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Books on South Africa
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Update No: 067 - (17/08/07)
Who will Lead
African National Congress (ANC) branches will be able to start discussing
their preferences for who should head the ruling party. After two years of drama
around ANC deputy president Jacob Zuma dominating the headlines, the party's top
brass gave its members the go-ahead to start talking July 28. However, they will
have to wait two more months before they can formally begin to nominate their
preferred future president. Thabo Mbeki's successor as ANC leader will be chosen
at the party's national congress in December. Three candidates have so far
unofficially announced their intentions, Mbeki, Zuma and businessman Tokyo
Sexwale, who is said to be making inroads into the traditional support bases of
both his rivals. The official kick-off potentially opens the door for more
candidates to put themselves forward. Mbeki has acknowledged that he has his
sights set on leading the party again, signalling a bruising battle for the top
post. Mbeki is constitutionally barred from a third term as South African
president but could potentially remain as president of the ANC.
Zuma - Nothing Stopping Me Leading ANC
ANC deputy president Jacob Zuma dug in his heels over the party's
presidential race July 24, telling Business Day newspaper he was eligible to
stand for the top party post unless he was convicted before December. His
determination, which sets up a stand-off with party leader President Thabo Mbeki,
dashes any hopes of a compromise candidate emerging as the countdown begins
towards the party's conference. The search for a compromise candidate is being
supported by party insiders who fear a stand-off between the two men could
result in Mbeki's humiliation and further split the party. Zuma enjoys popular
support among the party's grassroots and the ANC Youth League, which has openly
endorsed him. The National Prosecuting Authority (NPA) has been unable to draw
up a new charge sheet against Zuma despite a nearly decade-long probe into his
affairs. The NPA has reserved its right to take Zuma to court again.
Politically, this will energise Zuma's election campaign as he will once again
be seen as a victim. Zuma said in a broad-ranging interview yesterday that the
ANC constitution clearly stipulated who was eligible to stand as party
president. The document made it clear that any member in good standing was
eligible to be ANC president. "I'm not sure to be charged means that I am
not a member in good standing. I have been charged and acquitted. And I was
charged and the trial thrown out," Zuma said. Zuma has insisted on his
right to be presumed innocent until proven otherwise. He was responding to
questions on whether his run-ins with the law were an impediment to him
succeeding Mbeki. "If I'm charged and there is a trial in four months to
come and I am convicted, that is a different story. I doubt there is any case
that could move so quickly." Zuma was acquitted of rape, and corruption
charges against him were thrown out of court. He dismissed arguments punted by
Mbeki supporters that only the president was capable of leading the party. He
said the ANC was not short of leaders and there was no "leadership
crisis". Some ANC power brokers have suggested that Zuma could lead the
ANC, but not the country, an argument that has been used to advance the option
of "two centres of power". Zuma is on record as saying that he is
against that option, and said the party's recent policy conference proposal on
the matter addressed the issue.
African Summit in Ghana
Regional integration in Africa featured high on the agenda of the 53-state
African Union (AU) summit early July in Ghana. African leaders agree that some
form of continental co-operation is a prerequisite for a successful renaissance.
The idea is unquestionably a sound one and the task is urgent. The crucial
question, however, is how to do it. Various African leaders, notably Libya's
Muammar Gaddafi and Senegal's Abdoulaye Wade, as well as AU chairman Alpha Konaré,
spoke in favour of the formation of a "United States of Africa". Of
course, the "idea of Africa" embodied in the notions of African unity
and pan-Africanism is an important starting point for African integration.
However, under the watch of the Organisation for African Unity (OAU) and its
successor, the AU, African unity has never metamorphosed into a genuine
instrument for the promotion of continental development and stability. By and
large, it remained a mantra, a protection shield behind which member states
continued to assert their national freedom and independence. This is not the way
towards African regional integration.
Diamond Strike
South African workers for the world's biggest diamond producer, De Beers,
have voted to go on strike over pay. The National Union of Mineworkers (NUM)
said about 11,000 of its members would down tools from 31 July to demand an 11%
wage increase. De Beers, which is 45%-owned by mining giant Anglo American, said
contingency plans would be in place to operate the mines during the indefinite
strike. The planned strike is the latest union unrest that has rocked South
Africa. The NUM has demanded an 11% pay offer and has said it is still open to
negotiations. De Beers has offered 8%. "Workers have told us in no
uncertain terms that double-digits is the route," said Peter Bailey, the
NUM's negotiator at De Beers. De Beers told the AFP news agency: "In the
event of a strike, contingency plans are in place to operate the mines.
"However, the company would prefer to settle this without disruption to its
normal operations or to employees." More than a quarter of a million
engineering and metal workers walked out in protest over pay disputes earlier
this month in a strike expected to bring 9,000 companies to a standstill.
Zim Refugees
The flood of refugees pouring over South Africa's northern border from
Zimbabwe has become "a tsunami" according to border police and Home
Affairs officers working the Limpopo River district. And one of the country's
premier institutes of migration research has warned that South Africa does not
have the capacity and will not be able to cope with the fallout caused by an
economic meltdown of its neighbour. But the Department of Home Affairs denied
there had been any increase in the flow of Zimbabweans into the country. Up to
four million Zimbabweans are thought to be living in South Africa.
Mandela's Annual Lecture Focuses On Continent
A new strategy for Africa, which rests on peace and security, human rights
and the rule of law, and development, has been unveiled at the Fifth Nelson
Mandela Annual Lecture. Former Secretary General of the United Nations (UN) Kofi
Annan, delivered this year's lecture at the University of the Witwatersrand in
Johannesburg July 22, said the three pillars both reinforce and depend on each
other. Mr Annan explained that Africa had seen real and measurable progress in
peace and security over the past decade. "Many bloody civil wars have ended
and there are fewer inter-state conflicts than there used to be. "I am
proud that the UN has been an important actor in resolving conflicts. And I am
proud of what my fellow Africans have achieved in ending much of the violence
that has disfigured our continent. "South Africa, under President Thabo
Mbeki's leadership, has played a major role." Mr Annan condemned the
situation in Darfur where men, women and children are being driven from their
homes by conflict; and further spoke out against the "ever downward spiral
of Zimbabwe", which is experiencing political and economic chaos. He warned
that although stability in Africa might be spreading, a peaceful Africa remained
a distant goal. "We are working harder for peace. Through the African Union
we are learning to better manage and resolve conflicts and, most importantly, to
prevent new ones from breaking out," he said. However, Mr Annan explained,
peace would only endure when it was accompanied by economic and social
development. He highlighted some of the progress Africa had achieved, including
inflation which was at historic lows in many countries and that 27 African
economies were projected to grow by more than 5 percent this year. Direct
investment has also increased more than 200 percent in the past five years, due
to rising exports, advances on debt relief and aid and investment initiatives.
