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Founders Foundation has opened applications for its Accelerator Programme to Empower young entrepreneurs with essential skills in sales, marketing, and finance. Founders Foundation is excited to announce that applications are now open for its highly anticipated Accelerator Programme. This unique initiative is designed to empower South African entrepreneurs under the age of 35 by providing …
The organisers of South Africa’s most social 5km run, the Boxer Super Run, are thrilled to announce an impressive R147 200.00 prize purse in 2024. “The Boxer Super Run has redefined the standard for 5km events, and we’re proud to raise the bar even higher this year with an unprecedented R147 200.00 prize purse,” says …
Fresh off a silver medal at the ASA Cross Country Championships, Cacisile Sosibo is now focused on adding another podium finish to her accomplishments, aiming for success at the Absa RUN YOUR CITY JOBURG 10K on National Heritage Day, Tuesday, 24 September 2024. Sosibo claimed the runner-up position behind Cian Oldknow in the senior women’s …
Pretoria, South Africa – Homeowners often rely on their dishwashers to simplify daily chores, so when the appliance leaves standing water at the bottom, it can be both frustrating and inconvenient. Appliance Repairs Centre, with over 38 years of experience in appliance servicing and repairs, has seen it all. The company is now sharing expert …
With the plethora of AI tools available – each of them promising to make your life easier, richer and more fun we at MyPR have to say that we are still on the fence as to which one is our favourite. Of course if you show us one that is for free that is the …
Minister Meth attends 2nd BRICS Labour and Employment Ministers meeting in Russia
Employment and Labour Minister Nomakhosazana Meth is today attending the 2nd Brazil, Russia, India, China and South Africa (BRICS) Labour and Employment Ministers Meeting (LEMM) in Sochi, Russia.
The Ministers from different countries will share experiences and good practice on priorities during the two-day meeting which commenced on Monday and concludes today.
International organisations such as the International Labour Organisation (ILO) and the International Social Security Association provide technical support to the LEMM.
Priorities discussed at the gathering, include the development of a system of vocational guidance and lifelong professional education for the entire population; the role in the labour market and the problems of regulating the work of platform workers; ensuring safe work and social security for employees and the development of social support for citizens of the BRICS countries.
“The gathering is important for South Africa, as the main objective is to facilitate cross-collaboration, knowledge-sharing, and monitoring and evaluation, in achieving our goals,” Minister Meth said. – SAnews.gov.za
DikelediM
Tue, 09/10/2024 - 13:55
On the 8th of September 2024, Mall of the South brought together key partners, stakeholders, and government officials for the #Holler event 2024, to stand united against human trafficking. The event supported the Home of Hope for Girls, a non-profit providing a safe haven for children and teenagers who have experienced abuse, particularly in cases …
The Portfolio Committee on Mineral and Petroleum Resources has expressed its relief at hearing that TotalEnergies remains a major player in the South African energy sector.
The committee expressed this view after it was briefed by the Department of Mineral and Petroleum Resources on the impact of TotalEnergies' withdrawal from Block 11B/12B, off the country's southern coastline, and Block 5/6/7 off the West Coast.
Although regretting the cessation on projects with huge potential economic spinoffs to the country, the committee was encouraged that TotalEnergies is still involved in exploration work in South Africa at Block 3B/4B of the orange basin in the West Coast.
The committee is also comforted to hear that Block 11B/12B and Bock 5/6/7 have sufficient resource reserves still open to be explored by other investors.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Centurion, South Africa – Sports and physical activities play a vital role in maintaining a healthy lifestyle, whether you’re an aspiring young athlete or an adult striving for fitness. However, along with the thrill of sports, injuries often occur, ranging from minor sprains and strains to more severe conditions like fractures and tendonitis. Thankfully, chiropractic …
SA-Germany to place trade and investment under the spotlight
The promotion of trade and investment linkages between South Africa and Germany will come under the spotlight at an event that will be held on Thursday.
This as the Department of Trade, Industry and Competition (dtic), will host a network event in partnership with the German Federal Ministry for Economic Affairs and Climate Change as well as the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
The Partnering in Business with Germany network event will be held over two days at the Southern Sun Sandton in Gauteng from 12-13 September 2024.
