Archive for February, 2012

South Africa is hoping to sustain between 50 000 and 100 000 new jobs in its construction sector as the country rolls out the large-scale infrastructure plan announced by President Jacob Zuma during his State of the Nation address earlier this month.

Over the next three years, the government plans to invest billions of rands in infrastructure projects that include the building of dams, roads, schools and rail systems, with Finance Minister Pravin Gordhan last week listing 43 major projects adding up to R3.2-trillion in expenditure over the next three years.

A massive overhaul of the country's public transport system is also on the cards as infrastructure is expected to double over the same period, in line with the country's New Growth Path.

The government and state enterprises are expected to allocate funding estimated at R262-billion over the next three years to transport and logistics infrastructure, including Transnet's spending on pipelines.

Role for the private sector

While a big chunk of the money is expected to come from the national fiscus, especially for public service facilities, Transport Minister Sibusiso Ndebele said on Tuesday that the private sector would be called on to ensure that various forms of financing were explored to fund the build process.

He said the government will soon meet with the private sector and social partners to map out alternative funding models through an infrastructure summit to be convened by President Jacob Zuma.

Speaking during an Infrastructure Development Cluster briefing in Cape Town, Ndebele said public entities such as Eskom and Transnet would finance their investments from internally generated surpluses and borrowing from capital markets. In some cases, a mix of tax finance and cost recovery measures would be imposed.

"We make budget contributions to the cost of commuter transport services and electricity and water service delivery to low-income communities, for example," Ndebele said.

Rail sector overhaul

As part of the reforms in the rail sector, the acquisition of new passenger coaches will be prioritised in the next 20 years into two 10-year batches, with 3 600 vehicles expected to be purchased in each batch.

The government wants to replace the entire existing fleet over this period, with a feasibility study to explore the project scope already done last year. The Treasury has set aside R1-billion for the upgrade of signalling and the building of depots ahead of the arrival of the new fleet.

Ndebele said that at this stage it was anticipated that a minimum of five new depots would be required for the new trains at a total cost of R4.6-billion. Furthermore, infrastructure interventions amounting to R13.5-billion will be made on the existing networks to enhance the technological benefits of the new coaches.

It was envisaged that the establishment of local manufacturing industries will result in substantial number of jobs over the 20-year period, while the authorities also hope to recover rail skills that have been lost over the over decades.

Growth between provinces

To stimulate economic growth between South Africa's provinces, the plans will include beefing up the Durban-Gauteng transport corridor, improving the industrial and agricultural development and export capacity of the Eastern Cape, and expand the Eastern Cape's economic linkages with KwaZulu-Natal and the Northern Cape.

On the public transport strategy, introduced in 2009, Ndebele said that so far the bus rapid transit system has recorded 45 000 passenger trips in Johannesburg and 100 000 in Nelson Mandela Bay.

While the system has thus far been operating fully only in Gauteng province, the national Budget makes provisions for the development of integrated public transport networks in five cities by 2015.

Source: BuaNews

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

South Africa is fast becoming one of the world's favourite destinations for big events, meetings, conferences and exhibitions, Tourism Minister Marthinus van Schalkwyk told delegates at the Meetings Africa expo in Johannesburg on Tuesday.

According to Van Schalkwyk, the country has already secured over 200 international conferences over the next five years, which are expected to attract around 300 000 delegates and provide an economic boost of more than R1.6-billion.

"We will encourage business travellers to stay longer to explore our country's tourist offerings and, of course, to return with their families," Van Schalkwyk said.

Van Schalkwyk said South Africa's capability and infrastructure for business tourism was superb.

"Besides the three big national convention centres in Johannesburg, Cape Town and Durban, our destination is home to numerous other facilities that give the world's meetings and conference organisers the same quality, variety and choice that South Africa offers across the larger tourism sector."

National Convention Bureau of South Africa

Meetings Africa is the biggest business-to-business tourism exhibition on the continent.

