The Department of Trade and Industry (DTI) will offer incentives worth R5.75-billion over the next six years to help South Africa's manufacturing sector become more competitive in an increasingly difficult global environment.

Speaking at the launch of the Manufacturing Competitiveness Enhancement Programme in Cape Town on Tuesday, Trade and Industry Minister Rob Davies said the world was going through a second wave of the recession brought on by the 2008-09 global financial crisis, with manufacturing coming under particular pressure.

Manufacturing under global pressure

Davies said the sector had been struggling with increasing input costs as well as the monetary policy response of advanced countries - whose ultra-low interest rates had led to money flooding into emerging countries where interest rates were higher, pushing up currencies such as the rand and making exports uncompetitive.

The manufacturing sector contributed 14.6% to South Africa's GDP in 2011, compared to 21% in 1977, while in fast-growing Asian countries manufacturing had been growing - in Korea from 23.6% in 1977 to 30.6% in 2010, in Malaysia from 19% to 26.1% over the same period.

If South Africa wanted to be a leader in Africa, it had to raise its competitiveness, Davies said, adding that those manufacturers that had not boosted their competitiveness around the onset of the global financial crisis were the ones that were hardest hit.

The new programme, which takes lessons from the successful Clothing and Textile Competitiveness Improvement Programme, will complement the state's Industrial Policy Action Plan (IPAP), which was launched in April.

Of the R5.75-billion available to manufacturing firms over the next six years, R1.25-billion had been allocated for this financial year. The programme will be complemented by a loan facility from the Industrial Development Corporation (IDC).

Jobs commitment, BEE rating

Firms that apply for support from the programme are required not to reduce employment during the duration of their participation in the programme. Applicants must also be at level 4 on the BEE scorecard, or have a credible plan on how they plan to do get to level 4 within the next four years.

Davies thanked industry role players, particularly the Manufacturing Circle, for their contributions in compiling the programme, saying he was pleased that the organisation had become more prominent in the manufacturing sector.

Tumelo Chipfupa, deputy director-general of The Enterprise Organisation, said the incentives would be calculated according to manufacturing value added and credits awarded - smaller firms, for example, as well as black-owned and managed firms, would be given a higher weighting when points were calculated.

Grants would be based on a cost-sharing principle, with smaller firms being able to allocate a higher percentage of grants to cover funding for their competitiveness-enhancing projects than bigger firms.

Range of incentives

The coverage offered by each incentives differs, as follows:

• The Capital Investment Grant to upgrade capital equipment and expand productive capacity will cover between 30% and 50% of the investment.
• The Green Technology Upgrading Grant for investment in technology and processes that will make the production process greener will cover between 30% and 50% of the investment.
• The Enterprise-Level Competitiveness Improvement Grant for investment in the adoption of improved manufacturing practices will cover between 50% and 70% of project costs.
• The Feasibility Studies Grant, a cost-sharing grant towards developing a bankable feasibility study for new manufacturing projects, will cover between 50% and 70% of project costs.
• The Cluster Initiatives Grant to help fund shared infrastructure such as a sector technology development centre, market research, international advertising and publicity costs, will cover 80% of qualifying project costs. The grant aims to encourage smaller firms to band together in joint marketing or buying.
• The Working Capital facility will include a revolving 180-day, 6% fixed interest rate facility, while the Distressed Fund consists of a concessionary 6% fixed interest rate loan for applicants that are accessing the IDC's Distress Fund.

IDC to cover for small business applicants

Because most of the grants are in the form of reimbursements paid out only later - often after a firm has had to spend the money it requested coverage for - many small business applicants were likely to experience cashflow shortages.

To counter this, Chipfupa said the IDC would be able to provide upfront to small enterprises while their grants were being processed.

Double dipping in funding, and enterprises that charged import parity pricing, would be excluded from the programme, he added.

Chipfupa said the DTI's current target for addressing applications was 60 days, but said the Enterprise Organisation was aiming to reduce this to 45 days.

DTI director-general Lionel October said applications for the incentives were now available, with the programme due to go live on 1 June.

Source: BuaNews

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

Political and business leaders from the continent and its diaspora will meet in South Africa next week for the Global African Diaspora Summit, which will explore ways of involving the diaspora in Africa's development.

With less than a week to the start of the summit, host country South Africa says preparations are at an advanced stage.

Confirmations for attendance are pouring in, ranging from heads of state to Africans in the diaspora across the Atlantic, International Relations Minister Maite Nkoana-Mashabane told reporters in Pretoria on Tuesday.