Africa has also made headway toward the UN Millennium Development Goals (MDGs),
according to Mr Annan. "The latest report from the UN shows that today,
halfway to the 2015 target date, we've achieved positive change in several
crucial areas. "We are not excelling, but we are advancing. It is vital
that Africa lead its own development process. "The key now is to reinforce
the progress we have made and eliminate shortfalls in development assistance,
debt relief and fair trade," he explained. Mr Annan further cautioned that
aid alone would not end poverty in Africa, but market access, fair terms of
trade and a non-discriminatory financial system were equally essential in
helping Africans to lift themselves out of poverty and deprivation. Mr Annan
emphasised the importance for Africa to strengthen human rights and the rule of
law to accelerate progress. "Only when government is grounded in the rule
of law, and it is fairly and consistently applied, can society rest on a solid
foundation. Mr Annan also praised Africa, saying democracy on the continent had
deepened in the past decade and that more states than ever had governments that
were duly elected instead of imposed. "The rule of law, like peace and
security, is a prerequisite to strong and sustained development. And without
prosperity and opportunity that are widely shared, peace cannot last long and
democratic institutions cannot truly flourish," said Mr Annan in
conclusion. The annual lecture offers an opportunity for leaders of
international standing to present their views on critical issues impacting
society at large.
Poverty On the Retreat, Figures Show
Poverty in SA declined strongly between 2002 and last year, official data
showed July 24, but analysts remain divided on whether the government will
achieve its goal of halving the number of poor South Africans by 2014. The ratio
of households in which one child went hungry fell to 2,4% last year from 6,7% in
2002, while the ratio in which an adult went hungry fell to 2,5% from 6,9%,
according to an annual survey from Statistics SA. Other key living standard
measures showed that the proportion of households with access to electricity,
water, toilets and waste removal rose significantly during that period, backing
evidence that conditions for SA's poor are improving. "The findings suggest
that, in terms of several of the main dimensions of poverty, the situation is
likely to have improved over the period 2002 to 2006," said Stats SA.
Analysts said it was hard to say how many of SA's 47,9-million people were poor
as the term was relative, depending on the threshold used, and there was no
standard measure for SA. In its February budget, the treasury said that it would
introduce an official poverty line for SA this year, based on minimum food needs
and essential items, in order to measure the extent and nature of poverty and to
monitor the pace at which it was being reduced. Stats SA is preparing figures
with a monthly income of R322 as one proposed threshold, with a final report due
in the third quarter of this year. Rapid growth in social grants -- which had
risen an average of nearly 20% over each of the past four years -- got most of
the credit for reducing poverty, although employment growth had played a role,
said analysts. Grants for old age, disability, foster care and child support
amounted to R10,9bn last year. This is about 12% of the total spent by the
government and reaches nearly 13% of the population. "We've seen a strong
decline in poverty since 2002, mostly driven by the social grant," said
Servaas van der Berg, an economics professor at the University of Stellenbosch.
"The jobs which have been created generally don't go to the poor -- there
is a long queue for jobs and the poor are at the end of it." Depending on
which measure was used, 30%-60% of South Africans were poor, he said. Standard
Bank group economist Goolam Ballim believes that the government will halve
poverty and unemployment by 2014, if the economy continues to grow at the robust
annual pace of 5% seen over each of the past three years. "Government
policies are working. T here is momentum, better funding and better processes
behind service delivery." However, Van der Berg said it was unlikely
official poverty and unemployment goals would be met by 2014, although he saw a
chance if the economy sustained the pace of job creation seen over the past few
years. " We will get close, but probably not make it." Official
figures show that about 1,5-million jobs were created in the past three years,
but SA is still saddled with a jobless rate of more than 25%, one of the highest
in the world. The percentage of households that used electricity climbed to
81,3% last year from 75,6% in 2002, while the ratio of households with piped
water rose to 71,3% from 66,1%, showed Stats SA's figures.
Land Commission Settles 90 Percent of Claims
At least 90 percent of the land claims lodged in the four years after 1994
have been settled, the Commission on Restitution of Land Rights announced July
25. This means that of the 79 000 of the claims lodged between 1995 and 1998,
about 74 000 have been settled. While this is a major accomplishment for the
commission, it has expressed doubts that President Thabo Mbeki's call for all
land claims to be settled by 2008 can be achieved. Linah Makhubele, spokesperson
for the Commission in Restitution of Land Rights, said that many of the claims
are tied up in the Land Claims Court due to issues such as community and
traditional leadership disputes. "Due to the complexity of many of the
remaining claims it will be difficult to meet the 2008 deadline." In line
with furthering restitution progress to date, the commission has announced it
will be handing over 16 000 hectares of land situated in the Potchesftroom Local
Municipality July 28. The Barolong Boo Bodiboa Ba Matlwang tribe will be the
recipients of the land valued at R54 million. Head of Communications at the
Gauteng and North West Regional Land Claims Commission, Vuyani Nkasayi, told
BuaNews that the claim was one of the most promising projects, as the land will
also be used to establish the first National Park in the North West province.
The park is to be called Highveld National Park. "The commission can
confirm that this park is a joint venture between the beneficiaries and the
South African National Parks Board, North West Parks and the Tourism
Board." "(The joint venture) will in a way reverse the syndrome of
rural-urban migration to urban-rural migration by opening the doors of economic
liberation," said Gauteng and North West Regional Land Claims Commissioner,
Tumi Seboka. "We will make sure that we give the necessary support to the
claimants in order to participate in land within protected areas," said Ms
Seboka. She said never again will people feel the effects of the 1913 Land Act.
"This gave legislative effect to a process of land seizure by the white
settlers that has been going on since Jan van Riebeeck set foot on the shores of
the Cape of Good Hope in 1652," President Mbeki said in 2003, on the 90th
anniversary of its adoption by the apartheid government. He explained that the
Land Act of 1913 was followed by other laws, which sought to reserve most of the
land in South Africa for exclusive ownership and use by the white minority.
"These include the Development and Land Act of 1936 as well as a plethora
of laws that denied black people the right to own land and property in most of
South Africa. "Later, the Group Areas Act and other laws further restricted
the possibility of blacks to own land in their country and denied them freedom
of movement." Following the finalisation of the claim, Communal Property
Association (CPA) Chairperson Joseph Lerefola said "our people have laid
the foundation thereby becoming the first community to establish a national
park."
Move to Appeal Against Ruling That Reinstates Striking Nurses
The 41 Khayelitsha healthcare workers dismissed during the recent civil service
strike have been back at work for nearly a month, but now the government has
filed leave to appeal the interim judgment that effectively saw them reinstated.
