Pretoria – Ways to boost trade will be top of the agenda as South Africa and Russia meet for their 13th session of the Joint Intergovernmental Committee on Trade and Economic Cooperation (ITEC) today.

The session will be co-chaired by International Relations and Cooperation Minister Maite Nkoana-Mashabane and Minister of Natural Resources and Environment of the Russian Federation, Sergey Donskoy, in Moscow.

“The main objective of the 13th ITEC session is to take stock of what has been achieved so far under this structured bilateral economic cooperation mechanism between these two strategic partner countries and to further deliberate on other possible areas of cooperation,” the Department of International Relations and Cooperation said on Thursday.

While in Moscow, Minister Nkoana-Mashabane is also expected to hold bilateral talks with her counterpart, Sergey Lavrov.

The ITEC serves as a framework for economic and trade relations between the two countries. It focuses on trade, investment and banking; mineral resources; energy; transport; agriculture, forestry and fisheries; water resources; education; justice and constitutional development; business and tourism.

The ITEC takes place within the ambit of the bilateral agreement that was signed in 1999 to give impetus to the political commitment between the two countries to broaden and deepen their relations.

These engagements are further guided by the Treaty of Friendship and Partnership signed in September 2006, as well as by the Declaration of Strategic Partnership signed in March 2013 in Durban, South Africa.

South Africa and Russia’s relations are good, with more impetus being given to this relationship through ITEC and at the multilateral level through BRICS and other multilateral fora.

South African exports increased from R1.4 billion in 2009 to R3.9 billion in 2014.

Total imports from Russia reduced to R768 million in 2010 from a peak of R3.5 billion in 2009 and recovered to R4.9 billion in 2014.

There has been substantial growth in total trade between the two countries from 2009 to 2013 (from R3.6 billion to R7 billion). – SAnews.gov.za

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Pretoria – South African businesses and investors have been urged to make the most of the opportunities available in Mozambique, especially in light of the newly discovered gas reserves in the neighbouring country.

The South Africa-Mozambique Business Forum met on Thursday in the capital, where commitments were made to up cooperation across various fields. The forum was attended by the two countries’ Heads of State and key figures in the business arena.

The delegations identified tourism, transport, communications, science and technology as some of the strategic areas of cooperation. However, collaboration in unearthing business potential in energy and mineral resources took centre stage.

“South Africa and Mozambique boast a long standing cooperation in the field of energy.

“The energy cooperation between the two countries is characterised by sharing of energy and power resources, focusing on power plants and related infrastructure undertaken by Eskom and EDM [Electricidade de Moçambique], as well as the natural gas business to advance the development of gas to power projects.

“Mozambique offers great possibilities considering the newly discovered gas reserves. Our Ministers will ensure the implementation of our agreements in the energy sectors, particularly in oil and gas sectors.

“There are opportunities for South African companies to enter the Mozambique hydrocarbons sector in ways beneficial to both countries,” said President Jacob Zuma.

The Mozambican energy sector received an estimated $3.238 billion investment for just five projects investment in 2014. CPI data shows that the sector accounted for 45.6% of total investments approved by the Mozambique Investment Promotion Centre. Investments are said to have reached $7.102 billion for 487 projects.

There have been significant natural gas discoveries in Mozambique's northern offshore Rovuma basin since 2010. Mozambique's Tete province is estimated to have large untapped coal reserves of 25 billion short tons.

The International Energy Agency, however, states that inland transportation and port capacity restraints pose a challenge to Mozambique’s coal production growth in the future.

The International Monetary Fund estimates that coal and natural gas production could potentially increase Mozambique's economic growth rate by two percentage points annually from 2013 to 2023. The IMF also estimates that Mozambique grew by 7% in 2013.

In 2014, total trade between South Africa and Mozambique was recorded just below R44 billion, increasing from R29 billion in 2012. South Africa has emerged as the main trading partner for Mozambique and its main source of foreign direct investments.

Over 300 South African companies have invested in Mozambique and it is now part of the top five of South Africa's trade partners in the region.

President Zuma said the scope to further growth remains, hence they convened the business forum.

Broader economic cooperation

South Africa and Mozambique have two agreements that serve as a framework for economic engagement. The Promotion and Reciprocal Protection of Investments Agreement was entered into in February 2000. It seeks to encourage new South African investments in Mozambique.