The summit will be hosted by the African Union in Sandton, Johannesburg from 23 to 25 May.

"The continent values the significant role the African diaspora played in the struggles against colonialism and apartheid," Nkoana-Mashabane said. "We continue to perceive the diaspora as vital in the pursuit for a peaceful and prosperous Africa."

The summit will consider issues such as the possible inclusion of the diaspora as a sixth region of the African Union, the creation of partnerships between the diaspora and the continent, and the promotion of South-South cooperation for the betterment of the continent and its diaspora.

The summit is expected to endorse an AU Diaspora Volunteer Programme, which would associate the diaspora directly with the development efforts on the continent and give concrete meaning to concept of one African family.

It will also look at the development of a skills database of diaspora professionals; an African Diaspora Development Fund; and the model of a "development marketplace for an African diaspora" as a framework to facilitate innovation and develop entrepreneurship both on the continent and within the diaspora.

Source: BuaNews

South Africa says it is committed to supporting its nomination of Home Affairs Minister Nkosazana Dlamini-Zuma to lead the African Union (AU) Commission, with the backing of the Southern African Development Community (SADC).

"Our government and the SADC region is united behind its candidate," International Relations Minister Maite Nkoana-Mashabane told journalists in Pretoria on Tuesday.

In January, African leaders shelved the election of the new chairperson of the AU's executive arm until July, after both Dlamini-Zuma and the incumbent, Jean Ping, failed to secure the two-thirds majority needed to lead the organ.

The next round of votes will take place at the 19th AU Summit in Malawi in July.

Analysts believe that for South Africa to win the election, it would need considerable support from Francophone African countries.

But Nkoana-Mashabane remained confident that they still had time to rope in support for the SADC nomination. "The region continues to consult widely across all regions on the continent regarding the candidature of Dlamini-Zuma."

She noted that the continent's southern and the northern regions had never had an opportunity to lead the AU, or its predecessor the Organisation of African Unity (OAU), at the level of a chairperson.

Asked what South Africa would do if there was still a deadlock at the July AU summit, Nkoana-Mashabane said they would follow the rule book of the AU.

Dlamini-Zuma was not being fielded as a candidate to pursue the interests of any particular country or region, Nkoana-Mashabane said, adding that her work would be guided by the statutes of the AU as well as decisions of the AU's policy organs, especially the assembly and executive council.

Nkoana-Mashabane was speaking after a meeting in Benin on Monday of an eight-member African Union (AU) ad-hoc committee set up to look into ways of breaking the impasse on the election.

The committee is chaired by Benin and includes South Africa, Algeria, Angola, Cote d'Ivoire, Ethiopia, Gabon and Chad.

According to the minister, certain convergences emerged on the principle of rotation. "The principle of rotation and regional representation is entrenched in the international democratic process of the AU."

The committee will present a report on its deliberations to the AU Assembly at the Malawi summit.

The AU Commission is the secretariat of the AU, entrusted with executive functions. It is composed of 10 officials. The commission has never been headed by a woman.

Source: BuaNews

South Africa will add another international sporting event to its schedule when Durban hosts an Association of International Marathons and Distance Races (AIMS) Children's Series Race on 2 June, the day before the Comrades Marathon.

A member of AIMS, the Comrades Marathon Association (CMA), which receives global recognition from the world body for its contribution to sports' industry, both locally and gloablly, presented a successful bid to the organisation to host the event in Southern Africa for the very first time.

The AIMS Children's Series Race consists of a 10km race and 5km fun run and is aimed at exposing young people to the joys and benefits of running, while also providing them with a tangible opportunity to be a part of the Comrades Marathon experience.

Estimated entry

It is estimated that over 5000 children between the ages of nine and 19 will participate in the event.

The race starts and finishes at the Hoy Park in Durban and the route passes along the very scenic "Golden Mile" on Durban's beach front.

Vice President of AIMS, Martha Morales, who is responsible for the AIMS Children's Series, will be in attendance. "I would like to congratulate the Comrades Marathon Association for its valuable contribution to the social program of AIMS, that is the AIMS Children's Series," she said in a statement.

"South Africa, the birthplace of some of the best athletes [in the world], is the best place to fulfil our objectives," she added.

'Leave a legacy'

"This program is for AIMS and its members and signifies a strong bond of solidarity, cooperation and the best tool to leave a legacy for the growing running fraternity and the world at large."