On June 26, High Court judge Justice Siraj Desai handed down an order, after the
Treatment Action Campaign instituted legal action, ordering the national and
provincial health authorities to "restore the reasonable functioning of
healthcare services in Khayelitsha". Judge Desai did not go so far as to
order the reinstatement of the dismissed workers, a matter he said had to be
dealt with in a different forum, but on July 2 the workers returned to work and
all services were restored. Khayelitsha's three health facilities were seriously
understaffed even before the industrial action, but the dismissals, the TAC
charged, made it impossible for at least two of the three to offer adequate
care. Most of the 41 were dismissed from the Site B clinic. The TAC said in a
statement July 26 that the case was set down to be heard for final determination
on August 20, after the State last week filed leave to appeal against the
interim judgement, "even though the case is now moot". The TAC, with
five patients who use Khayelitsha's health services, had brought the urgent
action in the Cape High Court. The five described how they were dependent on
Khayelitsha's clinics to treat their and their children's chronic illnesses,
including HIV/Aids, tuberculosis and asthma. The respondents were Western Cape
Health MEC Pierre Uys, head of health in the province Craig Househam, Health
Minister Manto Tshabalala-Msimang, and Minister of Public Service and
Administration Geraldine Fraser-Moleketi. In his judgement on June 26, Judge
Desai found that, given the evidence before him, the State had acted
unconstitutionally and violated the rights of patients by not having a
reasonable contingency plan in place to maintain health services. He upheld the
evidence of doctors and nurses working in Khayelitsha who testified that service
provision was dramatically affected by the dismissals. The TAC, judging the case
"important for determining (the) government's health delivery
obligations", said the judgment demonstrated that the government "may
not terminate the provision of health services without making contingency
plans". The end of the nearly month-long industrial action was announced
two days after the judgment, and included in the settlement agreement between
the unions and the State was the reinstatement of the workers. Nevertheless, the
TAC said, the State had appealed the interim judgment. "The TAC national
executive committee has resolved to mobilise the widest support for sufficient
human resources in the health system," the group said.
U.S. Trade Union Joins Forces With Sactwu
A major U.S. trade union is to join forces with the South African Clothing
and Textile Workers' Union (Sactwu) in a move which could see
"significant" investment in SA and elsewhere, a media briefing
attended by Hollywood superstar Danny Glover was told July 3. Glover, who
represents U.S. lobby group, the Trans-Africa Forum, and Bruce Raynor, president
of the Unite Here union, Sactwu's U.S. sister trade union, are in the country to
identify opportunities that can assist the U.S. groups to promote social
development in SA. The unions would also promote South African clothing and
textile goods in the U.S., particularly since SA had fair labour standards,
which complied with the investment strategy of the U.S. trade union. Raynor, who
is also chairman of the $5bn union-owned Amalgamated Bank in New York, said he
was in SA to investigate investment opportunities for pension fund investments.
The bank had $7bn of pension fund investments in its portfolio and
"substantial" amounts of money were available for further investment.
He said that 10%-20% of the bank's investment capital was earmarked for global
markets with productive economies, and SA was one of the targeted areas. Raynor
said that what was also needed was a collaboration with Sactwu to take the
message to U.S. consumers supporting the "largest retail market in the
world for apparel textiles", that goods sold in the U.S. should be made in
countries where "fair labour standards are applied and workers are treated
respectfully". He said part of Glover's and the unions' power lay in their
ability to appeal to the American public on issues of workers' rights. What was
needed, he said, was to learn to exercise "some influence" over the
buying decisions of U.S. consumers to get to the heart of American retailers,
and change the behaviour of the retailers to make "sourcing decisions which
make sense". Raynor also said that once a new U.S. president was elected
there was a "good chance" for a more equitable African Growth and
Development Act to be passed by congress.
Aids Sees Plunge in Growth Rate of SA's Population
The population growth rate in South Africa has taken a drastic plunge in
recent years, with HIV/Aids-related deaths playing a lead role in the decline,
say experts. Statistics South Africa released its latest findings July 3, which
show that the population growth in the country has slowed down to 6.4% since
2001. This is a significant drop from the 10.4% growth rate between 1996 and
2001. The mid-year population estimates further show that 11% of the recently
estimated 47.9 million people in South Africa are infected with the HIV virus.
According to a 2006 report on the demographic impact of HIV/Aids on the country,
the population growth rate is directly affected by HIV/Aids. The report -
jointly compiled by experts from the Centre for Actuarial Research, The Burden
of Disease Research Unit and the Actuarial Society of South Africa - says there
were up to 346 000 Aids-related deaths nationally in 2005.
"... although the population growth rate is falling, it is not expected to
become negative for the country as a whole, but may do so, slightly, for one or
two provinces," the report says. The populations of Gauteng and Free State
are expected to shrink dramatically by 2015. This was expected partly because
Gauteng was enduring falling fertility and rising mortality rates and Free State
was feeling the impact of migration. "However, whether or not these
provinces will actually experience negative or stagnant population growth is
very much dependent on the patterns of future migration, and this is something
about which there is little certainty," the report says. The impact of
HIV/Aids on the population growth rate was also backed up by Medical Research
Council statistician Ria Laubscher and senior researcher Leigh Johnson and
demographer Tom Moultrie at the Centre for Actuarial Research. Laubscher said
HIV/Aids would "definitely have an influence" on the population growth
rate because the death rate in the country was increasing as a result of the
pandemic. Moultrie said fertility in the country had been falling for years and
that there were a number of recent deaths because of Aids, which saw the
"narrowing of the gap in terms of the slowing down of the population growth
rate". Johnson said while there were probably other factors at play,
"Aids mortality has had some impact on population growth". According
to Statistics SA's estimates, 51% of the country's population was female and the
average life expectancy for both sexes was 50 years. Also, closer to home, only
10.1% of the population was found to be living in the Western Cape, which is
half the number of people living in Gauteng. People in the Western Cape can also
expect to live a few years longer than South Africans in other provinces as
their average life expectancy is 60 years and over.
South Africa 'Spurns World Bank's Aids Money'
The World Bank's HIV/Aids programme director Dr Debrework Zewdie expressed
disappointment July 19 at the South African government's continued refusal of
the financial institution's offers to help combat the country's HIV epidemic,
one of the world's worst. SA has at least 5,5-million HIV-infected people,
according to the government's own estimates. When SA's new R45bn National
Strategic Aids Plan, was launched this year, Deputy President Phumzile
Mlambo-Ngcuka said the government would be hard pressed to bankroll the entire
plan itself and called on the private sector to help. The ambitious plan maps
out SA's strategy for combating HIV and Aids over the next five years, and has
been widely hailed. The government has earmarked R14bn for HIV/Aids over the
three-year medium term expenditure framework. Zewdie said she had personally
been involved in efforts to help the government but had been repeatedly
rebuffed. "SA doesn't want the World Bank's money. We actually lost a lot
of money in trying to entice SA to take money from the World Bank. We didn't
succeed." Offers of practical help were also declined, she said. "We
hope the situation will change. The bank stands ready to help," she said.
The bank's Pretoria office was in "constant communication" with the
government. Zewdie made her remarks ahead of the 4th International Aids Society
(IAS) conference on HIV pathogenesis, treatment and prevention, which opens in
Sydney on Sunday. The gathering is expected to draw 5000 experts from around the
world to discuss the latest scientific developments in the prevention and
treatment of HIV. They are also due to discuss the latest advances in
scientists' understanding of the virus itself, and how to put new research
findings into practice. Asked in Cape Town yesterday about the World Bank's
offer and SA's apparent refusal of it, Mlambo-Ngcuka said she had no knowledge
of either. The IAS, the world's largest independent association of HIV experts,
planned to use the conference to launch a global call for governments and
bilateral donors to earmark 10% of the funds they allocated to HIV programmes
for research, said conference co-chair David Cooper. Many developing countries
were battling to meet the demand for Aids drugs and were concentrating their
limited resources on developing implementation programmes without detailed
monitoring systems, he said. "Many of us are afraid if this rollout of Aids
drugs doesn't go well, and the donors become fatigued and unhappy with some
outcomes, then we won't have an evidence base on which to work out why it hasn't
gone as well as we'd have liked." he said.
