With the uncertainty over supply of oil from Iran, South Africa is looking to Nigeria to purchase its oil, the Deputy President Kgalema Motlanthe said, following the signing of a Memorandum of Agreement with the Vice President of Nigeria, Namadi Sambo, in Cape Town on Wednesday.

South Africa may be forced to comply with a US order to cease buying oil from Iran - from which it sources about a quarter of its oil - or risk economic penalties from America. The Minister of Energy Dipuo Peters last week said government would decide on its response to proposed sanctions by the end of this month.

Motlanthe said PetroSA and private traders were expected to look at supply agreements for oil from Nigeria. "We would guarantee going forward to our Nigerian brothers (that there will be) demand for their liquid fuel, because we don't want to source our fuel in areas that are likely to be unstable.

"Indeed, we are quite confident that Nigeria will become one of our trusted suppliers of liquid fuel going forward," he said.

Ready to offer support

Sambo said Nigeria was ready to offer any economic support - be it energy or otherwise.

Motlanthe said the agreement he signed with Sambo today would help prepare the way for a more enabling business environment between two of the continent's biggest economies.

He said the agreement enabled both countries to rope in business people from both countries that had an idea for investment opportunities in both countries.

Nigerian companies with the wherewithal to supply infrastructure projects - including the supply of cement - would be invited to participate in South Africa's massive infrastructure programme.

Bi-National Commission

Sambo arrived in South Africa on Monday at the invitation of Motlanthe to attend the 8th South Africa-Nigeria Bi-National Commission. He is expected to depart the country today.

The two discussed several issues and reviewed the progress made since the 7th Bi-National Commission was held in Abuja in 2008. They also discussed the progress made on the seven working groups of the Bi-National Commission.

These workings groups are: foreign affairs and co-operation; trade, industry and finance; security and defence; agriculture, water resources and environment; minerals and energy; public enterprises and infrastructure; and the social and technical working group.

Today, a Memorandum of Understanding on economic and technical co-operation was signed between Minister of Trade and Industry Rob Davies and Nigeria's Finance Minister Olusegan Aganga.

Another Memorandum of Understanding was also signed between Aganga and the Minister of Finance Pravin Gordhan, to offer mutual assistance with customs administration between the two countries.

Sambo said Nigeria had put the incident that took place at OR Tambo International Airport in Johannesburg in March - when several Nigerians were deported after a dispute over yellow fever vaccinations - behind it.

"Nigerians are happy about the way they are treated in South Africa," he said, adding that there was a plan to expand the number of years for which travel visas can be used for, while doing away completely with diplomatic passports.

Source: BuaNews

The number of internet users in South Africa accelerated dramatically over the past year, driven by both smartphones and ordinary mobile phones, as the internet "finally arrived in the hands of the mass market".

This is the key finding of the Internet Access in South Africa 2012 study conducted by consultancy World Wide Worx.

The headline findings, released last week, showed that the South African Internet user base had grown from 6.8-million in 2010 to 8.5-million at the end of 2011 - no less than 25% growth.

World Wide Worx forecast that this strong growth would continue during 2012, taking South Africa's internet user base past the 10-million mark by the end of the year.

Demand for online content 'set to explode'

"These findings are a powerful signal that the demand for online content in South Africa is likely to explode in the coming years," said Justin Zehmke, executive producer of howzit MSN, which backed the study.

"The spotlight will not only be on online media, but also on social networking and electronic services in genera," Zehmke said in a statement.

"As the market grows and matures, we are likely to see a diversification in the landscape that will create space for successful niche media, a greater choice in information sources and a maturation of online services."

World Wide Worx MD Arthur Goldstuck said the internet in South Africa had "finally awoken, fully. Penetration is now approaching 20%, and for the first time we can see the mass market embracing digital tools on their phones."

According to the survey, 7.9-million South Africans access the internet on their mobile phones. Of these, 2.48-million access it only on their cellphones, and do not have access on computers. The remaining 6.02-million users access the internet on computers, laptops, and tablet computers.

However, 90% of this number - 5.42-million - also access it on their cellphones. This means that almost 8-million South Africans sometimes or regularly access the internet on their phones.

'Huge implications for media, social networks'

"This has huge implications for media and social networks," says Zehmke. "It means that, in the coming years, all services offered online will also have to be offered on cellphones."

While smartphones are the main driver of internet growth, the cost of data use is being driven down by the proliferation of undersea cables connecting sub-Saharan Africa to the rest of the world.

The study shows that undersea cable capacity to South Africa at the end of 2011 was 2.69 Terabits per second (Tbps), and due to rise to 11.9Tbps by the end of 2012.

"That capacity will double again in 2013," said Goldstuck. "While the industry position is that it won't affect prices, such an excess of supply must result in falling prices, which in turn will further drive up demand. The rapid growth we see this year will therefore be maintained through 2013."

