5.8 percent in 2007, while oil-exporting countries grew by more than 7.5 percent for a second consecutive year. However, the World Bank said that several years of above-trend economic expansion have pushed a larger number of African economies up against capacity constraints stemming from inadequate investment in energy, roads, railways, and ports over the past decades. This constraint along with high food and fuel prices has contributed to the upturn in inflation witnessed across the subcontinent during the year. The World Bank expects growth in subcontinent to slow to 4.6 percent in 2009, as a result of the global financial and economic crisis. The effects of the crisis are likely to be much more limited in Sub-Saharan Africa than in other regions, because African economies are less integrated into the international financial system and rely relatively less on international capital and bond markets to finance investment. For more information, visit the World Bank website. ]]>     Wirtschaft Pressespiegel Tue, 13 Jan 2009 11:55:00 +0100