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AUTOMOBILES
Ford to Shift Focus Plant to Australia
Vehicle manufacturer Ford Motor Company of southern Africa will shift the
production of the company's next-generation Focus range from SA to Australia in
an effort to improve efficiency, eliminating 40% of its local production. Group
communication manager Ben Pillay said July 25 the reasons behind the decision to
take production to Australia were prompted by the group's strategy to improve
efficiency. The company has been producing 30000 Focus range vehicles locally
with 7000 of these destined for SA and the rest for the Australian market. The
Focus was introduced in 2005. Pillay said the decision would not result in
retrenchments of workers as the company was looking at alternative products that
could be manufactured locally to close the gap. "Once a decision has been
made on which other Ford products we can produce locally, workers will be
absorbed. Going forward, we want to drive efficiencies. The decision only kicks
in in 2010, so we have time." Pillay could not divulge how much revenue
Ford would lo se in revenue due to the decision. On whether this would not
affect the pricing of the Focus, as it would be imported from Australia, Pillay
said: "Pricing is driven by the market. We obviously want to get
competitive prices for our products." He said the third-generation Focus
would be manufactured at Ford Australia's Melbourne plant. "About 40000
Focus units a year are being projected, many of which will be exported to SA,
New Zealand and other right-hand-drive markets," Pillay said. The Focus
range of hatchbacks and sedans is being produced at the company's Silverton
plant in Pretoria. Sapa reported that Ford Australia president Tom Gorman said
that the Focus production would "more than double" its export
footprint. "It also reflects contemporary market demands for smaller
vehicles and opens up significant export opportunities within the region,"
Gorman said. Bloomberg has reported that Ford, the second-biggest US vehicle
maker, would probably report its eighth consecutive quarterly loss.
Tyre Strike Starts to Bite As Parties Stand Firm
The strike in the tyre manufacturing industry is starting to bite, with
production affected adversely but both employers and unions are sticking to
their guns with no resolution in sight. Almost 4000 members of the National
Union of Metalworkers (Numsa) out of the 7800 workers in the tyre industry
downed tools over wages July 20, demanding a 10% increase. This comes after
several rounds of negotiations failed to resolve the dispute with employers
represented in the New Tyre Manufacturing Industry Association offering a 7%
increase. Association chairman Basil Smith said employers had put a 7,5% salary
increase on the table, linked to production improvements. "We are producing
the minimum number of tyres and it is difficult to gauge how much the industry
is losing a day as a result of the strike. We have given union representatives
our offer to go and consider," Smith said. Romano Daniels, group
communication manager at Bridgestone, said "we are unable to produce one
tyre in our Brits and Port Elizabeth plants". Goodyear PR manager Lize
Hayward would give details on production.
Fiat Leaps Ahead With New Parts Centre
Fiat Auto SA has made a quantum leap in its service provision with the opening
of a state-of-the-art parts distribution centre, housed within the Automotive
Distribution Park in Rosslyn, Pretoria. The ribbon-cutting ceremony heralded the
start of a new level of customer service and satisfaction that is aimed at
rivalling the best available in the world. Fiat Auto SA MD Gorgio Gorelli said:
"We have been focusing intensely on two key drivers with regard to pushing
the Fiat nameplate in this country: method and brand. We have moved a long way
from a situation wherein our operation was relatively weak with 90 dealers with
poor representation to a situation where we now have 40 dedicated dealers with
full representation and equal commitment to our ideologies. "As a result of
consistency in our marketing, we have targeted the fastest-growing market
segments effectively and this has reflected in industry statistics that show
Fiat as the fourth-youngest brand, the third brand in appealing to female
customers and the first to black consumers," Gorelli said. "This was
not the case a few years ago, but through multi-language advertising and our
emphasis on concise component delivery, we are very proud of this staggering
progress," he said. "The intense work placed into the supply chain has
been a great contributing factor in Fiat becoming the third-fastest growing
brand in SA, and has seen the delivery of customer excellence that we expect.
"It is for this reason that the logistics provider that was selected
through tender would need to meet with key parameters in facilitating our
operation. These are speed, accuracy and the capacity to deliver. "UTI
provided all of these prerequisites, and in addition, proved the most economical
as well. "They best understand our needs and provide a unique solution to
give Fiat the advantage we need to go forward," Gorelli said. GM of Fiat
Parts, Theunis Eloff, sounded an upbeat note. "With Fiat's primary target
being to deliver excellence to the customer, the very next step would be to
enhance our branding network even further by entering into a service level
agreement with UTI. This would require not only meeting, but managing and
exceeding expectations in altering our dealer network to maximise its
capacity," Eloff said. "UTI has met with and exceeded expectation in
four key elements as required by Fiat Auto SA, namely an established South
African infrastructure, operational excellence, IT integration capabilities and
proven automotive experience." Customer solutions manager for UTI
Automotive Division Anthony Wilson said: "UTI was started by three South
Africans in 1976, and with a market capital of over R3,5bn and more than 19000
employees in more than 300 offices in 60 countries, it has moved from being a
JSE-listed company to the Nasdac. "Over the years we have developed a
reputation of delivering quantified value over the long term and this is
achieved through customer service, return on investment and reducing operating
costs," Wilson said. Eloff said at the end of the ceremony: "Fiat SA's
mission is to become one of the top performing parts distribution operations of
any Fiat operation globally, through world class operational performance,
web-based supply chain visibility and advanced integrated cross-docking."
Toyota Fights Back
Toyota has been the dominant motor manufacturer in SA since taking overall
market leadership in 1980, but it has been outgunned by Volkswagen in the high
profile passenger car stakes since 2005. The launch of the Auris as the
replacement for the RunX in the C-segment hatchback market marks the start of a
renewed fight back in the car market by Toyota. The public introduction of Auris
early August will be followed in September by the launch of the latest
generation Corolla, one of SA's all-time top sellers. Together these two models
and the related Corolla Verso multi-purpose vehicle will be aiming to regain the
sales lead among individual model ranges from current chart-toppers, the VW Polo
sedan and hatch. The obvious difference in the passenger car ranges of Toyota
and Volkswagen is that Toyota no longer has an entry-level car - its base 1l
Yaris three-door now costs R92700. VW meanwhile keeps revitalising its
entry-level competitor, the evergreen CitiGolf, which dates back originally to
1984. The CitiGolf garnered 2222 sales in June to make it the country's second
most popular model for the month -- behind Polo. This is quite some achievement
considering that CitiGolf is basically an old model and sometimes takes flack
from motoring writers as the only remaining "dinosaur" on the local
market! It seems that Toyota SA has no quick-fix solution to the loss of its
Tazz model last year, when production stopped. The joint-venture
Toyota/Peugeot/Citroen minicar is already on sale here in its Peugeot and
Citroen guises, but it appears that the Toyota version, the Aygo, does not make
economic sense as its pricing would have to be close to the lower spec models in
the Yaris range. Toyota Motor Corporation is developing a "low cost car for
developing countries" and a concept will be shown at the Frankfurt Motor
Show in September. This may well be a long-term solution to Toyota SA's current
entry-level quandary. In the meantime Toyota SA will rely on new models such as
the Auris and Corolla to win back lost share in the passenger car arena. Auris
has a tough task as it is up against seasoned campaigners such as the VW Golf,
Opel Astra, Ford Focus and Peugeot 307. South African journalists were taken to
Britain by Toyota SA in June for the international launch of the Auris, which is
a very important player in Toyota's thrust for increased sales in Europe, with
the C-segment hatch being a key model. Details of the Auris line-up and detailed
specifications for SA, as well as pricing, will be revealed at the local media
launch on August 6. Sales will start on August 13. The Auris is made in only two
countries outside Japan -- Britain (five-door) and Turkey (three-door). SA will
import the five-door Auris from Britain and this will mark the first time in 22
years that the hatchback version of the Corolla will not be made in SA.
