SA News

SA should not be despondent: Minister Gigaba

Pretoria - While South Africa has its challenges, the country should not be desponded following announcements made by rating agencies, Finance Minister Malusi Gigaba said on Tuesday.

South Africa currently has R2.2 trillion in public debt, with approximately 10% of this debt being denominated and repaid in foreign currency.

On Monday, Standard & Poor’s lowered its credit rating for this portion of the country’s public debt to below investment grade.

“Our rand denominated debt, which constitutes 90% of the debt portfolio, remains investment grade rated. Moody’s, which continues to rate government debt two notches above sub-investment grade, has indicated their intention to review the rating,” the Minister said.

Addressing media at the National Treasury offices in Pretoria, Minister Gigaba -- who earlier in the day held a meeting with former Finance Minister Pravin Gordhan -- said while the decision is a setback for South Africa, he is confident in the South African economy.

“We acknowledge that yesterday’s announcement was a setback. Despite our current challenges, now is not the time for despondency. We have many strengths we can leverage to grow our economy inclusively. We will act decisively as government,” he told media following the meeting.

The main reasons given by S&P for the downgrade include the recent executive changes, which they say have put at risk fiscal and growth outcomes.

The Minister said the decision by Moody’s to initiate a review for a downgrade was prompted by the abrupt change in leadership at key government institutions.

“A country’s investment grading becomes junk status when two of the three ratings agencies actually downgrade it to that status. What this means is that it’s a setback but we have no reason to be despondent,” he said.

Commitment to fiscal consolidation

Minister Gigaba said while the executive leadership of the finance portfolio has changed, government’s overall policy orientation remains the same.

“Government has been and will remain committed to a measured fiscal consolidation that stabilises the rise in public debt. The fiscal trajectory that our country is pursuing will continue. Our fiscal objectives remain unchanged. We are committed vigorously to pursuing economic growth in an inclusive way,” he said.

He said South Africa, which recognises the concerns raised by the rating agencies, will address these concerns.

He said, however, the agencies have acknowledged South Africa’s strengths, which include a stable monetary framework, giving government confidence.

“Going forward, we will be dedicating energy to engage with business leaders, organised labour and rating agencies. We will act with urgency to accelerate inclusive growth and development so that we can reverse poverty, unemployment and inequality,” said Minister Gigaba.

Government has said there is a need to reignite South Africa’s growth engine.

Plans to meet rating agencies

Minister Gigaba said he intends in the near future to lead a delegation of stakeholders to meet with rating agencies, including Moody’s and Fitch, which will announce its rating decision on Friday.

“We need to address perceptions about political stability and reassure them of our intention to steer the course,” said the Minister, adding that government has not abandoned radical economic transformation, with a focus being set on industrialising the economy.

Meanwhile, the Minister said he intends to meet with stakeholders such as Chief Executive Officers of banks as well as labour. – SAnews.gov.za

The Southern Times

Mineral beneficiation – Without political will, SADC will fall short

Aug 29, 2016

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By Ranga Mberi

THOUSANDS of years after the first miners dug up ore on the continent, Africans are yet to figure out just how best to benefit from their minerals.

Conventional thinking would have us believe mining only started when columns of colonials rolled in on their wagons, bargaining with locals, “discovering” gold and setting up the roots of the multinationals we see today.However, mining in Africa is in fact as old as time itself.

The Ngwenya Mines of Swaziland, according to UNESCO, were mined an astonishing 40 000 years ago. In Zimbabwe, as across Africa, there are heritage sites – many of which we have not protected well – that show pre-colonial African expertise in mining.

While they traded much of their minerals, a lot of what they dug up ended up on their necks and wrists as ornaments, or as tools for farming and hunting. They were practising what today, centuries later, is being debated in boardrooms, convention centres and in all sorts of scholarly articles – mineral beneficiation.

Across Africa, next to resource nationalism, governments are talking up beneficiation, or value addition, as the next frontier in making sure Africa benefits more than it has, for centuries, from its vast mineral wealth.

It is not a new debate. The AU Mining Vision, published in 2009, sought to find ways of driving this agenda. That document came at the crest of the commodities boom, which had seen many mineral-rich African countries boost their economies.

There was just one problem with all that. Mineral prices move in cycles. African countries that have depended on resources such as oil and metals know this all too well; you rely too much on resources, and you are setting yourself up for trouble when prices suddenly go through the floor.

