Das neue Südafrika

Posted to the web on: 06 December 2005

Mboweni spikes talk of looming rate hike

Kevin O’Grady

--------------------------------------------------------------------------------

Economics Editor

RESERVE Bank governor Tito Mboweni has finally put paid to speculation about an imminent interest rate hike, listing nine reasons last night why the bank was unlikely to hike rates at its meeting starting tomorrow.

His speech at a year-end function for journalists contrasted sharply with the hawkish comments of the last meeting of the Bank’s monetary policy committee (MPC) in October.

At that meeting Mboweni warned South Africans to start tightening their belts in anticipation of tighter monetary policy.

In his speech entitled “So, All Things Never Remain The Same!”, Mboweni said a lot had changed for the better since the MPC’s more gloomy October outlook.

These included:

Oil prices had started to drop.

“Unit labour costs have not jumped higher as we thought might happen.”

“The exchange rate of the rand has strengthened, thereby ensuring a cushion against imported inflation.”

CPIX inflation (consumer inflation less interest costs on mortgages) “has come out less than expected”.

Producer price inflation had also dropped.

“Global inflation has not gone up as initially thought.”

“Gross domestic product growth figures show that the economy is growing nicely, so it needs no monetary or fiscal accommodation.”

“Inflation expectations … are showing a slightly downward trend.”

Widening trade deficits would result in bigger deficits on the current account of the balance of payments, which could weaken the rand and worsen the inflation outlook. “Nevertheless the overall balance of payments is looking good,” Mboweni said.

Drawing on the Latin phrase ceteris paribus, meaning “all else being equal”, Mboweni said: “It’s terrible when that principle is violated just before a meeting of the MPC.

“Based on the assumptions at the previous MPC meeting that the inflation outlook was a little concerning, the governor was mandated to warn the country that they needed to be careful.

“How things have changed.

“Since the last meeting of the MPC, the ceteris paribus principle has not held,” he said.

Top stories: Rand breaks below R6.30/$

2005-12-06

The rand has held onto gains after breaking below R6.30/US$ overnight, and despite bullish comments by SARB governor Tito Mboweni on the inflation outlook. Johannesburg - The rand was looking strong in early trade on Tuesday, having broken below R6.30 overnight for the first time since September.
Currency traders were divided, however, as to the local unit's potential to post further gains.

At 08:35, the rand was bid at R6.3045/US$ from an overnight close of R6.3213 on Monday, R6.3447 on Friday and R6.4310 on Thursday.

It was bid at R7.4357/€ from a previous R7.4573 and at R10.9670/£ from Monday's R11.0165.

The euro was bid at $1.1788 from $1.1790 late on Monday and $1.1700 late on Friday, while gold was quoted at $508.10/oz from a previous $509.40/oz.

"The rand is still pretty strong on the back of the gold price. But I think it is coming to the end of its range and strength should be limited to R6.28-R6.29.

"(Reserve Bank governor Tito) Mboweni's comments last night has made the market circumspect about rate cuts and we know he is not going to hike," a currency trader said.

He added that overnight, the rand benefited from a stronger euro. The rand tends to follow the euro because the eurozone is South Africa's largest trading partner.

The trader expected the rand to trade in a R6.28 to R6.38 range for the day.

However, a second trader expected the rand to post further gains.

"The rand traded below R6.30 last night and I think it will trade R6.25," he commented.

Mboweni said on Monday evening that South Africa's inflation outlook had improved since the last Monetary Policy Committee (MPC) meeting.

He said a number of things had changed since the last MPC meeting, including a decline in the oil price, a fall in the South Africa retail petrol price, the rand's appreciation and a reduction in unit labour costs.

The MPC starts its next meeting on Wednesday and an announcement on interest rates is expected just after 15:00 on Thursday afternoon.

Meanwhile, bonds have had a good run after Mboweni's bullish comments on inflation fuelled speculation of an interest rate cut sooner rather than later, a trader said.

At 08:45, the key six-year R153 bond was at 7.410% from 7.480% at Monday's close. The short-term R194 bond was at 7.345% after closing at 7.380%, while the 10-year R157 bond was yielding 7.570% after closing at 7.645% on Monday.

"The bond market is pricing in a rate cut in the future, but the governor's bullish comments last night have certainly fuelled speculation and bonds are having a good run based on that," said a bond trader.

SÜDAFRIKA

Angriff auf die letzte Bastion der Reichen

Aus Johannesburg berichtet Roman Heflik

Jahrelang galten Einkaufszentren als letzter Rückzugsort für wohlhabende Südafrikaner. Nirgendwo sonst war man sicherer vor Schießereien, Entführungen und Vergewaltigungen. Doch jetzt geraten auch die Konsumtempel ins Visier militärisch organisierter Banden.