Currently Toyota's plant at Burnaston in the UK builds Auris and Avensis, with
each model on dedicated production lines. There are 34 variants of Auris to
cater for the needs of different markets and the monthly volume destined for SA
will be about 1000 units. A great deal of time, effort and training has gone
into preparing the plant and its team members to ensure top class quality for
Auris from the start of initial production, to ramp up to full volume, which
took only 38 days. Another change from building the Corolla hatch in SA will be
the adoption of the Auris name. The name Auris is derived from "aurum"
(gold) and "aura" (atmosphere). The pronunciation of the name will
differ however. Toyota Great Britain has opted for "Ow-ris", while
other markets, including SA and France will use "Or-ris". Very high
targets were set for the Auris in the design and development process in terms of
aiming at class-leading interior design and spaciousness,
noise/vibration/harshness, safety and driving dynamics. The enthusiastic British
Toyota team says they are very pleased at the way the car is meeting these
objectives. Feedback from research and initial sales figures has both been
satisfying and rewarding according to Elfion Jones, the sales and market
planning manager. Although Toyota SA's marketing communications manager, Brian
Eades, would not reveal specific details about Auris for SA he did say that the
marketing slogan for Auris would be "Passion for now" and all
marketing will continue to be totally divorced from Corolla, as was the case
with the Conquest and RunX in the past. Eades said there would not be an RSi
performance model in the range, as the petrol engine used in the current RSi and
TRD models has been discontinued. Europe uses a 2,2-litre D4-D Cat diesel engine
in its high performance model, but this engine requires diesel fuel with a
maximum sulphur content of 50 parts per million, which is not yet available
countrywide in SA, so we will not get this version. However, there will be a
diesel in the local Auris line-up, as well as 1,4l, a 1,6l and 1,8l petrol
engines. The diesel is a two-litre, which complies with Euro 4 emission
regulations and will be new to SA as the Avensis and RAV4 use a 2,2l diesel
power unit. The 1,6l engine is all new and features variable valve timing on
both inlet and exhaust camshafts. Both the 1,4l and the 1,8l engines have been
revised for more power and better fuel economy. There will not be a conventional
automatic in the Auris range, but a 1,6 with vastly improved multi-mode
transmission will be offered. The exterior design is more an evolution of the
RunX styling than being a possibly controversial ground breaker in styling, like
the new Honda Civic hatch. Toyota traditionally prefers to play it
conservatively. We had the opportunity to drive three of the British
specification models. Initial impressions were most favourable, particularly the
spaciousness of the cabin and the attractive interior lay-out, especially the
"bridge" design feature around the gear lever. Gear shifting by means
of a short lever was a marked improvement on the RunX, while the electric
steering system provided good feel. Braking was most impressive and is claimed
to be class-leading. Noise and vibration was also very well controlled and the
general feeling was of a quiet, comfortable ride with good driving dynamics. Now
we have to wait a few days to learn more about the target market Toyota SA sees
for their newcomer, as well as the detailed specifications, model range and the
important factor of pricing. It is going to be an interesting fight!
Locally Manufactured Toyota Corollas Head to Europe
As from next year, the South African subsidiary of motor company Toyota is
expected to export its locally produced Toyota Corollas from Durban to Europe -
a move set to boost the economy of KwaZulu-Natal. The decision was taken
following a meeting July 11 in Tokyo, Japan between the provincial government
and Toyota representatives. At the meeting with KwaZulu-Natal Premier Sbu
Ndebele, the vice chairperson of Toyota Motor Corporation, Katsuhiro Nakagawa
said Toyota South Africa would produce Corollas specifically to be exported to
Europe. Mr Nakagawa announced that about 50 engineers had already been sent to
South Africa to help with the manufacturing of the vehicles. "Toyota is
determined to produce more vehicles in South Africa which can be exported to
other countries. "The exporting of vehicles from South Africa to other
countries is very important for South Africa's economy. The automotive industry
is also important for the development of South Africa," he said. He said
they also wanted an increased presence in Japanese automotive parts suppliers in
South Africa as the country was considered to be the gateway to the rest of
Africa. "We want to make our South African plant more competitive compared
to Toyota plants in other countries," he said. In a bid to ensure the
competitiveness of their South African plant, he acknowledged that the training
of workers would be important to achieve this. "If we skill more workers,
more automotive parts supplier companies will come to South Africa". He
explained that they planned to establish a Toyota Training School in South
Africa, which would benefit the company's employees and create a much needed
skills base for growth. "We want to listen to the voice of the workers to
be able to produce more vehicles, more efficiently and effectively. Training,
development and education of our workforce must be intensified," said Mr
Nakagawa. The production of the latest model of the Toyota Corolla in South
Africa is currently proceeding well and will be launched in August this year.
"However, we are trying hard to introduce new models of Toyota to be
produced is South Africa as well," he said. Premier Ndebele appreciated the
confidence shown by the company to South Africa, particularly KwaZulu-Natal.
"We appreciate the new investment of more than R4 billion at the plant at
Prospecton in Durban. However, we would like to see Toyota producing other
automotive components in KwaZulu-Natal as well," he said. Mr Ndebele said
they would welcome the development of an Automotive Supplier Park in the
province. He said it was important to accelerate training of the current and
future workforce. "Continuous training is very important. We have to train
all the time. For the market in South Africa, the market in Africa and the
market elsewhere, training is important," he said.