“The global programme is designed to promote trade and investment linkages between Germany and South Africa,” said the dtic.
In April, the dtic and the German Federal Ministry for Economic Affairs and Climate Change signed a Joint Declaration on Cooperation to formalise a programme to train and mentor emerging exporters from South Africa to access the German market.
In a statement on Tuesday, dtic Deputy Director-General for Exports, Lerato Mataboge, said the programme’s objectives is to capacitate small medium and micro enterprises (SMMEs) and emerging exporters by allowing them to forge successful business ties with Germany towards securing export orders and investment.
Mataboge pointed out that the programme targets companies to become more resilient through diversification, and also to assist companies that have so far had little experience with foreign markets to internationalise.
“The Partnering in Business with Germany programme focuses on imparting skills required for international business relations and developing companies to be ready for cooperation with German enterprises. In turn the programme also reduces risks and transaction costs for German companies looking at new markets.
“Through the programme participants are prepared to enter the German market and brought into contact with German firms interested in doing business with South Africa. As part of the successful collaboration between the two Ministries an alumni networking event is also held annually. The inaugural event took place in 2023 in Cape Town, attended by 60 past beneficiaries of the programme,” she explained.
The partnership with the German Ministry to mentor South African companies, has resulted in 234 companies traveling to Germany to experience German business culture and engage with potential export partners. -SAnews.gov.za
Edwin
Tue, 09/10/2024 - 15:05
Sungrow, a global leader in renewable energy solutions, is pleased to announce the resounding success of its participation in Solar & Storage Live, Cape Town’s premier renewable energy exhibition held last week. The event marked a significant milestone in Sungrow’s commitment to driving the energy transition in South Africa, showcasing the company’s advanced solar and …
Work underway to prevent truck congestion in Richards Bay
A team from the Road Traffic Inspectorate will work with municipalities and stakeholders, including Transnet, to prevent truck congestion from the N2 highway leading to the Port of Richards Bay.
This was among the commitments made during a meeting held by the KwaZulu-Natal Transport and Human Settlements Departments.
Transport and Human Settlements MEC, Siboniso Duma, recently met with the management and all categories of staff from both departments working in King Cetshwayo, Zululand and UMkhanyakude Districts.
The meeting aimed to ensure that the two departments work collectively to accelerate the construction of roads and human settlements for the benefit of communities.
In a statement issued after the meeting, Duma said the stakeholders have decided to act decisively as the issue of truck congestion is resurfacing. Other stakeholders include the Road Freight Association and Zululand Chamber of Business.
“In addition, we commit to work with Transnet and Richards Bay Bulk Terminal to ensure safe and effective movement of coal destined for exports. Our roads have been damaged and created challenges such as truck related accidents that continue to claim innocent lives.
“There is a special team of traffic officers, uTalagu, that has been assigned to monitor the movements of trucks. Addressing these challenges means that as government we must invest in the development of infrastructure to accommodate the movement of goods and people,” Duma explained.
A need for all stakeholders to work hard to improve the railway networks and tap into aviation and maritime sectors to facilitate the movement of goods, was also emphasised.
He noted that the province is not only a construction site but strategically located along the longest coastline in Africa.
“This means that our economy is driven largely through the transport and logistics sectors based on the two major ports housed in the province, namely the Port of Richards Bay and the Port of Durban.
“Both ports are economically strategic not only to the province of KwaZulu-Natal, but also to the national economy of South Africa since they are linked to the economic heartland of South Africa, Gauteng, via road and rail networks.”
The MEC said the Port of Durban is also a transit point for cross border container traffic for neighbouring countries - a gateway to Southern Africa.
“The Ports of Richards Bay and Durban are important contributors to international trade and a significant enabler for South Africa’s and the province’s economic development. We are working with national government to ensure the expansion of road networks - the N2 and N3, along with our ports,” Duma said.
Apart from speeding up construction of houses for communities, the MEC acknowledged that there will be a growing demand for human settlements and pressure on road networks.
