The South African Revenue Service (SARS) has collected R900 billion in the 2013/14 fiscal year, according to the 2014 Tax Statistics Bulletin. “In...

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Credit rating agency Moodys Investors Service has downgraded South Africa’s credit rating one notch from Baa1 to Baa2, while also revising the credit outlook from negative to stable, said National Treasury. Moody’s decision keeps South Africa’s rating in investment grade. “Government notes Moody’s decision and recognises that economic growth has slowed down and there is [...] Moodys downgrades SA is a post from: South Africa Business

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Denmark is expected to improve trade relations with South Africa following a meeting between the two countries’ trade ministers.

Department of Trade and Industry (dti) Minister Rob Davies held a meeting with Danish Minister of Trade and Development Cooperation, Mogens Jensen, on Monday in Cape Town.

Denmark is set to improve trade with South Africa by 50%.

Minister Jensen said that they see South Africa as a port to the rest of Africa with 27 000 Danish citizens visiting South Africa yearly.

Minister Jensen also said that they would like to have a direct flight connection to Denmark.

South Africa and Denmark’s bilateral trade and investment relations are governed by the European Union and South Africa, Trade, Development, and Cooperation Agreement.

Total trade between South Africa and Denmark have steadily been on the increase with total trade at R2.9 billion in 2009 having increased to R3.4 billion in 2011. In 2013, total trade increased to R4.8 billion.

“The total exports to Denmark from South Africa increased from R1 billion in 2009, R1.4 billion in 2011, with the exception of 2010(R917 million), 2012 (R1 billion) and 2013(R890 million). The decrease in total exports from South Africa to Denmark in 2012 and 2013 can be attributed to decline in external demand, due to slow recovery in the EU (28),” said Minister Davies.

The Ministers also discussed amongst others Bilateral Investment Treaties and the Tripartite Free Trade Area.

On the Tripartite Free Trade Area, Minister Davies said that the approach is developmental and has three pillars, namely Infrastructure Development, Industrial Development and Market Integration.

He further added that the Tripartite Free Trade Area will be launched next month. - SAnewsgov.za

Minister in the Presidency, Jeff Radebe, says BRICS countries must continue to embrace innovation as a key driver for economic growth. “Innovation is a powerful engine for development and for addressing social and global challenges. “I can also affirm that innovation is centrally located in South Africa’s long term economic growth strategy, which includes a [...]Innovation key to economic growth is a post from: South Africa Business



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Trade and Industry Deputy Minister Mzwandile Masina has invited Chinese business to invest in South Africa, while embracing the country’s Broad-Based Black Economic Empowerment (B-BBEE) policy if they plan to seize the available economic opportunities.

“We are encouraged by the interest shown by the Chinese businesspeople to invest in South Africa. We welcome investments that will result in an inclusive economy and contribute to the creation of jobs.

“I urge you to take up opportunities in South Africa that are presented by programmes such as the R800 billion infrastructure roll out and Special Economic Zones (SEZ) programme, but remember BEE is the name of the game,” said the Deputy Minister.

The Deputy Minister was speaking at a gala dinner in Shanghai. The dinner formed part of the South African Expos in China.

Deputy Minister Masina said government’s intention was to make conditions favourable to attract foreign direct investment into South Africa, while further advising Chinese businesspeople to approach government if they need guidance in terms of compliance with BBBEE regarding their choice of partners.

“We want to make South Africa your home away from home but you need to comply with our regulations,” said the Deputy Minister.

He earlier had one-on-one meetings with potential investors and importers to establish the intentions of importing from and investing in South Africa.

He welcomed such investments and pledged support for them.

The Deputy Minister arrived in China earlier this week where he is leading a delegation of 51 companies on the fourth leg of the South African Expos in China.

The expos focus on South Africa’s top 10 value added products and investment projects, and seek to promote engagements, enhance exports and to increase market penetration into China.

The expos kicked off on 20 October with the delegation having being led on the first leg of the trip by the Director-General of the dti, Lionel October. Minister Rob Davies will be part of the last leg of the expos.

Participating companies in the expos are in the sectors of agro-processing, chemicals, plastics, steel and aluminium, among others. – SAnews.gov.za

Government will launch a fund that will support informal sector enterprises, especially in the townships, to achieve inclusive growth in the country’s economy.

This was revealed at the Presidential Business Working Group session, which was hosted by President Jacob Zuma at the Sefako Makgatho Presidential Guesthouse in Pretoria on Friday.

The Business Working Group includes government and business leaders.