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AVIATION
SAA Division Strikes Maintenance Deal With Comair
A five-year R500 million deal has been finalised between Comair and South
African Airways' technical subsidiary, SAA Technical (SAAT). The British Airways
and Kulula.com fleets, operated by Comair, which total more than 22 aircraft
will from now on be maintained by SAAT. SAA Group Head for Corporate Services,
Robyn Chalmers said this was one of the largest and most significant maintenance
agreements. The official said the decision by Comair to move the maintenance of
its fleet of Boeing 737-300s and 737-400s to SAAT, confirms the extent of the
organisation's solid local and international reputation. Chief Executive Officer
of SAA, Khaya Ngqula, said the fact that one of the airline's competitors have
decided to entrust the safety of its aircraft to SAAT is a great compliment and
a proud achievement. "Not only will SAAT be able to offer Comair a seamless
service, but the deal will also boost our revenue and further enhance our
reputation," he said. SAA Technical is said to be the largest maintenance
facility in Africa. Comair joint CEO, Gidon Novick, said: "The service
levels we have had from SAAT in the past have enabled us to offer a high level
of service to our customers. We look forward to further extending our
relationship with SAAT." Until now, Comair aircraft have been maintained by
both SAAT and Safair, a subsidiary of Imperial Holdings. Comair currently leases
several aircraft from Safair and will continue to do so in the future. In
addition, the two companies will continue with their successful freight joint
venture, called Imperial Air Cargo. "We have already acquired two new and
more fuel efficient and environmentally friendly Boeing 737-400s for Kulula.com
as part of our plan to replace our old MD-82s. "This fleet upgrade process
will be completed by the end of the year and we look forward to placing these
aircraft in the capable hands of SAAT," he said. SAA Technical CEO Jan
Blake said transferring maintenance on Comair's aircraft to SAAT already began
in the beginning of July and will roll out over the coming months to ensure that
there is a smooth transition. With the finalisation of the contract, the B737s
will be the single largest fleet type under SAAT's maintenance schedule.
"The B737 is the aircraft for Africa in the future which puts SAAT in a
good position to bring in additional work from the continent in the coming
years. "We will be focusing on neighbouring countries to expand our
services in line with our strategy of diversifying our revenue stream and
sourcing additional work from outside SAA," he said. The existing Comair
fleet of MD82 aircraft leased from Safair will continue to be maintained by
Safair until they have been phased out, this is likely to be within the next 8
months. Boeing 737 aircraft currently maintained by Safair will be transferred
to SAAT over the next 3 months.
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BANKING
Africa: Merger Makes Standard Africa's Biggest
Standard Bank Group, SA's largest bank by assets, planned to merge its Nigerian
investment banking unit with Nigeria's IBTC Chartered Bank and acquire a further
17% stake in the enlarged entity for about $400m (R2,8bn) to give it control of
the group, finance director Simon Ridley said July 16. The deal, which has been
sanctioned by regulatory authorities in Nigeria and in SA, is part of
Johannesburg-based Standard Bank's expansion in to the rest Africa. The bank
currently operates in 18 African countries including SA. It also makes Standard
Bank, which is mulling over another acquisition in Kenya, the largest bank in
Africa by assets. Ridley said Standard Bank would merge Stanbic Nigeria with
IBTC in exchange for 6,25-billion IBTC shares or 33% interest in the enlarged
IBTC. Standard Bank would also make a tender offer to all IBTC shareholders to
acquire more than 3,14-billion shares or 17% in Lagos-based IBTC Chartered at 16
naira a share, which was revised upwards from a February offer of 11,74 naira,
he said. This would bring Standard Bank's holding in the enlarged entity to
50,1%, Ridley said. The tender offer opens next Monday and closes on August 13.
Ridley said the enlarged ITBC, with 56 branches, would be the fifth-largest bank
by capital in Africa's most populous country. "We are excited about the
Nigerian transaction because the country has a very big and relatively unbanked
population." Ridley said there was also potential for large, oil-induced
corporate "activity" in the world's sixth-largest oil-rich country.
Standard Bank would soon seek regulatory approvals for its plans to acquire a
60% stake in Kenya's CFC Bank, Ridley said. CFC Bank, with assets of
40,4-billion shillings (R4,2bn) at the end of last year, would be renamed CFC
Stanbic Holdings. Standard Bank operates as Stanbic Bank in some of the African
countries in which it trades. "Upon successful completion of the proposed
merger, SAHL (Stanbic Africa Holdings) will directly own and control
164,2-million ordinary shares in CFC Bank, representing 60%, thereby acquiring
effective control of CFC Bank," Standard Bank said recently. It did not say
how much the acquisition would cost. CFC operates five branches in Kenya, and
has insurance and financial services subsidiaries in Kenya and Tanzania.
Standard Chartered 'In Talks On Nedbank Stake'
British-owned Standard Chartered Bank said July 18 that it planned to grow its
presence in SA organically and possibly through acquisitions amid market
speculation that the wholesale banker was eyeing a stake in SA's fourth-largest
bank, Nedbank. Standard Chartered SA CEO Christopher Low said SA was
"core" to the group's strategy to expand its business in the rest of
Africa, where it operates in 14 countries. Discussions between Standard
Chartered Bank and Nedbank, which is majority owned by SA's largest insurer, Old
Mutual, are understood to have been going on "for a while", according
to sources. "Nedbank has been and still is a candidate for a possible
takeover because it is the cheapest of the big four banks in SA. It has been
linked to Standard Chartered going back two years," a market watcher said
yesterday. Old Mutual's head of media relations, James Crampton, and Low could
neither deny nor confirm the reports. "While we do not comment on market
speculation, our focus for SA is niche organic growth as the country is an
important gateway to the rest of Africa," Low said. "But this does not
mean we would not supplement organic growth with acquisitions if the right
opportunity presented itself in SA," he said. Standard Chartered, which
established its first operation in SA in 1863, divested from SA in 1987 at the
height of apartheid rule and returned to the country in 1992. A recent survey of
banks operating in SA by professional services firm PricewaterhouseCoopers
showed that while most banks in SA believed that the big four banks should be
open to foreign investment, some thought the authorities would not approve of
it. The report said the consensus was that, in addition to Absa, whose majority
stake is in the hands of British bank Barclays, at least another one of the big
four banks should be permitted foreign ownership. Standard Chartered group CEO
Peter Sands said this week it aimed to be the "world's best international
bank, leading the way in Asia, Africa and the Middle East. Through strong,
organic growth and disciplined acquisitions, the scale and performance of
Standard Chartered has been transformed in recent years." Standard
Chartered Bank planned to increase its stake in financial services firm First
Africa from 25% to a controlling stake, Low said, without disclosing the quantum
of shareholding it sought in the company. He said the bank, which also provides
offshore correspondent and other banking services to SA's major banks --
Standard Bank, First National Bank and Nedbank -- also planned to expand its
operations in Africa, outside SA. In the short to medium term, the bank was
considering extending its African operations to a further nine countries in
sub-Saharan Africa, including Mozambique, Angola and Senegal, Low said. In the
long term, it would also consider venturing into northern Africa, he said.
Standard Chartered group had set aside $500m over the next five years to finance
microlenders in the Africa and Asia regions. It was working with four
microlenders in SA, three of which had operations elsewhere in Africa, Low said.
Standard Chartered was also working with a number of insurance companies, in the
markets that it operated, he said. The bank was this week named the best
emerging markets bank at the 2007 Euromoney Awards for Excellence. It also
scooped a regional award for the best bank in Africa, and a country award for
the best bank in Ghana. "Africa is an important part of Standard Chartered
history and future," Low said. "It is a diverse continent and many of
its economies are experiencing strong economic growth and are being transformed
by high commodity and energy prices." Low said the bank wanted to take
advantage of the strengthening trade links between Asia, particularly China, and
Africa, which had received much attention last year. "As an international
bank with strong presence in both Asia and Africa, we are helping to fund this
growing trade activity," he said.