He added that with Richards Bay Industrial Economic Zone being a haven for foreign direct investment and a site for energy infrastructure, the province must be ready to be the host of the 3 000 MW gas-to-power plant to be constructed by power utility Eskom. – SAnews.gov.za
GabiK
Tue, 09/10/2024 - 11:28
TechNvst, a prominent innovation commercialization firm based in South Africa, has announced an exciting new collaboration with Microsoft through the African Transformation Office (ATO) to launch the TechNvst AI Startups Uhuru Program. This new initiative is set to transform the landscape for AI-focused startups across Africa by providing them with essential resources and strategic support. …
DPWI rejects report on Sarah Baartman Centre of Remembrance
Public Works and Infrastructure Minister Dean Macpherson has rejected a joint report by the Department of Public Works and Infrastructure and the Department of Sports, Arts and Culture on the completion of the Sarah Baartman Centre of Remembrance in Hankey, Eastern Cape.
The report was presented to the Portfolio Committee on Sport, Arts and Culture on Tuesday morning.
According to the department, Macpherson will soon be meeting with Sports, Arts and Culture Minister Gayton McKenzie to establish a way forward.
The Sarah Baartman Centre of Remembrance has been plagued by delays since a tender for its construction was issued in April 2014, and to date millions have been spent on the project, but construction remains 37% completed.
“In my discussions with Minister McKenzie, we both agree that the progress which has been achieved in the centre remains wholly inadequate and that serious action needs to be taken to limit any further wastage of taxpayer money.
“Not only have both departments failed to brief the Ministers on the report presented to Parliament, but it furthermore is simply unacceptable that despite three contractors being involved in the project over a period of 10 years, construction has not even been halfway completed with further delays expected,” Macpherson said.
He said the life of Sarah Baartman “remains an important reminder of our painful past, and it is therefore imperative that we give her the respect and dignity she deserves”.
“However, the work which has been done at the Remembrance Centre thus far fails to honour her memory and has instead become a problem which continues to cost taxpayers millions. This simply must end,” the Minister said.
Macpherson emphasised that a meeting with Minister McKenzie will help to resolve any concerns while developing a joint vision of how the construction of the project can be completed in the shortest timeframe possible, thereby possibly providing solutions that can be replicated at other memorial projects across South Africa.
“For too long, the South African State and the Department of Public Works and Infrastructure as implementing agents have spent millions on memorial projects just for the projects to remain incomplete or fall into a state of disrepair.
“This era of this fruitless expenditure has to come to an end, and I know that both Minister McKenzie and I are committed to achieving this goal. Let us Build South Africa,” the Minister said. – SAnews.gov.za
Edwin
Tue, 09/10/2024 - 11:36
After 12 years in the radio industry, “Hip-Hop mom” and supermom of six children, Lebang Kgosana has finally made it to the big leagues and is set to begin hosting a brand-new drive time show, “The Driver’s seat with Lebang Kgosana” on Johannesburg based radio station, 919fm from the 2nd of September 2024. Previously known …
World-renowned football federation, the Royal Dutch Football Association (KNVB) in partnership with VFS Global (www.VFSglobal.com), concluded extensive coaching courses held in Stellenbosch and in Durban earlier this year. The initiative is in line with VFS Global's community outreach initiatives across the globe with a focus on youth empowerment and skill development.
The KNVB-accredited course conducted under its WorldCoaches Programme in partnership with SAFA eThekwini, saw a total of 56 coaches from across Durban and Cape Town, with almost 50% of the participants being women. The coaches were accredited with a globally recognised certificate, as part of KNVB's WorldCoaches global drive of using football to drive social development.
The five-day workshop saw the coaches being exposed to the latest global trends of youth coaching and equipped with the necessary tools and information to be role models in their respective communities. In addition to tactical knowledge empowerment, key societal topics such as child protection, leadership, and social change formed part of the learning process for the coaches. The course hosted over 265 participating players throughout the two weeks, allowing the coaches to put together sessions they had learnt from the instructors into practice.
