No clarity on when Makhanda will have a post office again
The post office closed in July
African
Government addressing deficiencies that led to grey listing
Government addressing deficiencies that led to grey listing
Government is working hard to address deficiencies in the fight against organised crime and illegal financial flows, says Minister of Finance Enoch Godongwana.
“Since February, when South Africa was grey listed by the Financial Action Task Force (FATF), a large number of government departments and agencies – including the police and the Hawks, National Prosecuting Authority (NPA), Special Investigating Unit (SIU), State Security Agency (SSA), the Reserve Bank, Financial Sector Conduct Authority (FSCA) and South African Revenue Service (SARS) – have been working hard to address these deficiencies,” the Minister said.
Delivering the Medium Term Budget Policy Statement on Wednesday in Parliament, he said last week the FATF noted at its plenary meeting that such work is showing positive results.
South Africa has addressed 15 of the 20 technical deficiencies in its legal framework and has made good progress on 17 of the 22 effectiveness action items, including two that are now deemed to be largely addressed.
“However, there is also a significant amount of work that must still be done, particularly with regard to the investigation and prosecution of complex money laundering cases and terror financing, the identification of informal mechanisms for remitting money around the world, and the recovery of the proceeds from crime and corruption,” the Minister said.
Government expects to address all the deficiencies identified by the FATF by early 2025.
“We are also devising ways to make better and more targeted use of the Criminal Asset Recovery Account (CARA) to address crime. Among these efforts, and emanating from the Presidential project on illicit mining strategy, a recommendation has been made for Cabinet to consider using money from the fund to combat illegal mining.
“The South African Police Service, The Defence Force, the Financial Intelligence Centre, the Department of Home Affairs and the Border Management Authority have all received allocations from this fund,” the Minister said.
Improving efficiencies
He said over the Medium Term Expenditure Framework (MTEF) period, the focus is on improving efficiency and reprioritising funds towards key programmes.
The SAPS will contain costs and streamline operations as headcounts decline due to natural attrition.
“It will foster partnerships with communities and implement reforms to optimise resource allocation, training and technology. Government will continue to fill critical posts in the Border Management Agency and verify assets transferred from departments to the agency.
“To reduce employee compensation pressure, the Department of Defence will implement human resource reforms and review commuted overtime and allowance policies. Furthermore, funds will be reallocated in the Department of Defence to provide for day-to-day maintenance and emergency repairs,” the Minister said.
The Department of Justice and Constitutional Development will reallocate funds over the MTEF period to capacitate the Office of the Legal Services Ombud.
“Funding will also be shifted from the Department of Agriculture, Land Reform and Rural Development to Legal Aid South Africa to improve its capacity to provide legal representation in land rights matters.
“To strengthen its independence, the Judicial Inspectorate for Correctional Services will become a government component in 2024/25. Concomitant resources, currently in the baseline of the Department of Correctional Services, will be transferred with the inspectorate,” the Minister said.
Government will continue to fill critical posts in the Border Management Agency and verify assets transferred from departments to the agency. –SAnews.gov.za
nosihle
Wed, 11/01/2023 - 14:04
623 views
Revenue collection projected to decline
Revenue collection projected to decline
Revenue collection is expected to fall by some R56 billion below the 2023 Budget predictions, according to the National Treasury Medium Term Budget Policy Statement (MTBPS).
The MTBPS notes that slowing commodity exports, slower growth, downward revisions of the tax base growth, slowing corporate tax collections and lower net VAT collections have all impacted tax revenue.
The 2023 Budget had projected collections would reach some R1.78 trillion but that has now been revised down to R1.73 trillion.
“In recent years, revenue collection has benefited from a pattern of high prices for South Africa’s commodity exports. In the current year, commodity prices have fallen faster than expected and value‐added tax (VAT) refund claims have risen, resulting in revenue collections projected to be R56.8 billion below 2023 Budget estimates.
“The moderate revenue outlook is limited by the domestic economic outlook and negative shifts in the global economy,” the department said.
This as Minister of Finance Enoch Godongwana tabled the Medium Term Budget Policy Statement in Parliament on Wednesday.
Key factors which have affected revenue collection in the first half of 2023/24 include:
- Significantly reduced mining sector profitability. Mining provisional corporate tax collections fell by R24.6 billion or 55.4 percent relative to the same period in 2022/23. Lower commodity prices, weaker global growth, increased incidence of power cuts and logistical constraints have weighed heavily on the sector.
- VAT refund payments are R21.5 billion higher relative to the same period last year due to stronger-than-expected exports; increased investments in embedded generation; and higher costs of doing business, including the use of more expensive road rather than rail transport. Stronger import VAT collections partially offset robust VAT refund payments.
- A sustained recovery in earnings and higher bonus payments have benefited personal income tax collections, with employees’ tax from the finance sector driving the strong year-to-date growth.
“The tax-to-GDP ratio is expected to decline to 24.7 percent in 2023/24 from 25.1 percent in 2022/23. A recovery in this ratio depends on more sustainable economic growth.
“Main budget revenue estimates for 2023/24 have been lowered by R44.4 billion compared with the 2023 Budget, mainly driven by lower estimates for tax revenue, while National Revenue Fund receipts have been revised up by R11.3 billion mainly due to higher expected revaluation profits from foreign-currency transactions,” Treasury said.
Future revenue
The department said due to the increased fiscal consolidation that is required, “the Minister of Finance will propose tax measures to raise additional revenue of R15 billion in 2024/25 in the 2024 Budget”.
“Tax revenues are expected to increase to R2.1 trillion, or 25.1 percent of GDP, by 2026/27. Revenue collection, however, is projected to fall short of 2023 Budget estimates by R121.4 billion between 2024/25 and 2025/26, with tax buoyancies generally lower over the medium term.
“Relative to the 2023 Budget, main budget revenue estimates for the next two years have been lowered by R152 billion, mainly driven by downward revisions to tax revenue projections. Non-tax revenue estimates for the next two years have also been reduced by R24.4 billion due to lower mineral and petroleum royalties and departmental receipts. Payments to the Southern African Customs Union (SACU) are revised up,” the department said.