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INTERNATIONAL ECONOMIC RELATIONS
Government and Spain Agree On Trade Balance
South Africa and Spain have agreed to explore ways of ensuring a trade balance
between them following bilateral talks July 18. South African Deputy Foreign
Affairs Minister Aziz Pahad, and Deputy Finance Minister Jabu Moleketi, have
been on a diplomatic visit to Spain as part of a four-nation tour.
The South African and Spanish governments have agreed to investigate ways of
increasing two-way trade to address the trade imbalance currently in South
Africa's favour, according to the Department of Foreign Affairs. The department
said the two countries had identified the 2010 FIFA World Cup, as an important
project through which they could explore co-operation. Deputy Minister Moleketi
told his hosts about developments in South Africa's economy, including the
existence of the two economies and the challenge of upgrading infrastructure to
meet the demands of economic expansion. He also briefed the Spanish delegation
about the country's Accelerated and Shared Growth Initiative for South Africa (AsgiSA)
and the Joint Initiative for Priority Skills Acquisition in South Africa (JipSA)
as a means to uplift the economy and address South Africa's skills development
challenges. The Spanish government was also briefed on the implementation of the
Black Economic Empowerment (BEE) policy in South Africa and South Africa's
readiness to host the 2010 FIFA World Cup. The deputy minister was then given an
overview of the Spanish economy, which has been growing at 3.5 percent per
annum. In order to sustain this growth trend, Spain has identified four engines
of growth. They include the lowering of interest rates, the development of
infrastructure that benefit from European Union structural fund, and an increase
in immigration which has also stimulated economy growth. Projects under the New
Partnership for Africa's Development (Nepad) banner will also be investigated
and opportunities for co-operation will be explored. The department said some
Spanish business federations are already participating in business ventures in
South Africa, including in water, sanitation, mobile clinics, toll road
management and infrastructure projects. The multi-lateral co-operation would
also be facilitated through the European Union - SADC Economic Partnership
Agreement (EPA) to be finalised by the end of 2007.
Russia and South Africa to Boost Economic Ties
South Africa and Russia are to strengthen economic ties as Foreign Minister
Nkosazana Dlamini-Zuma opened the SA-Russia Inter-governmental Trade and
Economic Committee (ITEC) in Russia July 19. Minister Dlamini-Zuma led a senior
South African delegation to the Russian Federation including Foreign Affairs and
Mineral and Energy Directors-General Dr Ayanda Ntsaluba and Advocate Sandile
Nogxina. Since the launch of ITEC, great progress has been made in strengthening
bilateral political, economic and trade relations between the two countries. The
last session of ITEC was held in Pretoria in February this year in which it was
agreed that implementation of agreements through the committee is an area which
would be focused on, as the framework for co-operation has already been
established. One of the advances made through ITEC was the establishment of a
Joint Business Council between the two countries launched during President
Putin's state visit to South Africa. According to the Department of Foreign
Affairs, the visit seeks to further strengthen bilateral relations between South
Africa and the Russian Federation in discussions with Russian Minister of
Natural Resources, Yuri Trutnev. Ministers Dlamini-Zuma and Trutnev have
expressed satisfaction at progress made after the tabling of reports from
sub-committees of ITEC on water affairs and forestry, minerals and energy, trade
and industry, agriculture, transport and education. The two ministers agreed to
finalise preparations for the signing of four agreements between South Africa
and Russia on issues regarding agriculture, education, energy and transport in
2008 in Moscow. The proposed agriculture agreement is set to enhance the
expansion of export of South African agricultural products to the Russian
Federation, while the education co-operation would deal with the mutual
recognition of qualifications. Regarding energy, an agreement would be signed to
facilitate closer co-operation in the fields of energy and power-generation. The
ministers also emphasised the need to intensify the involvement of the private
sector as driving force behind enhanced economic c-operation between Russia and
South Africa, the department said. The Russian delegation to ITEC called for
support of South Africans in arranging an Exhibition of Russian goods and
services in South Africa in November 2007.
Deputy Ministers Conclude Visit to Cuba
A high-level South African delegation - led by two Deputy Ministers - has
concluded an official visit to Cuba, which was characterised by intensive
discussions on issues that will strengthen bilateral relations between the two
countries. Deputy Foreign Affairs Minister Aziz Pahad and Deputy Finance
Minister Jabu Moleketi visited the Latin American country July 10 to consolidate
South Africa's commitment to political, economic and trade relations, as part of
their four nation tour. The tour included Panama, Mexico and Spain. During the
visit Mr Pahad and his Cuban counterpart Deputy Foreign Minister Bruno Rodriguez
co-chaired the fifth session of the Joint Consultative Mechanism between South
Africa and Cuba. The two leaders held a series of bilateral discussions, which
also included regional situations in Latin America and the Caribbean as well as
the Southern African Development Community (SADC) and the African Union (AU).
They also engaged on multilateral issues including Cuba's chairpersonship of the
Non-Aligned Movement (NAM), the strengthening of South-South co-operation and
developments in the United Nations, including its reform. The deputy ministers
further discussed South Africa's tenure as a non-permanent member of the United
Nations Security Council and progress towards the 2008 African Diaspora
conference to be hosted in South Africa. Cuba extended its support of the
Diaspora Conference. Foreign Affairs spokesperson Ronnie Mamoepa said on July 11
that during the discussions, South Africa agreed to take efforts in addressing
the current trade imbalance between the two countries, which is in South
Africa's favour. The Cuban delegation expressed its support for South Africa's
attempt to address the challenges of skills development through the Accelerated
and Shared Growth Initiative for South Africa (AsgiSA) and the Joint Initiative
for Priority Skills Acquisition (JIPSA). "The Cuban government accordingly
reiterated its offer to train South Africans in the fields of health,
construction, housing, science and technology and literacy programmes.
"South Africa also offered to share experiences and train Cubans in the
fields of minerals and energy, biotechnology and geosciences," said Mr
Mamoepa. Mr Pahad also briefed the Cuban delegation about peacekeeping and
conflict resolution efforts in Africa, including the situation in the Great
Lakes region, Côte dÍvoire, Somalia, Sudan and Darfur and Zimbabwe. "The
Cuban delegation expressed support for the African position that each country in
conflict determine their own solution and not have solutions imposed upon
them," said Mr Mamoepa. Deputy Minister Pahad further briefed his Cuban
counterpart of the outcomes of the African Union Summit in Ghana at the
beginning of July 2007, which was held under the banner of the Grand Debate on
African political and economic integration. He explained that all countries were
committed to the goal of African integration and that processes should be put in
place to achieve this long-term objective. Both sides also evaluated the
situation in the Middle East, Iraq, Israel-Palestine, and Iran with regard to
nuclear non-proliferation. "Both delegations agreed and reiterated that the
creation of a Palestinian state living side-by-side with Israel within secure
borders and with Jerusalem as its capital remained a key element towards peace,
security and stability within the region and indeed internationally," said
Mr Mamoepa. Mr Mamoepa said the two delegations committed to intensify efforts
aimed at bringing peace in the Middle East, including Iraq and Lebanon, through
bilateral relations and the Non-Aligned Movement (NAM). Deputy Finance Minister
Jabu Moleketi also held discussions with the Cuban Deputy Minister of Finance
and Prices Alejandro Gil Fernandez. Mr Moleketi also met First Deputy Minister
of Tourism Alexis Trujillo Morejon and First Deputy President of the National
Institute of Sport Roberto Leon Richard. They noted that aalthough South Africa
and Cuba have different development challenges; there was a need to share
experiences and strengthen bilateral economic relations. During discussions with
the First Deputy Minister of Tourism Alexis Trujillo Morejon, Mr Moleketi
commended Cuba's progress regarding the development of the tourism sector.