The AU then came up with a plan. African countries, it said, needed to ensure its minerals turned its economies into diversified industrial hubs. No more should they just export minerals in raw form, but they should use those minerals to drive industrial growth at home.

It was a vision proposed in many plans at national and regional levels. Among these were the Lagos Plan of Action, SADC Mineral Sector Programme, Mining Chapter of NEPAD, and the Africa Mining Partnership.

However, beneficiation takes more hard work than it appears.

Mining is capital intensive. Projects are funded decades in advance, and by funders that demand assurances on resources and guarantees on markets.

It will not only be the mines that will need a culture shift. Governments too will have to change their approach.

A good place to start is South Africa, the continent’s mining powerhouse.

A paper by South Africa’s Department of Mineral Resources (DMR) found that it could not force beneficiation on mining companies without first ensuring “intensive co-ordination” across a range of its departments. The DMR found it needed to build new links between dozens of departments; mineral resources, economic development, trade and industry, science and technology, public enterprises, energy and treasury, as well as business and labour.

Secondly, does Africa have the necessary infrastructure? Beneficiation is an energy-intensive industry. It means the smelting and re-smelting of production. Can our African power plants, already struggling to cope with existing industries, meet the demand? Can we supply power to these plants at competitive tariffs?

Thirdly, once we have produced all those value added products, do we have the markets? Are we able to sell them at competitive prices? Can we compete with the skills of jewelers in Italy or the low labour costs of India?

How much have our African governments invested into research and development? 

Zimbabwe has recently sent diamond cutters for training in China. It is a good step, but do we have enough skills training plans to sustain all this going forward?

An idea would be to integrate regionally, and build, for example, regional jewelry hubs. However, given the lethargy of regions such as SADC on integration, is there much hope for this?

One can imagine governments developing special economic zones that are exempt from duty and VAT for manufacturers. Factories would need access to inputs at competitive prices. They would need good incentives to invest in R&D.

The solution lies in our governments’ ability to make it attractive for manufacturers to add value to our resources. They must be able to do that at low cost, with good skills, using clean, affordable energy. Only then would our products compete.

So, while beneficiation sounds nice in the bid boardrooms and conference centers, the reality is somewhat tougher. Achieving it will take huge political will, the likes of which many African governments still find hard to muster – even after 40 000 years of mining.

SA News

SA: Government improving lives in rural areas

April 4, 2017

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By:– SAnews.gov.za

Mbizana – President Jacob Zuma says government is making strides in improving the lives of people especially those in the rural areas.

“We have committed ourselves to developing our rural areas. We want all our rural areas to have economic activities so that our people can have jobs and also be able to make a living from the land and from small businesses in rural areas,” the President said on Friday.

He was speaking at the official launch of the Mbizana Rural Enterprise Development (RED) Hub, an OR Tambo Centenary Project at Dyifani village, in Mbizana, in the Eastern Cape.

A total of R53.5 million has been invested in establishing and operating the Mbizana RED Hub.

President Zuma said there is a need to stimulate growth through agriculture.

“It cannot be that we must all go to the cities to earn a living,” he said.

President Zuma said he is pleased with the creation of the RED Hub as one of government’s efforts to stimulate growth through agriculture and agro-processing.

“This development will alleviate poverty and address low levels of development in the District. We are aware that agriculture is the third highest contributor to the Alfred Nzo District’s economy,” he said.

He said there is an urgent need for major new private sector investments to create jobs and improve livelihoods in the area.

“Our people must make a living from the land, and must also not go hungry when they can produce food from the land. We are thus happy with the partnerships between the local municipality and other stakeholders to embark on massive grain production with the aim of addressing high level of poverty in the area,” the President said.

According to President Zuma, the government has spent R100 million on the Ilima/Letsema national conditional grant projects aimed at eradicating poverty and stimulating the economy.

To date, the total amount invested by government in the RED Hubs over the past three years is R190 million.

“We urge the whole of government to support local farmers by increasing public procurement of agricultural products from our own primary producers,” he said.

President Zuma called on the national government to support the farmers to ensure that they grow and move from being subsistence farmers to commercial farmers.

The locals gave the RED HUB project a thumbs-up, saying it is going to create jobs for the locals.

“I am happy with the project since it is in my area and it is going to reduce the high rate of unemployment in the area,” said Xolelwa Majoni, a local resident.

“The project is not only about food, as the locals we are also going to learn a lot about agriculture,” she said.

Echoing the similar sentiments was Japhter Tsolo, also a local resident, who told SAnews that he is now able to provide for his family.

