The Department of Trade and Industry (dti) has invited companies to apply for participation at the South African Expo and Investment Seminars to be held in China, in October. Companies targeted are those operating in the agro-processing, chemicals, plastics, steel, aluminium, automotive, electro-technical, transport, mining and renewable energy sectors, among others. The expos will take [...]Apply for SA Expo in China is a post from: South Africa Business



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The Development Bank of Southern Africa (DBSA) and the City of Tshwane on Thursday signed a R1.6 billion long-term loan facility to support the...

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On June 9, 2014, shares in JP Morgan Fleming Emerging Markets Investment Trust PLC (JP Morgan Fleming) moved up 0.54% to end the trading session at £562.50, outperforming the FTSE 100 that moved up 0.24% in the session. Shares in JP Morgan Fleming opened the session at £560.00 and oscillated in the range of £556.83 - £562.50. Over the past one month, the stock has gained 3.41%, outperforming the FTSE 100 that gained 0.38% over the same period.

In order to make full use of its oceans’ potential, the South African government is in the process of developing a blue economy strategy, said the Department of Environmental Affairs. “South Africa has large ocean spaces and we are beginning to appreciate the value of this vital national asset and how it can contribute to [...]SA developing blue economy strategy is a post from: South Africa Business



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Finance Minister Nhlanhla Nene and United States (US) ambassador to South Africa Patrick Gaspard have signed an intergovernmental agreement to improve international tax compliance and to implement the Foreign Account Tax Compliance Act.

The agreement, which was signed on Monday, promotes transparency between South Africa (SA) and the US on tax matters, while also underscores growing international cooperation in the endeavour to end tax evasion worldwide.

“South Africa is committed to automatic exchange of information for tax purposes and to thereby make the world a more transparent place from a tax perspective. This commitment has been expressed through South Africa’s role in both the G20 and the Global Forum on Transparency and Exchange of Information for Tax Purposes,” said Minister Nene.

The US enacted the Act in 2010 to combat offshore tax evasion by encouraging transparency and obtaining information on accounts held by US citizens in other countries.

The Act calls for foreign financial institutions to provide the US Internal Revenue Service (IRS) with information about US account holders annually. Failing that, a 30% withholding tax will be imposed on the foreign financial institution with regard to certain US source payments, such as interest.

The withholding tax is, however, waived if foreign financial institutions enter into disclosure compliance agreements with the US Treasury.

Ambassador Gaspard, who signed the agreement on behalf of the US, said the signing of the agreement is an important step forward in the collaboration between both countries to combat tax evasion.

“When taxpayers overseas avoid paying what they owe, other taxpayers have to bear a disproportionate share of the tax burden. The intergovernmental Agreement to Improve International Tax Compliance and to implement the Act is an important part of the US government’s effort to address that issue.”

In July 2012, the US introduced the option of a country entering into an intergovernmental agreement which would alleviate the need for financial institutions to enter directly into an agreement with the US.

The Agreement to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act between the US and SA is a reciprocal agreement, which ensures that financial institutions in SA will report information about US account holders to the South African Revenue Service (SARS).

SARS will in turn relay that information, by means of automatic exchange of information (AEOI), to the IRS, under the Double Taxation Convention in force between the US and SA. Reciprocally, the IRS will provide similar information about South African account holders in the US to SARS. – SAnews.gov.za

The South African economy is unlikely to fall into a recession in the upcoming second quarter, the Reserve Bank said on Tuesday.

In its June Monetary Policy Review (MPR) document, the central bank said that the domestic economy has suffered several adverse supply shocks particularly from strike action as well as electricity shortages which led to negative first quarter growth.

Last week, Gross Domestic Product (GDP) data released by Statistics South Africa showed that seasonally adjusted GDP at market prices slumped at an annualised rate of 0.6% for the first quarter of 2014.

If there is a second consecutive quarter of negative economic growth this would mean a technical recession.

“The domestic economy has also suffered a number of adverse supply shocks, particularly from strike action and electricity shortages, culminating in negative first quarter growth in 2014 – the economy’s worst performance since the 2009 recession. Although the second quarter is expected to show some improvement, the risks to the 2014 forecast are to the downside,” said the bank.

This decrease in growth -- the worst since the second quarter of 2009 when the world’s economy dipped as a result of the global recession -- comes after the GDP grew by an annualised rate of 3.8% in the fourth quarter of 2013.

At the Monetary Policy Committee (MPC) meeting in May, the bank revised down growth from 2.6% to 2.1%.