Treasury insisted that improved economic growth and further gains in tax administration are critical for improving tax revenues.
“The sharp contraction in commodity prices now under way suggests that the windfall tax receipts that South Africa enjoyed in recent years have come to an end. Under-collections in corporate income tax receipts relative to 2023 Budget estimates flow through to the outer years. Stronger VAT refund payments over the medium term partly reflect higher renewable energy investments and responses to structural constraints in logistics and fuel refinery capacity.
“The outlook for most major tax bases has also been revised lower relative to the 2023 Budget. Personal income tax collections are marginally better than expected due to near-term gains; however, medium-term prospects for employment growth remain muted.
“Although South Africa’s tax-to-GDP ratio remains relatively resilient, stronger economic growth and further gains in tax administration are needed to improve tax revenues over the medium to long term,” the department said. – SAnews.gov.za
NeoB
Wed, 11/01/2023 - 14:05
624 views
COVID-19 social grant extended until 2025
COVID-19 social grant extended until 2025
Government has extended the COVID-19 Social Relief of Distress Grant (SRD Grant) until March 2025 while it considers social security policy reforms and a funding model.
The grant was introduced to support low-income individuals affected by the lockdowns during the COVID-19 pandemic.
Delivering the Medium Term Budget Policy Statement (MTBPS) to Parliament on Wednesday, Minister of Finance Enoch Godongwana said R34 billion has been allocated to extend the grant by another year.
“Over the medium term, a provisional allocation is retained while a comprehensive review of the entire social grant system is finalised. The 2023 Budget indicated that the COVID-19 Social Relief of Distress grant was only funded until March 2024.
“Government proposes that the fiscal framework make provision for funding for the grant for 2024/25. Beyond this, a comprehensive review of the entire social grant system by the Department of Social Development and the National Treasury is required,” Godongwana said.
Over the 2024 medium-term expenditure framework (MTEF) period, 61% of consolidated non-interest spending goes to the social wage — combined public spending on health, education, housing, social protection, transport, employment and local amenities.
“Of this amount, R945.9 billion will be spent on social protection transfers, including the old age grant, the child support grant, the disability grant and the COVID-19 social relief of distress grant. South Africa’s social protection expenditure programme, measured as a percentage of gross domestic product (GDP), is one of the largest among developing countries,” he said.
The 2019 MTBPS noted that by 2040/41, social assistance beneficiaries – excluding the temporary COVID-19 social relief of distress grant – were projected to increase to 22.5 million, necessitating spending on social grants amounting to 3 % of GDP annually.
“This is in line with current grants spending, excluding the temporary grant. If that or a similar type of new grant is made permanent, beneficiaries are projected to expand from 27.3 million in 2023/24 to 40.4 million in 2040/41, which will cost 3.8 % of GDP in 2040/41 and require a corresponding permanent source of funding, such as additional revenue measures,” he said.
Education
Although additional funding has been provided to implement the 2023 public-service wage agreement, provincial education departments are constrained in hiring additional teachers.
The Minister warned that this could lead to larger class sizes and higher learner-teacher ratios, possibly resulting in weaker educational outcomes.
“To mitigate this, the sector will improve the approach to allocating teachers to schools, ensure that learner and teacher support materials are used cost-effectively, manage infrastructure projects more tightly and focus on plans to catch up on lost teaching time,” Godongwana said.
Institutions in the post-school education and training sector, including the National Student Financial Aid Scheme, will need to bring their student enrolment and bursary allocations in line with their budgets.
Planned infrastructure spending will be brought in line with institutions’ ability to spend.
Continued health services
The Minister said the health sector is aiming to maintain service delivery amid budgetary constraints.
“While additional funding is provided to cover wage increases, baseline reductions are being implemented as part of fiscal consolidation. To minimise negative effects, the sector will need to improve efficiency in areas such as overtime payments, medical supplies and security services, and to delay infrastructure projects.”
The South African Law Reform Commission is finalising a report on legal reform to manage medico-legal claims, which constitute a significant financial risk.
“To address funding fragmentation for oncology services, allocations will be shifted from the national health insurance grant to the national tertiary services grant.
“A single grant is also proposed to consolidate the existing personal and non-personal services components of the national health insurance indirect grant. Funding is also redirected towards the Office of Health Standards Compliance to strengthen the Health Ombud,” the Minister said. –SAnews.gov.za
nosihle
Wed, 11/01/2023 - 14:07
774 views
Protesters call for closure of Israeli embassy
Cape Town march in support of Palestine
Reforms can enhance GDP
Reforms can enhance GDP
Finance Minister Enoch Godongwana says the Medium Term Budget Policy Statement (MTBPS) prioritises reforms aimed at enhancing the growth of the Gross Domestic Product (GDP).
He was delivering the MTBPS in the National Assembly in Parliament in Cape Town on Wednesday.
“To this end, excluding interest, funding for capital projects remains the fastest-growing item by economic classification. Furthermore, we are introducing a new mechanism for improving the pace of delivery of capital projects,” he said.
The Minister was cheerful about the electricity sector’s “enormously positive transformation” due to reforms.
“We are reaping the fruits of our efforts to reform the electricity sector, including the easing of restrictions on self-generation and encouraging private investment in the area.
“At the same time, we recognise the potential loss of revenue due to private electricity generation, and the fact that traditional revenue models relied on by public entities like Eskom, face serious disruption.
“It is for these reasons that our electricity reforms are holistic, evidenced-based, and geared to find a balanced solution to our electricity supply challenges. They take into account not just a particular entity but the transformation of the sector as a whole,” he said.
According to the extended MTBPS, some of the major reforms in the energy sector comprise::
- Three projects under the Risk Mitigation Independent Power Producer Procurement Programme, with capacity totalling 150 MW, will be ready for connection to the grid in November 2023.
- By 2025, nine projects with a total capacity of over 1 000 MW will be connected to the grid under the Renewable Energy Independent Power Producer Procurement Programme, with a further 1 000 MW expected in the next phase.