“I am employed at the project processing mealie mealie and packaging for the market,” he said.

The Mbizana RED Hub is one of the four RED hubs in the Eastern Cape, implemented by the Rural Development and Agrarian Reform (DRDAR)’s agency, the Eastern Cape Rural Development Agency (ECRDA) and covers six wards which constitute 14 villages in the Mbizana local municipality, Alfred Nzo District Municipality.

The RED Hub will service the villages with a strong focus on value addition of grain as well as Hub primary production, mechanisation and establishment of a trading centre for farmers to assist cooperatives in growing the local rural economy to create jobs and sustainable livelihoods.

The funds for the initiative have been provided to ECRDA by the Eastern Cape Provincial treasury and ECRDA is implementing the initiative.

The Mbizana RED Hub planted 986 ha in 2014/15 crop production season at 13 primary cooperatives.

The total white maize yield that was bagged was 317 tons and 226.5 tons was sold to Mqanduli RED Hub.

In 2015/16 crop production season, there were only 488.1 ha planted land with white maize. This was attributed to the dry and hot drought conditions that affected the entire country. In 2016/17 crop production season, there is approximately 1459 ha planted land with white maize.

Among others, who attendant the launch was Agriculture Deputy Minister Bheki Cele, the Eastern Cape Premier, Deputy Minister Stella Ndabeni-Abrahams and senior government officials.

SAnews.gov.za

SA to promote Special Economic Zones in China 

Pretoria - South Africa will embark on a roadshow in China to attract investment in Special Economic Zones (SEZs).

Trade and Industry Minister Rob Davies oversaw the signing of a Memorandum of Understanding (MoU) between the Department of Trade and Industry (dti) and the Bank of China on Monday.

Speaking following the signing ceremony in Johannesburg, Minister Davies said the move would bear immediate results when the roadshow to promote SEZs kicks off in May.
Through the MoU on strategic cooperation, the dti and the Bank of China have agreed to cooperate on issues of investment promotion and facilitation, trade promotion and projects support.

The bank will also mobilise international and domestic resources to promote investments for South Africa in its capacity as a commercial bank.

“I am pleased that there are already plans to move speedily in implementing the MoU, as there are arrangements in place for the Special Economic Zones investment roadshow that will take place in China in early May. 

“The main purpose of the roadshow is to promote our SEZs in China and showcase the opportunities that are available there, with the view of attracting more investment in the SEZs,” said Minister Davies.

Minister Davies said China was not only South Africa’s largest trading partner but it has also emerged in recent years as a significant investor in both infrastructure and industrial projects in South Africa.

“China’s investments in South Africa are important particular to the dti as they boost the department’s efforts to industrialise the country. Financial institutions like the Bank of China play a very critical role in the facilitation investment projects in the country.

“We are optimistic that the MoU will strengthen cooperation between SA and China in a number of areas, including trade missions, joint marketing activities, investment and industrial finance,” said the Minister.

The MoU was signed by the Director-General of the dti, Lionel October, and the General Manager of the Financial Solutions Department at the Bank of China, Ren Li.

SEZs are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country.

The dti’s 2014/15 - 2016/17 Industrial Policy Action Plan identifies SEZs as key contributors to economic development. They are growth engines towards government's strategic objectives of industrialisation, regional development and employment creation. – 

SAnews.gov.za

The Presidency

President Zuma appoints members to the Judicial Service Commission

3 April 2017

 

President Jacob Zuma has in terms of section 178 (1)(J) read with section 178(3) of the Constitution of the Republic of South Africa, 1996, and after consulting with the leaders of parties represented in the National Assembly, appointed three persons as members of the Judicial Service Commission.

The following members have been appointed:

Advocate Thandi Norman SC

Advocate Thabani Masuku

Mr Sifiso Msomi.

The Judicial Service Commission was established in terms of section 178 of the Constitution and consists of 23 members. In terms of section 178 (5) of the Constitution, the JSC is entitled to advise the national government on any matters relating to the Judiciary or the administration of justice.

President Zuma has congratulated the new members of the JSC and wishes them all of the best in the execution of their responsibilities. 

The Presidency

The Presidency

Employment of SANDF members in fulfilment of the international obligations

3 April 2017

President Jacob Zuma has, in terms of section 201(2)(c) of the Constitution of the Republic of South Africa, 1996, extended the employment of members of the South African National Defence Force (SANDF) for service in fulfilment of the international obligations of the Republic of South Africa towards the Southern African Development Community (SADC) maritime security, in the Mozambique channel.

