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Old June 11th, 2012, 11:06 PM   #381
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Abeg, Naija hate SA.
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Old June 15th, 2012, 04:55 AM   #382
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Indian State-owned manufacturer establishes presence in SA
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By: Keith Campbell
14th June 2012
TEXT SIZE Indian State-owned diversified manufacturing company BEML opened its first office in Africa, in Johannesburg, on Thursday. This is to allow the further development of its business in South Africa and Africa – the company is already active in South Africa, Botswana, Tanzania and Zimbabwe.

“Our vision is to become a market leader diversified company and emerge as an international player,” said BEML international business division assistant GM Nagendra Kumar, who is responsible for Africa. He indicated that the company is keen to establish a post-sales service centre in South Africa and could set up a spares warehouse as well.

“We have 19 warehouses in India,” he pointed out. “We [also] have warehouses [abroad] in strategic locations.” The company already has what it calls “global establishments” in Brazil, China, Indonesia and Malaysia.

“This is a very important event from our perspective, from a national perspective,” enthused Indian High Commissioner to South Africa Virendra Gupta at the opening function. “We have a unique relationship [rooted in history] between our two countries, built on this very strong foundation. There is a natural willingness to partner with South Africa. There are business opportunities created for India, there are business opportunities created for South Africa. These create wealth, these create jobs.”

The company, which had a turnover of $800-million in 2009/10, is organised into three main business groups – mining and construction, defence and rail and metro – and four new business divisions (technology, trading, aerospace manufacturing and international business).

The company originally started out as a defence concern, and, despite its diversification, remains under the aegis of the Indian Ministry of Defence. Founded in 1964, it was listed in 1992 and is now 54% State-owned and 46% publicly held. All its businesses are ISO 9001:2008 certified. It has exported to more than 58 countries.

Edited by: Creamer Media Reporter
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Old June 16th, 2012, 12:05 AM   #383
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Doing business in Nigeria: An expat’s view

South African Pieter de Wet has been living in Lagos, Nigeria for the past nine months. He works for First Guarantee Pension Limited as research analyst focussing on Africa.

To learn about Africa, and in his case Nigeria, you have to be on the ground, says De Wet. “You can’t sit in Cape Town in your ivory tower and try and understand Africa. The first world is easy to analyse from there, but not Africa.”

“You have to get to know the culture,” he says. “For instance, most African companies pay their dividends out all the time. This is a very short term view and results in a vicious cycle. People don’t want to invest anymore if they don’t receive dividends, but this means there is nothing left to invest back into the company.”

“In 2004 the Nigerian pension industry was basically resurrected from the dead and a few licences were granted to Pension Fund Administrators (PFAs). The new legislation has done a lot for the industry, but they are still far behind South Africa with regards to the sophistication of the market,” he says.

Despite the opportunities in Africa, major obstacles remain to doing business on the continent. De Wet says that he will schedule meetings for the day, lasting only one or two hours, but then end up spending three hours in the traffic just getting there and back. “I have never seen anything like it in my life,” he says.

“Between entering the airport and getting on a plane I get bribed an average of three times. Everyone wants something, it has become ingrained. It is a big system and change is not going to happen overnight,” he says.

Another issue is power supply. “We get about 10 hours’ of power from the grid, the rest of the time we use generators. The pollution and noise are sometimes unbearable. About 45% of a company’s revenue is spent on power,” he says.

However, he remains positive about Africa. “Politically it is beginning to stabilise, which means it will draw more investors. For instance Shoprite can now build a shopping centre, without fear that it will be taken away,” he explains.

Generalising about Africa remains a big mistake. “People blindly think that Africa is the new China, but this is naïve. Africa is a continent, some parts are awesome and others are not.”

“We are now setting up a private equity fund, which will invest in shopping malls in Nigeria, worth around $75 million to $100 million. This is a revolutionary concept in Nigeria,” he says.