- In June, Eskom released interim rules to ensure fair and transparent allocation of limited grid capacity.
- In August, Cabinet approved an amendment to the Electricity Regulation Act (2006) for public comment. The amendment aims to establish an independent transmission system operator and a competitive electricity market.
Turning to the logistics system, the Minister said the system faces significant challenges which have cost “up to 5 percent of GDP in 2022, with losses in the region of R50 billion in the minerals sector alone”.
The extended MTBPS notes that the cost of rail inefficiencies last year is estimated at R411 billion.
“Given the scale of the challenges, the National Logistics Crisis Committee was instituted to broaden reforms in the sector and prioritise reforms aimed at resolving the immediate crisis, while also addressing the structural aspects hampering the sector.
“This approach is consistent with the key lesson from our reform of the electricity sector, that resolving these challenges must be based on transforming the sector, and not trying to save an entity,” he said.
Godongwana said a “dysfunctional” Transnet – which remains at the heart of the logistics sector and the movement of goods – has serious implications for business, people’s lives, the economy and the country’s global competitiveness.
“No modern economy can thrive and grow new industries if rail lines are beset by delays, and ports are unable to efficiently handle incoming and outgoing cargo. Transnet’s performance in this regard has been underwhelming and its operations have been strained by a worsening financial state.
“Recognising the seriousness of the situation, the National Treasury is working with Transnet and the Department of Public Enterprises to ensure that Transnet can meet its immediate debt obligations,” he said.
The Minister said in this regard, a Freight Logistics roadmap will guide reforms in the sector.
“The roadmap sets out a clear path for enhancing efficiencies, facilitating the introduction of competition and leveraging the financial and technical support of the private sector.
“Only once these three objectives are reflected in Transnet’s corporate and operational plans, will there be a conversation about whether and how government can provide financial support to transform the logistics sector,” Godongwana said.
Improvements in areas such as financial management and financial governance are being prepared.
“These reforms will respond to the recommendations of the Zondo Commission, the Mpati Commission, and the Nugent Commission.
“I will…table an Omnibus Bill for public consultation, which will include key amendments to various pieces of legislation, including the Public Finance Management Act of 1999 (PFMA), Municipal Finance Management Act of 2003 (MFMA) and South African Revenue Service Act (SARS Act),” Godongwana said. – SAnews.gov.za
NeoB
Wed, 11/01/2023 - 14:13
229 views
SOE financial health remains “poor”
SOE financial health remains "poor"
The Medium Term Budget Policy Statement (MTBPS) has revealed how South Africa’s weak growth combined with arduous debt repayment obligations and other factors continue to affect the financial health of state-owned enterprises (SOEs).
The MTBPS was tabled in the National Assembly by Finance Minister Enoch Godongwana on Wednesday.
“Since 2019, weak economic growth has compounded the poor financial position of most state-owned companies. Capital investment continues to slow, falling below company budgets, with some large enterprises facing serious liquidity problems.
“Operational inefficiencies, high cost structures and onerous debt obligations continue to hamper profitability and cash flows, intensified by non-payment for services. Many companies are unable to attract funding at favourable rates and terms, and rely on fiscal funding for support,” the statement read.
Debt repayments for SOEs over the medium term are expected to reach R121 billion.
“The large domestic capital repayment in 2023/24 stems from the maturity of bonds issued by the Industrial Development Corporation, the Development Bank of Southern Africa, Transnet and the South African National Roads Agency Limited (SANRAL).
“In the following three years, capital repayments will be relatively lower as state-owned companies build cash flows to manage maturities. Capital repayments are expected to decline significantly after another spike in 2027/28,” the statement said.
Denel
According to the statement, Denel remains in “financial distress” with no annual financial statements submitted since the 2019/20 financial year.
“In March 2023, government disbursed R1.9 billion to Denel through the Special Appropriation Act (2022). The disbursement was proportionate to the entity’s share of proceeds from the sale of non-core assets. Denel used this funding to help settle debt obligations, pay for restructuring and enhance working capital.
“The remaining portion remains ring fenced until other non-core assets are sold. In September 2023, Denel requested that a further R100 million of the ring fenced funds be released to settle the last government guaranteed debt obligation. Following its settlement, Denel has no debt obligations remaining and its government guarantee will be revoked,” it said.
Land Bank
Similarly to Denel, the Land Bank is in default since failing to meet its April 2020 debt obligation.
“At the end of 2022/23, the National Treasury transferred R5.1 billion to the Land Bank, subject to conditions, as part of a R7 billion fiscal allocation. Government has repaid approximately R1.4 billion to all guaranteed lenders of the Land Bank since its default, eliminating its guarantee exposure.
“The remaining portion of the R7 billion fiscal allocation will be transferred to the Land Bank in this financial year to use in its blended finance scheme during March 2024,” the statement said.
Transnet
State freight rail, ports and logistics company, Transnet continues to face “weak profitability and deteriorating liquidity” stemming from “operational challenges, a high debt burden and low cash flows”.
“A prolonged period of underinvestment in capital infrastructure and maintenance backlogs have combined to limit revenue-generating capacity. Transnet has initiated a five-year R122.7 billion capital investment programme, including R99.5 billion for operational maintenance and R23.2 billion to expand infrastructure, starting in 2023/24.
“Further borrowing is restricted by its existing debt, which stood at R130 billion at the end of March 2023, and declining revenues. Transnet’s issued guarantee remains at R3.5 billion,” the MTBPS said.
South African National Roads Agency Limited (SANRAL)
Treasury explained that SANRAL’s investment capacity has been stymied by a long standing dispute over the Gauteng Freeway Improvement Programme.
“Government’s decision to take over the Phase 1 commitments will support SANRAL’s ability to finance the strengthening, rehabilitation and expansion of the toll road network.