The Department of Trade and Industry entered into a Memorandum of Understanding on Economic Co-operation in 2005. Cooperation within the MoU covers a wide spectrum of areas such as technical capacity-building, industry collaboration, spatial development initiative programme implementation and trade facilitation.

Furthermore, the Avoidance of Double Taxation Agreement and the Agreement on One-Stop Border Posts were signed during the last Heads of State Bilateral Economic Forum in September 2007.

The two countries are also working together in the development of five spatial development corridors namely the Maputo Development Corridor, Beira Spatial Development Initiative (SDI), Limpopo Valley SDI, Zambezi Valley SDI and the Nacala Development Corridor.

President Zuma said the initiatives are testaments to the regional integration efforts which are key to Africa's development agenda for intra-Africa trade.

Mozambican President Filipe Jacinto Nyusi said he was happy to partner with South Africa.

“South Africa is our neighbour and we are looking forward to doing business together,” he said.

President Nyusi and his delegation are expected to visit Limpopo on Friday before returning to Mozambique. Limpopo Premier Chupu Mathabatha is expected to welcome the delegation. – SAnews.gov.za

LUANDA, Angola - The development of the continent continues to be affected by insufficient resources.

The President of the African Group and Minister of Finance of Angola, Armando Manuel, declared in the welcoming speech to the participants at the Luanda Caucus- 2015 meeting.

“This obliges us to look for other sources of financing including savings that can be made from restricting illicit financial flows from Africa, especially measures that can be taken to radically reduce these mass monetary outflows and guarantee that they are used for development in the African continent”, he noted.

Meanwhile, David Robinson, the Vice-Director of the International Monetary Fund (IMF), and one of the speakers at the African Caucus said that the fall in oil prices is a significant negative shock for the oil exporting countries which have had to make marked adjustments.

David Robinson, who presented the theme “Africa: Regional Economic Outlooks” pointed to the following public financial measures: budget cuts in the 2015 expenditure, above all in investments, fuel subsidies reform, taxation measures, including tax rate increases, and greater exchange rate flexibility wherever possible.

Indeed, the representative of the IMF to the African Caucus noted that the oil producing countries have to tackle issues such as the orderly implementation of spending cuts, prioritise social sectors and infrastructure and mobilise non-oil revenues. It is necessary to address low liquidity in the foreign exchange markets in countries with flexible arrangements and the absence of foreign exchange instruments in countries whose currency is indexed to the Euro.

The emphasis of this Thursday afternoon fell on combatting illicit financial flows to improve the mobilisation of internal resources, a topic addressed by Thabo Mbeki, the Ex-President of South Africa.

The forum assembles more than nineteen Ministers of Finance and fourteen Governors of the Central Banks representing approximately forty member countries of the African Caucus, including Angola.

Distributed by APO (African Press Organization) on behalf of the Ministry of Finance of Angola.

SOURCE

Ministry of Finance of Angola

Newly appointed Minister of Mineral Resources, Mosebenzi Joseph Zwane, has promised to work hard to bring stability in the mining sector.

Speaking to the media after his swearing-in on Wednesday afternoon, a confident Minister Zwane said he was going to give his best in dealing with challenges of job creation, job losses and unemployment at the level of young people.

Minister Zwane said he was not afraid of challenges as he has been dealing with them throughout his life.

“I have not rose to be where I am mistakenly. I’ve walked through the ropes to be where I am. I believe with the support of all South Africans, we should be able to tackle all issues facing the department,” said an optimistic Minister Zwane.

He added that he was not planning to make any changes within the department, but will look at what has been there.

“Where we need to adjust, we will definitely adjust without any hesitation,” the Minister said, thanking President Jacob Zuma for giving him the opportunity.

Minister Zwane took the oath of office during a ceremony held at the Union Buildings, in Pretoria. This follows the announcement of his appointment by the President on Tuesday evening.

He took over the reins from Advocate Ngoako Ramatlhodi, who has been appointed as Public Service and Administration Minister, following the death of former Minister, Collins Chabane in March 2015.

President Zuma and Deputy President Cyril Ramaphosa witnessed the swearing-in of Minister Zwane and they both congratulated him on his new appointment.

Judge of the Constitutional Court of the Republic of South Africa, Justice Johann van der Westhuizen, administered the oath. – SAnews.gov.za

The third Japan seminar in Johannesburg, on Tuesday, is aimed at promoting trade relations between South Africa and Japan.

