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Tourism announces opening of application process for TEF

Location: News

Tourism announces opening of application process for TEF

The Department of Tourism, together with the Small Enterprise Finance Agency (Sefa) - an agency within the Department of Small Business Development, has announced the opening of the application process for the Tourism Equity Fund (TEF) on Monday, 06 November 2023.

“Following Cabinet’s approval in September 2023 for the revised TEF to be implemented, we are delighted to announce that the Request for Proposals for funding from the TEF is now open to businesses,” the Department of Tourism said in a statement.

The R1.2 billion TEF aims to increase growth and transformation, and stimulate more inclusive participation in the tourism sector in line with the targets of the Tourism B-BBEE Sector Codes.

The TEF is intended to address the funding challenges faced by Qualifying Small Enterprises and Emerging Micro Enterprises in the tourism sector.

The TEF will be implemented by:

  • Assessing and scoring applications against jobs to be sustained and/or jobs to be created, location and geographic spread, and targeted groups (youth, women, and people with disabilities).
  • Department of Tourism and Sefa in partnership with banking and/or financial institutions in the Republic of South Africa, which includes, amongst others, banks and developmental finance institutions that will offer affordable and tailor-made financial solutions, in an attempt to close funding gaps in the market, through the provision of a blended finance solution.
  • Disbursing a total of 80% of the TEF funds to existing Small Medium and Micro Enterprises in the market to enable these businesses to grow. The remaining allocation of 20% of the funds will be disbursed to new businesses.

“Sefa will implement, execute and manage the Fund through a Fund Management Agreement signed with the Department of Tourism. The Department will support and monitor the implementation of the TEF on a monthly basis,” the department said.

The TEF places significant emphasis on providing support to tourism enterprises that meet the qualifying criteria, including a minimum of 30% Black ownership either before or after the financial support.

The TEF is exclusively dedicated to investing in various sub-sectors within the tourism industry as prescribed in the Tourism B-BBEE Sector Codes.

The department said it is committed to enhancing transformation in the tourism sector and the TEF aims to contribute towards achieving transformation goals in this important sector of the economy.

“The funding structure comprises grant funding, and debt financing, to meet the distinct needs of tourism enterprises that are either seeking equity acquisition, investment in new developments, or expansion of their existing businesses,” Tourism Minister Patricia de Lille said.

The TEF is backed by public-private partnerships which support the participation of private, commercial, and non-commercial banks, and various developmental funding institutions.

“The collaboration between public and private entities serves as a notable example of successful cooperation in advancing a more inclusive and prosperous tourism sector.

“The Department of Tourism remains committed to advancing the transformation agenda through creating equitable opportunities to realise an inclusive and revived tourism economy,” de Lille said.

With consideration of Regulation Gazette No 11067, Volume 697, No 49018 published on 25 July 2023, withdrawing Regulation Gazette No 11241, Volume 668 of 19 February 2021. No 44172, all applicants (including previous applicants) are encouraged to submit new applications that will align with the new qualifying criteria of TEF.

For more information on the Tourism Equity Fund and the application process visit: https://www.tourism.gov.za/CurrentProjects/Tourism_Equity_Fund/Pages/Tourism_Equity_Fund.aspx - SAnews.gov.za

 

Edwin
Thu, 11/02/2023 - 11:55

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AGOA Trade and Economic Cooperation Forum

Location: News

AGOA Trade and Economic Cooperation Forum

By Michael Currin

Growing business, trade and investment ties between sub-Saharan African nations that are part of the Africa Growth and Opportunity Act and the United States (US) holds enormous benefits for the two regions.

Last year the combined two-way trade between AGOA beneficiaries and the United States exceeded $46 billion and there is strong potential for further growth as trade and investment is deepened.

These trade and investment opportunities will be explored at the 2023 AGOA Trade and Economic Cooperation Forum, which is being hosted by South Africa at the Johannesburg Expo Centre from 2-4 November 2023.

The forum, attended by a senior delegation from the United States and 35 Sub-Saharan Africa Trade Ministers, will seek to strengthen trade and investment. Moreover, with African Regional Economic Communities, civil society, organised and business representatives in attendance, it also encourages regional integration.

There is ample room for growth between the US and Africa, particularly in the critical mineral value chain which is at the centre of the global clean energy transition. The continent is a major producer of cobalt, copper, bauxite, chromium, high purity iron ore, platinum group metals and lithium which is needed for the global energy transition.