Johannesburg - Manchmal, nach der Arbeit, will Thamsanqa noch links ranfahren und ein paar Zigaretten für seinen Bruder kaufen. Die könnten Thamsanqa und Anele dann in ihrer gemeinsamen Bude rauchen, dazu 2Pac hören und ein Bier trinken. Aber dieser Gedanke verfliegt inzwischen immer schneller. Schließlich ist es schon zwei Monate her, dass Anele bei dem Überfall erschossen wurde.

[Blockierte Grafik: http://www.spiegel.de/img/0,1020,550450,00.jpg]
Polizisten vor einem überfallenen Geldtransporter in Johannesburg: "Hochgradig organisiert"
Großbildansicht

[...]
Komplettkopieraktionen können recht teuer werden

Gruß

HORSTWALTER
[...]

http://www.spiegel.de/panorama/0,1518,385336,00.html

Aus ALJAZEERA vom 06.12.05

S Africa's Zuma charged with rape
===========================

Zuma (R), was in pole position to succeed Thabo Mbeki (L)

Former South African Deputy President Jacob Zuma has been charged

in court with rape in a case that analysts said had virtually scuppered any

hope of his becoming the country's next president.

"After due consideration for the facts in the relevant case docket, the

National Prosecuting Authority (NPA) has decided that Jacob Zuma be

arraigned in the Johannesburg Magistrate's court on a charge of rape,"

the prosecuting authority said in a statement on Tuesday.


"To this end Mr Zuma duly appeared in the Johannesburg Magistrate's

Court today 6 December 2005 where the indictment and related

documentation was served on him," the NPA said.

It said Zuma, who denies the rape charge, was freed on a 20,000 rand

($3140) bail and his case would be heard from 13 February next year.

Corruption charges

Zuma is already facing a corruption trial stemming from the conviction for

fraud of his former financial adviser.

Shabir Shaik, Zuma's financial
adviser, was convicted of fraud

Although he is popular among rank and file members of the ruling

African National Congress (ANC), analysts say a rape charge against

him looked certain to silence his followers who allege he is a victim of a

political conspiracy.

The ANC had no immediate comment on Zuma's court appearance.

President Thabo Mbeki sacked Zuma in June after his deputy's former

financial adviser Shabir Shaik was convicted of corruption and fraud in a

court ruling that said the relationship between the two men

was "generally corrupt".

Zuma as deputy president was in pole position to succeed Mbeki in 2009.

His rape charge could heat up the political temperature, as top ANC

officials manoeuvre to position themselves for the top job.


He has rejected the charges of corrpution as a conspiracy to sideline

him from the ANC leadership.

The rape allegations were first published by newspapers last month.

Reuters

Hier noch die Übersetzung der Agenturmeldung:

[URL=http://www.spiegel.de/politik/ausland/0,1518,388767,00.html]bei Spiegel Online[/URL]

und hier ein anderer interessanter Artikel, ebenfalls bei Spiegel Online

[URL=http://www.spiegel.de/panorama/0,1518,385336,00.html]Artikel[/URL]

Es erstaunt und freut mich das nun endlich auch die bad news bei Euch von RSA gezeigt werden und die Leute ueber die wahre Situation aufklaert.

Jacob Zuma der Ex Vize President bekommt trotz Korruption/Bestechung in Mrd.Hoehe und nun Vergewaltigung sogar einige Bodyguards vom Staat gestellt .
Man bezahlt die Kosten von 25.000 Euro im Monat von der Staatskasse.

65% der Abgeordneten im Parlament des ANC hat ein Vorstrafenregister und einer kann den andern hinhaengen.

Sie fuellen sich die Taschen, das Volk bekommt einen Dreck, der Ami ist zufrieden damit weil sie die Handlanger sind fuer ihre Langzeitinteressen
sich die Rohstoffe zu sichern in wenigen Jahren.

Der Rand ist manipuliert wie Gold in den letzten Jahren.IMO

In diesen Sinne wird viel verschwiegen und man schmiert auf Teufel komm raus.

Fast in allen Firmen muss ein schwarzer Direktor sein der auch dickes Geld bekommt und einmal woechentlich zum Kaffetrinken kommt und ""its ok"" sagt.

Viele sind Direktoren fuer mehere Firmen und kassieren ebenfalls damit ihr Namen als Direktoren auf den Briefkopf stehen.

Kapstadt hat zur Zeit Lieferprobleme mit Fleisch und Fish die meisten Restaurants jammern das sie keinen Nachschub bekommen von den Lieferanten."
Das noch in der Hochsaison, der Slogan bleibt fuer die Stadt, der heisst rip off the Tourists !.
Aber das gibt es ueberall in der Welt.