Two Hundred (200) members of the SANDF were employed to monitor and deter piracy activities along the Southern African Coast of the Indian Ocean. They will continue monitoring and deterring piracy activities along the Southern African Coast of the Indian Ocean.

The employment has been extended for the period 01 April 2017 to 31 March 2018.


The Presidency
 

News24

Zuma does not need to consult before reshuffling his cabinet - Mbete

2017-04-02 22:14

 

Amanda Khoza and Sisa Canca News24

Baleka Mbete

Johannesburg – National assembly speaker, Baleka Mbete, on Sunday said President Jacob Zuma does not need to consult anyone if he wants to reshuffle his cabinet.

“There is no ANC process that requires the president to come and have a conference with us about reshuffles…it’s not like there is a rule that obliges him to come and have a discussion about his thinking.

“The president called me on Thursday and told me what was going to be announced, but not the detail,” Mbete said earlier on Sunday.

She was briefing the media after cutting short her work visit to Bangladesh to address requests she received to urgently convene a sitting to process yet another proposal for a motion of no confidence in President Jacob Zuma.

"The Court was, among others, asked to compel Parliament to urgently schedule a motion of no confidence in the president. No finding was made against the speaker in respect of the relief sought by the official opposition." She was referring to President Jacob Zuma's much anticipated cabinet reshuffle which saw the axing of Finance Minister, Pravin Gordhan and his deputy, Mcebisi Jonas.

Mbete said she would begin a process of consultation contemplated in the rules, in consideration of the request submitted.

On the process, Mbete said the constitution clearly stipulated what should happen.

“The constitution in section 102:2 says that the president and the rest of the cabinet will have to resign.  And in section 86, the constitution provides that when there is a vacancy in the office of the president, the Chief Justice must set the date and time for the election of a new president and that must happen within 30 days.

“A secret ballot is not part of what we do. It’s not provided in the rules. So we simply just don’t do secret ballots, until one day maybe there is enough pressure from the MPs themselves and the rules are changed, then we will do that. When the rule allows that, but right now, we have no basis for secret ballot,” when asked about the voting process. 

Present

On the reshuffle she said she was present on Monday where a bilateral meeting took place with the SACP.

“The president actually did brief that meeting about concerns relating to the treasury and the actual issues relating to the trip abroad. I was there when that briefing was first given by the president.

“He shared with us not just the specific report from intelligence relating to that actual visit, but some historic background. That I appreciated. We were all happy that he took (us) into (his) confidence.”

On members of the top six who had openly criticised Zuma, she said, “The fact that there have been differences expressed is not something for us to be surprised about because we allow people in the ANC to differ and express their differences, although we normally have it done such that it’s not everybody having a free for all, it’s not every leader for themselves.

“We have always prevailed on our cadres that what is expected is that the one with the specific responsibility to speak on behalf of the organisation, should do that. The one thing we’ve learnt in the past is that our people always express disquiet and unhappiness about us differing in public.”

She said now that people had aired their unhappiness in public, “we will now come back together and bring together our voice so we can address the public in a manner that will reassure them.”

“The fact that we can’t satisfy everybody all the time is a different matter.”

She said she appreciated the fact that the Zuma “took us into (his) confidence on a range of matters in the experience of his work with these particular ministers… I will talk when I have been favoured myself, having participated together with the leaders of the ANC that would be in the constitutional structures that would meet tomorrow. Then I can have a basis on which I can have a better understanding of details, and what is going on because I can’t comment on things that happened in my absence.

No question of agreeing

“Yes, members of the top six have shared views about what was going on including what happened that we’re all speaking like that.  When I have a full appreciation of that, maybe I will comment.

“We have a way and we have agreed to do things. We have a culture, we have meetings. We are brutally frank when we are in those meetings, but there are things... just don’t do but I will express myself in the ANC meeting,” she said. 

On the intelligence report, she said “The president talked about it.  We did not see it, we did not discuss it. So there was no question of agreeing or not agreeing on it.  Or approving or not approving of it.  It was part of a package of issues that the president touched on as a background.

“I’m saying we appreciated the fact that he took us into (his) confidence as a head of state who deals with a range of issues that are very complex.  Many of which no head of state ever discusses with anybody.

“There is no ANC process that requires the president to come and have a conference with us about reshuffles.  We don’t do that by the always comes to the officials [sic] but it’s not like there is a rule that obliges him to come and have a discussion about his thinking,” said Mbete.