The Internet Access in South Africa 2012 study was conducted using multiple methodologies, including primary research, interviews with providers, and market intelligence.

SAinfo reporter

South Africa's Anglo American Platinum (Angloplat) has launched the prototype of the first fuel cell powered underground locomotive, in a bid to demonstrate the viability of platinum-based fuel cells as an alternative energy source while helping the country meet its energy and job creation challenges.

Anglo American CEO Cynthia Carroll, speaking at last week's launch, described the event as "a leap forward for fuel cells.

"The platinum-based hydrogen fuel cells, used to power the locomotive we are unveiling today, offer one of the most exciting opportunities for South Africa in the green economy," Carroll said.

"At Anglo American, we believe that with platinum at its heart, a South African fuel cell industry would support the country's drive for jobs and help to meet its energy challenges."

According to Angloplat, hydrogen-powered fuel cell locomotives are more economical and environmentally friendly than traditional rail transport, being powered by a cleaner and more secure energy source.

A fuel cell is essentially a gas battery that produces electricity as long as it is fed with hydrogen gas. The fuel cells provide availablity 24-7, and there is no need to change or recharge the battery it replaces, which means less downtime and increased productivity.

"These innovative locomotives will provide us with an opportunity to mine platinum in a more economic, energy-secure and environmentally benign manner," said Angloplat CEO Neville Nicolau. "The locomotives will not require any electricity from the grid to function, and will not emit noxious gases."

The locomotive was developed in collaboration with Vehicle Projects, Trident South Africa, and Battery Electric. The partnership will construct five fuel cell locomotives which will be tested for underground use at one of Angloplat's mines, after which they will be integrated into the company's mining operations.

According to Angloplat, fuel cell technology is a strategic emerging industry, and the locomotive project is part of the company's collaboration with South African government and technology partners to explore the potential of fuel cells, with an eye to the industrialisation and beneficiation of platinum group metals (PGMs).

"This collaborative work is intended to enable the development of a local fuel cell manufacturing, distribution, marketing and servicing industry which will be globally competitive," Angloplat said.

SAinfo reporter

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 ...

International models on how to boost the development of the ICT sector in Africa will come under the spotlight during the inaugural ICT Indaba taking place at the Cape Town International Convention Centre from 4 to 7 June.

The event, organised by the Department of Communications and endorsed by the International Telecommunications Union, aims to formulate an African Agenda to promote ICT as a catalyst for social and economic development on the continent.

According to the department, hundreds of delegates from Africa, Europe, Asia, and South America, including ICT executives and government representatives, will take part in the 2012 ICT Indaba, while ICT regulators from more than 50 countries on the continent have also been invited.

One of the keynote speakers at the Indaba will be ITU deputy secretary-general Houlin Zhao, who will present a paper on the role of ICTs in socio-economic development.

Tech gurus peer into Africa's crystal ball

One of the highlights of the Indaba will be a "crystal ball exercise" in which eight international experts will discuss strategies for entrepreneurs and predict the future of technology in Africa and the world over the next 15-20 years.

The crystal ball "gurus" will include Dimension Data chairman Andile Ngcaba, Japan Science Agency director Shig Okaya, Global Innovation Summit (Silicon Valley) executive chairman Alfred Watkins, Intel Capital Africa director Sam Mensah, and Microsoft Middle East and Africa regional head Zaki Khoury.

Vijay Tharumartnam of Multi Development Corporation will speak on the Malaysian "Silicon Valley experience" during a session devoted to "developing smart cities in the African context", in which there will also be presentations on Bangalore, Indian's Silicon Valley, Mexico's Guadalajara, and Egypt.

Developing country models for skills development

Speakers from Rwanda, China, India, and Cuba will discuss developing country models for building and retaining the necessary skills base for a robust ICT industry. These will include Miche Bezy, associate director of Carnegie Mellon University in Rwanda, who will look at how Rwanda is producing a competitive ICT skills base.

Dr Jun Xia of the Beijing University of Posts and Telecommunications will discuss the Chinese model of advancing rural development through ICTs, the Indian model will look at conceptualising e-skills development programmes, while the Cuban model will share experiences on producing industry-ready graduates.

Other sessions will focus on broadband connnectivity and policies for advancing the knowledge-based economy in Africa, while speakers from the World Bank and African Development Bank will address a key session looking at infrastructure development as a basis for integrated ICT initiatives.

Communications Minister Dina Pule said the ICT Indaba sought to ensure that ICT fulfilled its potential as an enabler of economic growth and job creation, not only in South Africa but throughout the continent.

"I take pleasure in inviting our compatriots across the Diaspora to our country to partner with us, the ICT industry, labour and civil society as we enter a bold partnership that seeks to shape the development of the continent," Pule said in a statement on Tuesday.