This year's event introduces the industry to the National Convention Bureau of South Africa, an entity that will give the larger industry a strategic and operational platform from which to boost the country's business tourism global competitiveness.

The National Convention Bureau, which starts operating in April, will be central to South Africa's ambition to leverage the global opportunities to remain Africa's number one host of meetings and conferences.

Established in November and headed up by executive manager Amanda Kotze-Nhlapo, the Bureau will act as a "one-stop shop" for independent information and assistance, giving neutral advice on all aspects of hosting and organising any business tourism-related event in South Africa.

The Bureau has set a target for 2012/13 of supporting at least 30 bids for new international meetings, with a potential of 18 000 delegates and R162-million in direct economic spend.

More than 200 international hosted buyers are attending Meetings Africa this year, engaging with the South African and regional industry to conclude deals which seek to grow business tourism arrivals.

The buyers, hosted by South African Tourism, come from 18 markets which include the United Kingdom, USA, Australia, Kenya, Germany, Netherlands, China, Brazil and Nigeria.

Source: BuaNews

South Africa's economy grew at a rate of 3.2% in the fourth quarter of 2011, up from a revised 1.7 percent in the previous quarter, with the country's trade industries - wholesale, retail and motor, catering and accommodation - leading the way.

"The seasonally adjusted real GDP at market prices for the fourth quarter of 2011 increased an annualised rate of 3.2% compared with an increase of 1.7% revised ... during the third quarter of 2011," Statistics South Africa's (Stats SA's) executive manager of national accounts, Gerhardt Bouwer, said on Tuesday.

The 3.2% was slightly better than the market expectation of a 3.1% quarter-on-quarter increase.

The wholesale, retail and motor trade, catering and accommodation industry and accommodation industry contributed 0.7% to the increase, followed by the manufacturing industry and general government services, which each contributed 0.6%.

Growth in manufacturing was led by strong growth in the production of basic iron and steel, among others. The finance, real estate and business services also contributed, followed by the transport, storage and communication industry. However, in the fourth quarter the agriculture sector fell by 5%.

2011 growth estimated at 3.1%

The first preliminary annual estimates indicate that the economy grew by 3.1% in 2011.

"The estimates indicate that the real annual GDP at market prices for 2011 increased by 3.1% compared with 2010, when the real annual economic growth rate was 2.9%," Bouwer said.

Finance, real estate and business services contributed 0.7%, based on an increase of 3.5%, to the increased economic activity in 2011. General government services and the wholesale, retail and motor trade, catering and accommodation industry each contributed 0.5%, followed by manufacturing, which contributed 0.4% based on an increase of 2.4%.

The country's nominal gross domestic product at market prices in 2011 was R3-trillion. This is R303-billion more than in 2010.

In 2011, general government services expanded by R49-billion to R434-billion, while the wholesale, retail and motor trade, catering and accommodation industry expanded by R44-billion to R386-billion.

Finance, real estate and business services expanded by R43-billion to R565-billion, and the mining and quarrying industry expanded by R33-billion to R260-billion.

Slower growth expected in 2012

Nedbank economists said slower growth was expected in 2012, with lower demand from European countries likely to contain exports and production in the agriculture, mining and manufacturing sectors.

Consumer spending is expected to support domestic trade, while value added by general government - which has expanded rapidly - is likely to moderate due to budget constraints.

"Overall GDP growth is expected to slow to 2.7% in 2012 as a whole," the economists noted, adding that the data confirmed the South African economy remains vulnerable.

Standard Bank said it remained of the view that the Reserve Bank's benchmark repo rate would remain unchanged at 5.5% for 2012.

"Despite sub-3% GDP growth expected this year, we believe that sluggish economic growth will prove insufficient to sway the Bank in favour of a rate cut, given the expected protracted breach of the upper inflation target," the bank said. "Inflation is expected to remain above 6% throughout this year."