Those who partner with the continent will have access to these critical resources to spur on and benefit from the clean energy revolution. The International Energy Agency’s World Energy Outlook 2022 foresees demand for these critical minerals more than doubling by 2030 and quadrupling by 2050.

The forum also reaffirms Africa as a capable economic partner and a lucrative destination for growth and investment. Sub-Saharan African economies are on the rise following the impact of COVD-19 with the International Monetary Fund's Regional Economic Outlook forecasting their growth by 4.2 per cent in 2024 from 3,6 per cent in 2023.

Alongside the forum will be the Made in Africa exhibition that will display the products of more than 500 companies from across Sub-Saharan Africa. It will exhibit the region’s agricultural, automotive, chemicals, metals and minerals, mining and machinery, clothing and textiles, leather and footwear and the boatbuilding sector products.

Significantly, this forum is the last engagement hosted in Sub-Saharan African before the expiry of the current iteration of the African Growth and Opportunity Act in June 2025.  AGOA has been at the core of United States economic policy and commercial engagement with Africa.

It was signed into law on 18 May 2000 to provide duty-free exports of goods from 40 sub-Saharan African countries to the United States, giving them a competitive advantage in the lucrative US market.

There are over 5240 tariff items that qualify for the AGOA ranging from apparel and footwear, wine, certain motor vehicle components, a variety of agricultural products, chemicals as well as steel.

The 2023 AGOA Trade and Economic Cooperation Forum is an opportunity to lobby for the renewal of AGOA beyond 2025 as a mutually beneficial platform for global exchange and growth for the industries involved, and as a gateway to the vibrant African market. An extension of AGOA will promote inward investment in Africa and deepen the impact of industrialisation on the continent. 

Furthermore, it will also support our efforts to increase trade through the African Continental Free Trade Area (AfCFTA) that covers 54 countries and 1.4 billion people. It is anticipated that Africa’s trade will be greatly boosted by AfCFTA and the US stands to gain access to a single market, which is projected to grow to 1.7 billion people and $6.7 trillion in consumer and business spending by 2030.

The trade relationship between the US and South Africa has greatly benefitted from the AGOA agreement.

South Africa remains a key source of raw materials for the American economy and has become one of the region’s top 3 exporters to the US. The most success has been in our automobile sector which is the country’s biggest single beneficiary of the programme. Our local citrus industry has also benefited with the Western Cape exporting approximately R1.6 billion worth of citrus to the US under AGOA in 2022.

Other leading exports to the US included iron and steel, edible fruits, organic chemicals and precious stones. It helped create a total of 62 395 direct and indirect jobs, while overall AGOA generated an estimated 350 000 direct and 1.3-million indirect jobs in Sub-Saharan Africa.

South Africa looks forward to welcoming stakeholders from the US and across the continent to the forum. The stronger ties will ensure reciprocal trade and investment that will benefit both the US and Africa.

* Michael Currin is the Deputy Director-General Intergovernmental Coordination and Stakeholder Management at the Government Communication and Information System
 

Janine
Thu, 11/02/2023 - 08:54

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Revenue collection projected to decline

Location: News

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

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Reforms can enhance GDP

Location: News

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

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Multi-stakeholder workshop looks into migration impact on rural areas, local government

Location: News

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

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Celebrating 25 Years of RBS – A Legacy of Excellence in Higher Education

Location: MyPR

This month Regent Business School reached a remarkable milestone – celebrating its 25th anniversary. This momentous occasion is a testament to the institution’s unwavering commitment to excellence and innovation in higher education, particularly in the domains of distance learning and private education. As we celebrate this landmark, it is an opportunity to reflect on Regent …

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Partnerships are key to decarbonizing the South African economy.

Location: MyPR

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 …

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LG Electronics Reports Outstanding Third-Quarter 2023 Financial Results

Location: MyPR

LG ANNOUNCES THIRD-QUARTER 2023 FINANCIAL RESULTS High Performance, Strong Profitability Reflect Progress in Advancing Business Portfolio, Accelerating B2B Business and Procuring New Growth Engines LG Electronics Inc. (LG) today announced third-quarter 2023 consolidated revenue of KRW 20.7 trillion and operating profit of KRW 996.7 billion, both the second highest third-quarter figures in the company’s history. …

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Hollard gains East Africa foothold in deal with Kenya’s APA Insurance

Location: Business
Hollard

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/

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eXp Realty Celebrates South African Talent: Showcasing Success at the Global Awards Announcement

Location: MyPR

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 …

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Why Attend the Healthcare Innovation Summit Africa 2023

Location: Business

IT News Africa
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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.

