| Economic growth expected to climb ahead of 2010 – 30/04/2007 |
Economic growth is set to continue way into the next decade, with occasional ’soft landings’, or mild downturns, as billions of rands are spent on State and private projects. That was the word from First National Bank specialist economist John Loos at a meeting of the SA Property Owners’ Association (Sapoa) in Nelson Mandela Bay. The Herald reports that Loos said there some weaknesses beginning to show in the market, like returns on commercial properties dropping from more than 30% to the high 20% mark, but that was still an extremely good figure, considering the run of highs since 2004. He predicted that growth would increase into ’high single digits’ early in the next decade and that it would continue way past the 2010 World Cup.
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| SA and China look to strengthen ties - 25/04/2007 |
SA ambassador to China Ndumiso Ndima Ntshinga said here Wednesday that SA hopes Chinese companies could invest in the country’s infrastructure construction. The People’s Daily reports that SA welcomes investment from Chinese companies and hopes to expand economic and trade ties with China. In the past 13 years, Ntshinga said, great changes have taken place in SA and the infrastructure construction can not meet the demand of its economic growth. As SA will host the 2010 World Cup, Ntshinga said the infrastructure including roads, airports and harbors need to be renovated and the two sides can have cooperation in these areas. SA also seeks to promote bilateral co-operation in culture and education and hopes to enhance people-to-people exchanges, the ambassador added.
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Full People’s Daily report
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| Inequality fueling SA’s economic growth - 23/04/2007 |
SA’s record economic growth was fuelling the growing gap between rich and poor but the government’s ability to fight this was limited, finance minister Trevor Manuel said at the weekend. According to Business Report, data show that while skilled South Africans are in great demand there are very few opportunities for millions of unskilled, mainly black, workers. The lack of skills among the unemployed means that they will lose out as the economy expands on the back of infrastructure development and preparations for 2010 World Cup.
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Full story Business Report
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| International Franchise Expo focuses on 2010 - 19/04/2007 |
2006 was characterised by renewed strength in the Rand, lower than expected inflation, stable domestic interest rates, strong economic growth and sharply higher equity markets. 2007 is being viewed as another ’Goldilocks’ year for the global economy and SA too can enjoy robust growth and good business and consumer confidence under a consistent economic policy. According to a FastMoving.co.za report, the looming 2010 World Cup is also fuelling the economic boom with companies and entrepreneurs scrambling to set up businesses and concepts that will feed the boom that is expected around one of the most important global events. This positive economic trend is certainly reflected in a sold out International Franchise Expo (IFE 2007) which indicates that franchising is at an all-time high – with franchisors wanting to grow their distribution channels and prospective franchisees eager to take up the challenge to be in business for themselves but not by themselves.
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Full FastMoving.co.za report
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| SA and Sweden look to build economic ties - 13/04/2007 |
A formal agreement to promote trade and investment between Sweden and SA has been signed by the Swedish Ambassador to SA, Anders Mollander, and the Deputy Minister for Trade and Industry, Dr Rob Davies. Engineering News reports that the initiative will see the broadening of economic cooperation between the two countries. Sweden has expressed an interest in assisting in trade capacity-building in SA. Davies notes that, between 2004 and 2005, trade between the countries increased by 21%, and then by 37% between 2005 and 2006, although, admittedly, from a low base. Davies believes that SA is also well positioned for investment, owing to its current economic growth, the Accelerated and Shared Growth Initiative for SA, the upcoming R400bn-plus infrastructure spend and the 2010 World Cup.
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Full Engineering News report
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| IT crucial to SA’s economic growth - 02/04/2007 |
IT has a crucial role to play in the continued growth of the SA economy. As economic imperatives move away from consumer spending towards investment and job creation, IT has an important role to play both in building infrastructure and increasing productivity in the industrial sector. ITWeb reports that Dr Azar Jammine, director at Econometrix, explains that SA has enjoyed solid economic growth but, to date, most of this growth has come from consumer spending rather than on extending fixed investments. Jammine stresses that the use of computers in the manufacturing and industrial sectors - even mining and agriculture - is not with the aim of ’downsizing’ or shedding jobs, but rather to increase productivity and competitiveness to create more jobs. The 2010 World Cup could provide a major kick-start to the SA economy, especially if the momentum is able to continue beyond the actual event.
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Full ITWeb report
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| 2010 WC must ensure sustained growth - 29/03/2007 |
The preparations for the World Cup need to provide infrastructure and services that will last beyond 2010, said Gauteng premier Mbhazima Shilowa. ’It offers an opportunity to more vigorously focus on the provision of social and economic infrastructure, safety on our roads, crime prevention strategies, integrated public transport, tourism, job creation and poverty alleviation,’ he said at the launch of the 2010 Strategic Framework in Johannesburg. According to Business Report, he said the strategy would help Gauteng achieve an eight percent economic growth rate by 2014 and create 800 000 jobs.