"It was also indicated that South Africa could benefit from the Cuban
experience, inter alia, institutional capacity building and the adoption of
innovative and creative approaches to attract tourists," said Mr Mamoepa.
Mr Moleketi also briefed the First Deputy President of the National Institute of
Sport, Roberto Leon Richard on South Africa's hosting of the 2010 Fifa World
Cup.
South Africa and Italy Consolidate Business Relations
Deputy President Phumzile Mlambo-Ngcuka has highlighted the importance of
strengthening and consolidating business and government relations between South
Africa and Italy. Visiting Deputy Prime Minister and Minister of Foreign Affairs
Massimo D'Alema met Deputy President Mlambo-Ngcuka at the South Africa-Italy
Business Forum, July 9. "We see this forum as a (necessary) mechanism to
build a business to business relationship between South Africa and Italy,"
Ms Mlambo-Ngcuka said. South Africa's strategic positioning would provide
Italian businesses with a key platform to access not only markets within the
South African Development Community (SADC) countries, but the rest of the
continent, she said. She said business opportunities in the manufacturing sector
in particular, would allow South African and Italian businesses to operate
jointly in a third market outside of South Africa. Ms Mlambo-Ngcuka said South
Africa's economic boom was attributed to growth in the construction sector ahead
of the 2010 FIFA World Cup, but said demand for capital goods and skills
capacity was one of the country's challenges going forward. SAB Miller and Sasol
are among some of the South African companies who have managed to enter the
Italian market and they have expressed hope that more South African companies
would do the same, she said. Ms Mlambo-Ngcuka said she hoped South Africa could
attract Italian companies which are producers of capital goods to help the
country in this regard. She alluded to South Africa's growing second economy
which "makes reference to citizens who have not been able to enter the
mainstream economy." "Tourism is one of the most robust (second
economy) industries in the country," said Ms Mlambo-Ngcuka who believes
Italy has a lot to offer the country in terms of tourism. President of Business
Unity South Africa (BUSA) Patrice Motsepe, agreed that "South Africa has
much to learn in terms of SMMEs [Small Micro and Medium Enterprises] from
Italy." In his address, he said BUSA would like to see advancements in the
"design, manufacturing and distribution" sectors of the economy. He
reiterated the deputy president's call for Italy to take advantage of South
Africa as the gateway to SADC which has a perspective market population of 300
million. Mr D'Alema said Italy wanted to be South Africa's "principle
partner for the huge event of 2010." The forum provides a platform for
South African companies to interact with close to 120 Italian businesses from
sectors including financial services, tourism, construction, biotechnology,
automotives, machinery, agro processing and chemicals. Italy currently ranks
amongst South Africa's top ten trading partners with a total of R23 billion
having been traded in 2006. The forum was also attended by Minister of Trade and
Industry Mandisi Mpahlwa and President of Italy's Confindustria Luca Cordero di
Montezemolo, amongst others.
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MINING
Uranium One Outlines Expansion Bid
Global uranium company Uranium One was studying the viability of doubling output
from its $180m Dominion mine and plant under construction near Klerksdorp, CEO
Neal Froneman said July 9. He told media on a visit to the mine that Dominion
was on track to produce 491000 pounds of uranium this year. By 2011 the mine
would be at steady state production of 3,18-million pounds a year. The mine made
its first shipment of ammonium diuranate, a slurry containing uranium, to
AngloGold Ashanti subsidiary Nufcor, July 9, which will refine it further and
market it. A study of the feasibility of expanding Dominion in two phases, first
to plant capacity of 300000 ton s a month (tpm) and then to 400000tpm, or about
7-million pounds of uranium a year, should be completed by the fourth quarter of
this year, Froneman said. Those production levels could be maintained for 30
years. Uranium One executive vice-president for Africa and Europe, Robert van
Niekerk, said the company could not release cost estimates for the expansion
project but they were within expectations. The expansion would not entail
building another uranium plant, which had accounted for a significant portion of
the costs in the first phase. Uranium One was drilling around the Dominion mine,
where it holds prospecting rights over an area of about 57000ha . Work to date
suggested that within 10 years the mine could double or even treble its
production rate to 14-million to 20-million pounds of uranium a year. Dominion
is Uranium One's most developed mine after Akdala in Kazakhstan, which was
bought as part of the company's recent merger with Urasia. Later this year and
early next year, South Inkai and Kharasan, also in Kazakhstan, would come into
production as well as the Honeymoon mine in Australia. All five mines would be
shallow, low-cost producers at low technical risk. Their cash costs would be
$10- $14,50/lb compared with current uranium spot prices of about $135/lb. By
2013, Uranium One's global production should be at a peak of 19,4-million
pounds, Froneman said. Nuclear utilities were holding back on buying uranium at
elevated prices, he said, but he believed in the longer-term uranium could touch
$150/lb.
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TELECOMMUNICATIONS
Vodacom Reports Positive Growth
As at June 30 2007, Vodacom Group recorded 32.4 million customers across its
networks operating in South Africa, Tanzania, the Democratic Republic of the
Congo, Lesotho and Mozambique, reflecting a 7.5% increase in the three months
since 31 March 2007. This was announced July 19. The growth in the customer base
is a result of high gross customer connections of 4.4 million for the quarter.
The group's non-South African operations comprised 7.8 million customers, or
24.1% of the total customer base. Year on year revenue for the quarter ended 30
June 2007 increased by 18.6%, while total group customers increased by 28.4%
since June 30, 2006. South Africa increased its customer base by 6.9% since 31
March 2007 to 24.6 million customers in an increasingly competitive market.
South Africa's customer base comprises 3.2 million contract customers and 21.3
million prepaid customers, reflecting increases of 7.5% and 6.9% since March 31,
2007, respectively. Vodacom South Africa claims it has retained its leadership
in a highly competitive South African mobile communications market with an
estimated market share of 59% at June 30, 2007. The SIM card penetration of the
cellular industry in South Africa is now an estimated 89% of the population.
Vodacom's non-SA operations increased their total customer base by 9.3% since 31
March to 7.8 million customers. The group reports satisfactory customer growth
achieved in all non-South African operations, most notably DRC, with a 13.3%
increase in its customer base.
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