President Jacob Zuma says governance is beginning to stabilse in both the Eastern Cape and Limpopo after national government intervention in the administration of the two provinces.

Last year, Cabinet decided to intervene in the Eastern Cape Education Department in terms of section 100(1)(b) of the Constitution of the Republic. The department was placed under administration after it emerged that the department was facing major challenges.

Zuma said a team of deputy ministers visited the Eastern Cape to conduct a comprehensive monitoring and evaluation exercise on the implementation of the intervention, and a report was tabled at Cabinet.

"Cabinet directed a full implementation of the intervention as intended by the Constitution. There is now a clear understanding and acceptance of the intervention in the Eastern Cape," Zuma said during a reply to parliamentary questions on Tuesday.

He said task teams, focusing on the main areas of the intervention to the extent necessary, had been established, and these teams were about to finalise their work plans.

"We are confident that this time around, we will be able to stabilise and normalise the Eastern Cape Education Department, while ensuring that the right of the children of the Eastern Cape to quality basic education is upheld at all times," Zuma said.

As of 31 March, Limpopo's cash position had improved with a positive year-end balance of R231.4-million.

"This positive cash position is due to cash management controls that were put in place since December 2011," he said.

At the time of the Limpopo intervention, there was an estimated R2-billion shortfall as a result of a combination of factors, including an accumulation of unauthorised expenditure and poor cash flow management practices. Five departments were placed under administration.

Zuma said while the cash position had improved and payment and procurement systems in departments stabilised, further work still needed to be done.

"The Provincial Treasury intervention team has instructed all departments to develop a fiscal recovery plan that must include strengthening departmental budget formulation processes and supply chain management."

Law enforcement agencies were looking into allegations of fraud, maladministration and corruption in a number of departments.

Source: BuaNews

The South African women's hockey team will take its Olympic Games preparations a step further with matches against Great Britain and Scotland before they take part in the Investec London Cup over the next three weeks in the United Kingdom.

Captain Marsha Marescia's squad have been working hard in Amsterdam this past month. They will fly to the UK for a three-week trip on Wednesday.

Coach Giles Bonnet's charges face world number four Great Britain in two unofficial tests on Thursday and Friday.

The first test takes place at the official London 2012 hockey venue, the Riverbank Arena in Olympic Park, London at 15:30 (SA time) on Thursday. On Friday, the teams meet at Bisham Abbey at 15:30.

Official five-test series

South Africa, ranked 12th in the world, then move on to the Clydesdale Hockey Club in Glasgow, where they will play an official five-test series against world number 18 Scotland. The matches start at 15:30 (SA time) on Sunday, 15:30 on Monday, 20:30 on Wednesday, 20:30 on Thursday, and at 15:30 on Friday.

The girls in green and gold return will then return to Chiswick in London for the Investec London Cup that also features world number one the Netherlands, world number three Germany, Great Britain, world number seven Australia and world number 14 Ireland.

South Africa faces Great Britain on Tuesday, 5 June, at 17:30 (SA time), and Germany at 21:00 on 6 June. The semi-finals will be held on Saturday, 9 June, and Sunday's classification matches and the gold and bronze medal matches.

Olympic schedule

Meanwhile, the schedule of matches for the Olympic Games women's competition, which is from 29 July to 10 August, and the men’s event from 30 July to 11 August, both at the Riverbank Arena on the Olympic Park, were announced Tuesday.

Based on world rankings, the 12 teams in both tournaments are divided into two pools of six, and each team plays every other in their pool.

The top two teams in each pool qualify for the semi-finals, with the winners then going head-to-head for the gold medal. The other teams in the two groups play each other to determine final placings.

Pools

Pool A for women features Netherlands (world ranking 1), Great Britain (4), China (5), Korea (8), Japan (9), and Belgium (16). Pool B features Argentina (2), Germany (3), New Zealand (6), Australia (7), USA (10), South Africa (12).

The men's Pool A features Australia (1), Great Britain (4), Spain (5), Pakistan (8), Argentina (9), and South Africa (12). Pool B includes Germany (2), Netherlands (3), Korea (6), New Zealand (7), India (10), Belgium (11).

The men's and women's events see only the top two in each pool playing in cross-pool matches; the semi-finals. The other sides play directly for final placings according to where they finished in their pool.

For example, fifth in Pool A plays fifth in Pool B for ninth and 10th places. This makes pool matches absolutely critical, as there are no second chances in cross-pools.