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Propelling South Africa’s economy forward, one tourist at a time

Location: MyPR

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 …

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Call for a realistic 2023 MTBPS

Location: News

Call for a realistic 2023 MTBPS

North-West University Business School Professor Raymond Parsons has called for a realistic and sound Medium-Term Budget Policy Statement (MTBPS), given the additional fiscal and economic challenges facing the country.

“The National Treasury has already warned of the tough decisions that will need to be taken in the medium-term budget. A shortfall of about R100 billion is now widely forecast. Unless remedial steps are taken, the risks of another 'fiscal cliff' for South Africa will rise,” Parsons said.

He said the latest Monetary Policy Review also emphasised that a lack of fiscal sustainability would keep interest rates elevated for longer.

His appeal comes ahead of Minister of Finance Enoch Godongwana’s MTBPS, which will be tabled at the National Assembly in Cape Town today.

“It is now generally recognised that the combination of low growth, less-than-expected tax revenues, and continued high government spending means that the economic and financial assumptions on which the 2023 Budget projections in February were based are no longer valid.

“Several of the fiscal risks outlined in the main Budget have materialised. These factors have now severely reduced available fiscal space, necessitating a realistic approach to a less favourable set of circumstances. If the medium-term Budget is not credible in its actions, it will be assumed that there will just be more borrowing or big tax rises to come later,” Parsons said.

He identified government bailouts to struggling state-owned enterprises as a persistent problem.

“Transnet recently asked government for financial support – which is basically a bailout – to implement its turnaround plan. The Bureau for Economic Research has warned that Transnet’s request comes at an inopportune time for the fiscus.

“How the National Treasury decides to respond to Transnet’s need for further assistance will be seen in the MTBPS. South Africa is already at the outer boundary of what it can reasonably do to contain its debt burden and stabilise its public finances. Reducing the deficit inevitably now means recalibrating the broad dynamics of its public finances,” he said.

With the debt-to-GDP ratio now over 70% and expected to increase further, Parsons said South Africa's rising debt bill is already absorbing too large a share of the budget at the expense of other major social spending and infrastructure.

“A long-range fiscal plan is, therefore, now needed to steadily wind down spending and debt and bring them under control in a way that establishes clear priorities for the future.

“Fiscal policy will inevitably have to be pragmatic and realistic to deliver sensible trade-offs in order to project a credible medium-term Budget that offers more predictability and certainty.

“This fiscal balancing act will, therefore, require a skilful but level-headed revised Budget ‘mix’ and projections. It requires successfully managing multiple spending pressures at a time when political elections are pending in 2024,” he said.

Credibility

Parsons emphasised that the medium-term Budget must be a credible fiscal plan that does enough in challenging economic circumstances to placate nervous markets and not allow excessive borrowing to 'crowd out' the private sector.

“It is apparent that, whatever other steps may be needed to 'balance the books', all roads eventually run through inclusive growth if South Africa wants fiscal sustainability in the longer term. And if, through job-rich growth, South Africa can also move more citizens out of welfare and into work, a lowering of the quantum and risks of welfare dependency will also improve the fiscal balance.

“The number of countries that have grown successfully out of large debt is really quite small, whereas the number of economies that got into major fiscal difficulties that ultimately ended in inflation and other economic distortions is quite large.

“This emphasises why there can be no complacency about the immediate medium-term Budget challenges and no doubt about the National Treasury's determination to keep the fiscal situation manageable,” he said.

Parsons said the 2023 MTBPS which is also known as the mini budget,  must reinforce the overall message that the trajectory of South Africa’s GDP growth (and potential growth) will, eventually, be driven mainly by the pace at which structural reforms materialise, especially on the energy front.