“As a result of revisions to SANRAL’s borrowing limits and guarantees associated with the R23 billion injection made in the 2022 Adjustments Budget, SANRAL will now seek approval to revise its funding plan to ensure continued investment in the national road network,” the statement read. – SAnews.gov.za
NeoB
Wed, 11/01/2023 - 14:08
37 views
Property Insights With Lawrence Homan: Navigating The South Coast Market
For 15 years, the South Coast has not only given Lawrence Homan a home but also intimate knowledge of its ever-evolving property landscape. Under his astute leadership, the South Coast Just Property Living agency has created a name synonymous with trust, expertise, and excellence. Read on to find out what it is that makes Lawrence …
Multi-stakeholder workshop looks into migration impact on rural areas, local government
Multi-stakeholder workshop looks into migration impact on rural areas, local government
Government has set out to review areas of cooperation among various stakeholders following the successful International Migration Workshop with traditional leaders and mayors from metro and district municipalities earlier this month.
Home Affairs Minister, Dr Aaron Motsoaledi and Cooperative Governance and Traditional Affairs Minister Thembi Nkadimeng, co-hosted the workshop in October in Ekurhuleni, Gauteng.
The purpose of the workshop was to provide a platform for stakeholders to share practical experiences on how migration impacts the communities they lead at local level, and to identify possible areas of cooperation.
Motsoaledi and Nkadimeng were joined by other ministries who, in view of their legislative mandates, are directly affected by the issue of international migration.
They included Human Settlements Minister Mmamoloko Kubayi; Small Business Development Minister Stella Ndabeni-Abrahams and the Department of Trade, Industry and Competition, led by Acting Director-General, Malebo Mabitje -Thompson.
Other key stakeholders were the Public Service Commission Chairperson Prof Somadoda Fikeni, Border Management Authority Commissioner Dr Mike Masiapato and a delegation from the South African Local Government Association (SALGA), led by President Cllr Bheki Stofile, Mayors and Speakers from Districts, Metropolitan and Local Municipalities.
There were also leaders from the National House of Traditional and Khoi and San leaders led by its chairperson, Kgosi Thabo Seatlholo, all provincial houses of traditional leaders led by their chairpersons, the Congress of Traditional Leaders of South Africa (“CONTRALESA”) led by its President, Kgoshi Lameck Mokoena, the National Khoi and San Council led by Deputy Chairperson, Mr Anthony Peterson and the Royal Leaders of South Africa (“ROLESA”) led by Secretary-General, Kgoshigadi Moremadi Mothapo.
The workshop agreed on key areas of cooperation to achieve effective management of migration, and these include:
- Review of international agreements (Conventions and Protocols) with a view to accede to them with reservations where necessary, taking national interest into consideration.
- Policy and legislative reforms, including the following legislation: Citizenship Act (Act 88 of 1995), Identification Act (Act 68 of 1997), Refugee Act (Act 130 of 1998) and Immigration Act (Act 13 of 2002).
- Introduction of Omnibus by-laws to promote standardised and effective enforcement by all municipalities. This will address the challenges relating to trading and enforcement of business by-laws by municipalities and traditional authorities.
“In support of this intervention, there will be immediate joint inspections of businesses by labour, health, trade, industry and competition and immigration inspectorate teams to enforce compliance with applicable laws.
“Government will assist in strengthening the planning units in municipalities so that they are able to interpret the data and prepare development plans that are aligned to the current trends. [The auditing] of spaza shops in villages and townships and mechanisms to register them by both traditional leaders and municipalities [should also take place],” the Department of Home Affairs said.
The meeting also looked at reviewing of the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (Act 19 of 1998) to facilitate the effective implementation in instances of illegal occupation of land.
The meeting also agreed on the following:
- Strengthening Local Economic Development (LED) through, among others, supporting citizens who wish to trade in the informal sector; ensuring that business licensing legislation is amended, and promoting the assignment of LED Officers, who would also interface with traditional authorities.
- Supporting the Department of Human Settlements process of reviewing the 1994 White Paper to respond to current needs and challenges related to informal settlements and illegal occupation of buildings in inner cities.
- Coordination and collaboration of border law enforcement between government, traditional and Khoi-San leaders and the Border Management Authority (BMA).
- Supporting traditional authorities to keep a record of foreign nationals in their communities
- Reviewing resource allocation for municipalities to address the unique resources pressures of municipalities and also capacitation of municipalities on data analysis.
- The establishment of a working group that will meet regularly to track progress on the work done by various entities and government departments to ensure a ‘whole of government and civil society’ approach towards managing international migration and its effects.
“We are pleased that SALGA has already issued a statement on the workshop. This is in the spirit of cooperation and partnership which the workshop called for. We look forward to more role players coming on board to lend their hand in this important matter of national importance,” the department said. – SAnews.gov.za
Edwin
Wed, 11/01/2023 - 09:32
315 views
Partnerships are key to decarbonizing the South African economy.
The “energy trilemma” of delivering lower carbon energy that is affordable and secure is an issue facing all businesses and policymakers in the energy space. We believe that the world’s leading energy companies meaningfully want to achieve all three priorities. In January 2023, the New York Times reported that 2022 was the fifth-hottest year on …
Disability grant applicants can lodge an appeal – SASSA
Disability grant applicants can lodge an appeal - SASSA
Disability grant applicants have been encouraged to lodge an appeal if their application is not approved.
“The appeal must be lodged within 30 days after receiving a rejection letter and the process of reviewing the appeal also takes 30 days. If the applicant does not understand the rejection reasons they have a right to ask SASSA officials to provide clarity,” the South African Social Security Agency (SASSA) said in a statement.
“All approved disability grant beneficiaries receives an increased R2 090 monthly by the Minister of Treasury October 2023, due to budget review,” the agency said.
SASSA explained that the applicant must note that SASSA works together with the professional medical contracted doctors who are ensuring that qualifying applicants gets the disability grant.
SASSA medical contracted doctors work under the supervision, approved regulations and guidelines by SASSA and the department of Health.
“It is only a SASSA medical contracted doctor that can conduct the assessment and submit a report to SASSA which determines whether the applicant qualify for a temporary or permanent disability grant. The assessment report is based on the information presented to the doctor and physical assessment also is conducted,” the agency said.