Deputy President Cyril Ramaphosa is expected to address the seminar, which will bring together South Africans, the Japanese business communities and public entities.

The seminar is organised jointly by the Japan External Trade Organisation (JETRO), the Japanese embassy in South Africa and the Japanese Chamber of Commerce and Industry in South Africa.

Last month, Deputy President Ramaphosa visited Japan as part of his official visit and as part of efforts to reassure Japanese investors that South Africa is open for business and investment.

Since the establishment of diplomatic ties between the two countries in 1992, South Africa has seen an increase in Japanese investments.

Japan is currently featured as South Africa’s third largest trading partner in the world with total trade amounting to approximately USD 8 billion in 2014.

During the same period, Japan became the second largest export partner and third largest import partner on the Asian continent.

Currently, there are 280 Japanese companies operating in South Africa and 13 South African companies in Japan. - SAnews.gov.za

Pretoria - Government has called on everyone in the sector to play their part in building a sustainable mining industry and grow the South African economy.

On Tuesday, President Jacob Zuma convened a meeting of the Mining Sector Consultative Forum, in Pretoria, which he declared as fruitful, productive and successful in the quest for solutions to challenges facing the mining sector.

The meeting was attended by a number of Ministers and Deputy Ministers, organised labour and organised business. The Forum received progress reports on the implementation of the signed Framework Agreement.

The President said key priorities in this term of government were the revitalisation and rebuilding of distressed mining towns and labour sending communities.

The President took note that the global and local economy, particularly the mining industry, are confronting major challenges.

“The global economy is experiencing a downturn which is posing a challenge for South Africa’s economy, which is a net exporter of key mineral commodities.

“Recent Gross Domestic Product (GDP) figures released by Statistics SA show that the economy contracted by 1.3% in the second quarter of the year. It is our collective responsibility to resolve the challenges as the mining sector is strategic to the South African economy,” he said.

Protests, illegal mining

With regards to ensuring the rule of law, peace and stability, President Zuma said stakeholders have agreed to continue strengthening the monitoring capacity of any strike and protest action in affected mining communities, and to support initiatives to deal with illegal mining.

“The multi-stakeholder Mine Crime Combating Forums have handled 4 059 reported incidents, which have resulted in arrests of 761 perpetrators. 61 cases are currently on the court roll. 92 cases have been finalised with a guilty verdict and six with not guilty verdicts,” he said.

The President said stakeholder forums have been established to deal with illegal mining in Mpumalanga, Gauteng and the Free State, with a forum set to be operational by November 2015 in the Northern Cape.

He said the forums consist of mining companies, unions, and government through the South African Police Services (SAPS), South African National Defence Force (SANDF), Departments of Mineral Resources and Home Affairs, as well as Municipalities.

He said the Department of Mineral Resources has initiated a programme to close and rehabilitate mines without owners to address the issue of illegal mining.

“In terms of the management of retrenchments, mining companies are required to submit notices to the Department of Mineral Resources and the Department of Labour, in respect of Section 52 of the Mineral Petroleum and Resources Development Act and section 189 of the Labour Relations Act.

“Stakeholders have recommitted to implement the Declaration signed on 31st August 2015 to save jobs and alleviate the impact of job losses in the industry,” he said.

Better lives for mineworkers

With regards to improved living and working conditions of mineworkers, President Zuma said in the 2014/15 financial year, more than R419 million was spent on the ring-fenced budget for informal settlement upgrading.

“This has been done in prioritised mining towns in the Free State, Mpumalanga and North West provinces. Overall, over 5 000 units have been delivered in the 15 prioritised mining towns.

“For the 2015/16 financial year, the Department of Human Settlements has aimed to improve this delivery figure and has ring-fenced R1 billion that is anticipated to deliver approximately 19 000 housing opportunities in mining towns,” he said.

The President also said the Departments of Trade and Industry, Economic Development and Small Business Development are facilitating both large and small scale industrial projects in the 15 mining towns and in the labour-sending areas. - SAnews.gov.za

Small Business – As we approach the last quarter of the business year, small businesses everywhere need to take stock of the year, do some spring-cleaning and make final plans for a last push in 2015. The National Small Business Chamber (NSBC), launched Small Business Fridayâ„¢ on 4 September – a movement by the NSBC [...]

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