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You are here: Home / Archives for critical

critical

8 November 2023

South African Celebrities Join #StepItUp Dance Challenge to Raise 1 Million Rand for Kids Born with Clubfoot

Location: MyPR

CAPE TOWN – SOUTH AFRICA – A host of South African celebs have taken up the challenge to #StepItUp for children born with clubfoot. Kicking off Disability Awareness Month, which runs from 3 November to 3 December, Britain’s Got Talent finalist Musa Motha has co-choreographed a TikTok dance routine to the sound of an original …

Read moreSouth African Celebrities Join #StepItUp Dance Challenge to Raise 1 Million Rand for Kids Born with Clubfoot
8 November 2023

Pandor warns of looming genocide in Gaza, calls for immediate cease flame

Location: News

Pandor warns of looming genocide in Gaza, calls for immediate cease fire

International Relations and Cooperation Minister, Dr Naledi Pandor, on Tuesday warned that the crime of genocide “sadly” looms large in the current situation in Gaza, as the conflict between Israel and Palestine continues.  

“We recall that in 1994, a genocide occurred on the African continent, with much of the whole world watching as innocent people were massacred,” she said. 

Pandor, who delivered a statement in the National Assembly explaining the country's standpoint on the war, called for an immediate ceasefire in Gaza and the opening of humanitarian corridors and basic services to allow much-needed aid to reach those that are injured.  

“The actions that we are witnessing daily by Israel are a violation of international law, including the United Nations Charter, the Geneva Convention and all its protocols, and its attacks on and kidnapping of innocent civilians.” 

While she did not mince her words when talking about Israel, she told the Members of Parliament that Hamas has also violated international law. 

“While we express horror at the violence, it is critical that we acknowledge that the illegal occupation of Palestine by Israel for several decades has led to bitter hatred and increased violence, and this violence is not the first violence the people of Palestine have experienced.”

The violation, she said, has been going on for decades. 

“The murder of children of women... is an act that should have resulted in the International Criminal Court issuing an immediate arrest warrant for key decision makers, including Mr Benjamin Netanyahu, who is responsible for violations of international criminal law.” 

According to Al Jazeera, at least 10 328 Palestinians in Gaza have been killed in Israeli attacks since October 7. Meanwhile, the news channel said the death toll in Israel over the same period stands at more than 1 400.

Pandor has once again stressed that the Israeli-Palestinian conflict can only be solved through the establishment of two States, Palestine and Israel, living side by side in peace. 

“The Palestinian State should be created along the lines of the 1967 border with East Jerusalem as its capital, and in line with standing multiple UN resolutions.” 

Pandor believes that for this two-State solution to materialise, a peace process initiated by the United Nations (UN) needs to commence urgently. 

“We are aware that increasing settlements and illegal occupation have been used to make the creation of a Palestinian State almost impossible.” 

Pandor has since outlined concrete actions to end the suffering, including an immediate comprehensive ceasefire and the opening of humanitarian corridors. 

She called on all parties to exercise restraint and to desist from fueling unjust war and human suffering, including by seizing the supplying of weapons to the various parties and for the release of all civilian hostages. 

“Africa seeks the resumption of a comprehensive dialogue led and owned by Palestinians and Israelis themselves and facilitated by the United Nations,” she said. 

In addition, she called for the deployment of a UN Rapid Deployment Force in Palestine mandated to monitor the implementation of a ceasefire, cessation of hostilities and most importantly, to protect civilians. 

“Our common humanity dictates that all human lives matter. The time for the international community to stand together and act is now. We, who enjoy freedom from apartheid, can never ever be the ones who agree to any apartheid form of oppression.

“This brutality should not be accepted. We must call for a ceasefire.” – SAnews.gov.za

 

Gabisile
Wed, 11/08/2023 - 10:19

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Read morePandor warns of looming genocide in Gaza, calls for immediate cease flame
7 November 2023

SEIFSA Welcomes The Policy Pronouncements In The Medium-Term Budget Policy Statement

Location: MyPR

Johannesburg, November 2023 – The 2023 Medium Term Budget Policy Statement (MTPBS) recognises, reflects and has been structured to respond to key headwinds facing the global and South African economy. The policy positions contained in this mini-budget are welcome for the fact that they communicate important reform signals. The only way to place the economy …

Read moreSEIFSA Welcomes The Policy Pronouncements In The Medium-Term Budget Policy Statement
7 November 2023

Celebrating our teachers

Location: News

Celebrating our teachers

By Nomonde Mnukwa

Most of us have stories about a teacher or teachers who have had a great influence in our lives. These teachers not only taught us in class but were instrumental in instilling good values and became our mentors and counsellors. Throughout our history, teachers have taken the lead in inspiring generations of students to be the best they can be and have contributed to building an informed society.

The hard work and important role played by teachers should be celebrated throughout the year and not only in October when we commemorate National Teachers’ Month. Currently thousands of learners are busy writing the 2023 National Senior Certificate (NSC) exams, under the watchful eye of teachers, who have helped to prepare them for the final leg of their school career, and who continue to play a crucial part in government’s effort to reverse the legacy of apartheid education we inherited in 1994.

It is no secret that the apartheid government denied both black teachers and learners quality education and provided them with limited resources. Hendrik Verwoerd who was the architect of apartheid wanted black people to be made "hewers of wood and drawers of water" irrespective of their abilities and aspirations. The policies of the apartheid government affected not only learners but the quality of teachers as well.