SAinfo reporter

Southern Africa's biggest tourism showcase, Indaba 2012, takes place at Durban's International Convention Centre from 12 to 15 May.

Despite a general flat to downward trend worldwide, South Africa's tourism industry has been performing strongly, a fact that is reflected in the more than 13 000 delegates from around the world who are expected to attend Indaba 2012.

1 800 exhibitors, 200 hosted international buyers

Approximately 1 800 exhibitors will showcase new products reflecting the latest global trends in tourism, while representatives of influential industry stakeholders, along with over 200 international hosted buyers, will be guests at the event.

"To be successful in the tourism industry requires the joint effort, hard work and cohesion of all partners to achieve continued tourism growth," South African Tourism CEO Thulani Nzima said in a recent statement.

Indaba would facilitate this effort by providing "the best platforms and matchmaking opportunities to conduct business."

Digital competitiveness, Indaba App

The programme will include three speed marketing sessions focusing on sustainable and responsible tourism, heritage and cultural tourism, and adventure tourism.

TripAdvisor, the influential travel website on which travellers get to review their travel experiences, will present a workshop on digital competitiveness, which was identified as a key focus area during Indaba 2011.

In an effort to reduce Indaba 2012's carbon footprint, an Indaba App has been developed, available for download from the event's website for iPhone, iPad, Blackberry and Android devices.

Tourism Minister Marthinus van Schalkwyk has said that his department aims to increase South Africa's foreign tourist arrivals from seven-million in 2009 to 15-million by 2020, at the same time growing tourism's contribution to the economy from R189-billion to R499-billion and creating 225 000 new jobs.

Over eight-million tourists visited South Africa in 2011 - a 3.3% increase over the 2010 World Cup year that would, if football-specific arrivals were not counted, have amounted to a 7.4% increase over 2010, well ahead of the global average of 4.4% annual growth.

SAinfo reporter

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

Mobile Money Africa 2012, the largest industry gathering of its kind on continent, takes place at Johannesburg's Southern Sun Montecasino from 14 to 17 May, promising the latest angles on a highly competitive and fast-developing market in which South African companies are closely involved.

Sonum Puri, programme director for Mobile Money Africa, believes South Africa is not only a competitive mobile money market, but a good representation of the different business models that are transpiring from banks, mobile network operators, third-party operators, social media and online retailers and payment providers.

'A great chance'

"The event will be a great chance to show the mobile money ecosystem can grow to encompass many new stakeholders in the marketplace, which means that people can take lots of examples from the South African market and apply them to their own businesses," Puri said in a statement this week.

"Much has been documented about the potential of mobile money in East Africa, but for the first time, the Mobile Money Africa conference will be exploring the rise of mobile financial services in West African countries such as Senegal and the Ivory Coast," Puri added.

"The event will also be looking at the integration of mobile money with online channels to penetrate the e-commerce market and tap into a new customer base."

Nigerian market

Nigeria, in particular, is predicted to be another big market for mobile money, as research shows that only 25 percent of the Nigerian population hase bank accounts or access to financial services.

"Last May, the Central Bank of Nigeria issued licenses to 16 mobile money operators, and in the last couple of months we have seen a number of providers such as Monitise, Pagatech, eTranzact, and United Bank of Africa announce the launch of new mobile money services," Puri said.

"The Nigerian mobile money market is already valued at US$25-billion, and mobile money users are expected to reach 709-million by 2015."

Tanzania is one of the fastest growing mobile money markets in the world. Puri says the country currently boasts mobile phone penetration of 49%, with four active mobile money businesses, the largest of which is Vodacom’s M-PESA, which has over two-million active users.

MTN offering

"Visa recently unveiled a mobile prepaid product, which will be offered by MTN in Nigeria, Rwanda and Uganda, and other big growth, markets especially for remittances," Puri said.

"The central bank of West Africa is playing an active role in encouraging private sector players to roll out mobile money services, and the central bank has also promoted the launch of the new Gim mobile service in West Africa."

Mobile Money Africa 2012 forms part of the Connected Africa Forum, which will showcase the evolution of mobile lifeline services and applications in Africa, and highlight the evolving intersection between mobile money, mobile health and mobile agriculture.

Speakers

The speakers include: Yolande van Wyk, CEO, eWallet Solutions, First National Bank; Neil Ahlsten, New Business Development Director, Google; Francis Matseketsa, Mobile Money Executive, Econet; Lowell Campbell, Head of Agent Banking, Standard Bank; Stanley Jacobs, Group Head of E-Business, Fortis Mobile Money; Stanley Henning, COO/DMD, Uganda Telecom; Kelvin Twissa, M-Commerce Director, Airtel Tanzania; and Yinka Adedeji, CEO, Afripay/United Bank Africa.