While the main focus of the event is on the youth, both the 10km race and the 5km fun runs are open to participants of all ages, be they Comrades Marathon runners, their family members, friends or ordinary sport enthusiasts.

The race is a pre-entry event and entries are already open and will be accepted until Wednesday, 30 May at the KwaZulu-Natal Athletics Offices at the Kings Park Athletics Stadium. Online entries are available via the following links:

• 10km run
• 5km run

• Prizes

  There will be lots of prizes for the participants, including individual prize money for the first 10 finishers in the 10km race.

  First place finishers in the male and female races will take home R1 000 each. Schools have not been left out as the top five schools with most finishers will each walk away with prize money.

  All finishers will receive medals and T-shirts and there will be lucky draws too for all finishers.

  For more information, contact KwaZulu-Natal Athletics on (031) 312 9374 or send an e-mail.

  About AIMS

  AIMS is an association of more than 320 race organisations located in over 95 countries and territories. It held its first World Congress in 1982 after two years of work went into setting up the association.

  Its objectives are:

• to foster and promote distance running throughout the world
• to work with the International Association of Athletic Federations on all matters relating to international road races
• to exchange information, knowledge and expertise among the members of the Association

• SAinfo reporter

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Cities

Joburg is the City of Gold, Cape Town the Mother City, PE the Friendly City ...

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

Changes to the incentives for foreign film and television productions will enable local post-production companies to attract work that is not necessarily filmed in South Africa, helping to sustain and grow South Africa's film industry, says Trade and Industry Minister Rob Davies.

Announcing the changes last week, Davies said South Africa's film sector had enormous potential to bring investment into the economy, along with technology transfers that would upgrade the country's skills base.

"The South African government takes cognisance of the contribution the film industry potentially has in stimulating the country's economic growth, strengthening the country's profile in the global creative environment, and in the facilitation of employment creation," Davies said in a statement on Thursday.

"This is one of the best platforms ... to promote and showcase the country's creative skills."

Among the incentives offered to foreign-owned productions that meet the qualifying criteria are: up to 2.5% of qualifying South African post-production expenditure (QSAPPE) for post-production expenditure of R1.5-million to R3-million; and up to 5% of QSAPPE for post-production expenditure of more than R3-million.

According to the Department of Trade and Industry (DTI), the revised incentive is effective from April and will be administered for a period of three years, up to 2014.

"The objective of the incentive is to create an environment that takes advantage of the country's diverse and unique locations as well as low production costs and favourable exchange rates, which makes it significantly more cost-efficient to produce a movie in South Africa than in Europe, the US or Australia," the DTI said.

Davies said that promoting South Africa as an international destination in order to attract more international productions, while encouraging local content production, would ensure that the country continued to enjoy the benefits of a vibrant and growing film industry.

As to the quality of South Africa's offering, Davies said this had been attested to by "productions like Invictus, which was nominated for three Golden Globe Awards, and District 9, which was nominated in the 2010 Saturn Awards for the Best International Film."

Source: BuaNews

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

The University of Pretoria's Gordon Institute of Business Science (GIBS) has taken top ranking among African business schools in the annual UK Financial Times Executive Education survey, announced on Monday.

GIBS has been ranked among the top business schools worldwide for nine consecutive years in the 13-year-old Financial Times survey, which presents a global benchmark for providers of executive education.

The customised ranking is compiled using data from two sets of online surveys - one for schools, another for clients. Business schools are asked for details of a number of top clients, who are then invited to complete an online survey about the school that nominated them.

For GIBS, top clients comprising not only leading South African corporates but also top multinationals operating in the rest of Africa and abroad participated in the survey.

"This is a tremendous achievement for GIBS and clearly places us among the best business schools in the world," Professor Nick Binedell, dean of GIBS, said in a statement on Monday.

"We live by our ethos of aiming to significantly improve the competitive performance of individuals and organisations through business education, and this accolade will drive us to continue to improve our programmes even further in line with the ever changing economic landscape," Binedell said.

GIBS took 43rd spot overall, making it the only African business school to place in the top 50 schools worldwide.

Of the 13 scoring areas, the Financial Times ranked GIBS at 47th for Open Enrolment programmes - which are open to all executives - and at 42nd for programmes tailor-made for specific companies.

GIBS was rated 1st in the world for "future use", defined as whether the client would be using GIBS for future executive education.