As government, we are encouraged that we have since 1994 made progress in addressing the educational inequalities we inherited. We have successfully merged the racially separate education departments and ensured that both learners and teachers are provided with necessary resources to adequately prepare for the future.

We are encouraged that over 800 000, mostly full-time pupils in 2023, have registered for the NSC exams. The increase in the number of candidates did not happen by chance but as a result of years of planning and hard work by committed teachers who want nothing but the best for their learners. 

Government salutes teachers who continue to go the extra mile and contribute in improving the quality of education in the country. We also wish the Class of 2023 well over the next few weeks and into the future.

Teachers are our greatest assets and as government we will continue to recognise them for their outstanding work. For instance, in October this year, we held the National Teaching Awards in Thaba Tshwane, Pretoria where teachers received awards for their excellence and they represented the diverse nature of schools across the country in a variety of categories.

These included though not limited to, Excellence in Grade R Teaching, Excellence in Primary School Teaching, Excellence in Secondary School Teaching, Excellence in Secondary School Leadership as well as the Lifetime Achievement Award.

Delivering the keynote address at the event, Deputy President Paul Mashatile highlighted the important role teachers play in developing a society. “Educators play a critical role in building the foundations upon which every society exists.” He added: “The task of a teacher is manifold – not only are you imparting knowledge, but you are also shaping characters, instilling values, and crafting the future leaders of our country.”

The awards took place after the release of the country’s ten-year review on the implementation of the National Development Plan (NDP). The NDP is our collective plan to build a prosperous South Africa as envisioned in the Constitution.

The review shows that South Africa has made notable progress in improving access to education and redressing the injustices of apartheid. We have expanded support for Early Childhood Development Centres, provided ICT equipment and connectivity that will prepare learners for the 4th Industrial Revolution and daily meals to over 9 million learners through the National School Nutrition Programme. This has resulted in close to 100 per cent attendance by children until at least the age of 15.   

We have also exceeded the NDP target of 190 000 Bachelor level passes set for 2024. In 2021,  256 031 (36,4 per cent) learners obtained a Bachelor level pass. This achievement is thanks to hard working teachers who go above and beyond in their work and give their time without question.

Although the quality of education has improved when compared with other middle-income countries, the review reveals that we need to redouble our efforts in order to compete with the best in the world.

As government, we have given priority to some of the shortcomings highlighted in the review to ensure that we live up to our commitment to improve the lives of people through education. We are moving with speed to provide school infrastructure and ensure appropriate sanitation across the country.

Since 2018, 2 871 schools have been provided with sanitation facilities through the Sanitation Appropriate for Education programme, known as SAFE programme while 15,000 appropriate toilets were also constructed at 1,047 schools through the Accelerated Schools Infrastructure Delivery Initiative – ASIDI. About 511 schools are at various stages of implementation and DBE plans to provide these with sanitation facilities by end of the 2023/24 financial year.

We appeal to learners to look after infrastructure in their schools and to refrain from destroying, vandalising or burning schools. The destruction of educational infrastructure disadvantages our children and undermines the country’s effort to provide quality education.

We all have the collective responsibility to honour the legacy of teachers who ensure that every child is educated irrespective of background or circumstances.

*Mnukwa is the Acting Director-General of the Government Communication and Information System (GCIS) 

Matona
Tue, 11/07/2023 - 15:39

238 views
Read moreCelebrating our teachers
7 November 2023

Life After Breast Cancer: The Importance of Post-Treatment MRI Scans and Mammograms

Location: MyPR

Introduction A breast cancer diagnosis is a life-altering event that requires courage, resilience, and a strong support system. While the journey through treatment and recovery can be challenging, it is crucial to stay vigilant in the years following your initial diagnosis and treatment and schedule your mammogram at Kempton Park Mammography. Post-treatment monitoring is essential …

Read moreLife After Breast Cancer: The Importance of Post-Treatment MRI Scans and Mammograms
7 November 2023

The critical impact of buildings on ESG goals

Location: MyPR

Real estate choices have a material impact on achieving ESG goals, particularly climate change reduction, according to leading provider of corporate real estate services in Africa, Cushman & Wakefield | BROLL. With buildings known to have one of the highest impacts on carbon emissions, the real estate industry plays a pivotal role in addressing compliance, …

Read moreThe critical impact of buildings on ESG goals
7 November 2023

Police brutality is a gigantic problem. Here’s how to change the law to fix it

Location: News

But amending the law will not be enough. Police leadership must commit to addressing brutality.

Read morePolice brutality is a gigantic problem. Here’s how to change the law to fix it
6 November 2023

MTBPS a ‘frank assessment’ – Cabinet

Location: News

MTBPS a 'frank assessment' - Cabinet

Cabinet has welcomed the Medium Term Budget Policy Statement (MTBPS) tabled by Finance Minister Enoch Godongwana last week.

“The 2023 Medium Term Budget Policy Statement… provided a frank assessment of the current economic climate and demonstrated government’s firm hold on our nation’s finances amid tough revenue constraints.

“The decisions in the MTBPS improve our fiscal framework; stimulate economic growth, while balancing our social commitments that support the vulnerable in our nation. The Economic Reconstruction and Recovery Plan has contributed to many green shoots in our economy,” said Minister in The Presidency Khumbudzo Ntshavheni, who briefed the media on Monday.

Meanwhile, Cabinet has called on parents and guardians to continue supporting matric learners, who enter the second week of their final examinations this week.