While De Wet says he misses fresh fruit and vegetables and dining out at a reasonable price, one thing he does not miss is South Africa’s pessimism.
“People do not realise how advanced South Africa’s infrastructure and systems are in comparison to the rest of Africa. Our media has made us a negative bunch that keeps thinking it is the end times and that South Africa will become Zimbabwe or Nigeria,” he says.

“The media in Nigeria is a lot more positive, maybe because the country has come from a more desperate place,” he says. “In South Africa the media is extremely negative, we hardly see any news about projects that are successful, somewhere something must be going right? I can almost understand the South African government’s animosity towards the media.”
“All the feel good stories are about nature or some silly funny story. The South African media is terrible in that regard. The afro-pessimism is apparent in almost everything they write. Everything is not as black and white as they make it out to be,” he explains.
came across this and though it an interesting read. I've visited SA a few time on business and is always struck by how negative the media can be. complaints are legitimate, sure, but less balanced than on this forum, usually.
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Old June 16th, 2012, 02:41 AM   #384
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Old June 16th, 2012, 09:17 AM   #385
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Roddas, that is a good article. Nigeria is like this huge opportunity just waiting to be taken - I think for people with guts and vision, there is almost unlimited potential there...and some of it is starting to be realized.

And true about South Africans and the media...just endlessly negative...it is actually more boring than frustrating these days!
They don't see that SA is in a prime position between the developed world and Africa as a whole...we have so much to look forward to!
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Old June 16th, 2012, 11:40 AM   #386
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Indeed...that's why I've forced myself to stop reading the news for a few weeks on occasion because it did nothing but make me an angry, stressed person or depressed.
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Old June 16th, 2012, 01:26 PM   #387
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RODDAS, are You Jamaican?
yes suns, i was born in england to jamaican parents and grew up in canada, now living in london. trying to get jamaican companies engage with africa.
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Old June 18th, 2012, 10:41 AM   #388
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New index shows lower growth for major economies

Some large economies show significantly lower growth when natural assets such as forests and water are factored into growth indicators, an index showed on Sunday, a few days before an international sustainability summit starts in Rio de Janeiro.

The Inclusive Wealth Index was unveiled by the United Nations University's International Human Dimensions Programme on Global Environmental Change (UNU-IHDP) and the United Nations Environment Programme (UNEP).

Scientists and environment groups have been pressuring governments to include the value of their countries' natural resources - and use or loss of them - into future measurements of economic activity to show their true future growth prospects.

The idea of an expanded indicator known as GDP+ to include GDP and natural capital will be on the agenda of the Rio+20 summit from June 20 to June 22, when environment ministers and heads of state from around 200 countries will try to define sustainable development goals.

The index shows the "inclusive wealth" of 20 nations, taking into account manufactured, human and natural capital like forests, fisheries and fossil fuels, instead of relying only on gross domestic product (GDP) as a growth indicator.

The index assessed Australia, Brazil, Canada, Chile, China, Colombia, Ecuador, France, Germany, India, Japan, Kenya, Nigeria, Norway, Russia, Saudi Arabia, South Africa, United States, Britain and Venezuela, from 1990 to 2008.

Together, these countries accounted for almost three-quarters of global GDP over the 19-year period.

The index showed that 19 out of the 20 countries experienced a decline in natural capital. Six nations also saw a decline in their overall inclusive wealth, putting them on an unsustainable track, UNEP said.

"Rio+20 is an opportunity to call time on gross domestic product (GDP) as a measure of prosperity in the 21st century, and as a barometer of an inclusive green economy transition," UN under-secretary general and UNEP executive director Achim Steiner said in a statement.

"It is far too silent on major measures of human well-being, namely many social issues and the state of a nation's natural resources," he added.

NATURAL CAPITAL

The index showed that even though China, the United States, Brazil and South Africa experienced GDP growth, their natural capital was significantly depleted.

When measured solely by GDP, the economies of China, the United States, Brazil and South Africa grew by 422%, 37%, 31% and 24% respectively between 1990 and 2008.