“This was truly an eye-opening experience for our coaches. Most of them are keen to learn and empower themselves, and thanks to such a programme, our region is not only producing future coaches. but key role models for our communities, thanks to KNVB”, said SAFA eThekwini Technical Director, Maxwell Ndlovu.
Speaking on behalf of the KNVB, instructor Bert Zuurman said the reception and eagerness shown by the coaches were encouraging and indicative of a bright youth football future for the region.
“We are honoured to share our knowledge and experience with these coaches, who are not just coaches but are now role models. Our programmes are uniquely designed to make use of football as a driver for social change, and it is important that our coaches are receptive to both the tactical and social development divisions of the programme. We wish all the coaches the best of luck, and sincerely thank SAFA eThekwini for providing us with the platform”, said Johan van Geijn, Founder of KNVB WorldCoaches.
“Through this programme, we are not only equipping coaches with the latest in football tactics but also instilling in them a sense of social responsibility. Through such initiatives that also empower young people to stay in school, we're shaping not just athletes, but future leaders by providing coaches with the tools to be role models. Our investment in South Africa underscores our dedication to youth empowerment worldwide, harnessing sports to pave the way for a brighter, more inclusive future”, added Nadia Wicks, Head of Operations- Southern Africa, VFS Global.
The goal of the WorldCoaches program is to give participants critical thinking skills and resources required to make critical decisions both on and off the field.
Distributed by APO Group on behalf of VFS Global.
Media Contact:
George Cherian
Corporate Communications
VFS Global
georgec@vfsglobal.com / communications@vfsglobal.com
Further Enquiries:
Puncho Morajane
puncho@forwardzone.com
071 199 7858
About VFS Global:
As the world's leading outsourcing and technology service specialist, VFS Global embraces technological innovation including Generative AI to support governments and diplomatic missions worldwide. The company manages non-judgmental and administrative tasks related to applications for visa, passport, and consular services for its client governments, increasing productivity and enabling them to focus entirely on the critical task of assessment.
With a responsible approach to technology development, adoption and integration, the company prioritizes ethical practices and sustainability while serving as the trusted partner to 68 client governments. Operating over 3,400 Application Centres in 153 countries, VFS Global has efficiently processed more than 294 million applications since 2001.
Headquartered in Zurich and majority owned through investment funds managed by Blackstone Inc, along with the Swiss-based Kuoni and Hugentobler Foundation and EQT, VFS Global is committed to creating value for all stakeholders and leading in responsible, innovative solutions making government services more effective and efficient.
About KNVB – WorldCoaches:
WorldCoaches is a programme based on the KNVB's extensive international coaching experience and its belief that no matter where in the world, football can be used as a means for social development. Our trained WorldCoaches play a key role in this by inspiring and coaching children in their athletic and social development.
During WorldCoaches courses, youth are trained to become football coaches and role models in their own community. In doing so, the WorldCoaches programme focuses on three themes that directly contribute to the Sustainable Development Goals (SDGs). These are: personal development, health and social cohesion. The SDGs were set by the United Nations and aim to achieve a better and more sustainable future for all. As such, through the unique and universal appeal of football, the KNVB attempts to reduce the impact of various social challenges and aims to contribute to a better society.
Demarcation Board embarks on ward delimitation process consultations
In a deliberate effort to enhance understanding of demarcation processes, the Municipal Demarcation Board (MDB) is conducting consultations to educate stakeholders about the ward delimitation process.
According to the MDB, these consultations are held in all municipalities, targeting traditional leadership, ward councillors, ward committees, municipal officials, and other stakeholders.
Every five years, the MDB delimit wards preceding the Local Government Elections (LGE) in compliance with the Municipal Structures Act (MSA) 117 of 1998, as amended.
“The next LGE will be held in 2026. The plan is to hand over the final wards to the Electoral Commission of South Africa (IEC) towards the end of 2025.
“It should be noted that over the years, there has been a sharp increase in the number of voters resulting in a proportional increase in the number of wards in municipalities. Consequently, this results in a change in the configuration of wards in municipalities,” the MDB explained.
Wards are delimited by the MDB and entail the division of the whole geographic area of a municipality into smaller geographic areas, called wards.