The applicant must meet the following requirements:
- be a South African citizen; permanent resident or refugee permanently residing in South Africa.
- be 18 to 59 years of age;
- undergo a medical or functional assessment confirming disability and;
- provide clinical information or referral form confirming disability;
- provide a referral form duly completed by a treating facility or practitioner if previously rejected on medical grounds;
- the applicant and spouse must be subjected to the Means Test;
- not be maintained or cared for in a State-funded institution;
- not be in receipt of another social grant in respect of himself or herself;
- submit a 13-digit barcoded identity document or the smart ID card for self and spouse. In the absence of an ID or a birth certificate, an alternative identification prescribed by SASSA will be acceptable.
For more information applicants are advised to contact the toll free number during working days/hours on Monday – Friday 0800 60 10 11/013 754 9428/9363 and WhatsApp on 082 046 8553. – SAnews.gov.za
DikelediM
Wed, 11/01/2023 - 10:12
299 views
Shoprite and Checkers slash the cost of car licence renewals
Shoprite and Checkers slash the cost of car licence renewals For a discounted fee of only R185 – the lowest offered by a South African retailer – motorists can renew their vehicle licence online and pay either online or in-person at the Money Market counter in any of the 1 350 Shoprite, Checkers and Usave …
Hollard gains East Africa foothold in deal with Kenya’s APA Insurance
Hollard International (https://apo-opa.info/3tUpGWD) will extend its footprint in Africa through the finalisation, on 31 October 2023, of an agreement to acquire a significant interest in Apollo Investments Limited, the holding company of Kenya-headquartered insurer APA Insurance.
This strategic investment, subject to regulatory approvals, gives Hollard International a presence in the East African market, supplementing its existing operations in Southern and West Africa.
Hollard becomes the second international investor in the Kenyan group, following Swiss Re, which acquired a stake in 2014.
For APA, the partnership gives Kenya's second-largest insurer access to a larger market and expanded opportunities for growth, says Ashok Shah, Group CEO of Apollo Investments Limited.
“It's an exciting time for APA because the Hollard International partnership will open new doors and new avenues of growth for our business. We'll have access to substantial new expertise in classes of business such as Motor, Engineering, Marine and other specialist lines of insurance – which we believe will open up a number of profitable business opportunities.”
Expressing the significance of the partnership, Shah notes, "In addition to expanding our operations in Kenya, this venture will also enable us to strengthen our foothold in Uganda and Tanzania. Moreover, it positions us favourably to seize opportunities in the Ethiopian market once it becomes accessible.”
Pravin Kalpagé, CEO of Hollard International, is equally upbeat about the transaction, heralding it as “a vote of confidence in the Kenyan and East African markets”.
He says, “Hollard International has been looking for an East African partner for some time, and APA ticked so many boxes – it has an established track record, an impressive value proposition with strong broker and customer relationships, and it shares our values around community, reliability and customer-centricity. All these elements resonated strongly with us.
“This investment continues Hollard International's African model of finding strong local businesses and management teams with whom to partner in-country, rather than parachuting expatriates into a new market.”
He adds that exploring options in Francophone West Africa is next on Hollard International's to-do list.
Kalpagé has also pledged to bring Hollard International's model of “impact beyond insurance” to the East African market – as demonstrated in Mozambique and Ghana, among other countries.
Hollard Mozambique has developed risk-mitigation insurance products to protect smallholder and subsistence farmers – whose livelihoods are totally reliant on their crops – from extreme weather events through a partnership with local seed providers.
In Ghana, the MeBanbo microinsurance product arose from a partnership between Hollard Life, Vodafone Ghana and Sasai Fintech, a business of Cassava Technologies. It offers accessible, affordable life insurance cover, via an end-to-end digital platform, to the underserved Ghanaian market.
“This focus on being a catalyst for social impact in Africa is in line with Hollard's business purpose, which is to enable more people to create and secure a better future,” concludes Kalpagé.
In South Africa, Hollard is the largest privately owned insurance group, offering both life and non-life product suites. Hollard International extends insurance solutions outside of South Africa through operations in Namibia, Mozambique, Zambia, Lesotho, Botswana and Ghana, with East Africa (Kenya, Uganda and Tanzania) being added to the list through the APA transaction.
APA Insurance is owned by Apollo Investments Limited, which was founded in 1977 with a mission to provide “present and future peace of mind to the East African market and, in turn, enhance the quality of life for both our clients and loved ones”. Built on commitment, integrity and innovation, Apollo has since become one of the leading financial services groups in East Africa, with six companies under its belt.
Issued by Flow Communications on behalf of Hollard.
Distributed by APO Group on behalf of Hollard.
For more information or to arrange an interview, please contact Khaya Thwala on khayat@flowsa.com or +27 78 349 0668.
About Hollard International:
In South Africa, Hollard is the largest privately owned insurance group, offering both Life and Non-Life product suites. Hollard International extends insurance solutions outside of South Africa through operations in Namibia, Mozambique, Zambia, Lesotho, Botswana and Ghana, with East Africa (Kenya, Uganda and Tanzania) being added to the list through the APA transaction. https://apo-opa.info/3tUpGWD
About APA Insurance:
APA Insurance is part of the Apollo Group, one of the leading insurance groups operating in East Africa, providing a broad array of insurance solutions across Kenya, Uganda and Tanzania. APA is one of Kenya's largest non-life insurers and provides access to Motor, Liability, Agriculture, Property and Health insurance as well as a unique range of micro-insurance products. APA Life Assurance is one the fastest growing life insurance companies in Kenya providing Individual Life, Savings, Investments and employee benefits solutions including Group Life, pensions and Annuities. Its other primary insurance business units include APA Life Insurance, APA Insurance in Uganda; an asset management company, Apollo Asset Management; and a property company, Gordon Court. The Apollo Associate in Tanzania is Reliance Insurance Company. https://www.APAInsurance.org/
eXp Realty Celebrates South African Talent: Showcasing Success at the Global Awards Announcement
eXp Realty recognized three South Africans with Durban based Andrew Thompson, Johannesburg based Ilse Anhaeusser and Gqeberha based James Conyers receiving global awards for their efforts in 2022. eXp Realty®, “the most agent-centric real estate brokerage on the planet™” and the core subsidiary of eXp World Holdings, Inc. (Nasdaq: EXPI), this week recognized three South …
President Ramaphosa to welcome rugby world champs
President Ramaphosa to welcome rugby world champs
President Cyril Ramaphosa will on Thursday morning welcome the Rugby World Cup Champions, the Springboks, to the Union Buildings in Pretoria.