The learners are expected to be examined in subjects including mathematics, physical sciences, a wide range of languages and economics.

Ntshavheni said:  “Cabinet welcomed the smooth start to the 2023 National Senior Certificate (matric) exams, which commenced on 30 October 2023. Parents and guardians are encouraged to continue to support learners during this critical period.

“Cabinet also sends its well wishes to all the learners who will be sitting for their year-end exams.” – SAnews.gov.za

NeoB
Mon, 11/06/2023 - 14:32

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Read moreMTBPS a ‘frank assessment’ – Cabinet
6 November 2023

Cabinet notes progress in addressing Vaal water, sanitation woes

Location: News

Cabinet notes progress in addressing Vaal water, sanitation woes

Cabinet has noted interventions by government in addressing water and sanitation infrastructure challenges, which had resulted in the collapse of the Vaal waste water system.

Cabinet made the remarks after the recent Presidential Oversight Visit to Emfuleni Municipality.

The oversight visit was a follow-up on engagements with the community during the District Development Model (DDM) visit to Emfuleni in 2022, where issues of poor infrastructure maintenance by municipalities were identified.

Addressing media during post Cabinet briefing on Monday, Minister in The Presidency Khumbudzo Ntshavheni said work has been undertaken to improve water supply, including proper functioning of the waste water infrastructure, thus “eliminating the problem of the sewer effluent running on the streets and people’s yards". 

“Progress noted during the visit includes improvements in critical bulk pipelines and water pump stations, resurfacing and resealing of roads, and a massive rollout of streetlights to improve lighting and safety,” Ntshavheni said.

Progress in infrastructure development and maintenance 

Cabinet also commended progress being made with infrastructure development and maintenance, which has seen the completion of 36 rural bridges under the Welisizwe Rural Bridges programme, and the construction of 20 projects in human settlements, roads and water, which are currently underway. 

The Welisizwe bridges project is a government initiative aimed at addressing the backlog of bridges in rural and disadvantaged communities. 

The bridges will improve community access to health facilities, schools and economic amenities.

The project involves the Public Works and Infrastructure Department, the South African National Defence Force (SANDF) and provincial Transport Departments.

Speaking at the recent launch of the project, Public Works and Infrastructure Minister Sihle Zikalala said an amount of R1.1 billion will be spent per year in the Eastern Cape - which is the pilot for Welisizwe Bridges; KwaZulu-Natal; Free State; Mpumalanga; Limpopo and the North West.

The programme targets rural provinces where there is a backlog in the construction of bridges and a threat to life during rainy seasons. – SAnews.gov.za

GabiK
Mon, 11/06/2023 - 15:27

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Read moreCabinet notes progress in addressing Vaal water, sanitation woes
6 November 2023

Africa Investment Forum welcomes Rugby Africa President to discuss the business of sport

Location: News, Sport
Rugby Africa

The newly elected President of Rugby Africa (www.RugbyAfrique.com), the continental governing body for rugby in Africa, Mr Herbert Mensah, will discuss the business of sport in a one-to-one fireside chat at the 2023 Africa Investment Forum (AIF) (www.AfricaInvestmentForum.com) on Thursday, November 9 in Marrakech, Morocco.  

Championed by the African Development Bank and seven other founding partners (Africa50, Africa Finance Corporation, Afreximbank, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank and Trade and Development Bank), the Africa Investment Forum is Africa's investment marketplace to accelerate transactions to close Africa's investment gaps.

Founded in 2018, the Africa Investment Forum has mobilized nearly $143 billion in investment interest. The event brings together heads of state, business leaders, decision makers and investors to advance critical investment transactions to closure. Previous attendees include H.E Paul Kagame, President of the Republic of Rwanda, H.E Cyril Ramaphosa, President of the Republic of South Africa, and H.E Nana Akufo-Addo, President of the Republic of Ghana. 

The sports industry in Africa is experiencing rapid growth, with the potential to generate jobs, improve public health, foster social inclusion and drive economic growth. According to PricewaterhouseCoopers (PwC), the industry was valued at $7 billion in 2018 with an expected growth of $12 billion in 2027. Despite the potential, investment across Africa remains limited, with only 1% of startup financing directed towards the sport sector. 

Rugby Africa President, Herbert Mensah, continues to emphasize the business potential of rugby across Africa. Since his election, President Mensah has called for a change of mindset from African governments and international organizations to increase investment in rugby across Africa. In June, President Mensah delivered a keynote speech on treating rugby as a lucrative business venture at the Bloomberg New Economy Gateway Africa 2023 event in Marrakech, Morocco.

Watch the video on the Bloomberg Website: https://apo-opa.info/466rOcr  

The annual three-day Africa Investment Forum Market Days event will commence on Wednesday November 8 to Friday November 10 under the theme “Unlocking Africa's Value Chain” in Marrakech, Morocco.

Read more information about the Africa Investment Forum: https://www.AfricaInvestmentForum.com/en

Distributed by APO Group on behalf of Rugby Africa.

Media contact:
Nicole Vervelde
Communications Advisor to the President of Rugby Africa
rugby@apo-opa.com

About Rugby Africa:
Rugby Africa (www.RugbyAfrique.com) is the governing body of rugby in Africa and one of the regional associations under World Rugby. It unites all African countries that play rugby union, rugby sevens, and women's rugby. Rugby Africa organizes various competitions, including the qualifying tournaments for the Rugby World Cup and the Africa Sevens, a qualifying competition for the Olympic Games. With 39 member unions, Rugby Africa is dedicated to promoting and developing rugby across the continent. World Rugby highlighted Ghana, Nigeria and Zambia as three of the six emerging nations experiencing strong growth in rugby.