Gruss

Eldo

Posted to the web on: 07 December 2005

Reserve Bank cuts down on forex purchases

I-Net Bridge
--------------------------------------------------------------------------------

THE Reserve Bank cut its buying of US dollars to add to its foreign reserves to only $125m in November from $164m in October after buying a net $409m in September. The November purchases were still far higher than August’s tiny $74m - the smallest monthly amount so far this year.

In August, two ratings agencies (Standard & Poor’s, as well as Fitch) upgraded SA’s foreign currency rating to BBB plus, in part because of the Bank’s accumulation of foreign reserves, which means its ability to repay foreign debt has been enhanced.

Government has said repeatedly that its primary exchange rate policy goal is stability and this is one of the reasons why it is boosting its foreign exchange reserves.

In July, the Bank bought $229m after $1,475bn in June and $1,217bn in May and only $156m in April.

The Bank said today the increase in reserves levels reflected a combination of foreign exchange operations conducted by the Reserve Bank for its own account as well as on behalf of customers.

Economists had expected at least a further $1bn addition in July, as the R30bn purchase of Absa by UK-listed Barclays was finalised on July 27.

The July last year foreign exchange reserves exceeded $10bnn for the first time and stood at $10,251bn at the end of that month. They have subsequently grown to a record $17,811bn at the end of October from $17,647bn at the end of September.

A total of $1,972bn in gold reserves lifted total gross reserves to $19,908bn at the end of October, only $92m away from the $20bn level that many economists see as a "healthy" foreign reserve level.

Reserve Bank governor Tito Mboweni said on Monday that gross foreign reserves would exceed $20bn by the end of this year.

Both the May and June increases were due to "foreign direct investment" with the Reserve Bank not saying who, or how much of the total increase was FDI.

Up until February last year, the foreign exchange reserves fluctuated around the $6bn level since 1999, but then rose to $8,274bn in March from $6,756bn in February and $6,462bn in January.

As long ago as November 1999, the foreign exchange component was raised to $6,28bn from $5,875bn in October 1999 and $4,863bn in July 1999 ahead of the Y2K change over.

The increase in SA’s foreign exchange reserves from $11,23bn at the end of 1999 to $27,862bn at the end of April last year was largely due to an increase in the foreign exchange reserves of commercial banks, not the Bank.

The subsequent increase to $35,202bn at the end of June was largely concentrated in the Bank’s reserves and the Reserve Bank said on July 25 2005 that it would continue to buy dollars to add to its reserves.

Posted to the web on: 08 December 2005

Inflation remains under control, says Mboweni

I-Net Bridge
--------------------------------------------------------------------------------
Related Links

Reserve Bank keeps repo rate steady


INFLATION has remained under control and within the inflation target range, and growth in the economy has been robust, Reserve Bank Governor Tito Mboweni said today.

Speaking at the conclusion of the final Monetary Policy Committee (MPC) meeting for 2005, at which interest rates were left unchanged, Mboweni said the recent revisions of the GDP data show that the economy has been growing at a faster rate than previously estimated.

The most significant change was to the 2004 growth rate, which is now estimated to have been 4.5%.

"A slightly higher growth rate is expected to be achieved this year, although there are signs that the economy might be losing some of its earlier momentum," he said.

He said at the October MPC meeting, the inflation outlook had deteriorated somewhat, which was a cause for concern. Since then, however, recorded outcomes have been better than anticipated, and the outlook has changed somewhat. However, a number of significant risks remain, he said.

Inflation as measured by the consumer price index for metropolitan and other urban areas excluding the interest cost on mortgage bonds (CPIX) declined to 4.7% in September, and 4.4% in October following its peak of 4.8% in August.

The decline occurred despite the increases in local petrol prices in September and October of 29 and 12 cents respectively.

Since then the petrol price has been reduced by 31 cents in November and 30 cents in December. If petrol price increases were excluded from this index, CPIX inflation in September and October would have measured 3.5% and 3.2% respectively, reflecting a continued absence of marked second-round effects from petrol price increases, he added.

"These more favourable outcomes have been due to a number of factors which partly offset the impact of the petrol price increases. Notable among these were the year-on-year declines in the prices of clothing and footwear, furniture and equipment, and homeowners’ costs."

Year-on-year food price inflation also remained low, measuring 2.5% in October compared to 3.3% in September. Services inflation moved further within the inflation target range, having declined to 5.2% in October, compared to goods price inflation of 4.1%.

Of significance is the fact that administered prices excluding petrol declined to 4.5% and 4.3% in September and October respectively. This can be compared to a rate of increase of 7% in May.

Administered price inflation including petrol amounted to 10% in October.