The Springboks won the 2023 Rugby World Cup against New Zealand in Paris, France on Saturday.
The welcome ceremony at the Union Buildings for the national team signifies the start of the Rugby World Champions’ National Trophy Tour.
The team touched down at the OR Tambo International Airport on Tuesday to a rousing welcome from the public.
The Webb Ellis Cup parade will kick off on Thursday in Pretoria, Johannesburg and Soweto, concluding at FNB Stadium; and proceed to Cape Town on 03 November 2023; Durban on 04 November 2023 before the tour ends in the Eastern Cape (East London) on 05 November 2023.
Members of the public in Pretoria are welcome to witness this event from Government Avenue, Arcadia.
President to update Parliament
Meanwhile, President Ramaphosa will on Thursday afternoon engage with Members of Parliament (MPs) on diverse national issues when he responds to Questions for Oral Reply in the National Assembly.
Among issues MPs have raised with the President are:
• the mandate of the South African Reserve Bank (SARB) and its accountability to Parliament;
• commissions of inquiry established by the President;
• combating violence against women and children;
• insights gained from the Census 2022 for macro-economic policy;
• fiscal discipline within Government.
The President will also discuss the state of readiness of the South African National Defence Force (SANDF) and its capacity to fulfill its constitutional mandate.
Parliamentary Questions for Oral and Written Reply are one of the mechanisms through which Parliament holds the Executive to account.
The questions session will start at 14:00. – SAnews.gov.za
DikelediM
Wed, 11/01/2023 - 09:40
51 views
Why Attend the Healthcare Innovation Summit Africa 2023
As technology continues to transform and disrupt every sector, the health sector is no exception. Digital innovation is having a tremendous impact on the healthcare industry from the way individuals gain access to services, to the breakthrough development of new technology that is radically transforming diagnostic procedures.
Helping Healthcare Professionals Solve Complex Problems
Even more notable is the impact of data in healthcare and how it is helping to solve the most challenging problems in patient health and operational efficiency.
In January 2023, Harvard Business Review Analytic Services conducted a global survey (https://apo-opa.info/3sevpGc) of 757 members of the Harvard Business Review audience who work in the health care industry or in a health care-related industry and are familiar with their organization's use of health data.
Data Accelerating Digital Transformation
The results from the report demonstrate how innovative uses of data in healthcare is helping organizations improve patient health outcomes, enable faster clinical decisions, and improve treatment and hospital workflows.
This year's 8th Healthcare Innovation Summit Africa 2023 (https://apo-opa.info/3FFQCvJ), featuring leading experts, innovators, and stakeholders will be sharing their insights and experiences on topics like digital health, telemedicine, data analytics, and more.
The two-day summit, being hosted at the Gallagher Convention Centre in Johannesburg, on November 29th and 30th presents an opportunity to network with peers and potential partners, explore the Innovation Showcase, and learn how to overcome the industry specific challenges that have arisen from the rapid technological advancements.
Attendee Testimonials
At the Healthcare Innovation Summit (https://apo-opa.info/3FFQCvJ) held in 2017, CEO of Helen Joseph Hospital in Auckland Park who was in attendance shared his experience after attending the IT Summit in 2015 and why he made the decision to come back.
It was at the IT Summit that he heard about the technology available to improve healthcare management and had the opportunity to have a conversation with an industry expert about the challenges he faced with managing data.
That conversation led to the implementation of a software system that led to the overall improvement of the hospitals performance. In the areas of administration, patient data management, HR and finances. Testifying to the incredible experience, he had which led to his decision to attend the summit in 2017 he said, “When I heard about this conference this year, I decided to come back so that I can learn more about how I can improve the hospital's efficiency.”
Similarly, Managing Director of MediSwitch, Andrew Brown shared his perspective about the impact of the Healthcare Summit, and how important it is to continue to host such events, “I thoroughly enjoyed the event, we've heard from speakers who are really challenging the status quo of the adoption of technology, in the healthcare market in South Africa and in broader Africa and I firmly believe that events like this brings all of those role players together and challenges each one of us to think about what we do on a day to day basis differently so that we can actually go out there and ultimately make a difference to health care in Africa.”
Key Topics to be Addressed
The summit will address key topics like:
This summit will address key topics such as:
The Healthcare Innovation Summit Africa (https://apo-opa.info/3FFQCvJ) 2023, will most benefit individuals interested in learning about the latest African healthcare trends, presented by healthcare experts, policymakers, IT decision-makers, entrepreneurs, and investors to discuss digital transformation.
Don't miss this chance to be part of the pivotal event that assembles a diverse array of stakeholders dedicated to changing the face of healthcare on the African continent. Register now and secure your seat at this exclusive event.
Distributed by APO Group on behalf of IT News Africa.
Propelling South Africa’s economy forward, one tourist at a time
01 NOVEMBER, JOHANNESBURG: South Africa’s tourism industry has not just rebounded from the pandemic, it has found itself in a position to pursue aggressive growth. In the first quarter of 2023, the country welcomed over 2 million visitors. Furthermore, over the next decade, this sector is projected to generate an impressive 800,000 jobs and inject …
12 Things you didn’t know about Crocworld Conservation Centre
Since 1985, Crocworld Conservation Centre has established itself as a landmark on the Mid-KZN South Coast, with visitors coming from all over to meet this tourist attraction’s iconic and charismatic residents. But even die-hard supporters will be interested to learn some of the fun facts about Scottburgh’s conservation centre. “We have been welcoming visitors through …
Municipality which is “swimming in trouble” finally pays its workers
Matjhabeng Local Municipality employees have been on strike since 25 October because they were not paid
Budget cuts: Why doesn’t the government use some of the money in this R459-billion account?