“The medium-term Budget needs to reflect a renewed commitment to do what is necessary to help reduce South Africa's risk premium by strengthening the pillars of fiscal sustainability,” he said. –SAnews.gov.za

nosihle
Tue, 10/31/2023 - 10:30

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Food & Trees for Africa and Tiger Brands Unveil Winners of EduPlant Finals Competition

Location: MyPR

31 October 2023 – This World Food Month, Food & Trees for Africa (FTFA), in partnership with Tiger Brands, proudly announced the champions of the EduPlant Finals Competition, an occasion that celebrates the outstanding achievements of schools in the realm of permaculture food gardening for food security and environmental education. As advocates for sustainable living …

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Indulgence Honest Got Easier: Innovative Freezer-to-Oven Cookie Sensation Sparks the Grand Opening of the first ever Carrington Cookie Bar.

Location: MyPR

[JOHANNESBURG, GAUTENG]- A delicious new chapter unfolds at Sandton City as Carrington Cookies, a cherished family-run enterprise, unveils its’ newest venture: The Carrington Cookie Bar. This delightful addition to the mall brings forth a unique baking innovation – the ready-shaped, perfectly portioned, frozen cookie dough that’s baked and ready to serve within 15 minutes: Promising …

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SSL Certificates And HTTPS In SEO

Location: MyPR

You’ve probably noticed that little padlock icon next to a website’s URL and wondered what it’s all about. It’s more than just an icon, it’s a sign of security – the result of something called SSL certificates and HTTPS. But what are they exactly? And why do they matter for SEO? Well, as you navigate …

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What Are Robots.Txt Files And Their Importance In SEO?

Location: MyPR

You’ve probably heard of SEO, but do you know about robots.txt files? They’re a crucial part of your website’s visibility to search engines. Imagine them as bouncers at the door of your site, telling search engine crawlers which pages they can and can’t access. Misunderstandings about their function and usage often lead to common mistakes that …

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Operation Shanela nets 597 suspects in the North West

Location: News

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

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Permits to change the lives of farmers

Location: News

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

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TP Nchocho appointed Ports Authority board chair

Location: News

TP Nchocho appointed Ports Authority board chair

The Industrial Development Corporation’s outgoing CEO, Tshokolo Nchocho, has been appointed as chairperson of the board of directors of the Transnet National Ports Authority (TNPA).

Nchocho’s appointment to the board was announced by Public Enterprises Minister Pravin Gordhan and the chairperson of the Transnet Board, Andile Sangqu.

“This latest appointment serves as further affirmation of our commitment to enhance TNPA’s strategic position by equipping it with a depth of skills, knowledge and experience that will support our efforts to improve our ports and boost their contribution to the economy,” Gordhan said.

Nchocho will join seven other executive and non-executive directors on the board.

“We look forward to Mr Nchocho’s contribution as we work to turnaround Transnet into a formidable catalyst for driving the country’s economic development and competitiveness. His experience adds a further positive dimension to the leadership base that is already on the TNPA Board,” Transnet chair Sangqu said.

According to the department, Nchocho brings a wealth of experience to the board.

“He has over 20 years’ experience in the economic development finance and banking arena. Prior to joining the IDC, he was CEO of the Land and Agricultural Development Bank.

“He holds a Master of Business Leadership (MBL) from UNISA School of Business, a MSc Finance (University of London-UK), as well as an Advanced Management Program (AMP) from Harvard University,” the department said. – SAnews.gov.za

NeoB
Tue, 10/31/2023 - 10:28

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African Risk is not Fairly Priced

Location: News
Rand Merchant Bank

By Miranda Abraham, Head of Loan Syndications at RMB in London (www.RMB.co.za)

Yield-chasing investors have poured money into the continent but an emerging, recent challenge for Africa is that in a now higher interest rate environment, investors don't need to come to Africa to find higher returns.

Even US treasuries are now yielding far more attractive yields than just a month ago: 3-month government bonds offer 5.32% and while 2-year bonds offer a yield above 5%. Yields have risen in part in response to Fitch's recent downgrade of the US from AAA to AA+, echoing S&P's move in 2011.

African bond issuers, spooked by the high-interest rate environment and refusing to issue bonds above the psychological barrier of double-digit yields for Sub-Saharan African bonds, continue to wait it out on the sidelines.

But with interest rates continuing to climb, the wait-and-see strategy is no longer looking like a sensible approach. Issuers are running out of cash and the more stable and resilient syndicated loan market – with its heavily relationship-driven pricing, is increasingly proving to be an alluring alternative to the bond market.