Production price inflation also reversed its recent upward trend in October when it measured 4.2%, compared to 4.6% in September. Prices of domestically produced goods rose by 3.8% and 3.5% in September and October respectively, while price increases of imported goods amounted to 6.8% and 5.8%.

The food price category continued to exhibit price declines, Mboweni said.

Posted to the web on: 08 December 2005

Reserve Bank keeps repo rate steady

I-Net Bridge
--------------------------------------------------------------------------------
E-Mail article Print-Friendly



THE Reserve Bank’s Monetary Policy Committee has decided to keep the repo rate steady at 7% for the fourth consecutive meeting.

All economists surveyed by I-Net Bridge yesterday expected no change in interest rates, even though Reserve Bank governor Tito Mboweni on Monday night said at a media function in Johannesburg that inflation outlook had improved since the last MPC meeting.

This was the twelfth consecutive MPC meeting at which the majority of economists have forecast no cut in rates, but in August 2004 and April 2005, the Bank did surprise the market by cutting rates by 50 basis points.

The improvement in their inflation outlook was due to lower oil prices, a fall in the retail petrol price, the stronger rand and reduced unit labour costs, Mboweni said.

The revisions to the gross domestic product data showed that the economy required neither monetary nor fiscal stimulus, he added.

CPIX inflation (headline inflation excluding mortgage costs) has been below the midpoint of the Bank’s inflation target range of 3-6% year-on-year for 20 out of the past 25 releases and most economists expect CPIX annual inflation to ease in November and December, given the retail petrol price cuts implemented in those months.

The latest available inflation data is for October, which was the second consecutive month that the annual rate has eased. In October it was 4,4% year-on-year from 4,7% in September and this year’s peak of 4,8% reached in August.

Posted to the web on: 08 December 2005

Mining production fell in October

I-Net Bridge
--------------------------------------------------------------------------------

MINING production for October declined by 2.1% when compared with the September output, according to Stats SA in a report released today.

For the three months to October 2005, seasonally adjusted mining production declined by 1.7% when compared with the three months to July 2005, Stats SA added.

The decrease in production for the three months to October was attributed to a seasonally adjusted decrease of 3.4% in the production of gold and a 1.4% decline in the output of non-gold minerals during the three months to October when compared with the three months to July.

In August, the gold mining industry was hit by its first sector wide strike since 1987, which caused a loss of gold production.

The seasonally adjusted decrease of 1.4% in non-gold minerals was due to a 0.9% fall in the production of platinum group metals (PGMs) and a 0.6% decline in other non-metallic minerals, StatsSA said.

September 2005 seasonally adjusted minerals sales were 12.714 billion rand, up 6.3% from August sales.

Gold sales during September made up 1.94 billion rand or 15% of total South African minerals sales during the month, Stats SA said.

Seasonally adjusted minerals sales for the three months to September increased by 0.3% when compared with the three months to June and rose by 14.9% compared with the third quarter 2004, Stats SA added.

R31m fine hits SA car companiesFive SA car companies and two dealer bodies have been fined a total of R31.650m in "administrative penalties" for price fixing, collusion, and onerous franchise agreements.

Those involved are General Motors, Nissan, Volkswagen and its Gauteng dealers, Citroen, DaimlerChrysler, and the Subaru dealer body.

Following negotiations with the Competition Commission which resulted in consent agreements to pay the penalties, General Motors South Africa will pay R12m, DaimlerChrysler R8m, Nissan R6m, Volkswagen and its Gauteng dealers R5m, Citroen R150 000 and the Subaru dealers R500 000.

The Commission is still in negotiations with BMW dealers and intends prosecuting this case should an agreement not be reached by the end of January 2006.

The manufacturers and dealers have also agreed to implement programmes to ensure that their businesses comply with the Competition Act, in particular to eradicate the practice of minimum resale price maintenance and collusion among dealers.

Consent orders

The Commission has referred the consent agreements to the Competition Tribunal requesting that they be made consent orders of the Tribunal.

In April 2004, the Commission launched an industry-wide investigation into the prices of new motor vehicles.

The Commission investigated the fixing of prices and trading conditions by car manufacturers, importers, and dealers in contravention of section 4(1)(b)of the Act.

The watchdog also investigated agreements between manufacturers, importers and their dealers containing restrictions that have the effect of substantially preventing or lessening competition in contravention of section 5(1) of the Act.

The Commission also did an inquiry into the minimum resale price maintenance imposed by manufacturers in contravention of section 5(2) of the Act.

Excessive prices

Finally, the watchdog looked into excessive pricing by manufacturers and importers, which were dominant in their respective markets in contravention of section 8(a) of the Act.

The Commission found evidence of some manufacturers imposing minimum resale prices on dealers, dealer collusion and anti-competitive franchise agreements.