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Full story in Business Report
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| Huge increase in artisans planned - 27/03/2007 |
The joint initiative on priority skills acquisition (Jipsa) plans to produce 50 000 artisans by 2010 while increasing the output of qualified engineers to 2 400 a year. This is to keep pace with the ambitions of the government’s accelerated and shared growth initiative for SA (Asgisa) to grow the economy by 6 percent a year. According to Jipsa, which is led by deputy president Phumzile Mlambo-Ngcuka, research has shown that at least 12 500 artisans need to be produced each year over the next four years. According to Business Report, the economy currently produces about 5 000 artisans a year so Jipsa has recommended that 7 500 additional artisans be trained annually.. This would add 30 000 more artisans by 2010, when SA hosts the soccer World Cup.
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Full story in Business Report
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| WC plans impact on infrastructure - 22/03/2007 |
The local construction and infrastructure sectors are expected to experience reduced cyclical fluctuations because infrastructure programmes are driving spending, according to a Merrill Lynch report. Construction and infrastructure companies are riding on the wave of the multibillion-rand expanded public works programme, preparation for the 2010 Fifa World Cup and the building of the Gautrain high-speed rail link. According to Business Report, the government plans to spend more than R400bn on infrastructure over the next few years and allocated R9bn for World Cup preparations.
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Full story in Business Report
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| Mboweni warns of ’reputational risks’ - 22/03/2007 |
The economic advantages of hosting major sporting events do not automatically outweigh the costs, according to Reserve Bank governor Tito Mboweni. In a speech at the Corporatesport Directors’ dinner in Sandton on Tuesday night, he warned of the ’considerable reputational risk associated with the hosting of the 2010 World Cup finals’, saying ’the success of the World Cup finals in Germany puts even more pressure on us to raise the bar’. According to Business Report, he suggested that SA learns from the experiences of other countries and referred to studies commissioned to determine the economic and financial implications of hosting mega events. These revealed that the 1976 Olympic Games in Montreal were considered an economic and financial failure. But on balance, the ’broad conclusion is that proper planning for mega events tends to generate positive spin-offs both in the short and long run.’
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Full story Business Report
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| Economic boom begins to bite - 11/03/2007 |
SA CEs have warned that their companies are buckling under the increasing demands of a growing economy and in the face of fierce competition from international businesses, according to a survey to be released this week. The Sunday Times says that the report will paint a worrying picture of companies ’creaking under the strain’ of a ’skills crisis’ and the need to deliver bigger volumes of goods to increasingly diverse customers. This is compromising SA’s global competitiveness and is spurring ’poorer’ service across various industries. The findings of the report are an important measure of whether SA can pull off government’s multi-billion rand infrastructure development programme and its preparations for the 2010 World Cup. The industries taking strain are crucial to the success of these projects.
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Full Sunday Times report
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| SA growth accelerates to 5.6% - 27/02/2007 |
SA’s economy expanded an annualised 5.6% in the fourth quarter, the fastest pace in more than two years, as investment surged and a weaker rand helped spur manufacturing and mining. Growth accelerated from a revised 4.5% in the three months through September, Statistics SA said in a report. According to a Bloomberg.com report, buoyed by a jump in tax revenue, the government has stepped up investment on transport, housing and stadiums, in part to prepare for the hosting of the 2010 World Cup. The rand’s 9.8% drop against the dollar last year has also boosted exports. Africa’s biggest economy has expanded for 30 consecutive quarters, the longest period of uninterrupted growth since 1945.
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Full Bloomberg.com report
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| A call for intervention - 27/02/2007 |
While the SA economy — the 27th largest in the world — is generally doing well, concerted intervention is necessary to reduce poverty and unemployment, the National Assembly’s finance committee heard on Tuesday. According to a report on the iafrica.com site, Industrial Development Corporation research and information head Jorge Maia, said it was essential that opportunities arising from the state-owned enterprises capital expenditure programmes, such as Eskom and Transnet’s R178bn spending plans over the next five years, and the 2010 World Cup, be secured by SA at large, to maximise and sustain economic benefits.
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| SA’s economy on the move - 27/02/2007 |
SA’s economy probably grew at a faster pace in the fourth quarter of last year than in the preceding three months as a weaker rand boosted exports and government and industry stepped up investment. Business Day reports that the government, flush with increased tax revenue, is spending more on building roads, railways and stadiums, some in preparation for hosting the 2010 World Cup, while cement and steel producers are increasing investment to ease shortages.