African governments should therefore bring forward planned borrowing before the capital shifts away, as it is already starting to do, and the cost of borrowing rises further still.

The syndicated loan market is dominated by relationship banks, who will consciously and willingly price a loan at very low yields, in order to secure a lead mandate and lock in the ancillary opportunities and revenues that come with being a core relationship bank. 

Banks do this knowing that they will also be able to persuade other relationship banks to join the deal as well. This is why syndicated loans always tend to price at a subsidized level when compared to bonds – where investors are more agnostic and definitely less loyal – focusing instead on the relative value of opportunities across the market.

However, while bond prices have skyrocketed, the loan market has hardly moved in terms of pricing. Yes, base rates are higher, resulting in higher all-in costs for borrowers, but on an all-in basis, when compared to bonds, issuing a syndicated loan is definitely the cheaper option for borrowers.

But why have African issuers managed to price debt at such attractive levels for so long?

There are three main reasons:

  • Finite supply: There is a limited supply of investable assets in Africa and those banks with an African focus are eager to support their key clients and to get exposure to the African market, which is seen as having strong growth potential. 
  • Difficulties in assessing risk: It can be difficult to assess the credit risk of African borrowers. This is because there is less historical data available, and the political, legal and regulatory environment is often complex. Joining a syndicated loan or bond that has been oversubscribed and so carries the stamp of endorsement from the market can be an attractive solution to this challenge.
  • Those issuers that are active in the loan market tend to bring with them an array of other ancillary opportunities (e.g. IPO, Eurobond, and Advisory mandates), in a region where businesses that are succeeding are usually experiencing high growth.

So finite supply leads to fierce competition for these prestigious African clients and the fact that these credits are complex and difficult to understand exacerbates the problem. 

As a result of these factors, African risk is often not being priced fairly. South Africa is a good example of how African risk can be underpriced. Despite losing its investment grade rating in 2017, South African corporates and State-Owned Enterprises (SOEs) continue to price their debt like they are in Western Europe. This is because there is a limited pool of opportunities for those banks that prefer to lend in ZAR to invest in.  

Relationship pricing works for the banks because they are able to use the revenues from ancillary business to subsidize their commitment to the loan, but for regular investors (who are typically looking on an asset play basis) they can end up being short-changed. This means that investors may be taking on more risk than they realise, for a relatively low return.

However, instead of adjusting pricing upwards, the imbalance is being addressed another way - by adjusting risk.

Reducing the risk keeps pricing low and so address issuers concerns around paying double-digit yields.

Risk mitigation tools (in the form of ECA wraps, DFI guarantees or insurance wraps) are being embedded into loans and so while pricing remains low, investors improve their returns through adjusting the risk.

These type of credit risk mitigated deals, result in investment grade ratings, but with a substantial African premium. In the EUR 1bn Bank of Industry deal, BOI/AFC pays a yield of about 200bps versus an average yield of 75ps for an A3 rated credit in Europe. It is the only way for many international and European banks – who typically shy away from low BB or single B African risk - to fill their African buckets. 

These investors have a whole world of investment opportunities available to them, from AAA through to single B risk, usually across the globe, so they can pick and choose their deals.  Consequently, in order to attract their investment into Africa, pricing on these credit enhanced deals has to be highly attractive relative to other similarly opportunities globally.

However for those emerging market investors or African banks focused on Africa, their return hurdle requirements mean that the credit enhanced deals do not work for them. 

Instead, they are obliged to find African opportunities that represent real, uncovered African risk.  However, the market paralysis created by a difficult credit environment, combined with the fact that a large proportion of those deals that do come to market include some form of credit enhancement, means that the pool of deals offering pure, uncovered African risk is now much smaller.

And this is where supply and demand dynamics take over. 

African banks and investors are desperate for assets and are very comfortable assessing and understanding sub investment grade African risk. However this dynamic of fewer deals but strong investor demand has led to plentiful pent up liquidity down the credit curve.

Ironically, once African investors get over the hurdle of higher return requirements (often driven by higher cost of funding) there is such relief that pricing works from a returns perspective, that they can then end up effectively under-pricing the actual credit risk. So we end up with BB- loans paying only 450bps versus BB average bond yields of 12%.

Investors in Africa are a finite pool who know and understand African risk. They deserve to be fairly compensated for the risk they take.  

Distributed by APO Group on behalf of Rand Merchant Bank.

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