According to the organisation, Schedule 1 of the MSA provides for certain procedures and criteria to which the MDB must comply.
The MDB must, amongst others, ensure that all wards in a municipality have approximately the same number of voters.
The number of registered voters in each ward, may not vary by more than 15% from the norm.
The norm is determined by dividing the total number of registered voters on the municipality’s segment of the national common voters roll by the number of wards in the municipality.
In a municipality with 30 000 voters and 10 wards, the average number of voters per ward would be 3 000. A variation of 15% can be added or deducted, resulting in a range of 2 550 to 3 450 voters per ward in this municipality.
The organisation said the education and awareness drive commenced in July 2024 to allow stakeholders sufficient time to understand the process and be able to participate effectively during the ward delimitation process and make informed inputs.
The agency will now embark on the nationwide public consultations to be conducted for the same purpose.
“Once the draft wards are drawn, intensive community consultations will be rolled out to obtain public views before the process is finalised.”
This process is expected to take place between March and April 2025.
Although, the consultations by way of public meetings are not legislated as per the MSA, it will be conducted to reflect MDBs resolve to enhance its public engagement processes.
“The MDB remains committed to driving meaningful public consultations and that all affected communities are empowered to actively participate in demarcation processes.
“This will enable them to make informed decisions that will enhance spatial democracy, access to economic opportunities and efficient delivery of services,” said Chairperson of the Board, Thabo Manyoni. – SAnews.gov.za
Gabisile
Tue, 09/10/2024 - 11:09
Legal correspondence over finalisation of rail agreement exchanged
Saluting the power of sport
Sport has a cunning, yet magical way of bringing people together, no matter one’s race, creed or colour.
Recent impressions on the official South African Government X account which is managed by the Government Communication and Information System (GCIS), has shown that a social media post on swimmer Tatjana Smith clinching gold in the women’s 100m breaststroke at the 2024 Olympics garnered 68,144 impressions.
The post also garnered 65,794 engagements on Facebook.
Likewise, when Team South Africa secured silver in the men’s 4x100m relay at the same Paris Olympics, the subsequent post garnered 50,104 impressions on X and 12,211 post engagements on Facebook.
And that is quite impressive for social media pages owned by government, as some people may shun government messaging for different reasons.
While citizens may have negative feelings towards government, people do engage with what our government has to say. The figures generated above are indicative of this.
Despite the challenges that hammer society, including inequality and unemployment, sport mends and stitches together the fabric of society despite the trials.
In his congratulatory message to our sporting stars, when he was Acting President, Deputy President Paul Mashatile said that sport has a “unique ability to bring South Africans together and uplift the nation's spirit, even amidst our challenges.”
Mashatile’s comments came as our athletes made the nation proud, including sprinter Mpumelelo Mhlongo who secured South Africa’s first medal at the now concluded 2024 Paris Paralympic Games, winning gold in his 100m event.
Bayanda Walaza made history in Peru, becoming the fastest young man on earth with remarkable times of 10.19 seconds in the 100m sprint and 20.52 seconds in the 200m sprint.
What Mashatile said goes hand in hand with President Nelson Mandela’s address to the first Laureus World Sports Awards back in 2000, wherein he said that sport has the “power to inspire” and the “power to unite people in a way that little else does.”
The awards honour and celebrate the world’s greatest sportspersons and what the Laureus organisation terms “the inspirational power of sport and its ability to change lives.”
Prior to democracy, one’s skin colour dictated every aspect of life and what one could and could not do, even aspects of playing sport. Much has changed since those dark apartheid years, and all of South Africa’s people can now participate in the sport of their choice.
Now that the Paralympic and Olympic Games have ended, I carry a sense of sadness of no longer being able to watch (for the next four years, that is,) the human spirit’s strength in overcoming adversity to overcome and win, in addition to many hours athletes put in to hone their craft.
While I will have to wait for years for the next summer Olympics in Los Angeles in the United States, what is pleasing to the eye is that South Africa claimed six medals in five sporting codes, including a gold earned by swimmer Tatjana Smith, three silvers earned by the Smith, the men's 4 x 100m relay team, and Jo-Ane van Dyk, who participated in the javelin throw.