The reasons for not using money from the Gold and Foreign Exchange Contingency Reserve Account are political, not legal or economic
Operation Shanela nets 597 suspects in the North West
Operation Shanela nets 597 suspects in the North West
The South African Police Service (SAPS) conducted various high-density operations in the North West province last week, which resulted in 597 suspects being arrested for various crimes.
The suspects were arrested during an Operation Shanela initiative which was held from Monday, 23 October 2023, to Sunday, 29 October 2023.
According to a statement by the police, among others, four arrests were made for drug-related offences, 11 for dealing in liquor, 21 for driving under the influence of liquor, three for possession of firearms and ammunition and 66 were undocumented persons who were handed over to the Department of Home Affairs for further processing.
The following arrests were made for serious and violent crimes: six for murder, four for attempted murder, five for armed robbery, 149 for assault with the intent to do grievous bodily harm, three for business robbery, 41 for burglary, 30 for malicious damage to property, 13 for rape and 104 for common assault.
During the operations, two firearms with ammunition, eight cellular phones as well as a variety of drugs and precious metals were confiscated.
Some of the suspects have already appeared before court while others are expected to make their respective court appearances this week in various courts in the province.
During the operations, 93 premises were searched, 12 road blocks were held and 11 unlicensed liquor premises were closed down.
In one of the incidents, a 45-year-old police officer was attacked with a sjambok in Extension 4, in Lebaleng location, Makwassie, by an alleged tuck shop owner while a law enforcement team was conducting consumer inspections.
The suspect attacked the police officer from behind, while he was removing expired products from the tuck shop. The officer was taken to a local clinic for medical treatment.
Investigations are underway and an arrest is imminent, said police.
The Provincial police Commissioner in the North West, Lieutenant General Sello Kwena, said an attack on a police officer is an attack against the state and it will not be tolerated.
He warned that consumption of expired goods could cause people to fall ill and even die, therefore the police will continue to work hard together with other government departments to ensure the safety of the community. – SAnews.gov.za
Edwin
Tue, 10/31/2023 - 09:50
601 views
SASSA gold cards remain valid in December and beyond
SASSA gold cards remain valid in December and beyond
Postbank has announced that South African Social Security Agency (SASSA) gold cards will continue to be valid in December and in the months beyond that.
This means that social grant recipients will be able to use their cards as normal.
“This important development means that millions of social grants beneficiaries don’t have to change their SASSA Gold Cards to the cards of the other banks.
“The payments of social grants through SASSA Gold Cards over the years has empowered marginalised populations and made it easier for them to access their funds, especially in rural areas where traditional banking infrastructure may be limited.
“Guaranteeing that SASSA Gold Cards will work beyond December 2023 is one of the highlights of Postbank’s commitment to providing convenient and affordable service quality to the disadvantaged,” the bank’s spokesperson, Dr Bongani Diako said.
He warned beneficiaries not to fall victim to misleading information regarding their cards and unscrupulous retailers.
“Beneficiaries are strongly advised to disregard misleading information that might direct them to change to other card products claiming that the SASSA Gold Cards are being replaced. Postbank is the only bank mandated to replace SASSA Gold Cards.
“No retailer or shop has the right to force beneficiaries to make a purchase: SASSA beneficiaries are advised to report any retailer or shop that forces them to buy goods prior to paying out their SASSA grants. You are entitled to your full SASSA grant payment, and you have every right to use the money as you deem necessary,” Diako said.
The spokesperson explained the benefits of the gold card.
“SASSA Gold Cards can be used to withdraw SASSA grants from a wide network of the country’s ATMs, of any bank, including any retailer, such as Boxer, Pick n Pay, Shoprite, Usave, Spar, and Shoprite.
“This diversity of channels reduces the need for beneficiaries to stand in long queues at Post Offices or cash pay points.
“SASSA Gold Cards offer numerous transaction benefits, including free withdrawals inside retail shops, free 3-month statements and balance inquiries. Beneficiaries are empowered because they get their grants money in full and save on transaction costs,” he said. – SAnews.gov.za
NeoB
Tue, 10/31/2023 - 10:09
1059 views
Permits to change the lives of farmers
Permits to change the lives of farmers
By Gabi Khumalo
A group of farmers have dispelled the myth that government initiatives seldom have an impact on the lives of ordinary, real people.
Recently, 664 hemp and cannabis farmers who are on the KwaZulu-Natal Agriculture and Rural Development (DARD) database, received permits which grants them authorisation to cultivate, store and transport content with a Tetrahydrocannabinol (THC) of not more than 0.2%.
THC is the major psychoactive component and one of the 113 cannabinoids recognised in cannabis.
What does the handing over of the permits mean you ask? It means that the permits, handed over at a provincial Cannabis Expo and Conference, held at Okhahlamba Sports Complex in Bergville, will enable the farmers to have access to cutting edge technology through the Analytical Lab based at Cedara in uMgungundlovu District Municipality, near Pietermaritzburg.
To grow the local sector, the MECs of the provincial Departments of Agriculture and Rural Development (DARD) and Economic Development, Tourism and Environmental Affairs (EDTEA) invited captains of industry, including experts, academics, Amakhosi and local growers to a two-day expo and conference to share ideas that will grow the sector to its full potential.
Held under the theme: “One love, one heart,” the event provided a platform for local cannabis and hemp farmers, and others with an interest in the sector to engage with business and academia.
Among the issues under discussion were that of regulations, registration, production, agro processing and exports.
Local business who will be providing services to permit recipients were also granted R300 000 each. Services include processing, erecting tunnels and providing lab equipment, packaging, testing, and finding a market for farmers.
Masterplan
The first citizen of the province, Premier Nomusa Dube-Ncube said the expo and conference will be etched in the minds of the people, as the starting point of a “new era for the cannabis sector in the province.”
