South Africa and Cuba on Friday signed amendments to the Agreement on the Economic Assistance, which will stimulate bilateral trade, among other things.

The amendments of the agreement were signed by Minister of Trade and Industry Rob Davies and Cuba Ambassador to South Africa, Carlos Fernandez de Cossio, in Pretoria.

The signing of the amendments to the agreement is a follow-up to President Jacob Zuma's 2010 State Visit to Cuba, where he announced an economic assistance package of R350 million to Cuba.

The multi-million rand economic assistance package was to assist with agricultural development as well as in the reconstruction of infrastructure following devastating hurricanes in 2008.

Minister Davies said from the package, R40 million would be granted for the purchase of seeds.

“R5 million is for purchase of seeds in South Africa, and the remaining R35 million for purchase of seeds either in South Africa or elsewhere in the world,” the Minister said.

He said R 100 million was allocated for purchasing goods on the South African market and R210 million was for the credit line.

The credit line entails a first tranche of R70 million to be available immediately on entry of the agreement into force. The second tranche of R140 million is available after the repayment of the initial R70 million.

In 2012, Minister Davies signed the Agreement on the Economic Assistance on behalf of South Africa with the former Cuban Ambassador to South Africa, which was followed by ratification of the agreement by Parliament that was finalised later that year.

He said the implementation of the agreement had been delayed by the withdrawal of the Industrial Development Corporation (IDC) as a facility agent, amongst other reasons.

“This meant that a new facility agent had to be found, and the dti is pleased that Dirco [Department of International Relations and Cooperation] - through the African Renaissance Fund (ARF) – agreed to act as the new facility agent.

“The dti and other government departments such as the Department of Agriculture, Forestry and Fisheries and the National Treasury as part of a Steering Committee will continue to provide support to DIRCO,” said the Minister.

Minister Davies said the agreement required some amendments to make it more exporter-friendly.

The amendments take into account, amongst other things, the concerns raised by potential exporters regarding payment procedures in the agreement, to ensure that small and medium term enterprises also benefit by reducing the minimum amount for transactions to R100 000 from R2.5 million.

“The exporters wanted to have some guarantee of payment prior to goods being shipped to Cuba,” Minister Davies said.

Minister Davies said the agreement will be mutually beneficial to the two countries. “We hope this will be a catalyst for strengthening commercial relations generally,” said Minister Davies.

Trade has increased between the two countries from R27.7 million in 2009 to R63 million in 2013.

De Cossio said amendments of the agreement would further Cuba in terms of transformation.

He said Cuba was very happy that relations with South Africa had reached this point.

“We are doing so in the context of the year in which we celebrate 20 years of diplomatic relations between our two countries.”

He said Cuba was proud that South Africa was celebrating 20 years of freedom and democracy.

South Africa would rank third in terms of Cuba’s trade partners in Africa, against Algeria and Angola. - SAnews.gov.za

Chambers Ireland has today (18/09/2014) welcomed the quarterly national accounts which show that the Irish Economy grew by 7.7% in GDP terms and by 9% in GNP terms year on year.

Speaking this afternoon, Mark O'Mahoney, Director of Policy and Communications, Chambers Ireland said “We welcome the Government's commitment to sustaining this recovery and boosting Ireland's competitiveness. Increasing the numbers of people in work must remain the core priority for Government.”

“The strong growth in GNP and consumer spending shows us that the Irish economy is now well and truly in recovery mode. However, we must ensure that this economic growth is sustainable into the future. The lessons from the past must be learned, and our economy's recovery cannot be jeopardised by short-termism or any loss of competitiveness through increasing costs to employers,” he concluded.

The pound has hit a two-year high against the euro and a two-week high against the US dollar, as Scotland voted against independence.

In early Asian trade, sterling jumped 0.43% to 1.2743 euros.

The pound also jumped nearly 0.8% to $1.6525 against the US dollar, before falling back slightly. The FTSE is also expected to open higher.