"Business schools play an increasingly significant role in today's fast-paced, dynamic world, and it is important to get such feedback from executives so that we can ensure that our programmes meet the highest standards possible on a global scale," said Shaun Rozyn, GIBS' executive director for corporate education.

Sapa

Opportunities, incentives, regulations, assistance.

Brad Morgan

Basketball without Borders will make its ninth trip to South Africa in August. The event will attract the top young talent from around the African continent, which this season has seven people playing for National Basketball Association (NBA) teams in the US.

Promoting the game in SA

Sports Minister Fikile Mbalula, speaking in Parliament in Cape Town on Friday, spoke about his department's push to promote basketball, adding that the South African Broadcasting Corporation (SABC) and the NBA had agreed to push the development of basketball in South Africa.

This would include broadcasting NBA games during the 2012/13 season to promote the game and its grassroots development.

"We are delighted that as a result of our engagement, we are now able to view basketball matches on Sunday evenings," Mbalula told Parliament.

"We are, in partnership with Basketball South Africa and University Sport in South Africa, to develop an all-round strategy for the promotion of basketball in schools and universities."

Promoting global friendship

Basketball without Borders began in 2001 as a joint project of the NBA and Fiba, the world governing body for basketball, with the idea of hosting a camp to use basketball as a common language to promote global peace, friendship and sportsmanship.

"The camps have provided young players with the tools necessary to succeed both on and off the court, with all participants learning the importance of hard work, dedication, teamwork and fair play," says Fiba.

"Through the work of Fiba/NBA players, this important message will be carried to hundreds more campers in the years to come."

NBA legends

The Basketball without Borders camps have in the past been roaring successes, staffed by NBA legends eager to share their knowledge of both on- and off-court success.

In the 2011 camp in Johannesburg, for example, the visiting former stars included Patrick Ewing, Dikembe Mutombo and Alonso Mourning. Standing 7ft, 7ft 2in, and 6ft 10in respectively, they make for an unforgettable trio - and that is before one takes into account their basketball careers.

At Georgetown University, Ewing was the dominant player of his time in college and was named the 16th greatest college player of all time by ESPN. He was later selected as one of the 50 greatest basketball players of all time, and was inducted into the Basketball Hall of Fame in 2008.

Such was his impact for the New York Knicks, the team retired the 11-time NBA All-star's number 33.

Wagging finger

One of the greatest shot blockers in the history of the game, Congolese star Mutumbo, who like Ewing and Mourning also studied at Georgetown, won the NBA Defensive Player of the Year Award four times. His massive wagging finger, saying "no" after he had rejected a shot became a familiar and much loved sight to NBA fans.

By the time his career ended after 18 years, he was second only to Hakeem Olajuwon in career blocked shots. He was an eight-time NBA All Star.

Asked what the highlight of his time has been working with Basketball without Borders, Mtumbo told the NBA: "My participation in the program allowed me the opportunity to meet Nelson Mandela, the former President of South Africa and one of the greatest heroes of our time. That would be my number one moment."

Mourning was a two-time NBA Defensive Player of the Year, who made a successful comeback to the game after undergoing a kidney transplant and won an NBA title with the Miami Heat.

He was elected an NBA All-Star seven times and had his jersey, also number 33, retired by the Heat.

The West African Cable System (WACS), the fifth submarine cable system to link South Africa to the rest of the world, was formally launched on Friday, promising further improved bandwidth connectivity down the west coast of Africa.

WACS was initiated by the South African government as a collaborative effort of African governments and leading telecommunications operators.

"Through Broadband Infraco, the South African government is proud to be a pioneering partner on the West African Cable System, a cable that will light up large areas of the west coast of Africa," Public Enterprises Deputy Minister Ben Martins said at Friday's launch.

"For the first time in Africa's history, open access connectivity will liberalise African ICT markets in Namibia, the Democratic Republic of Congo (DRC) and Togo," Martins said.

South African state company Broadband Infraco's investment in WACS entitles the company to 11.4% of the system's total capacity, which will help the country meet its target of providing broadband connectivity to all South Africans who need it by 2020.

It will also help the company's to further reduce the cost of telecommunications in the country.

One of the main objectives of the cable, Broadband Infraco said on Friday, was to "secure international connectivity and capacity in support of projects of key national importance ... being championed by various state vehicles".

Mandla Ngcobo, chairperson of Broadband Infraco's board, said broadband access and speed was crucial to the government's economic growth and job creation plans.

Source: BuaNews