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Read moreAfrica Investment Forum welcomes Rugby Africa President to discuss the business of sport
6 November 2023

Ai Expo Africa 2023 – Drone and Ai Technology creating safer and sustainable Technology

Location: MyPR

The integration of Drone and AI technologies has emerged as a transformative force, reshaping industries and fostering a future marked by enhanced safety measures and sustainable practices. This synergistic alliance offers a myriad of applications across diverse sectors, contributing to a technologically advanced and environmentally conscious landscape. One notable area where this collaboration excels is …

Read moreAi Expo Africa 2023 – Drone and Ai Technology creating safer and sustainable Technology
4 November 2023

Patel supports call for reauthorisation of AGOA

Location: News

Patel supports call for reauthorisation of AGOA

Trade, Industry and Competition Minister, Ebrahim Patel, has thrown his weight behind the reauthorisation of the African Growth and Opportunity Act (AGOA) as swiftly as possible and with refinements that do not require lengthy discussions.

Patel was delivering closing remarks at the three-day 20th African Growth and Opportunity Act Forum held at Nasrec in Johannesburg.

“One idea that's come up from the discussions is whether we should consider, if needed, a two-stage programme. But the first stage firmly focused on reauthorisation as rapidly as possible, maybe with a modest package of refinements that does not require lengthy discussions. 

“The second stage with further and perhaps deeper improvements that require more time and further study, and that can be done fairly shortly thereafter. We are particularly keen to get the reauthorisation in the earliest part of 2024, so this will be very helpful.

“These are ideas that we want our friends in the United States to think through and consider. We are also reflecting a little bit on these weighing up the pros and cons,” the Minister said.

The Africa Growth and Opportunity Act is a unilateral trade preference scheme that provides qualifying sub-Saharan African countries with duty-free, quota-free access into the United States market. AGOA remains the cornerstone of the USA’s commercial relations with sub-Saharan Africa.

The Minister said that discussions at the forum also looked at a graduation system once countries reach a particular level of advancement, adding that they can be even considered a "constructive conversation about the matrix of that level of advancement".

Patel also emphasised that there are policy areas that need to be relooked, adding that polishing existing policies would make room for more African products to make it to the international market.

“Those colleagues who’ve been enjoying our fruits, SA citrus fruit from the region, which can be available in larger quantities, we can resolve those things. Matters we constructively engage in, for example relating to steel and aluminium, these are practical solutions we believe can unlock the value of trade. In different parts of the continent, in West Africa, there are constraints in accessing the American market. In East Africa, there are different products we need to refine.”

Patel highlighted that the discussions also looked at the idea of small businesses to small business partnership between the African continent and the United States.

“We looked at the product scope. Is there appetite to increase the number of products covered by AGOA? By way of illustration, we shared with Congressional representatives, an example of 10 products where Africa has capacity, and where Africa has fantastic products, some of which you've tasted in the last few days,” he told delegates.

“We recognise we need to balance the level of our ambition on extending the product list against the concerns about the time that may be required to reach consensus in Congress on these factors. While we would obviously prefer as much as possible, we want to avoid such a broad review that we delay reauthorisation,” he said. 

Mineral beneficiation

Mineral beneficiation on the African continent was also under the spotlight.

“We said we don't want to be the exporter of rocks. We want to be the exporter of consumer and capital goods… and the producers of electric vehicles. And it raises the question of a moment of a grand bargain between Africa and its friends elsewhere in the world, where there's a partnership around critical minerals, but also with processing of critical minerals on the African continent,” he said. 

The Minister believes that the African Continental Free Trade Area (AfCFTA) is a game changer.

He explained that AGOA on its own gave the continent significant access on a range of products to the world's single biggest national consumer market. 

“What the AFCFTA will add to that is that the combined weight of access to African markets and access to the US market will give us the scale to draw investment, and scale is what investors look at. They want to be able to see that the size of the market justifies the investment.  

“We also said that AFCFTA is helping to foster value chains. It is a critical driver to help industrialise and so more and more countries will now begin to have these value chains, so those value chains will then enable better utilisation of AGOA,” he said.

Impact

The United States of America Trade Representative, Katherine Tai, also addressed the closing ceremony and emphasised that AGOA remains the cornerstone of the U.S. economic partnership with Africa.

“Let us not forget the real impact AGOA has had on real lives, real people: the woman entrepreneur seeking to expand her macadamia nut processing business; the small business owner making apparel and handicrafts, and the countless students and youth, waiting to make their mark on this ever-changing continent,” she said.

President Cyril Ramaphosa addressed the opening of the forum on Friday. In his address, the  President said an extension of AGOA for a longer period of time could act as an instrument to entice investors to pour more resources into the African continent.

“We would like you to look at the extension or renewal of AGOA for a sufficiently lengthy period for it to act as an incentive for investors to build new factories on the African continent,” said the President.