Meanwhile RBS confirmed it would not be moving its registered head office now that independence had been rejected.

"The announcement we made about moving our registered head office to England was part of a contingency plan to ensure certainty and stability for our customers, staff and shareholders should there be a 'Yes' vote," the bank said.

"That contingency plan is no longer required. Following the result it is business as usual for all our customers across the UK and RBS."

In a statement, Lloyds Banking Group said: "The group is proud of its strong Scottish heritage and remains committed to having a significant presence in Scotland. We remain fully focused on supporting households and businesses in Scotland as well as right across the rest of the UK."

Over the past couple of weeks the pound had fallen on fears that Scotland would vote in favour of independence.

Highland Consumer Partners, a growth-stage venture capital firm focused on the consumer sector, today announced that retail executive Marty Hanaka joined the firm in August of this year as an Operating Partner.

Marty most recently was the Interim Chief Executive Officer of Guitar Center, Inc., from January 2013 to April 2013. Previously, he served as the Chairman of Golfsmith International Holdings, Inc., from April 2007 to November 2012, and was the Chief Executive Officer from June 2008 to November 2012. From September 1998 to August 2003, he served as the Chief Executive Officer of The Sports Authority, Inc., and served as Chairman from November 1999 through June 2004. From August 1994 to October 1997, he served as the President and Chief Operating Officer of Staples, Inc., and also served as a member of the Board of Directors. Marty began his career at Sears Roebuck & Co., spending 20 years throughout the organization in various management capacities. He is currently a Director of City Sports and Trans World Entertainment.

"Marty is an accomplished CEO with unparalleled experience in creating industry-leading operations," said Tom Stemberg, Managing General Partner with Highland. "His experience and track record leading several world-class retail businesses will be a valuable addition to our team as Highland seeks to invest in and help build the next great retailing brands. Marty's leadership and mentorship capabilities will be critical to creating a culture of success across the Highland Consumer portfolio."

"I am excited to partner with Highland and believe I can build on the exceptional talent that is already part of the organization," said Marty Hanaka. "I have worked with Tom Stemberg throughout my career, dating back to Staples and more recently with Highland's investments in Guitar Center and City Sports. Highland is a firm that has a strong history investing in growth-stage companies in the retail and consumer sectors. I am ready to contribute to the firm's evaluation of new opportunities, as well as help the portfolio execute on strategic growth initiatives."

Peter Cornetta, Managing General Partner with Highland, added, "The addition of Marty emphasizes the Highland Consumer Partners' model of marrying operating and investing expertise to help great people build great companies. Marty has been engaged with several of our investments and we have been able to see first-hand the impact he can have. We couldn't be more excited to get him more deeply involved with our activities."

Deputy President Cyril Ramaphosa says economic growth benefits must be shared by all equally. “Inequality is an affront to our new democratic order...

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Boost for debt: Britain’s Help to Buy subsidy scheme for first-time home buyers “looks like a political master stroke” as voters like it, but is “a public policy disgrace” says CLSA’s commentator Christopher Wood.

For the first time it puts UK taxpayers “on the hook for mortgage debt a mere five years after the collapse of Fannie Mae and Freddie Mac in America should have made crystal clear the dangers of such an approach.”

copyright: Martin Spring of OnTarget

Under-investment: There are several reasons why global economic growth has failed to return to the levels that were normal before the financial crisis burst upon us, but clearly one of the more important is overall loss of confidence of businesses about the future, which inhibits their willingness to take on the risks of investing in new ventures, greater capacity.

The ratings agency Standard & Poor’s says capital expenditure in real terms actually fell 1 per cent last year, and is expected to decline again this year.

The Economist comments: “A chicken-and-egg problem. Without a strong global recovery, companies will not spend more. But if they do not spend more, there will not be a strong recovery.”

copyright: Martin Spring of OnTarget

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