Source: BuaNews

South Africa's National Youth Development Agency has launched the Ithubalentsha Micro Enterprise Programme, which will provide young aspirant and established entrepreneurs with training, mentorship, micro-enterprise finance, market linkages and access to business opportunities.

According to the agency, young entrepreneurs face several barriers including lack of finance to start or expand their businesses, inadequate mentorship and business opportunities, and lack of business management and other appropriate skills.

This is especially the case with for young people in rural and peri-urban areas, as well as young people with disabilities.

It says all these factors combined often become entry barriers to business or result in a high failure rate among start-up businesses initiated by young entrepreneurs.

The programme seeks to address this through five key areas: identification and technical training, entrepreneurship training, micro-enterprise finance, business mentorship and business opportunities and market linkages.

"What the programme aims to achieve is to give young entrepreneurs the exposure that they need to succeed by facilitating access to mentors and business opportunities in both public and private sectors, while also empowering them with the relevant skills and start-up loans ranging from R1 000 to R100 000," explained NYDA chief executive Steven Ngubeni in a statement last week.

According to statistics, an estimated 73% of South Africa's youth, who make up 42% of the country's population, are unemployed - a reality that needs to be addressed if the country is to effectively eradicate poverty, he said.

"We believe that the Ithubalentsha Programme will go a long way in creating direct and sustainable employment for young people thereby alleviating the scourge of youth unemployment, which is a major concern to the NYDA."

While the programme is aimed at young aspirant and established South African entrepreneurs between the ages of 18 and 35, preferences will be given to young people in rural and peri-urban areas and to those living with disabilities.

Call for volunteers

The agency is calling on South Africans experienced in the areas of leadership, management and business to volunteer to be mentors.

"The NYDA recognises that it cannot do this alone. South Africa is what it is today because of the power of partnerships and what they can achieve," said Ngubeni. "We want to partner with the public and private sector and South Africans in general to make the Ithubalentsha Micro Enterprise Programme effective."

Focus is on experienced entrepreneurs, business consultants, middle or senior managers, retired professionals, and life/business coaches.

In addition, an appeal is being made to public and private organisations to avail business opportunities such as procurement, retail and distribution, acquisition of equity stakes and others.

Among those who have come onboard are successful NYDA and Ithubalentsha ambassadors: Rita Zwane, owner of Imbizo Buy & Braai (popularly known as Busy Corner), author and activist for people with disabilities, Nenio Mbazima, and Zibusiso Mkhwanazi, CEO of South African digital marketing agency, KrazyBoyz Digital.

For more information about Ithubalentsha Micro-Enterprise Programme and how to get involved, potential mentors and young entrepreneurs can visit the NYDA website at www.nyda.gov.za or e-mail ithuba@nyda.gov.za.

SAinfo reporter

Thando Cezula

The government's decision to invest up to R1.3-billion in South Africa's industrial development zones will breathe new life into the Eastern Cape provincial economy, says Coega Development Corporation marketing manager Ayanda Vilakazi.

"This money will be spent on the expansion of Coega, South Africa's largest IDZ, as well as the IDZs in East London and Richards Bay," Vilakazi said in a statement last week.

Vilakazi said that while the announcement by Finance Minister Pravin Gordhan during the national Budget Speech of a R3.2-trillion cash injection for infrastructure mega-projects would have far-reaching implications for Coega, it was important to note that the IDZ had already attracted substantial investment on its own.

"The Coega IDZ currently has 21 operating investors, which represents R1.24-billion in private sector investments," he said. "To date, this has created 3 645 construction jobs, 2 985 direct jobs and 25 000 indirect jobs."

He added that the IDZ also had projects worth R7.6-billion in the pipeline for 2012, with other projects either delayed or still being negotiated - bringing total investment to R140-billion.

Manganese corridor, oil refinery

In his State of the Nation address earlier this month, President Jacob Zuma announced a new manganese corridor from the Coega IDZ to the Port of Ngqura, with Transnet set to build a railway line to carry 16-million tons of manganese to the port every year.