When their performance was assessed by the IWI, China's economy grew by 45%, the United States by 13%, Brazil by 18% and South Africa decreased by 1%, mainly due to the depletion of natural resources, UNEP and UNU-IHDP said in a statement.

Six nations - Russia, Venezuela, Saudi Arabia, Colombia, South Africa and Nigeria - experienced negative growth under the IWI, whereas it was positive under GDP measurements.

Commenting on the report, John Sulston, chair of the Royal Society working group on population and Nobel Prize-winning scientist, said traditional measurements of wealth do not take into account the state of the world around us and the inclusive wealth index was a way of correcting this deficiency.

"Applying the IWI to a sample of 20 countries reveals some that are considered good economic performers are actually in the environmental red, borrowing natural resources that they just can't pay back," he added.

http://www.engineeringnews.co.za/art...ies-2012-06-18
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Old July 12th, 2012, 06:41 PM   #389
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Govt wants to slay cost dragon

July 8 2012 at 12:35pm
By Bruce Cameron

Governments and regulators around the world are increasingly drawing the battlelines more firmly amid growing public anger over widespread abuses in the financial services industry that, in recent years, have either undermined people’s ability to save or reduced their savings.

This week, the massive gap in perceptions between government and the financial services industry was highlighted at the launch of National Savings Month at a breakfast in Sandton hosted by the South African Savings Institute (Sasi).

The launch was attended by representatives of the industry, government and the regulators, who again for the most part talked past each other, while industry representatives did not deal with the concerns raised by government.

Earlier this week in Pietermaritzburg, at a conference organised by the KwaZulu-Natal provincial government, Finance Minister Pravin Gordhan accused the financial services industry, including the banks, of being “greedy monsters” driven by “undignified greed”. The industry is in a moral and ethical crisis, Gordhan says.

“Vulnerable South Africans can be exposed to unfair and manipulative sales and are offered products that will strain their finances,” he is reported as saying.

However, the banking industry dismissed Gordhan’s criticisms as applying to the latest international scandal – namely, the manipulation of interest rates in the United Kingdom by Barclays Bank (which owns Absa Bank).

At the Sasi breakfast, National Treasury deputy director-general Ismail Momoniat threw down the gauntlet to the financial services industry, challenging it to disprove Treasury’s contention that the pro-ducts it offers are not in consumers’ best interests, because they are too expensive and complex.

“We want you to prove us wrong. We want companies to come out and tell us that they have cheap and simple products in the best interest of consumers that their competitors do not have,” he says.

Momoniat says there are many reasons people do not save, ranging from the most important reasons of not having a job and not earning enough to save, to softer issues such as a culture of consumption, which in some ways can be explained by many people enjoying access to consumer goods for the first time and “playing catch-up”.

Between these hard and soft reasons is the problem of the financial services industry’s costs and products, Momoniat says.

The industry has a bad name because of its history. The bad name is based on the exploitation of consumers, he says.

“People do not save as a result of this reputation and because of their fear that all the returns that they should receive simply go into the hands of the industry,” Momoniat says.

However, everyone at the Sasi breakfast agreed that South African households do not save enough, borrow too much to fund consumption and spend too much.

TWO-THIRDS OF HOUSEHOLDS SAVE NOTHING

Almost two-thirds of South Africans who are in full-time employment say they spend everything they earn and save nothing. And this shocking figure is up from 39 percent in 2011 and 34 percent in 2010.

This is one of the findings of the third Old Mutual Retirement Monitor, which measures the financial perceptions of 1 000 people in full-time employment who live in South Africa’s metropolitan areas.

The survey also shows that over the past three years South Africans have steadily increased their use of informal savings vehicles, such as stokvels, burial societies and grocery schemes, while their use of retirement funds has, after a drop last year, recovered to the level at which it was two years ago. The use of risk life assurance and controversial life assurance endowment savings products has fallen.