Balfour gets tough on prisoners

Pretoria



09 December 2005 09:25

High-risk offenders in prisons will have their privileges curbed over the festive season to prevent possible escape attempts, Correctional Services Minister Ngconde Balfour said on Thursday.

Speaking at Zonderwater Correctional Centre, he said the "current environment" of cash-in-transit heists and armed robberies compounded the difficulties correctional services had during festive periods.

Many offenders did all in their power to escape from incarceration, apparently in pursuit of further criminal activities over this time.

This had necessitated a comprehensive and integrated intervention to tighten security in correctional centres during the festive season and beyond, he said.

"We believe one more escape in one more too much, and therefore we have approved the introduction of stringent security measures for the festive season that will be effectively co-ordinated with our partners within the criminal justice system... to ensure that the high risk detainees are safely accommodated, transported and monitored by officials vetted for integrity.

"We also wish to make an appeal for all South Africans, including inmates, families and friends of offenders, to bear with these stringent measures in the interest of public safety," Balfour said.

2010 cash shock for city

Cape Town must spend R3bn to be ready for World Cup


December 10, 2005

By Myolisi Gophe

The city of Cape Town needs to spend a staggering R3 billion to be ready for the 2010 football World Cup, but time is fast running out for upgrading the city's public transport system and getting sport stadiums ready.

While city officials claim there is plenty of time to meet World Cup requirements, a check of progress so far reveals that very little has been done on the ground.

For a start, there is still no clarity on the preferred venue for World Cup matches - and, until a final decision is taken on this, engineers and planners cannot begin infrastructure projects.

The City of Cape Town wants to upgrade the Athlone stadium, but many believe that the Newlands Rugby Stadium is a better alternative, while a third group believes a new soccer stadium should be built from scratch.

Frank van der Velde, strategic adviser to the mayoral committee charged with transport, said a lot of design work has already been done, but admitted that more could have been done had the match venue already been decided.

A report this week by the Development Bank of Southern Africa warns that Cape Town needs to spend R2.262 billion on infrastructure projects - and around R520 million to upgrade the Athlone Stadium ( the city's preferred World Cup venue). Johannesburg needs to spend around R2.962bn and Durban about R2. 250bn.

The bank, as adviser and partner in the 2010 World Cup, provides the technical support in respect of the assessment of infrastructural requirements. It also does an audit of the capacity of the prospective host cities.

The bank last week presented its report to 10 candidate cities that are keen to host World Cup matches.

The report ranked Johannesburg as needing the biggest infrastructural capital injection, with Cape Town second and Durban third.

The cities were ranked in terms of how well they met Fifa technical requirements, such as the cost of upgrading match and training venues, accommodation, transportation, safety and security, banking and financial services, medical and emergency services, the number of restaurants, the potential number of volunteers and financial capacity.

The national government has committed itself to funding an upgrade of the transport sector, but time is running out to start the massive renewal projects.

The positioning of match venues plays a vital role in planning public transport initiatives and supporting infrastructure projects.
However, there is no finality yet on which Cape Town stadium will host games.

Roleplayers attending the Western Cape Sports Summit held a few weeks ago agreed that there should be one stadium, but they could not reach consensus on where the venue should be.

Newlands was named in the bid book, but the city prefers Athlone Stadium while the SA Football Association of Western Province has expressed its unhappiness with that choice.

The R520m to upgrade Athlone Stadium is the second highest cost to upgrade a match venue after the R570m needed to upgrade FNB Stadium in Johannesburg.

Van der Velde said this week the city's transport infrastructure needed to be upgraded to give easy access to matches.

While taxis will rely on the R7.7bn taxi recapitalisation process announced by national government, the national department of transport has set aside R2.7bn for passenger rail infrastructure and R2.3bn for buses this financial year, said transport ministry spokesman Collen Msibi.

The Western Cape department of Transport and Public Works is restructuring the public transport system as one of the projects to support the tournament.

Jacqui Gooch, the director of strategic support in the department, said other projects include improving links to the airport, upgrading coach terminals, the improvement of inner city public transport and the installation of an integrated fare management system.

City township the crime capital of South Africa


September 22, 2005

Khayelitsha is the violent crimes capital of South Africa.

Yesterday the township was singled out when national Minister of Safety and Security Charles Nqakula announced the police's latest national crime statistics for 2004/2005.

It is part of the city's East Metropole, which recorded the highest murder and rape statistics in the province.

Although Khayelitsha's station-to-station figures are yet to be released, they are expected to top crime statistics for 2003/2004 when 358 murders were committed and 517 women were raped.

For the past three years Khayelitsha, home to between 500 000 and one million people, has been part of President Thabo Mbeki's Urban Renewal Programme, aimed at integrated development to fight poverty and create jobs. But murders, rapes and robberies continue to plague its streets.