The purpose of the forum is to discuss ways to expand trade and investment relations between the United States and sub-Saharan Africa, and the implementation of AGOA, including encouraging joint ventures between small and large businesses. - SAnews.gov.za

 

DikelediM
Sat, 11/04/2023 - 19:43

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Read morePatel supports call for reauthorisation of AGOA
4 November 2023

US reiterates commitment to strengthen relations with Africa

Location: News

US reiterates commitment to strengthen relations with Africa

United States of America Trade Representative, Katherine Tai, has reiterated her country’s commitment to strengthen the U.S.-Africa trade and investment relationship to deliver real opportunities across societies.

Tai was delivering remarks during the closing ceremony of the 20th African Growth and Opportunity Act (AGOA) Forum held in Johannesburg.

She told delegates that she would summarise the interactions that were held over the last three days with the word “commitment”.

“Commitment to strengthen the U.S.-African trade and investment relationship. Commitment to craft a more resilient, sustainable, and inclusive tomorrow across the continent. Commitment to partner with one another to make AGOA stronger and more effective,” she said at the session held on Saturday.

The three-day forum explored the intersection of trade and competition policy and what that means for a fairer economy in Africa and elsewhere. It further discussed how small businesses and women-owned enterprises could be equipped and empowered to succeed and thrive. 

The Africa Growth and Opportunity Act is a unilateral trade preference scheme that provides qualifying sub-Saharan African countries with duty-free, quota-free access into the United States market. AGOA remains the cornerstone of the USA’s commercial relations with sub-Saharan Africa.

Tai also highlighted the need to make the AGOA programme more effective and relevant to today’s challenges, and to explore additional areas of cooperation to complement the programme.

Impact

Tai emphasised that AGOA remains the cornerstone of the U.S. economic partnership with Africa.

“Let us not forget the real impact AGOA has had on real lives, real people: the woman entrepreneur seeking to expand her macadamia nut processing business; the small business owner making apparel and handicrafts, and the countless students and youth, waiting to make their mark on this ever-changing continent.

“So, when we say that AGOA is the cornerstone of our economic partnership, we do not mean it in the abstract. It has been a bedrock to improve the livelihoods of so many people across Africa and it has the potential to do so much more. But we can make it even better,” she said.

Tai reflected on the discussions held over the last three days, saying most of the issues discussed were precisely on this topic. 

She said this made the programme more effective and relevant to today’s challenges, such as growing inequality and the climate crisis.

Furthering cooperation

“As we discussed during the session on ‘What’s Next in our U.S.-Africa Trade Relations’, we must also explore additional areas of cooperation and other trade tools to complement our AGOA relationship.

“This includes collaborating on AfCFTA [African Continental Free Trade Area] implementation and better using the multilateral trading system to benefit more people, particularly underserved communities,” she said. 

The US Ambassador acknowledged that while there is a lot of work ahead, she leaves optimistic and hopeful.

Equitable future

Tai said each of the African perspectives was a powerful reminder to her that trade can and must help craft a fairer and more equitable future for Africa.

“Driving inclusive economic growth. Empowering workers. Delivering real opportunities across all segments of societies, including women, youth, the African Diaspora, and other underserved groups. You all believe that our work has a critical role to play in building this future, and that communal commitment will allow us to accomplish more than we can as individuals.

“It is an understatement to say that this is a partnership. I am honoured to have each of you as colleagues and teammates to use trade as a force for good and to spur a race to the top,” Tai said on the last day of the forum.

The Ambassador urged delegates to stay committed and devoted to the cause. 

“Let us be devoted to our cause. Let us not be satisfied with the status quo. Let us continue to build from here, to write the next chapter of our story together -- to make AGOA a beacon that shines for years to come,” she said. 

Tai used her speech to extend appreciation to South Africa’s Minister of Trade, Industry and Competition, Ebrahim Patel and the South African government for the warm and welcoming hospitality and immense effort taken to make the forum a success.

She further sent a big thank you to her fellow Trade Ministers and their delegations for the productive dialogue and engagement. – SAnews.gov.za

DikelediM
Sat, 11/04/2023 - 18:20

233 views
Read moreUS reiterates commitment to strengthen relations with Africa
3 November 2023

US Secretary reiterates President Biden’s commitment to extend AGOA

Location: News

US Secretary reiterates President Biden's commitment to extend AGOA

United States Secretary of State Antony Blinken has reiterated President Joe Biden’s commitment to extend the African Growth and Opportunity Act (AGOA) beyond 2025 when it expires. 

“President Biden fully supports the reauthorisation of AGOA. But we don’t just want to extend AGOA – we want to work with the United States Congress to make it better. And that’s what this week’s dialogue is about,” he said on Friday. 

Blinken was addressing delegates through a video speech at the three-day AGOA Forum at the Nasrec Expo Centre in Johannesburg. 

Launched in 2000, AGOA grants exports from qualifying African countries duty-free access to the United States market. 

“Last year, I travelled to South Africa to lay out the United States strategy to sub-Saharan Africa and to its core, it’s about partnerships -- what the United States can do with African nations and not for African nations.” 

Blinken believes that AGOA is critical to realising this vision as thousands of people in sub-Saharan Africa have benefited in the past two decades. 

“AGOA has meant new jobs, new skills, new connections and new investment. It has meant less corruption and greater human and labour rights.” 

The piece of legislation, according to the United States Secretary of State, has translated into partnerships to advance new solutions to shared challenges from the climate crisis to food insecurity, to supply chain disruptions and vulnerabilities. 

“More inclusive, sustainable growth is good for Africa and good for America and good for the world,” Blinken said.

In addition, he said America was dedicated to December’s African Leaders’ Summit commitments, which are essential to creating economies and societies where trade and investment can flourish. 