Presidency spokesperson Mac Maharaj said the meeting assessed progress and implementation action plans in focus areas that include education and skills development, infrastructure, the labour regulatory environment, regulatory impact on investment and inclusive growth.

“Five task teams co-chaired by government and business updated the Presidential Working Group on plans developed and action initiated in the past 15 months,” Maharaj said.

He said the meeting followed President Zuma’s undertaking in his June State of the Nation Address that government would work with the private sector to remove obstacles to investment, promote inclusive growth and build a more prosperous society.

“All stakeholders have agreed to keep working together in the interest of maintaining momentum in the implementation of the National Development Plan, and in the interest of securing the livelihoods and sustainability of the country’s workforce and business sector,” Maharaj said.

Some of the plans the task team on the labour market revealed was that an Indaba on labour relations would be convened by Deputy President Cyril Ramaphosa in the near future.

Another further focus area for the task team was the promotion of workplace stability, democracy and productivity to build business confidence and promote transformation in the workplace.

The Presidential Infrastructure Coordinating Commission (PICC) would host quarterly meetings with business on the infrastructure build programme, update business on developments and create a forum for business to make inputs on the overall infrastructure build programme.

The commission was established to forge partnerships among government departments across all spheres of government to ensure that infrastructure investment is rolled out without unnecessary delays.

The projects under the PICC – headed by different departments - cover more than 150 specific infrastructure interventions in rail, road, ports, dams, irrigation systems, sanitation and electricity.

“The Skills and Education Task Team is working to achieve socio-economic development through a partnership that supports better quality education, youth employment, job creation and the development of skills to meet labour market needs,” Maharaj said. – SAnews.gov.za

Trade and Industry Deputy Minister Mzwandile Masina says the department has so far registered 18 qualifying black industrialists in a range of sectors to grow the South African economy. “We will continue to accept applications from industrialists, as we have set a target of 100 black industrialists that we want to up-scale,” Deputy Minister Masina [...]Black industrialists programme to grow SA economy is a post from: South Africa Business



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Generally speaking, the richer you are, the happier you’re likely to be, according to new research by Brookings Institution Justin Wolfers. ...

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Government has proposed a new framework for funding state-owned companies, which will include closer monitoring of such entities.

In the Medium Term Budget Policy Statement (MTBPS) tabled in Parliament on Wednesday, National Treasury has said that state-owned companies and public entities play important roles in realising government’s economic and social mandate.

These entities need to be financially sound and operationally effective, contributing to development without draining the fiscus.

“Government is proposing a new framework for funding state-owned companies that will distinguish purely commercial activities from the costs of exercising their developmental mandate,” said National Treasury in the MTBPS.

The new framework will include closer monitoring of these companies to ensure efficient delivery on government priorities while simultaneously promoting improved commercial performance.

Briefing reporters ahead of tabling his maiden MTBPS, following his appointment to the post several months ago, Finance Minister Nhlanhla Nene said they were looking at state-owned companies closely.

“State-owned companies are a risk we are watching closely. We are working with Public Enterprises Minister [Lynne Brown] to come up with a plan that deals with them comprehensively,” Minister Nene told journalists.

Over the medium term, any funding of state-owned companies will be contingent on the implementation of sound restructuring plans with strong government oversight.

According to the MTBPS, given the fiscal constraints over the next two years, capitalisation will only be funded by the sale of non-strategic state assets and will not be drawn from tax revenue or added to the debt of national government.

Government policy remained that state-owned companies should operate on the strength of their balance sheet.

The MTBPS noted that reforms are being undertaken at South African Airways (SAA), SA Express, the South African Post Office and the Land Bank.

While tabling the MTBPS, the Minister said that steps to safeguard power parastatal Eskom have been taken to secure its financial stability.

“Eskom will borrow a total R250 billion over the next five years supported by existing guarantees from government. Government will provide at least R20 billion of funding, raised through the sale of non-strategic assets. This will be deficit neutral.

“The capitalisation of Eskom will only occur once these funds are realised. If necessary, consideration will be given to a partial equity conversion of the R60 billion loan that has already been provided,” said Minister Nene.

Financial assistance to municipalities for free basic services will continue, ensuring that the poorest households are protected against rising electricity tariffs.

National Treasury noted that electricity supply will remain tight until the first units of the new Medupi power station located in Lephalale, Limpopo, come on line. - SAnews.gov.za

According to recent research, in the UK the minimum amount people need as annual income of £15,000 (about $25,000) for a comfortable retirement.

At current rates, to generate a pension at that level requires investing capital of around £260,000 (say $440,000)

copyright: Martin Spring of OnTarget