Old Mutual says the survey shows that most South Africans prioritise savings products that will provide for their children’s education, while the use of short-term insurance and products to cover medical expenses has jumped over the past year.

The survey shows that the wealthier people are, the more likely they are to save and use financial products.

Of those surveyed, 58 percent say they belong to an occupational retirement fund.

Only 53 percent of those who earn more than R40 000 a month use occupational retirement funds to save for retirement, but people in this income group rely extensively on retirement annuities (73 percent).

However, 31 percent of the people surveyed do not save for retirement through a formal product.

Of those surveyed, 77 percent see retirement as their main savings objective, while 49 percent have education as a savings objective. Repayment of debt comes further down the list of priorities (the objective of only 10 percent of respondents), while 39 percent would like to save so they can go on a holiday.

About 34 percent of those surveyed are looking to their children to provide for them when they are old, while 32 percent hope government will take care of them if they cannot do so.

As people get older, they increasingly see saving for retirement as a priority, but they probably leave it too late to save sufficient money. Only 28 percent of people under 25 see retirement as a savings objective, but this percentage climbs to 69 percent for people who are aged 50 to 64.

Age group and life stage also affects other savings objectives. For example, 59 percent of respondents in the 35 to 40 age group see their children’s education as a savings objective, against 24 percent of respondents under age 25 and 40 percent of those over 50.

On the other hand, 22 percent of respondents under the age of 25 see their own education as a savings objective. This percentage falls to three percent of those over 50.

Saving for a motor vehicle is the main objective of those under 25, with 48 percent of respondents in this group saying it is their top priority.

NOT MUCH TO SHOW AFTER 11-YEAR CAMPAIGN TO ENCOURAGE SAVING

The South African Savings Institute (Sasi) will press ahead with its 11-year-old mission to persuade you to save despite being unable to show any improvement in the level of saving by South African households, which continue to spend more than they earn and use debt to make up the difference.

At the launch of National Savings Month this week, Sasi members expressed their determination to continue with their campaign – this year under the banner of “Changing mindsets towards financial freedom: save now”.

Cas Coovadia, chief executive of the Banking Association of South Africa, says one mindset the country needs to move away from is trotting out statistics and simply saying that structural problems, such as poverty and unemployment, deter saving.

“Places like India and countries in other parts of Africa have greater degrees of poverty than South Africa but still have higher savings rates than us,” he says.

South Africa has to address the values that drive consumption and the desire for instant gratification rather than an urge to save, Coovadia says.

Sasi chairperson Prem Govender, who pointedly thanked Personal Finance for the role it has played in the campaign to promote saving, says: “You need to take charge of your life by saving.

“We need to remind South Africans that the power is in their hands to either strive for financial freedom by saving or to remain vulnerable to personal and family crises, or the effects of economic downturns.

“Sasi’s mission is to encourage South Africans to increase their savings as the path to personal freedom and because it improves our country’s financial strength.”

You will not only be helping yourself by saving; nations that save enjoy a certain degree of self-reliance, excellent economic growth and citizen well-being, Govender says.

South Africa’s national savings rate is dismal compared with its peers. The World Economic Forum’s 2011/12 Global Competitiveness Report ranks South Africa 72nd in the world for its gross national savings rate, which is the equivalent of 20 percent of gross domestic product (GDP) – worse than the rates of most of its Bric (Brazil, Russia, India, China) country peers.

China, which the report ranked second in the world, has savings equal to 54 percent of GDP; India, at 15th, has savings equivalent to 34.7 percent of GDP; and Russia, at 44th, has savings equivalent to 24.7 percent of GDP. South Africa fares marginally better than Brazil, which, in 90th position, has a savings rate equivalent to 17 percent of GDP.

In Africa, 13 countries have higher savings rates than South Africa.

Govender says increasing our national savings rate and extending financial security to the majority of South Africans can be achieved only by dramatically increasing access to financial products.

“Every South African should be able to access affordable financial services, such as bank accounts and insurance,” she says.