Since the crime statistics were released yesterday, community organisations have called urgent meetings to discuss the findings and ways of combating the crime.

But for the community of Khayelitsha, still in shock after a violent rampage by a gang of young men at the weekend that left three men dead and a 21-year-old woman raped, the fact that their township is the country's crime capital is no surprise.

Some said they were fearful of living in the township as no-go areas in the community were on the increase, while others said they still believed that something could be done to turn things around.

Bongani Sopam, chairman of the Lingelethu West Community Policing Forum described the crime figures as "shocking".

He, however, attributed the high crime rate to socio-economic problems such as high unemployment, the emergence of gangsterism and the use of drugs.

"To hear that Khayelitsha has the highest crime rate in the country is shocking, but it is a real problem that needs to be dealt with seriously.

"Gangsterism and the use of drugs in Khayelitsha have become serious problems because most young people are unemployed.

"Today you go to schools and teachers will tell you of their fear. Instead of being respected, they receive threats and are robbed by the pupils.

"Communities don't report crimes because they fear victimisation from thugs.

"People live in fear because these youngsters get lesser sentences and return to the communities to commit more crimes."

But Sopam said the situation could change if more long-term employment opportunities were created in the area.

Dr Ivan Toms, director of City Health, said the level of trauma in the area was severe.

"The serious assaults the community health care centre deals with over the weekend are horrific," he said, adding that stabbings and rapes were the basis of most of the injuries dealt with.

Toms said most of the incidents happened on weekends and linked alcohol abuse and binge drinking to the criminal activities.

Reggie Dince, deputy secretary of the Albertina Sisulu branch of Sanco, blamed the police for not being visible in the community and sharply criticised politicians who visited only during times of tragedy.

"This also applies to our police force ... they only come when they want to arrest someone, there are no patrols. They are not visible in our communities."

However Lydia Masoleng, who runs Malebo's Bed and Breakfast in Khayelitsha, said it was "not all bad".

"There is crime in some places, like the squatter camps and there are no-go areas. But there are lots of developments taking place."

She cited the Look Out Hill Tourism bureau, the local arts and craft centre and the shopping mall that is being built, as positive changes.
"It's generating jobs for our people. Our community is trying its best to fight crime and work towards a positive image."

PLEASE COME AND VISIT THE TOWNSHIT

Fuel back on tap at Cape Town International

December 11 2005 at 07:28PM

By Leon Engelbrecht

Fuel is again available to aircraft at Cape Town International Airport, Kader Jacobs, the supply logistics manager aviation at BP said on Sunday evening.

He said fuel became available on the apron at 5.30pm.

"The product became available half an hour ago," Jacobs said at 6pm. "Tanking has started."

But Jacobs called on airlines to keep their contingency plans in place for another three or four days to allow the airport fuel farm to build up a reserve.

Tanks ran dry on Saturday causing airlines and passengers major inconvenience - Arts and Culture Minister Pallo Jordan apparently suffering a delay of six hours on a flight to Johannesburg.

Posted to the web on: 12 December 2005

Import surge lifts current account deficit to new peak
--------------------------------------------------------------------------------
Kevin O’Grady
Economics Editor

SA’s deficit on the current account of the balance of payments soared to a 22-year-high in the third quarter, the Reserve Bank said in its latest quarterly bulletin on Friday.

The deficit swelled to R72,9bn, or 4,7% of gross domestic product (GDP) compared with a R55,5bn deficit, equivalent to 3,7% of GDP, in the second quarter. It was the highest level since 1983.

This comes after SA recorded its sixth successive quarterly and record highest (R19,7bn) deficit with the rest of the world.

Sustained buoyancy of real domestic expenditure, which gave rise to a sharp increase in the value of merchandise imports, was largely behind the increase, the Bank said. “The higher level of merchandise imports in the third quarter was only partly offset by the improved performance of merchandise exports.”

Imports rose 7,5% in the third quarter from the second, while exports increased 3,5%.

The higher current account deficit could cause the rand to weaken, especially if volatile portfolio inflows are reversed and the surplus on the financial account of the balance of payments is no longer sufficient to cover the current account deficit.

A weaker rand could push up the cost of imported goods, including oil, higher, with negative implications for inflation.

Reserve Bank governor Tito Mboweni flagged the higher current account deficit as a “potential source of concern” at the end of last week’s monetary policy committee meeting, but he remained confident that capital inflows would continue to finance the deficit adequately.

There was also a shrinking reliance on portfolio flows, with a sizeable increase in foreign direct investment in the third quarter, Mboweni said. As long as SA exercised “proper macroeconomic policy management … the future is bright”, Mboweni said.

The Bank said that there was a R32,2bn inflow of foreign direct investment in the third quarter, compared with R1,4bn in the second quarter, mainly due to the Barclays-Absa deal.