The women's semi-finals are on 8 August, with the bronze and gold medal matches on Friday, 10 August. The men's semis and medal matches are a day later respectively.

SA POOL MATCHES
(All SA time)

WOMEN: 29 July vs Argentina (17:00); 31 July vs New Zealand (09:30); 2 August vs Germany (17:00); 4 August vs Australia (09:30); 6 August vs USA (11:45)

MEN: 30 July vs Australia (11:45); 1 August vs Great Britain (17:00); 3 August vs Spain (20:00); 5 August vs Pakistan (11:45); 7 August vs Argentina (14:45)

SAinfo reporter

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!

Some of the most expensive properties in South Africa have been bought by foreigners, it's true. It is also true that the Western Cape especially is home to small colonies of Germans, French and British expats. You can even buy proper Austrian meatloaf and German magazines in Constantia in Cape Town.

Currently there is a small, but notable, trend establishing itself: British retirees are increasingly looking to South Africa in their golden years. It turns out that it’s not just due to the fantastic climate or amazing scenery - it's about saving their pensions.

'Solvency-II for pensions'

Due to the worldwide economic crisis, there have recently been a number of proposals - dubbed the "Solvency-II for pensions" - made by the EU that directly affect pensioner's pockets.

The Telegraph reports that the country's biggest companies (6 850 companies with final salary pension schemes) could see their liabilities skyrocketing to more than double what they are now, and analysts warn that this could force them to close.

The bad news continues; according to the Alexander Forbs National Pension Index, retirement incomes in the UK have fallen by £13 000 since 2000. Richard Evans illustrates the real term implications of this in The Telegraph with the analogy that a 30-year-old could expect two-thirds of his or her final salary in 2000. That number has gone down to 39 percent.

SA one of seven 'places to retire'

What does any of this have to do with the South African property market?

Quite a bit in fact; due to the weak local currency, a British retiree can live well in South Africa - even on a diminished pension. Shelter Offshore, an international expatriate advisory website, indicates that South Africa is currently rated among the seven places to retire for an affordable lifestyle, along with Argentina, Northern Cyprus and Slovenia.

 Importantly, foreign pensions are not taxed here, whereas a tax-free income limit of £9 205 only will apply as of 2013, after which a tax of 20 percent to 45 percent will take effect in the UK.

Craig Featherby, Cape Town-based regional manager of deVere Group, a UK financial advisory firm, recently revealed that "over-55s have lost faith in the UK's economy, tax and pension system; last year 252 000 people left the UK, and 24 000 of them came to SA.

"Certain fears may remain as far as currency fluctuations are concerned, but retiring here must be an attractive option, I think interest might well increase," believes Jan le Roux, CEO of Leapfrog Property Group.

It is safe to assume that many of these retirees will invest in the local property market in their favoured areas: Cape Town, the KwaZulu-Natal coast and, occasionally, in Sandton, Johannesburg.

Local market to benefit

It is true that foreign investment makes a small contribution to the local property market.

According to the FNB Property Barometer, the impact remains unchanged at four percent. The report does look back at the heydays of 2008, where these investments comprised 20 percent of the market. It is safe to say that such peaks will not soon be repeated.

"That being said, four percent may sound low but, one must keep the domino effect in mind; today's sellers are often tomorrow's buyers," says le Roux.

As such, South Africa isn't set to become another Mallorca, where over 60 percent of properties are not owned by local Spaniards but by other nationalities. But it does seem that the local property market could benefit from British pensioners moving here.

Sapa

Opportunities, incentives, regulations, assistance.

South Africa and Germany have committed to growing their partnership in strategic areas, including infrastructure, the two countries said following the 7th South Africa-Germany Bi-National Commission in Berlin on Tuesday.

"Both sides agreed that the intensification of co-operation between the countries in the context of the Bi-National Commission can be fostered even further, and that full use must be made of all possibilities to increase investment in the respective countries," the countries said in a joint communique issued after the meeting.

With R14.8-billion in trade in 2011, South Africa remains Germany's most important economic partner on the African continent.

According to the communique, South Africa was encouraged by the relatively significant share of value-added items in its exports to Germany, noting that this could be further strengthened in the interest of both countries.

Infrastructure opportunities

Germany welcomed the report on South Africa's massive state-led infrastructure drive, acknowledging the opportunities this created.

"To this end, the sides undertook to work together in encouraging joint commercial activities in the area of infrastructure development both in South Africa and on the African continent."