Through the Partnership for Global Infrastructure Investment, Blinken believes his country is lending a helping hand to finance projects like the Lobito Corridor between the Democratic Republic of Congo (DRC), Zambia and Angola, which will enhance connectivity and make it easier to do business in and with Africa. 

In addition, the United States, Blinken said, is mobilising US$8 billion in private and public investments to bolster climate resistance and advance women’s economic empowerment. 

“We remain the single biggest country investor by far in food security and public health in the region and we’re working on new efforts like our VACS initiative to strengthen African seeds and soils,” he said, adding that they will support elevating African voices in global diplomacy. 

Blinken welcomed the African Union joining the G20 and International Monetary Fund, which is working to expand sub-Saharan representation on its Executive Board. 

On the other hand, he said the United States remain committed to reforming the United Nations Security Council to include permanent representation for Africa.  

“This flourishing partnership between the United States and Africa gives me tremendous hope. And through gatherings like this, we continue to shape a future where workers and businesses are equipped and empowered, where governments are transparent and accountable, where all our people can thrive, and where our nations can come together for the good of our people and the world.” 

AGOA is a United States Trade Act enacted on 18 May 2000 as Public Law 106 of the 200th Congress. 

The AGOA legislation has been renewed on different occasions, most recently in 2015, when its period of validity was extended to September 2025. 

The legislation significantly enhances market access to the United States for qualifying sub-Saharan African countries by allocating special programme indicators to about 6 800 tariff lines in the American tariff schedule. 

This allows United States importers to clear goods sourced from eligible African countries duty-free under AGOA. – SAnews.gov.za

Gabisile
Fri, 11/03/2023 - 13:06

512 views
Read moreUS Secretary reiterates President Biden’s commitment to extend AGOA
3 November 2023

Community policing forums should be holding police accountable

Location: News

CPFs are not just there to help cops do their jobs

Read moreCommunity policing forums should be holding police accountable
3 November 2023

Cosatu backs SA’s continued AGOA membership

Location: News

Cosatu backs SA’s continued AGOA membership

Congress of South African Trade Unions (Cosatu) President Zingiswa Losi says the federation has thrown its weight behind the African Growth and Opportunity Act (AGOA) and for its renewal as the country continues to fight joblessness. 

“As a trade federation movement, our responsibility is towards ensuring we protect jobs and that is why we have always had support for our government. 

“But beyond that, we continue to advocate and request our sister federation in the US to be our voice on that side that the United States of America and the Biden administration will be able to renew AGOA for the next 10 years before they go for their elections next year,” she said on Friday. 

Losi was speaking during a media briefing on the sidelines of the AGOA Forum, which is currently underway at the Nasrec Expo Centre in Johannesburg.

Launched in 2000, AGOA grants exports from qualifying African countries duty-free access to the United States market.

She reflected on the impact of the piece of legislation, which has created 450 000 jobs linked to the United States-Africa trade in different sectors. Losi said the mining, manufacturing, auto manufacturing, clothing, agriculture and jewellery industries have benefited from the legislation through exports. 

The Cosatu President said the federation supports South Africa’s continued AGOA membership. 

“It is also important that that unaligned role is strengthened when we deal with the geopolitics and it’s critical for government and business to simultaneously expand the trade and investment with other large trading partners such as the European Union, China and Japan and as you know we’re also part of the BRICS Trade Union Forum.”  

Diversification, Losi believes, will ensure South Africa is able to trade with all countries to address the 42% unemployment rate, of which 60% of those are youngsters.

“Importantly, for us to do that we need to address issues of energy in the country, crime and corruption and also the issues of rail and infrastructure.” 

Meanwhile, during President Cyril Ramaphosa’s main address, he said he remains concerned about the negative effects that trade restrictions on products like steel, aluminium or citrus fruit have on AGOA utilisation rates.

President Ramaphosa said he hopes the forum will help lay the basis for these to be addressed in future and that more targeted efforts to promote greater levels of investment can help unlock AGOA’s opportunities. – SAnews.gov.za

 

Gabisile
Fri, 11/03/2023 - 15:36

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Read moreCosatu backs SA’s continued AGOA membership
3 November 2023

President Ramaphosa calls for substantial lengthening of AGOA

Location: News

President Ramaphosa calls for substantial lengthening of AGOA

An extension of the African Growth and Opportunity Act (AGOA) for a longer period of time can act as an instrument to entice investors to pour more resources into the African continent.

“We would like you to look at the extension or renewal of AGOA for a sufficiently lengthy period for it to act as an incentive for investors to build new factories on the African continent.

“As we were going around talking to a number of product producers, the recurring message and word I heard is ‘we can do more…if this opportunity is extended and we can build more capacity if we have certainty that yes, the period of extension will be longer’.

“Shorter periods of extension impede investment ambitions and we therefore want to see a much lengthier period of extension. The United States and Africa… are going to be here for a long time. We are here for the long haul so let us make AGOA a long haul opportunity for all of us,” said President Cyril Ramaphosa at the opening of the AGOA Forum, currently underway at Nasrec in Johannesburg.

The President reflected on the successes that have been made under AGOA for African countries.

“When excluding exports of crude oil under AGOA, the data show that the programme has substantially improved the export competitiveness of certain African products, especially textiles and apparel.

“Apparel exports from Lesotho, Ethiopia, Mauritius, Madagascar and Kenya have not only led to the creation of tens of thousands of jobs but these countries have become reliable producers for American consumers.