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Full Business Day report
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| Government focuses on infrastructure spending - 26/02/2007 |
Though the government had highlighted expenditure on social services and security, the focus over the next three years would shift to infrastructure spending, according to Econometrix chief economist Azar Jammine. Business Report says infrastructure investment continues to be an area of government focus, with a total of R416bn budgeted over the next three years. According to the Budget Review, infrastructure investment makes up an increasing share of general government expenditure and will, over the next few years, provide a platform for accelerated future growth. Hosting the 2010 World Cup provides an opportunity to reduce infrastructure investment backlogs in metropolitan areas and municipalities. These investments will target a range of projects, from improvements in sport facilities to roads and public transport networks, and serve as a catalyst for tourism promotion.
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Full story in Business Report
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| R1bn rescue package for home affairs - 22/02/2007 |
The embattled Home Affairs Department is to get a R1bn rescue package to alleviate its financial woes that have seen it receive a number of adverse audit reports in recent years. Business Day reports that with the 2010 World Cup looming, the efficiency of SA’s migration mechanisms will be firmly in the spotlight. In addition, the department needs to plug the leaks in its systems that have seen the credibility of both the barcoded identity document and of passports compromised. Finance Minister Trevor Manuel announced in his budget speech that home affairs would receive an extra R900m to improve its service delivery.
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Full Business Day report
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| DOC benefits from additional funding - 21/02/2007 |
SA’s Department of Communications (DOC) has received additional funding from National Treasury, thanks to a budget surplus. ITWeb reports that the funds, outlined in Finance Minister Trevor Manuel’s budget speech, have been earmarked for key projects such as Sentech’s digitalisation programme and the East African Submarine Cable System. Sentech’s budget for the next three years has been boosted by R200m, while the under sea cable benefits from an additional R21m. Additional allocations, totaling R377m over the next three years to end March 2010, have been added to the department’s budget for priorities including digital signal distribution, enhancing the regulatory framework, and ICT research and innovation.
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Full ITWeb report
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| African investments entice foreigners - 21/02/2007 |
Judith Mackenzie owns and runs a farm livery business and spends much of her spare time riding her horses. But Judith is also a keen investor. And on top of her core investment of property and UK equities she has been looking further afield to grow her money. One area that has attracted her attention is Africa. This Money reports that with SA due to host the World Cup in 2010 and China’s much publicised investment in Africa - the trade between African nations and China is worth more than £40bn a year - the continent is grabbing the attention of investors. Over the past three years, Africa’s economy has grown by between 5% and 6% annually.
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Full This Money report
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| Calls for a social democratic budget - 19/02/2007 |
Finance Minister Trevor Manuel should provide a social democratic budget on Wednesday aimed at the comprehensive upliftment of the poor, says Independent Democrats finance spokesperson Avril Harding. According to a Mail & Guardian Online report, Harding urged Manuel to focus on speeding up public capital spending projects, such as the 2010 World Cup. ’Also, Manuel needs to place more emphasis on actual plans to increase skills in the civil service. Companies must buy into social consensus development, which should be driven by the minister. In accordance with this, there should be more comprehensive tax incentives for companies that create jobs,’ he said.
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Full Mail & Guardian Online report
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| Economic growth and job creation a must - Solidarity - 19/02/2007 |
Trade union Solidarity is confident that this year’s National Budget will focus strongly on economic growth and job creation. In a report on its expectation’s of Wednesday’s Budget, Solidarity said government’s goal of halving unemployment by 2014 through its economic growth blueprint — Accelerated Shared Growth Initiative — would set the trend in this year’s Budget. According to a report on the iafrica.com site, Solidarity also expressed the hope that more money will be made available for crime prevention. ’In the October ’mini-budget’ mention has been made that additional police members will be trained and deployed for the 2010 World Cup. This expenditure item will definitely be watched in the 2007/08 budget,’ the union said.
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| WC spotlight on poverty and unemployment - 19/02/2007 |
Eastern Cape Premier Nosimo Balindlela presented an upbeat account of economic progress in the province. The Herald reports that she said the progress indicated a government at work in the interests of eradicating poverty and unemployment. On the 2010 World Cup, Balindlela said it provided ’an exciting opportunity to promote unity among our people and communities’. A mass participation campaign to mobilise people around this event was under way in all municipalities. Noting that the accommodation requirements for the World Cup exceeded existing capacity, in ’both quality and quantity’, she announced a pilot project would soon get under way to boost capacity in the province.