Germany also welcomed ongoing developments in South Africa's Automotive Production Development Programme, expressing the hope that truck component manufacturers would be included in the programme.

The two countries also agreed to enhance initiatives that created export opportunities for smaller South African companies.

Skills exchanges

In the area of human capital development, both countries noted the ongoing work of the German Academic Exchange Service and National Research Foundation scholarship programme in developing the skills of South African researchers and students.

"Both sides are pleased with the strong relations under this collaboration, and committed to further advance the science, technology and innovation cooperation between the two countries."

In the area of defence, the commission noted the successful training exchanges benefiting both countries' land, air, naval and medical services.

Source: BuaNews

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

Deputy President Kgalema Motlanthe opened the 7th South Africa-Germany Bi-National Commission in Berlin on Tuesday by extending an invitation to the European nation to invest in South Africa's massive state-led infrastructure drive.

"We are targeting a range of areas, including roads, rail, ports, water infrastructure and telecommunications," Motlanthe said in his opening remarks at commission. "To this end, we wish to invite the government of Germany and German corporates to participate in this important initiative."

Motlanthe said that, while the commission was sitting during a challenging time for Europe and the global economy, the two countries should not lose sight of the goals they had in common.

"Both our countries share the goals of enhancing peace and security; good governance; the rule of law; democracy and human rights; economic development; and indeed, dealing with the challenges posed by climate change, as well as finding new sources of energy."

To address these challenges, constant monitoring and detailed analysis so as to find practical solutions was required, Motlanthe said.

The economic crises in Europe and other parts of the world had had a ripple effect around the globe, the Deputy President said, resulting in a significant decline in South Africa's exports between 2008 and 2009.

"However, we are pleased that our trade with Germany is approximating levels previously reached before the crisis of 2008."

Tuesday's meeting discussed issues such as renewable energy and education and training, and assessed progress made since the last Bi-National Commission, held in South Africa in 2010.

The meeting also touched on global issues such as the Eurozone and problems facing the African continent, including the African Union's post-conflict and reconstruction development programme.

Source: BuaNews

Johannesburg's FNB Stadium - still familiar to global football fans as Soccer City, South Africa's flagship 2010 World Cup stadium - will host the opening and closing ceremonies and matches of the 2013 African Cup of Nations.

Sports Minister Fikile Mbalula made the announcement at a post-Cabinet media briefing in Pretoria on Friday, saying the rest of the matches would be played at four venues.

These are the Nelson Mandela Bay Stadium in Port Elizabeth, the Royal Bafokeng Stadium in Rustenburg, the Moses Mabhida Stadium in Durban, and the Mboembela Stadium in Nelspruit.

"Rather than using the whole of the republic, we have reduced to a total number of five stadiums so that they are close to each other," Mbalula explained.

Moved forward

South Africa had been due to host Africa's most important football tournament in 2017, but the date was moved forward to 2013 after political unrest in Libya, which was originally scheduled to host next year's event.

Tournament CEO Mvuzo Mbebe, when he was introduced as the finals' CEO in March, said that South Africa will aim to buck the trend at recent African Nations Cup tournaments by filling the stadiums at the 2013 continental showpiece.

Mbebe said that filling the stadiums would be a top priority for the organisers - requiring them to sell around half-a-million tickets - and that they work towards using strategies that made the 2010 Fifa World Cup such a success, including the hugely popular Football Fridays campaign.

Low attendance has been a problem in past editions of the African Cup of Nations, with this year's tournament in Equatorial Guinea and Gabon the most recent example.

Bafana Bafana

The performance of the South African national team would therefore be crucial, Mbebe said. Bafana Bafana last won the tournament in 1996, when South Africa hosted it for the first time - recording packed houses all the way through the tournament.

The finals will feature 16 teams, with 24 group matches and eight knockout matches.

A total of 47 countries have entered the qualifying rounds for the 2013 African Cup of Nations, including South Africa, who qualify automatically as the hosts of the event.

It's an opportunity for Bafana Bafana to turn around their flagging fortunes; the team has gone winless in its last six games, dropping down to a disappointing 71st place in the latest Fifa world rankings. Facing the leading teams on the continent will give South Africa the chance to move rapidly up the standings once more, provided they do well on home soil.

'Restore lost national pride'

"If we pass the group stages and go to the final of the 2013 Afcon, it gives the chance to restore lost national pride," Safa president Kirsten Nematandani said.