However, despite the new willingness by banks to target previously excluded communities, it is likely that it will be technologically low-cost platforms such as mobile phones that will accelerate financial inclusion.

According to the government’s draft National Development Plan, the proportion of the population with access to financial services should rise from the current 63 percent to 90 percent by 2030.

Govender says: “Without greater levels of personal financial literacy, many consumers may not be able to manage the financial products they purchase. An over-reliance on supposedly easy credit, without a firm grasp of its true ‘costs’, is a danger faced by many unwary citizens.

“Financial literacy forms the backbone of financial well-being.”

DRAFT RETIREMENT POLICY DOCUMENT DELAYED

The release of a draft policy document spelling out National Treasury’s proposals for the compulsory preservation of retirement savings has been delayed so that wider endorsement, particularly from organised labour, can be obtained for its principles.

National Treasury and the retirement savings industry are concerned about the ongoing leakage of retirement savings, which undermines the ability of most South Africans to retire financially secure.

It is already compulsory to preserve savings in a retirement annuity fund until the age of 55. But this is not the case with occupational funds, where savings can be withdrawn when members change jobs or when non-member former spouses receive a benefit on divorce.

http://www.iol.co.za/business/person...agon-1.1336110
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Old July 18th, 2012, 07:03 AM   #390
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SA growth forecast lowered as world economy struggles

By: Idéle Esterhuizen
17th July 2012

Weaker recovery in the world economy over the past three months has seen the International Monetary Fund (IMF) slightly lowering South Africa’s growth forecast for 2012 to 2.6% from 2.7% projected in April.

Although 2012 growth projections for the eurozone remained unchanged in the Economic Outlook (WEO) Update, published this week, growth rates for the UK and US were lowered to 0.2% and 2%, respectively.

“South Africa is a small, open economy that is vulnerable to what happens in the developed economies, especially through the trade links and by extension our manufacturing sector, which is in close correlation with our export sector,” Absa Capital macro economist Ilke van Zyl told Engineering News Online.

The country’s projected growth rate for 2013 was also lowered to 3.3% from 3.4% in the April forecast.

Van Zyl pointed out that although the projected growth rate of 3.3% for next year, which would hinge on the situation in the eurozone, was an improvement on the 2012 growth forecast, it was still not seen as significant growth.

“This suggests sluggish growth going forward, hampered by high debt levels,” she noted.

Similarly, sub-Saharan Africa’s growth for 2012 was lowered to 5.4%, from 5.5%, but remained the same for next year at 5.3%. This marked a fairly robust growth trend, which the IMF attributed to the region's relative insulation from external financial shocks.

“The sub-Saharan Africa economy is bucking the global growth trend; it is no longer Asia,” Van Zyl said.

Efficient Group economist Merina Willemse stated that higher growth in the region, compared with South Africa, was driven by countries such as Angola, Zambia and Nigeria.

On a global scale, the IMF report projected growth this year to remain relatively weaker than in 2011, especially in regions connected more closely with the euro area.

However, in contrast with the broad trends, growth in the Middle East and North Africa would be stronger in 2012 to 2013 relative to last year, as key oil exporters continued to boost oil production and domestic demand, while activity in Libya was rebounding rapidly after the unrest in 2011.

The IMF noted in its updated WEO that in the past three months, financial market and sovereign stress in the euro area periphery have ratcheted up close to end-2011 levels, while growth in a number of major emerging market economies has been lower than forecast, partly owing to a somewhat better-than-expected first quarter that projected world growth to be 3.6% in 2012.

However, the revised baseline projections in the WEO Update suggested that these developments would only result in a minor setback to the global outlook, with global growth at 3.5% in 2012 and 3.9% in 2013, marginally lower than 3.6% in the April report.