Dube-Ncube noted that many milestones had been achieved through the KZN Cannabis Masterplan.
“Through DARD we have set aside an amount of R47 million for cannabis research. We have allocated R10 million to assist farmers in cannabis production and hemp permit application.
“We have facilitated an investment commitment of R120 million and we have participated in the Cannabis and Hemp Phakisa Action Lab in order to secure much-needed policy coherence and to ensure closer collaboration amongst government entities," she explained.
This as pilot projects targeting commercial growers are ongoing, and the province has supported several investment leads, which were in the process of rolling out district-based capacity building programmes under the umbrella of the proposed KZN Cannabis Association.
Reaping the rewards
EDTEA MEC Siboniso Duma said, the expo had been a success and that the work by both EDTEA and DARD was just beginning.
“We want our farmers to be the champions of the cannabis sector and we want them to be able to speak for themselves. We are giving them an assignment to come closer to us because what we have started together, will change people’s lives,” Duma said.
Meanwhile, DARD MEC Super Zuma said the province has worked steadfastly and the time to unlock the province’s prosperity through the hemp and cannabis sector, had now arrived.
“We have ensured a smooth process for our hemp permit holders and we covered all their costs. We are winning the fight to alleviate poverty and unemployment and we are extremely proud of the ongoing collaborative work that continues behind the scenes, and I must say all our collaborative efforts have yielded fruit,” Zuma said.
Permit recipient from the Umzinyathi District Municipality, Sphelele Shezi, said this was the beginning of great things for her small business of hair products, noting that the success of the products relies on hemp seed oil.
“I applied for my permit in July because I want to start extracting oil to use in our hairspray. We also manufacture shea butter which will soon be hemp infused.
“This permit will allow my business to grow and I have a vision of owning a manufacturing plant which will open up job opportunities,” Shezi said.
The owner of Old Grey Distillery--which manufactures cannabis infused beverages in Johannesburg-- Derek Collard, said his business has received great exposure at the expo.
“The expo has been superb. We started our business when cannabis became legal and we started experimenting with different cannabis infused gin flavours. We have met incredible contacts that we will be supplying. There are business opportunities as well as local growers that we could potentially partner with,” Collard said.
Nonhlanhla Qhoboshiyane, a hemp and cannabis farmer from Durban, who was introduced to the plants after falling ill, said she was grateful for the opportunity to be part of the informative expo.
“My interest started in 2016 when my husband and I were diagnosed with cancer. We used hemp oil and we would make cannabis leaf tea to help with the pain.
“These plants are from the Lord, created to bring about economic recovery in South Africa, there should be no stigma attached to them. The rural economy will grow because of hemp and cannabis,” she said.
Investment
In the 2023 State of the Nation Address (SONA), President Cyril Ramaphosa reiterated government’s commitment made in 2022 to unlock investment in the hemp and cannabis sector.
During the Phakisa Action Lab gathering held in June 2023, the President said the cannabis and hemp sector is one of 14 priority sectors that have been defined in government’s Country Investment Strategy as holding significant potential to secure investment, job creation and support for sustainable rural livelihoods, in recognition of people’s rights.
“I am confident that the collaborative commitment to work together which characterises our society, will find expression in the Hemp and Cannabis Phakisa, leading to immediate short term regulatory reform, the adoption of a set of foundational policy principles to achieve longer term legislative reform and a detailed plan to achieve inclusive growth and investment,” the President said at the time.
Participants at the Action Lab collectively agreed on the regulatory reforms required to better enable the development of the hemp and cannabis sector.
The reforms will unlock the potential of cannabis in African traditional medicine; pharmaceutical and complementary medicines; and multiple industrial applications.
The regulatory reforms agreed to include reviewing the schedules to the Medicines Act to further enable cannabis grown for non-medicinal uses, including industrial purposes.
The Phakisa Action Lab further resolved to explore mechanisms to fast-track the removal of cannabis from the Drugs Act.
This will be a historic achievement through which the cultivation of non-medicinal cannabis will be legal under the terms and conditions of the Plant Improvement Act, which falls under DALRRD.
The development of the hemp and cannabis industry has so far seen the issuing of 83 cannabis licences, four manufacturing licences and 30 research permits by the South African Health Products Regulatory Authority (SAHPRA) since 2022. The authority is an entity of the Department of Health
The Department of Agriculture, Land Reform and Rural Development has also issued 371 hemp permits, which has enabled significant investment, employment creation, the application of technology, intellectual property development and exports to highly competitive global markets.
And that is no smoke and mirrors story. - SAnews.gov.za
GabiK
Tue, 10/31/2023 - 11:43
539 views
Four CIT robbers killed on N4 during shootout with police
Four CIT robbers killed on N4 during shootout with police
Four cash in transit (CIT) robbers were fatally wounded in a shootout with law enforcement agencies in Mmakau in the North West province on Monday afternoon.
According to the South African Police Service (SAPS), a multi-disciplinary team received intelligence about a group of suspects planning to commit a cash in transit robbery between the North West and Gauteng.
“The information was operationalised and led the team to the N4 highway where the identified suspects' vehicle was observed.
“The suspects' vehicle was spotted as it turned towards Mmakau. A high-speed chase and shootout ensued as soon as the suspects realised they were about to be captured.
“The suspects lost control of their vehicle and collided with a fence. Four of the suspects were fatally wounded and three unlicensed firearms, two handguns as well as a rifle were recovered from the scene,” said the police.
The suspects are aged between 30 and 45-years-old.
The multi-disciplinary team - comprising the Hawks Tactical Operations Management Section (TOMS), Gauteng Traffic Saturation Unit, Gauteng Traffic Police Chopper, Badboyz Security, Tracker Connect, CAP Specialised Operations, FRS-Falcon Risk Solutions, SAPS PHO Crime Intelligence, SAPS Anti-Gang Unit and SAPS Gauteng Tactical Response Team – have been applauded for foiling the would-be cash in transit heist.
Police said further investigations are ongoing. – SAnews.gov.za
Edwin
Tue, 10/31/2023 - 11:46
524 views