Although the African Cup of Nations finals take place every second year, the Confederation of African Football decided to hold back-to-back finals this time around in order to shift the tournament to odd years, to prevent it clashing with the World Cup.

The official draw for the Afcon 2013 finals will take place on 26 October.

SAinfo reporter

Indian President Pratibha Patil arrives in South Africa for a state visit on Wednesday, accompanied by a government minister, four parliamentarians, various officials and a business delegation.

Patil's visit follows an invitation by President Jacob Zuma, and will provide an opportunity to for further strengthening the relationship between the two countries.

During his visit, Patil will discuss bilateral relations with Zuma. The two presidents will also address South African business people and their Indian counterparts at a business forum in Pretoria.

Since the establishment of full diplomatic relations between South Africa and India in 1993, numerous high-level visits have taken place between the two countries, with cooperation agreements signed in trade, investment, education, defence, information and communication technology (ICT), health, agriculture, and science and technology.

As strategic partners, South Africa and India have created a platform for cooperation in various forums, including the BRICS grouping of Brazil, Russia, India, China, South Africa; the IBSA (India, Brazil, South Africa) grouping; the BASIC (Brazil, South Africa, India, China) climate change-specific forum; and the India-Africa Forum.

According to the Department of International Relations and Cooperation, trade between the two countries stood at R48.2-billion as of November 2011, with South African exports at R21.9-billion and imports from India at R26.3-billion.

The two countries have set a bilateral trade target of R111-billion to be reached by 2014.

"India and South Africa share a common vision on a range of global issues and domestic challenges," the department said in a statement on Monday. "Many of the objectives are being pursued both bilaterally and multilaterally, and are also being given content through South-South initiatives."

Source: BuaNews

South Africa has condemned the kidnapping of a 12-year-old South African boy in Kuala Lumpur, and urged the government of Malaysia to do everything in its power to secure the boy's release.

Nayati Shamilin Moodliar was on his way to school when he was kidnapped on Friday morning.

"The South African government condemns in the strongest possible terms this act of criminality and calls on the government of Malaysia to continue with its efforts to secure the release of Nayati Moodliar and to bring the perpetrators to book," the Department of International Relations and Cooperation said in a statement on Sunday.

It said the government has been in contact with the boy's family both in Malaysia and South Africa.

"The South African High Commissioner in Malaysia has visited the family to express the government's support to them," the department said. "The High Commission is in daily contact with the relevant authorities."

The government called on the public to support the Moodliar family until they were reunited with their son.

SA in talks to secure release of SA nationa

Meanwhile, South Africa is also in talks with officials in Sudan to secure the release of a South African man who was captured at the weekend, the department said.

"Our ambassador is speaking to the [Sudanese] authorities. We are offering consular assistance to him," department spokesperson Clayson Monyela said on Monday.

He said South Africa was also working jointly with other countries that have nationals who are captured in Sudan.

Thabo Siave and his South Sudanese colleague, who are employees of Denel Mechem, were participating in a United Nations humanitarian operation when they were captured.

According to media reports, Denel Mechem said the men had full diplomatic immunity because of the work they were doing for the UN's peacekeeping forces.

Meanwhile, the authorities are waiting for details regarding the South African man who was reportedly shot and killed by his bodyguard in Somalia on Friday. The incident is said to have happened in Somalia's Puntland region.

"We don't know anything about it," Monyela said on Monday. "Our mission in Kenya is looking into it."

South Africa does not have a mission in Somalia.

Source: BuaNews

South African Airways' new route to Pointe-Noire in the Congo will now include Cotonou in Benin, as the airline moves to expand its African network.

Cotonou will be the fifth new destination on the continent that South African Airways (SAA) has introduced since October last year.

Ndola (Zambia), Kigali (Rwanda) and Bujumbura (Burundi) were other recent additions to the airline's growing African network.

Flights between Johannesburg and Cotonou are already available, and will be served twice a week with an A319 aircraft.

Adding new routes to its African network demonstrates the airline's commitment to growth on the continent, says South African Airways (SAA) commercial general manager Theunis Potgieter.

"Our aim remains to continue exploring possibilities for our customers who travel between countries on the continent for business or tourism," Potgeiter said in a recent statement.

Cotonou, the economic capital of Benin and its largest city, houses several of the country's government and diplomatic services, including the Beninese seat of government.

International relations between South Africa and Benin were strengthened by Benin President Thomas Yayi Boni's state visit to SA in November 2011.

SAinfo reporter