During her State of the Province address in Bhisho earlier this month, Eastern Cape Premier Noxolo Kiviet also hinted at the launch of PetroSA's R76-billion Mthombo Oil Refinery project at Coega.

"This could prove to be another big boost to the Eastern Cape economy," Vilakazi said. "It will go a long way to contributing towards the IDZ's continued growth."

In addition, another investment by Chinese automaker First Automobile Works (FAW), which will start building a US$100-million assembly plant by the end of February, will see over 2&nsbp;000 jobs being created at Coega.

Vilakazi said all the projects would act as a catalyst for socio-economic transformation and industrial diversification in the Eastern Cape.

"Investments in infrastructure remain a positive contributor towards job creation, which will be realised in the short-term construction phase as well as the longer-term maintenance and operation phase," he said.

Source: BuaNews

28 February 2012

Nyandeni reported to the team with a right knee injury and the Banyana Banyana coaching staff followed the recommendation of the squad's medical team by withdrawing the FC Rossiyanka player from the tournament.

"Losing a player of Nyandeni's calibre and experience would be a blow to any international team," South Africa's coach Joseph Mkhonza said in a statement, "but I am confident that Banyana Banyana will be able to apply themselves well at this Cyprus tournament.

'Covered'

"We are confident that all playing positions are covered and will not call for a replacement to be flown in from South Africa.

"The spirit in the camp is high as all the players realise that the standard of play at this tournament will give us a good assessment as to what can be expected at the Olympics," he added.

Mkhonza and his technical team still have a host of quality midfielders to choose from in Nomathemba Ntsibande, Leandra Smeda, Chuene Morifi, Memory Makhanya, Mary Ntsweng, Nondyebo Mgudu and Kylie-Ann Louw, with defenders Gabisile Hlumbane and Simphiwe Masina also equally at home in the midfield.

Disappointment

Nyandeni, who has been capped 92 times for her country and scored seven goals, expressed her disappointment at not being able to play in Cyprus. However, she was upbeat about returning to full fitness for the Olympic Games in London in July.

"I was really looking forward to playing in Cyprus as it was at this tournament two years ago that I was spotted by FC Rossiyanka," said Nyandeni, who made her name in South Africa as an enterprising midfielder in the colours of Mpumalanga-based inaugural Sasol League National Champions, Detroit Ladies.

"But Banyana Banyana is not about one player. The players have been together for quite some time, having been in a national training camp in Stellenbosch in January and then the recent three-match stay in Brazil, prior to flying to Cyprus. I am sure there is sufficient depth for the team to enjoy a successful tournament."

"All of the Banyana Banyana players undergo medical assessment when they report in for national team duty and it is unfortunate that Nyandeni will not be able to be considered for team selection due to injury," said Banyana Banyana team doctor Paul Maphoto. "We will remain in contact with FC Rossiyanka in order to monitor the rehabilitation process regarding Nyandeni's injury."

Group

In South Africa's other group matches, they face New Zealand on Thursday, 1 March, and Northern Ireland on Sunday, 4 March.

The rest of the nations competing in the Cyprus Women's Cup include England, Finland, France, Switzerland, Canada, the Netherlands, Italy and Scotland.

Canada has won the Cyprus Women's Cup three out of the four times it has previously been held and is the defending champion.

28 February 2012

The best riders from around the world will converge on the Cascades MTB park in Pietermaritzburg from to 16 to 18 March, and besides newly revised courses, improved spectator facilities and viewing opportunities, and heaps of world-class action, this year's event has added status as the dress rehearsal for next year's World Championships.

For those who aren't familiar with the cycling world, though, what is the 2012 RockyRoads UCI MTB World Cup Pietermaritzburg all about?

Sub-disciplines

Mountain bike, a facet of cycling as is road, track and BMX, has various sub-disciplines with cross country (XCO), downhill (DHI) and marathon (XCM) being the most popular. However, at the elite level, riders are specialist competitors and very rarely participate in more than one discipline.