According to the Review, inflation is projected to be above the bank’s inflation target range for an extended period of time.

In April the Consumer Price Index (CPI) breached the bank’s 3 to 6% target range coming in at 6.1%.

“Overall, inflation in South Africa is projected to be above target for an extended period of time, with risks tilted towards higher inflation. Over the longer term, this necessitates higher interest rates, and therefore a tightening cycle,” noted the bank in the Review.

At the last MPC meeting, the bank continued to hold the view that it is in a rising interest rate cycle. The bank hiked interest rates at its first meeting of the year in January.

“However, with domestic economic growth weak, and world inflation and interest rates remaining low, monetary policy tightening is likely to be moderate. This will provide continued support to the economic recovery,” it said.

The review found that household expenditure has limited prospects for improvements in 2014 due to rising inflation, weak employment growth and muted wealth effects.

“Household expenditure will also be constrained by continued moderate credit growth, knock-on effects from the mining strike and rate hikes, which raise debt service costs and disincentivise further borrowing,” it noted.

The bank expressed “great” concern at the country’s antagonistic labour relations and persistent strikes. “In particular, changes in the structure of mining unionisation over the past few years have caused multiple, often violent disruptions to production, the most recent example being the record-length and on-going platinum-sector strike. These events have been costly in several ways, depriving households of wage income and retailers of customers, damaging exports, and ultimately compromising investment and employment,” noted the Review.

The MPR, which reviews domestic and international developments that have affected inflation and the impact of the monetary policy stance, is published twice a year. – SAnews.gov.za

Beijing - China and Arab countries will meet on Thursday to discuss energy and trade cooperation for the next decade, as energy-hungry Beijing builds momentum in energy imports after a landmark deal with Russia late May.

Chinese Foreign Minister Wang Yi said on Monday the ministerial forum in Beijing aims to strengthen ties with Arab nations, China’s Xinhua News Agency reports.

The talks would focus on energy resources, infrastructure, nuclear energy and trade, among other topics, Wang said.

China, one of the fastest-growing economies in the world, is the second biggest trading partner of the Arab world.

China's crude oil imports from Arab countries have increased from 40.6 million tons to 133 million tons in 10 years, Wang added. Trade volume between China and the Arab countries rose nearly tenfold over the decade, from $25.5 billion to $239 billion.

As one quarter of the world's population lives in China and due to its ever increasing energy demands, Beijing seeks new routes to sate its needs.

After a decade of negotiations, China signed a $400 billion gas supply deal with Russia on May 21 for the next 30-year period.

Russian President Vladimir Putin said that Russia would invest $55 billion and China roughly $20 billion in order to implement the massive deal. – SAnews.gov.za

Inflation in the euro zone will likely stay "significantly" below the European Central Bank's target this year and next, ECB Governing Council member Ewald Nowotny said in the Austrian National Bank's annual report.

"But over the medium term it is likely to align itself with the ECB's objective of keeping inflation below but close to 2 percent," he added in the report released on Tuesday.

He said an economic recovery in the euro zone - and even more so in Austria - was showing signs of accelerating in 2014 and 2015.

The seasonally adjusted Gross Domestic Product (GDP) at market prices slumped at an annualised rate of 0.6% for the first quarter of 2014, Statistician General Pali Lehohla announced on Tuesday morning.

This decrease in growth -- the worst since the second quarter of 2009 when the world’s economy dipped as a result of the global recession -- comes after the GDP grew by an annualised rate of 3.8% in the fourth quarter of 2013.

Releasing the latest GDP results at the Government Communication and Information Systemn (GCIS) offices in Hatfield, Lehohla said the slump was attributed to the on-going strike in the mining sector.

“The main contributors to the decrease in economic activity in the first quarter of 2014 were the mining and quarrying industry (-1.3%) and the manufacturing industry (-0.7%).

“Positive contributors by other industries included finance, real estate and business services (0.4%) and the transport, storage and communication industry, and general government services (0.2%).

“The unadjusted real GDP at market prices for the first quarter of 2014 increased by 1.6% compared with the first quarter of 2013.

“The GDP estimates are preliminary, and may routinely be revised on the basis of additional evidence that has become available by the time the subsequent quarter’s estimates are released,” Lehohla said.

Gerhardt Bouwer, the executive manager of national accounts at Stats SA, said with the mining industry being the main contributor, the long term effects of the slump in the sector may translate in the loss of jobs. – SAnews.gov.za

Newly appointed Finance Minister Nhlanhla Nene has his eye set on growing the South African economy. Minister Nene spoke moments after being sworn...

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