The Paralympic team also made the nation proud with a tally of six medals, of which two are gold and were earned by discus thrower Simone Kruger and Mhlongo. The country also earned four bronze medals at the games, in which 168 countries participated.
To top that off, monetary incentives for medallists in the Paralympics are the same as those who participated in the Paris 2024 Olympics.
This goes to show that differently abled athletes are being seen and heard just as other athletes.
South Africa’s National Sport and Recreation Plan (NSRP) makes reference to the government placing a special emphasis on “the inclusion, empowerment and promotion of the government’s priority groups”, that also includes people with disabilities.
The courage showed by para-athletes is evidence that anyone can achieve their dreams. This goes some way in encouraging those living with a disability not to hide who they are, but to explore their abilities, which could one day put them on the world stage.
The Paralympics have come a long way since the ninth International Stoke Mandeville Games—considered to have been the first Paralympic Games—took place in 1960 with just 23 nations participating at the time.
As a society we need to learn more not only about the sporting codes our para-athletes play but also about how we can be considerate of the needs of people living with disabilities while also being supportive.
However, the conclusion of the games does not mean the end of the magic of the mesmerising power of sports. The sounds of blaring whistles and red and yellow cards bandied about on the pitch continue, and it requires our collective support.
The past weekend saw our sportsmen and women claim glory on the pitch with the Springboks triumphant in their second clash against the All Blacks in the 2024 Castle Lager Rugby Championship.
On the same day, the Springbok Women won their match against the Barbarians Women’s side.
Not wanting to be left out, Bafana Bafana equalised in their clash against Uganda; the men’s national football side drew 2-2 with their counterparts in the 2025 Africa Cup of Nations (AFCON) qualifier at Orlando Stadium.
While the national men’s side has had struggles, they continue to flight, and Friday’s draw shows their efforts to claim glory.
Previously, Bafana coach Hugo Broos had raised concern about the little fan support the team was garnering at matches. We can play our part by supporting the national team as they aim to qualify for the AFCON in Morocco in 2025.
The qualifiers will determine the 24 teams that will contest the 35th edition of the AFCON tournament.
As fans, we have magical powers that can egg on our teams to reach victory, which not only leaves us with an exhilarating feeling, but also helps to build national pride.
Just as South Africa is a melting pot of diverse cultures, we ought to support all our athletes and sporting codes. After all, variety is the spice of life, and every egg and piece of steak needs some spice. -SAnews.gov.za
Neo Semono is a Features Editor at SAnews.gov.za
Neo
Tue, 09/10/2024 - 09:11
KIMBERLEY: Oshada Fernando’s attacking century thwarted South Africa A (SA ‘A’) on day two of the first Test against Sri Lanka...
The department has committed to paying nurses a once-off allowance by the end of November
Conference on hunger hears there’s more than enough food. Policy failures by both government and corporations are causing hunger.
Police Minister to attend global forum on public security challenges
Police Minister Senzo Mchunu is set to represent South Africa at the Global Public Security Cooperation Forum in China this week, where international leaders will come together to address key public security challenges.
The conference, themed: "Win-Win Cooperation under Significant Changes: Building a Global Community of Common Public Security", will take place from 8 to 11 September 2024, in Lianyungang City, China.
During his visit to China, Mchunu will hold a bilateral meeting with the Chinese Minister of Public Safety, Wang Xiaohong.
“The two leaders will engage on critical issues, including the use of advanced technology in policing to enhance law enforcement capabilities. The discussions will focus on strengthening cooperation in tackling transnational crime, cybercrime, and the development of innovative strategies for crime prevention.
“The South African Police Service (SAPS) delegation accompanying the Minister will actively participate in 13 sub-forums that address various aspects of public security governance.
“These forums will cover a range of topics, including cyber security, counterterrorism, and urban safety, providing an opportunity for the delegation to share experiences and gain insights from global counterparts,” said the police in a statement.