Cross country, one of two disciplines to be staged at the 2012 World Cup, is a lap orientated event which sees riders start together and race around an off-road circuit of between five and nine kilometres.

Downhill, the other World Cup discipline, involves riders starting individually at the top of a steep and highly technical track, racing down the mountain as quickly as they can, with the winner being the rider who completes the descent in the shortest time.

Major events

The major events on the UCI MTB calendar are the World Championships and the World Cups, while cross country is also part of the Olympics. The World Champs are a once-off event staged annually whereas the World Cup is a series of seven events held around the globe throughout the year.

The 2012 RockyRoads UCI MTB World Cup Pietermaritzburg is the opening event of this year's series and it marks the third time the KZN city has hosted the event after its inclusion in the 2009 and 2011 calendars.

There is added interest in this year's World Cup, though, after the recent announcement that the Cascades MTB Park will proudly play host to the 2013 World Championships, and so riders are eager to try familiarise themselves with the revised tracks in Pietermaritzburg ahead of next year's spectacle.

Qualification

Riders have to qualify to compete on the international stage and there are two branches to the stringent qualification process.

The first way a rider can qualify is if they earn 20 or more UCI points by competing in UCI accredited events, and should they do so they will then be able to compete for their sponsored team.

However, if they don't earn at least 20 UCI points, it is then up to the rider's national federation to decide whether they feel the rider is within their best six riders in a particular age group, and if so they will then have option of sending the rider to participate at the World Cup as a national federation rider.

When it comes to the Olympics, though, there are only 50 male and 30 female places available to all riders throughout the world. A country qualifies to fill one, two or three of these places based on their global ranking, which is determined by the performances by their riders in international events throughout the year.

Countries

The top six ranked countries qualify to send three riders to the Olympics, countries seven to thirteen qualify two riders, and beyond 13, countries qualify a single rider.

It is then up to each country's national federation to decide which of their cyclists they select to send to the Olympics, and it may be that the rider with the most UCI points in a particular country is not the one chosen to got to the Games.

Local assault

South Africa will enjoy an extensive display of home-grown talent at this year's World Cup with Burry Stander (XCO) and Greg Minnaar (DHI) leading the local assault.

Minnaar put in a phenomenal effort in 2009 to claim a fairy tale victory on his home turf, while another solid performance in 2011 saw him finish a narrow second.

Stander claimed a memorable third place in 2009, but the standout performer suffered unfortunate mechanical issues in 2011, which saw him limp home in 11th place.

Both riders, along with the rest of the South African challengers, will be eager to impress in front of what is always a hugely vocal and supportive home crowd.

Tickets

A variety of ticket options are available including single day entry, family and VIP packages and multi-day entry combos. Discounted pre-event tickets can be purchased online from Cycling South Africa or full price tickets can be purchased at the gate throughout the event.

The RockyRoads UCI MTB World Cup Pietermaritzburg takes place at the Cascades MTB Park from 16 to 18 March.

SAinfo reporter

Travel advice

A package of tips to help make your stay with us smoother.

Members of households with no income, students seeking bursaries, job-seekers looking to be re-skilled ... Deputy President Kgalema Motlanthe has called on South Africans who need help from the government to come forward so they can be assisted.

"We are keen to help those who need help," Motlanthe said during a visit to government War on Poverty projects in Krugersdorp, Gauteng province on Friday.

Motlanthe encouraged those who needed assistance to seek help at their local municipal offices.

"When people are assisted, they must make a meaningful contribution to the economy," he added, emphasising that the government was willing to help by re-skilling individuals who had the potential to steer their households out of poverty - calling such individuals "change agents".

The government's War on Poverty campaign, launched in August 2008, targets the most deprived communities in the country, seeking to reach people with limited or no access to any of the services or programmes offered by the government.

Motlanthe was visiting one of these projects, in the form of a food bank set up by the Gauteng provincial government to provide relief to households in distress. The food bank currently supplies food and other essentials to around 60 000 individuals.