“The overall balance of payments remained in surplus in the third quarter, but by a lesser amount than in the second quarter of 2005,“ the Bank said.

The Bank also said it had decided to exclude assets of private banks from its calculation of reserves after exchange controls were loosened further in October.

As a result of the changes to exchange control regulations, the Bank said it had revised data for the overall balance of payments for the years dating back to 1960.

This sharply weakened the overall balance of payments for the past three years, pushing it into a deficit during 2003, and also hit annual surpluses on the financial account.

With Reuters

Posted to the web on: 14 December 2005

Business upbeat on SA investment climate

Linda Ensor - Political Correspondent
--------------------------------------------------------------------------------
CAPE TOWN — Rigid labour laws and the relatively high cost of SA’s labour have been highlighted as major impediments to accelerated foreign investment and to SA attaining a 6% growth rate, a joint World Bank-government survey released yesterday has found.

The findings on labour rigidity echo recent calls by, among others, Reserve Bank governor Tito Mboweni for SA to revisit its post-1994 labour setup.

Linked to high labour costs is the poor record of local firms in providing in-house training to workers, and SA’s lack of skills.

However, the findings were “more favourable than we had thought”, trade and industry department policy head Ravi Naidoo told a briefing at the release of the findings.

The skills shortage meant labour costs were three-and-a-half times higher than in the most productive areas of China, more than two-and-a-half times higher than in Brazil and Lithuania and about 75% higher than in Malaysia or Poland.

While 77% of Brazil’s skilled workforce received company training, in SA the figure was a low 44,6%. In Poland the figure was 80%, China 69% and India 55%.

“Overall, these results suggest that government programmes designed to encourage training have not been successful,” the review found.

“Fewer firms have training programmes than in other middle-income countries.”

This was a concern, given that all employers paid a skills levy, said presidential adviser Goolam Aboobaker. Sectoral education and training authorities were sitting with a “huge surplus”.

A joint initiative on “priority skills acquisition” would be launched by government, business and organised labour to assess SA’s needs and develop a co-ordinated approach, Aboobaker said.

The survey, conducted among about 800 local businesses, was designed to assess the investment climate in SA.

The findings will feed into the accelerated and shared growth initiative being spearheaded by Deputy President Phumzile Mlambo-Ngcuka.

It found local businesses conceded they were not as burdened by regulations as was suggested sometimes, nor was the corporate tax rate too much of a concern.

Senior managers said they spent up to 10% of their time dealing with regulation, comparing well with most middle-income countries, and far better than the 25% spent in China and Lithuania.
The cost of crime in SA, although lower than in the worst-performing middle-income economies, was higher than in many of its competitors and was a source of concern.

Direct losses due to crime and security costs were higher in SA than in other middle-income countries such as China, Poland, Brazil and even Russia.

“Yes, crime is a big problem, but in terms of doing business it isn’t at such large cost,” Naidoo said.

Few firms reported paying bribes for government services or to win government contracts, and the legal system inspired confidence. Low energy costs and access to finance were also among the plus factors.

World Bank country director for SA Ritva Reinikka said overall the findings for SA were favourable, but challenges remained such as the relatively high wages paid to managers, professionals and skilled workers, which eroded competitiveness, and exchange-rate volatility, which made exporting difficult.

Despite SA’s relatively strong macroeconomic performance — described as modest gross domestic product growth and moderate inflation — about a third of enterprise managers said that macroeconomic instability was “a serious problem”.

HIV/AIDS was listed as a medium-term concern, mainly related to uncertainty about its effect on productivity, market size, profitability and absenteeism.

The report suggested that the reluctance of foreign investors might be in part due to the allocation of a significant share of investment funds to finance empowerment deals.

“In the main, these transactions relate to equity transfers and not investments in the creation of new capital stock,” the report found.

With INet-Bridge, Sapa

Posted to the web on: 14 December 2005

Jobs growth bodes well for 6% target, say analysts

Ayanda Shezi - Economics Correspondent
--------------------------------------------------------------------------------
SA GAINED 99000 jobs in the third quarter of this year in the formal, nonfarming sectors. Furthermore, the continent’s largest economy is set for 6% growth and beyond in the next few years.

This bodes well for the fight against the high unemployment rate, analysts said yesterday.

“The reported improvement in employment during the second and third quarters fits well with an intuitive sense that the economic buoyancy has led to meaningful job creation,” said Stanlib economist Phindile Ncede.

The Quarterly Employment Statistics, released by Statistics SA yesterday, show that the number of people employed increased 1,4%.

This is a strong turnaround from the first quarter, during which jobs dropped by 152 000, or 2,1%.

In the second quarter, the number of people employed rose 1,9%.