A pre-conference workshop takes place on 14 May. The conference itself will be held on 15 and 16 May, to be followed by a post-conference site visit on 17 May.

SAinfo reporter

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

Cape Town's film industry will receive a welcome boost as the internationally renowned Tribeca Film Festival will arrive on South African shores in 2013.

The Cape Film Commission has signed an agreement with espAfrika (the organisers of the Cape Town International Jazz Festival) to bring the New York-based festival to South Africa each year for the next five years.

The Tribeca Film Festival was established by Robert De Niro and two other entertainment industry partners in the wake of the twin towers tragedy.

The festival was designed to regenerate the area following the devastation experienced by the Tribeca neighbourhood.

On a visit by the directors of Tribeca to last year's jazz festival in Cape Town, espAfrika was approached to manage and produce the Tribeca Film Festival in South Africa, along the same franchise lines as the Tribeca Film Festival in Doha.

The festival has achieved its objectives and launched the careers of many film-makers.

The festival also has a very strong training and development component which will form an integral part of what the Cape Film Commission and espAfrika are planning.

"The opportunity this creates for the local and African film industry is very important as the festival will create a much-needed international platform for our local film-makers and industry," said espAfrika CEO Rashid Lombard.

SAinfo reporter

South African company Oceanfresh, which already supplies its wild caught hake to Walmart, will now be supplying a second US retailer, Costco, following a deal struck with parent company Lonrho.

Johannesburg- and London-listed conglomerate Lonrho announced on Wednesday that it was partnering with Costco to supply its "Kirkland Signature" branded hake loins to Costco stores worldwide.

"The first shipments are en route to the United States and the product will soon become available through Costco Wholesale stores in the United States, with planned roll-outs to Canada and Mexico in 2012 and other Costco territories at a later stage," Lonrho said in a statement.

Lonrho executive chairman David Lenigas said the contract "reflects the increasing customer demand for a high quality, wild caught and sustainably sourced product, and will be fulfilled through the supply chain infrastructure which we already have in place".

Oceanfresh's fillets come from white hake fished in the deep, cold waters of the Benguela current off the coast of southern Africa.

The company operates according to sustainable fishing model, in line with the World Wildlife Fund's Southern African Sustainable Seafood Initiative, fishing in regions that are well below agreed 35% sustainable fishing volumes.

Costco is one of the world's largest retailers, with 600 warehouses in eight countries that together yielded US$88.9-billion in revenue in 2011.

Oceanfresh MD Gavin ven der Burgh told Business Day that it had built a new plant in Ekurhuleni, to the east of Johannesburg, that would be quadrupling its capacity in order to meet the anticipated growth in demand.

SAinfo reporter

South African state transport and logistics company Transnet has announced the details of a R300-billion investment in infrastructure that it says will create over half-a-million new jobs while making its freight rail division the fifth-largest in the world.

Announcing South Africa's new multi-billion rand infrastructure drive in his State of the Nation address in February, President Jacob Zuma highlighted two key goals of the programme: creating new jobs, and making it easier to do business in, and export from, the country.

Briefing journalists on Tuesday, Transnet CEO Brian Molefe said the state company's prime objective was "to invest in building capacity to meet validated market demand that will enable economic growth".

'significant modal shift from road to rail'

South Africa's rail, port and pipelines infrastructure would be significantly upgraded and expanded over the next seven years, resulting in "a significant increase in freight volumes, especially in commodities such as iron ore, coal and manganese," Molefe said, while leading to a "significant modal shift from road to rail".

The lion's share of Transnet's R300-billion capital investment programme, R205-billion, would be spent on rail projects - R151-billion of this on freight rail - as the company pushed to increase freight rail volumes from about 200-million to 350-million tons by 2019, while increasing its market share of container traffic from around 79% to 92%.

This increase would significantly reduce the cost of doing business in South Africa, Transnet said, citing internal studies showing that rail in the country was on average 75% cheaper than road transport.

A large-scale shift in freight transport from road to rail would also "address costs, congestion and reduce carbon emissions," the company said.

Ports, pipelines, procurement, skills

Containers handled by South Africa's port would grow from 4.3-million to 7.6-million TEUs, while petroleum products conducted via pipelines would increase by over 3-billion litres to more than 20-billion litres by 2019.

The associated procurement programme would boost local industry, with about half of the R78-billion set aside for locomotives to be spent on local suppliers.

And skills development would also get a big shot in the arm, with R7.7-billion to be spent on training by 2019, including R4.7-billion on bursaries and grants.

Transnet said that R213.6-billion of the required funding would be generated from operating cashflows, while the rest - R86.5-billion - would be raised on debt capital markets.

The capital investment programme was key to South Africa's growth objectives, Molefe said. "This strategy aims to deliver a lasting economic, social and environmental value to society."

SAinfo reporter