“Other parts of manufacturing have also seen success under AGOA. South Africa’s auto exports to the United States under AGOA have contributed to job creation in South Africa and in the auto supply chain within neighbouring countries.

“We value the relationship with the United States, the world’s largest national market, and a country with which we have relationships that go well beyond trade. The African Growth and Opportunity Act – or AGOA – has served as the cornerstone of the US-Africa commercial relationship for more than two decades,” President Ramaphosa said.

Africa on the rise

President Ramaphosa told the forum that trading has been in the DNA of Africans for thousands of years – predating colonial oppression.

“From earlier times, our forebears were already trading not only within Africa but with the rest of the world. They traded right across the continent… but they also traded with the world. Trading is part of our DNA; it is in our blood and it is this trading that we want to modernise and we look for partners to support us in this development as we modernise our trading practices and relations,” he said.

As the continent continues to modernise its trading, it is moving away from being a supplier of raw materials to a producer of ready-made consumer products.

“Africa is an important source of critical raw materials but we do not want to be defined by simply being the producers of commodities. The great industrial opportunity lies instead in the transformation of the rocks that we mine and the metal that we produce into the sophisticated industrial and consumer goods that societies across the world need.

“Gone should be the days when Africa is just seen as a source of rock, soil and dust being exported out of our continent. We now want to produce the products that are finished or near finished, which are utilised in other parts of the world. We want to earn full value for our products,” he said.

President Ramaphosa said he remains concerned about the negative effects that trade restrictions on products like steel, aluminium or citrus fruit have on AGOA utilisation rates.

“We hope that the discussions at this forum will help lay the basis for these to be addressed in future.”

The President said more targeted efforts to promote greater levels of investment can help to unlock AGOA’s opportunities.

The purpose of the forum is to discuss ways to expand trade and investment relations between the United States and sub-Saharan Africa, and the implementation of AGOA, including encouraging joint ventures between small and large businesses. - SAnews.gov.za

 

NeoB
Fri, 11/03/2023 - 13:07

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Read morePresident Ramaphosa calls for substantial lengthening of AGOA
3 November 2023

Government on course to manage expenditure

Location: News

Government on course to manage expenditure

The sixth administration is on course to prudently manage government expenditure while retaining the focus on infrastructure, health, education and policing as critical areas of growth and development.

This is according to President Cyril Ramaphosa who was responding to Questions for Oral Reply in the National Assembly on Thursday. 

Leader of the opposition party (Democratic Alliance), John Steenhuisen asked the President the reasons for the drastic budget cuts to government departments, which will have an impact on government’s delivery of frontline services at a time when citizens are being battered by the cost-of-living crisis.

The President highlighted that the Minister of Finance tabled the Medium-Term Budget Policy Statement (MTBPS) on Wednesday, which outlined the country’s fiscal position and provided information on government’s spending priorities over the next three years.

  
“Among other things, the Minister of Finance indicated in the MTBPS that we are resolved to stabilise public finances while maintaining support for the most vulnerable and protecting frontline services.

  
“At the same time, we are fast tracking growth-enhancing reforms, which includes a new financing mechanism for large infrastructure projects. Work is underway to reconfigure the structure and size of the state, while strengthening its capacity to deliver quality public services,” the President said. 

President Ramaphosa told Members of Parliament that the cost containment guidelines issued by the National Treasury give advice and guidance to government departments to ensure a sound and prudent management of public finances in the context of significant constraints.

“The increase in fiscal constraints is mainly due to reduced revenues. The cost containment guidelines target non-critical spending items such as travel, catering, accommodation and capital items that have not yet commenced,” he said. 

Turning to the discussions that the President and Deputy President Paul Mashatile have had with Ministers on an ongoing basis, President Ramaphosa said the meetings are focused on how programmes and activities undertaken by departments advance economic growth, social development and service delivery.

“Ministers and their departments engage with National Treasury on how best to implement any budget restructuring and delay projects where necessary without compromising the needs of communities,” he said. - SAnews.gov.za

 

 

DikelediM
Fri, 11/03/2023 - 09:10

275 views
Read moreGovernment on course to manage expenditure
3 November 2023

The Ultimate Guide to On-Page SEO in 2023

Location: MyPR

Dive deep into the world of on-page SEO with our comprehensive guide. Learn about optimising title tags, crafting compelling meta descriptions, utilising header tags effectively, enhancing images for SEO, and more. Discover best practices and common pitfalls to avoid, ensuring your website ranks high and attracts quality traffic. Introduction In the ever-evolving landscape of digital …

Read moreThe Ultimate Guide to On-Page SEO in 2023
2 November 2023

Milken–Motsepe Prize in Green Energy Finalists Announced

Location: News

The Milken-Motsepe Innovation Prize Program
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The Milken Institute and the Motsepe Foundation (https://MilkenMotsepePrize.org) today announced the five teams (https://apo-opa.info/3tXVKZw) advancing to the Finalist Round of the Milken–Motsepe Prize in Green Energy. Each finalist team will receive $70,000 to further develop and test their designs in a live field test demonstration in South Africa next year.