Standard Bank group economist Goolam Ballim said: “The third quarter numbers reflect positively and reinforce the underlying health of the economy.”

However, as consumer demand slowed, job creation, particularly in the services sector, could slow, Ballim said.

“Also, the manufacturing sector remains structurally under pressure and there is likely to be persistent purging of labour costs,” he said.

SA has an unemployment rate of 26,5% and the economy needs to grow sustainably faster to address this problem, one of the country’s biggest economic challenges.

“Given the favourable prognosis for the economy over the medium term, specifically job-creating investment spending, the prospects are good for a reasonably lively job-creating growth environment (as opposed to jobless growth),” the Standard Bank economist said.

The economy grew at 4,2% in the third quarter of this year, down from a revised 5,4% in the second quarter, during which 133000 jobs were created.

During the third quarter, no sector reflected job losses.

The number of jobs created in transport, storage and communication rose 4,1% (13000 jobs) to 333000.

The construction industry reported a quarterly increase of 11000 employees, bringing the total number of people it employs to 443000.

The economy’s second-largest sector, manufacturing, added 13000 employees, a rise of 1,1% from the second quarter.

Mining and quarrying was the only sector that did not add any jobs in the third quarter.

The sector comprising wholesale and retail trade, repair of motor vehicles, and hotels and restaurants reported a quarterly increase of 24000 employees, or 1,7%.

A quarterly increase of 16000 was recorded in the financial intermediation, insurance, real estate and business services industry (1,1%), while the community, social and personal services industry reported a quarterly increase of 21000 employees (1,2%).

The quarterly employment survey replaced the Survey of Employment and Earnings in June.

The statistics are derived from a survey of about 24500 businesses registered to pay income tax, excluding those in agriculture, hunting, forestry and fishing. The biannual Labour Force Survey includes all sectors.

Ayanda Shezi - Economics Correspondent
Sehr gute Propaganda von Shezi.
Damit bleibt der Rand stark und das Geld im Land.
Wer es glaubt wird seelig.

Zur Zeit sind in ganz Suedafrika enorme Probleme mit Benzin, die meisten Tankstellen haben kein Benzin.Viele koennen nicht mehr fahren.
Natuerlich wegen den Wirtschaftsaufschwung den wir haben.

Gruss

Eldo

2000 shack fires in Cape Town

2005-12-14

More than a hundred people have died in nearly 2000 shack fires in the City of Cape Town so far this year. Cape Town - More than a hundred people have died in nearly 2000 shack fires in the City of Cape Town so far this year, the city's communications division said on Tuesday.
The total number of shacks destroyed was estimated at over 8000, leaving some 28 000 people destitute.

The total cost of providing relief for fires in informal settlements for the year would be over R13m, a figure which excluded the cost of actually fighting the fires.

The relief given after a recent blaze at the Doornbach informal settlement alone amounted to R2.1m.

This included the cost of a rebuilding starter kit, two meals per person per day, one blanket for every individual and a special social grant from the provincial government.

City fire chief Piet Smith said the city had launched an awareness campaign to alert residents and visitors to the dangers of fires.

Fire and rescue services, and disaster management staff had been distributing safety pamphlets at informal settlements.

Fire engines have been going to the settlements to familiarise crews with the areas and to meet inhabitants to educate them on fire safety.
--------------------------------------------------------------------------------------------------

A tourist was robbed and stabbed in the neck on Lion's Head on Saturday evening, the 32nd attack in the Table Mountain National Park this year.

Lion's Head is a spot popular with tourists and locals viewing the sunset. They climb it just before sunset and descend after dark.

Police spokesperson Randall Stoffels said the tourist, from the Democratic Republic of Congo, was walking up Signal Hill alone after 6.30pm when he was approached by two men, one with a knife.

They stole a cellphone, camera and cash before stabbing him in the neck. Stoffels said police did not know what had happened to the man, except that he had been admitted to a hospital.

He did not know which hospital.

Fiona Kalk, TMNP spokesperson, said: "We are going everything we can to ensure the safety of visitors .

"We have 60 visitor-safety officers on patrol through busy areas with 60 volunteers helping them. Six patrol dogs and their handlers will be added."

Kalk said there were visible as well as covert patrols: "We are doing absolutely everything we can."

There have been 32 attacks; 12 people have been arrested.

Kalk added that if security was concentrated in one area the criminals simply moved to another. The park was a particular challenge to patrol as access was open and it adjoined the suburbs.

The park had 4.5-million tourists each year.

"We think we are doing a good job with limited resources. We feel, with the security we have in place, we are making a difference."

Kalk said park visitors should not walk alone. Officals were there to help with mountain safety tips, such as using sunblock and wearing a hat, and ensuring there was enough daylight for the hike.