Motlanthe also visited a small-scale farm in Dunkod which produces herbs and a range of vegetables and supplies to various retailers. The Gauteng government handed over a pack house to the farm as part of government's programme to assist emerging and small-scale farmers.

Motlanthe noted that one of the best ways to win the war on poverty was for people to start growing their own vegetables.

Motlanthe was accompanied on his Krugersdorp visit by Gauteng Premier Nomvula Mokonyane, Minister in the Presidency for Performance Monitoring and Evaluation, Collins Chabane, MECs and senior provincial government officials.

Other dignitaries included Energy Minister Dipuo Peters, Water and Environmental Affairs Minister Edna Molewa, Rural Development and Land Reform Minister Gugile Nkwinti, and Deputy Human Settlements Minister Zou Kota-Frederics.

Source: BuaNews

27 February 2012

"The ongoing concern from business and communities about high electricity costs is receiving serious attention," Peters said at a BMF breakfast meeting in the Northern Cape on Monday. "Government will announce a way forward in this regard soon."

"The Department of Energy, relevant departments and Eskom are looking at other ways of reducing electricity tariff increases, meaning lower bills for businesses, for which electricity is the major cost input to most business and key industries."

In his State of the Nation address earlier this month, President Jacob Zuma said he had asked state company Eskom to look at other ways of reducing its price increases.

Diversification of the energy mix

Peters said diversification of the country's energy mix was increasingly important. "We pursue a balanced energy mix, and for us the different energy sources are not seen as competitive, but rather they are supportive, as none can exclusively meet the electricity needs of our country."

The Department of Energy is working on the second round of renewable energy projects after the first round of over 1 200MW of renewable energy project was successfully tendered.

The department intends to continue to create an enabling environment for the sustainable use of different energy resources in its energy collaboration within the country and throughout the world, the minister said, calling on business to pursue partnerships with foreign investors.

Energy conservation

On the issue of energy-saving light bulbs, Peters said South Africa had already made significant savings have been made.

In the national Budget for 2012/13, tabled last week, R600-million was located to municipalities to install low-energy lighting and equipment, while an additional R4.7-billion was allocated to complete the installation of one-million solar water geysers countrywide. A total of R300-million was set aside for the electrification of informal settlements.

"I urge business to see potential in assisting government in achieving its mandate in the energy sector," the minister noted, adding that the government was looking at an incentive programme for companies investing in energy efficiency.

Source: BuaNews

Open for business

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

Kemantha Govender

The South African women's hockey team have emulated their football counterparts by qualifying for the 2012 London Olympic Games, with a stunning 3-1 win over India in the final of a qualifying tournament in New Delhi on the weekend.

South Africa ended the tournament unbeaten, their only dropped points being in a draw against Italy.

Shelley Russell opened the scoring for South Africa in the first half, with Pietie Coetzee and captain Marsha Marescia scoring the remaining two goals in the second-half. Jaspreet Kaur scored India's only point.

Marescia, who has been with the team since early 2000s, was named player of the tournament.

The South Africa Sport Confederation and Olympic Committee (Sascoc) congratulated the team on their achievement.

"Many people said that we set our qualifying standards too high, but they have proved that they are worthy of their spot," Sascoc CEO Tubby Reddy said in a statement. "Here's to hoping the team go from strength now and continue their fine work as they build up to London."

Sascoc president Gideon Sam congratulated Marescia, coach Giles Bonnet and the rest of the team's support staff.

"Yes, the standards set were high, but having come through this tough and challenging qualifying route, you will no doubt have even more confidence in your ability to do well for your country in London," Sam said.

"Congratulations and rest assured, South Africans all over the world will be joining you in your joy today and supporting you on the road ahead to London."

The hockey team now joins the codes of women's football, canoeing, rowing, athletics (marathon) and road cycling, who have already qualified athletes for the Games.

Source: BuaNews