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| R60bn increase for public services? - 19/02/2007 |
If Finance Minister Trevor Manuel’s medium-term budget policy statement presented towards the end of last year is anything to go by, this year’s budget allocation is likely to see an increase of at least R60bn for public services, especially for the sectors of health care and social welfare - and a huge boost for the war against crime. The Cape Times reports that Manuel is expected to announce that R80bn will be made available over the next three years for constructing and revamping stadiums as well as improving public transport in preparation for the 2010 World Cup.
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Full Cape Times report
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| Investment goals for 2010 - 16/02/2007 |
Every South African looks forward to the 2010 World Cup, but have we been planning what we can achieve from it – from an investment perspective? Asset managers and market strategists believe that lots of strategic goals will be scored both before and for a long time after the event. But have we tapped into this global showpiece? According to a Sunday Times report, Stanlib, the largest unit trust company, believes that the two big winners for 2010 will be our local economy and the domestic equity asset class, an investment option that has always outperformed other options in the long-term and achieved a 26% average yearly return in the past five years.
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Full report on the Sunday Times site
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| Tax concessions on the cards for 2010 - 14/02/2007 |
With Budget Day just around the corner, South Africans have become upbeat about their expectations in Finance Minister Trevor Manuel’s Budget speech on February 21. In this regard, Treasury has made a call to South Africans and civic organisations for input into the budget, a document that normally highlights, among many aspects, taxes that have a direct impact on businesses and natural persons. MoneyWeb reports that of particular interest are the proposed tax concessions in place for the 2010 World Cup; import free duties on certain goods imported specifically for the event, non income tax and VAT on certain goods sold within designated areas such as the stadia, and a proposal that non-SA resident Fifa officials be exempt from income tax on earnings related to the tournament.
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Full MoneyWeb report
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| Business confidence levels takes a dip - 07/02/2007 |
Business confidence dipped last month to 101.5, retreating from a record high of 103.5 reached in December, on capacity constraints in some sectors of the economy. Business Day reports that physical infrastructure is already under strain, and with investment spending gearing up ahead of the 2010 World Cup there are mounting fears that the infrastructure may not be able to handle a much greater load. The SA Chamber of Business (Sacob) warned that crime may also dent confidence levels if not dealt with soon.
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Full Business Day report
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| Sars focused on WC counterfeit problem - 05/02/2007 |
Illicit trade in SA is big business. But SA Revenue Service (Sars) Commissioner Pravin Gordhan says that there has been some success in thwarting smugglers. During the past two years, Sars has seen a steady increase in the value of detentions of counterfeit and pirated goods: from 335 in 2004/5 (value R235m) to 725 (value R540m). Moneyweb reports that Sars is also gearing up to bust criminals who deal in counterfeit goods illegally bearing the 2010 Fifa World Cup logo. Some of these goods have already been detained four years before the actual event.
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Full Moneyweb report
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| 2010 to ’rev up’ SA economy - 31/01/2007 |
The 2010 World Cup will rev up SA’s economy in the next three years and should bring in more than R20bn to the country’s coffers. Business Day reports that the 2010 World Cup is expected to bring about R21.3bn into SA’s economy. It is also expected to generate R12.7bn in spending and 159 000 new jobs. ’Consumer sentiment will rise in the next three years, reaching its highest point in June 2010,’ said Efficient Group economist Dawie Roodt. He says there are three phases to the 2010 World Cup that will have an effect on the economy.
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Full Business Day report
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| Austro hits JSE - 30/01/2007 |
Woodworking materials distributor Austro will take to the market on Thursday after a successful private placement of 44m shares at 100c each with strategic institutional investors. FIN24 reports that Austro will be listed in the industrial suppliers sector of the main board with an issued share capital of over 328m shares. Austro group chairperson David Brouze said the company aims to use funds raised from the listing for expansion in preparation for the expected demand for services in the construction sector in the build up to the 2010 World Cup.
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Full FIN24 report
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| Will 2007 be the year of infrastructure? - 30/01/2007 |
This year’s national budget is likely to show a change in direction from welfare spending to infrastructure investments and economic services as the country moves closer to the 2010 World Cup, according to Azar Jammine, the chief economist at Econometrix. According to Business Report, Jammine said that the government was likely to give details on its R410bn infrastructure programme ahead of the World Cup.
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Full story in Business Report
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| Counterfeit goods threatens SA economy - 29/01/2007 |
The growing trade in pirated and counterfeit goods from foreign countries is threatening SA’s economy, with yearly losses of about R25bn in revenue. Business Day reports that last year the SA Revenue Service (SARS), through its customs operations, confiscated counterfeit goods illegally bearing the 2010 Fifa World Cup logo. SA, through SARS, joined 169 members of the World Customs Organisation (WCO) in observing International Customs Day and reiterating the country’s commitment to join the global offensive against all forms of illegal trade.
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Full Business Day report
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