The finalist teams are:

  • AfTrak Micro Electric Agriculture and Energy (https://apo-opa.info/3QprXQS), for its innovative system of using solar microgrids to power custom-designed tractors for deep-bed farming;
  • GEG ehf. (https://GEGpower.is/), for its solar- and geothermal-powered hybrid renewable energy system;
  • New Digit Technologies (https://apo-opa.info/40q1yXR), for its compact, portable device to generate energy and purify water;
  • OMNIVAT (https://www.OMNIVAT.tech/), for its containerized electricity generation and storage system for remote communities; and,
  • Smart Agri-Centres (https://e4sv.org/), for its solar-powered community hubs that provide affordable clean energy and services to farmers.

“Access to electricity can advance industrialization across Africa and improve the standards of living for many marginalized communities,” said Dr. Precious Moloi-Motsepe, co-founder and CEO of the Motsepe Foundation. “These finalists are building innovative solutions to deliver on the promise of a sustainable future, in line with the Sustainable Development Goals. We will be delighted to welcome them to South Africa for the live demonstrations next year.”

An independent panel of expert judges determined the five teams continuing to the Finalist Round based on a rigorous evaluation of real-world data.

Judges will continue to evaluate competing teams' abilities to meet the challenge of generating 60kWh of electricity in a 24-hour period by:

  • demonstrating off-grid electricity generation using green energy sources;
  • validating demonstration results with data collection; and
  • providing affordable and reliable electricity to energy-poor communities, as informed by the demonstration.

“These finalists have once again proven the value of the innovation competition model in driving breakthroughs,” said Emily Musil Church, PhD, senior director at the Milken Institute. “The Semifinalist Round pushed these teams to stretch their limits and build solutions that are scalable and life-changing for millions.”

To date, the competition has awarded US$750,000 to entrepreneurs testing bold ideas to expand access to reliable, affordable, and sustainable electricity in Africa.

In May 2024, the judges will award a US$1 million Grand Prize. A runner-up prize of US$250,000 will also be awarded. In total, the Milken–Motsepe Prize in Green Energy will award over US$2 million in prizes and additional benefits.

Distributed by APO Group on behalf of The Milken-Motsepe Innovation Prize Program.

Media Contact:
Chad Clinton
+1 (202) 262-1067
cclinton@milkeninstitute.org

About the Milken Institute:
The Milken Institute is a nonprofit, nonpartisan think tank focused on accelerating measurable progress on the path to a meaningful life. With a focus on financial, physical, mental, and environmental health, we bring together the best ideas and innovative resourcing to develop blueprints for tackling some of our most critical global issues through the lens of what's pressing now and what's coming next. For more information, visit www.MilkenInstitute.org

About the Motsepe Foundation:
The Motsepe Foundation was founded in 1999 by Dr. Patrice Motsepe and his wife, Dr. Precious Moloi-Motsepe. The goal of the Motsepe Foundation is to contribute towards eradicating poverty and to sustainably improve the living conditions and standards of living of poor, unemployed, and marginalized people in South Africa, Africa, and the world. In January 2013, Dr. Patrice Motsepe and Dr. Precious Moloi-Motsepe joined the Giving Pledge, which was started by Warren Buffet and Bill and Melinda Gates. Dr. Patrice Motsepe and his wife committed to give half of their wealth to the poor and for philanthropic purposes during their lifetime and beyond.

Read moreMilken–Motsepe Prize in Green Energy Finalists Announced
2 November 2023

Measures in space to ensure safe and secure AGOA

Location: News

Measures in place to ensure safe and secure AGOA

The National Joint Operational and Intelligence Structure (NatJOINTS) has put measures in place to ensure the 20th African Growth and Opportunity Act (AGOA) Forum takes place in a safe and secure environment.

NatJOINTS includes various government departments led by the South African Police Service (SAPS), South African National Defence Force (SANDF) and the State Security Agency (SSA).

Police spokesperson, Brigadier Athlenda Mathe, said a safety and security operational plan is already being enforced, with all critical role players already on the ground to execute their various responsibilities, as per their mandate.

Mathe said police visibility has been heightened in and around the Johannesburg Expo Centre, with the aim of preventing and combating any form of opportunistic crime, before, during and post the event.

She emphasised that only those in possession of accreditation to attend will be allowed near the venue and restricted areas. 

“Those found with fraudulent accreditation will face the full might of the law. Lost cards must be immediately reported to the South African Police Service. It is a serious offence to exchange cards amongst colleagues.
 
“Residents of Johannesburg and those who are operating businesses within the vicinity of the Johannesburg Expo Centre are advised about road closures for the duration of the event,” Mathe explained. 

The affected intersections in the Nasrec precinct as reported by Johannesburg Metropolitan Police Department (JMPD) include: 
•    Nasrec Road and Recreation Road;
•    Nasrec Road and Randshow Road;
•    Randshow Road and Commerce Street;
•    Nasrec Road and Landbou Road; 
•    Golden Highway Road and Randshow Road;
•    Ring 1 and Ring 2;
•    Golden Highway and Stadium Road and
•    Nasrec Road and Stadium Road.

NATJOINTS assured all dignitaries, attendees and spectators that multidisciplinary and integrated teams are already on the ground and are ready to deliver a safe and secure event. – SAnews.gov.za
 

GabiK
Thu, 11/02/2023 - 09:49

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Read moreMeasures in space to ensure safe and secure AGOA
2 November 2023

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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Read moreAGOA Trade and Economic Cooperation Forum
2 November 2023

Government addressing deficiencies that led to grey listing

Location: News

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
Read moreGovernment addressing deficiencies that led to grey listing
2 November 2023

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

624 views
Read moreRevenue collection projected to decline
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