In addition to the conference, Minister Mchunu will visit the Public Safety and Security Technology Expo where cutting-edge advancements in public safety technology will be showcased.
The visit will allow the Minister to explore new technologies and innovations that could enhance the SAPS' capacity to ensure public safety in South Africa. – SAnews.gov.za
Edwin
Mon, 09/09/2024 - 10:20
Land Bank reaches agreement with lenders
The Board of the Land Bank has announced the successful conclusion of a debt restructuring solution with all its lenders.
At a media briefing in Pretoria on Monday, the bank said official notices have been issued, signalling the implementation of the solution and the bank’s strategic direction moving forward.
The agreement reached with the Land Bank international and local lenders will remedy the bank’s prevailing debt default which occurred in April 2020, said Land Bank Board Chairperson, Thabi Nkosi.
Nkosi said following the signing of legal agreements and the fulfilment of all conditions, the debt restructuring solution will take effect on 16 September 2024, effectively ending the Land Bank’s debt default position.
She said the debt restructuring spans multiple financial instruments of all the bank’s lenders, ensuring equitable treatment of all the lenders, regardless of the type of debt held and their governing laws.
“Scheduled repayments to lenders will occur every six months through to March 2028. The government's equity contribution will play a critical role in this plan, positioning Land Bank on a sustainable path forward,” Nkosi explained.
Nkosi acknowledged this has been one of the most intricate and extended debt restructuring efforts in South Africa’s financial history.
Coordinating a large number of lenders, including local lenders, a multilateral development finance institution and international banks, as well as the different types of debt instruments, and tenures, added to the challenge.
“Thankfully, all parties showed remarkable patience and good faith with lenders respecting a stand still arrangement since the bank defaulted on its debts. We believe the solution we have reached is in the best interest of all stakeholders and the agricultural sector," Nkosi said.
Speaking on behalf of government, Finance Minister Enoch Godongwana said government has been concerned about the effect the protracted negotiation process has been having on the bank’s lending activities, which are vital for the socio-economic impact of the bank on the South African economy, and the agricultural sector, in particular.
The Minister said at its prime, the Land Bank contributed R45 billion to the bank’s agricultural debt finance, which represented a share of approximately 28% of the South African farming debt.
Since the debt default the bank has repaid over 60% of its debt. This was achieved through cash proceeds from a deliberate reduction of the bank’s loan book, which reduced from R45.2 billion in March 2020 to R17 billion by June 2024.
Despite the downsizing, Land Bank resumed limited lending activities in October 2022 through the Blended Finance Scheme, which is supported by grant funding from the Department of Agriculture.
“Whilst we were mindful of the bank’s need for state support to assist it to get out of its debt default, we were also cognisant of the fact that a large part of the bank’s debt restructure solution would be driven through the bank’s own initiated remedial measures,” Godongwana said.
Through its own cash flow from collections and client settlements, Godongwana said the bank was able to repay 60% of its funding liabilities since the debt default.
"Government provided R10 billion to stabilise the situation and alleviate the State’s contingent liabilities through the settlement of the State-guaranteed lenders, and to allocate R3.7 billion from these funds towards the Blended Finance Scheme to support the bank’s agricultural development and transformation mandate.
“We also ensured that the bank found self-help measures while keeping fiscal support to a minimum. Moving forward, the bank's funding model remains a priority," Godongwana said.
He added that with the liability solution finalised, government wanted the bank to adhere to the pledges set out in its debt restructure agreement and begin a process to address its funding structure so that “we never find ourselves in a similar position again”.
“A closer relationship and collaboration between the bank and the Department of Agriculture, as well all relevant state departments and entities, is required to ensure that coordinated efforts and economies of scale of the State’s entities and the private sector are leveraged to deliver effective impact in the agricultural sector,” Godongwana said.
With the liability solution finalised, the Land Bank is now focused on executing its turnaround strategy to implement its mandate and to drive development and transformation within the agricultural sector.
The bank said the new operating model, led by the CEO and the executive team, with strong board support, “will be central to this journey”. – SAnews.gov.za
GabiK
Mon, 09/09/2024 - 11:40