Willemse maintained that Europe’s economic issues would take time to resolve and that recovery would be slow. She, however, noted that 2012 would be the turning point.

http://www.engineeringnews.co.za/art...les-2012-07-17
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Old July 23rd, 2012, 12:58 PM   #391
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SA 2012 growth likely to miss 2.7% – Gordhan

South Africa's economic growth this year is likely to miss the government's current forecast of 2.7%, Finance Minister Pravin Gordhan said on Monday.

"We don't know what the precise numbers are but certainly the current indications are that growth is likely to be below 2.7%," Gordhan told Reuters on the sidelines of a conference.

The central bank on Thursday trimmed its growth forecast to 2.7% from 2.9%, in line with the National Treasury, but warned that the risks to the forecasts were on the downside if there was more widespread global downturn.


Edited by: Reuters

http://www.engineeringnews.co.za/art...han-2012-07-23
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Old July 23rd, 2012, 04:20 PM   #392
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Quite pathetic growth figures. And unemployment continues to fester
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Old July 23rd, 2012, 04:22 PM   #393
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What was SA's nominal GDP for 2011 and what is it expected to be in 2012?
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Old July 25th, 2012, 04:45 PM   #394
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Parallel Economic Universe
Clem Sunter

1. Introduction and Definition of U1/U2

Sadly, South Africa has two economic universes which are light years away from one another. The first universe is the formal part of the economy which for the purpose of this article I shall call U1. It is the one inhabited by government, large to medium-sized businesses, the trade unions and all the employees involved in the public and formal private sector. U1 transactions can be large as in new power stations or small as in purchases at a retail chain. The growth of the U1 economy relies on an increase in size and frequency of those transactions.

The second universe, or U2 economy, is what we normally refer to as the informal sector. It is entirely populated by small to micro business, experienced and new entrepreneurs alike, social entrepreneurs who have opened up NGOs and of course all those who work for them where they have employees. Transactions in the U2 space tend to be small unless an entrepreneur strikes it lucky. Rather, it is the number of transactions and velocity of circulation of relatively small amounts of money that determine the viability of the U2 economy.

2. International Examples of U1/U2 Economies

America has always been a hybrid U1/U2 economy on account of the importance placed on the role of entrepreneurship there. The culture of individualism has also meant that many Americans want to do their own thing in the U2 economy in preference to working for someone in the U1 economy. Britain in the early stages of the Industrial Revolution was a U2 economy, but over time it has evolved into a fairly uncompetitive U1 economy because of socialist policies and the barriers created by the class system. The gaping holes left by the disappearance of such industries as coal mining, steel and ship-building have never really been filled by new U2 entrants in the regions affected.

Japan and Germany are interesting. Having been flattened in the Second World War, neither of them suffered from the dominance of a U1 economy in the aftermath. Their resurrection was due to a balanced resurgence of both their U1 and U2 economies working in conjunction with one another. That relationship propelled Japan into one of the top three global economies and Germany to be the champion of present-day Europe. The dismal failure of many of the other European nations shows the disconnect between the U1 and U2 components of their economies.

Turning to the New World, India has basically been a U2 economy since its independence. It was shackled by an over-protective bureaucracy for a long time but has more recently been liberated. Voila, the annual economic growth rate of India soared from 2% to 8% and now large family businesses are making their presence felt in U1 economy worldwide. Brazil and Chile are notable exponents of granting greater status to their U2 brethren while guarding their U1 mining industries.

In Africa, the U2 revolution is occurring in virtually every sub-Saharan economy other than South Africa. The most powerful example of U2 economies is Nigeria with Lagos being tipped to take over from Johannesburg as Africa’s leading city. The Nigerian film industry which is still very much in the U2 stage has recently ascended to No2 behind India – the ranking in Bollywood, Nollywood, then Hollywood! The sheer entrepreneurial frenzy of the streets of Lagos is in direct contrast to the empty streets in Sandton other than people crossing the road to catch the Gautrain. Lagos currently resembles Hong Kong or Bangkok in its display of U2 businesses in every nook and cranny around town.

Which brings us to the Far East. The success of the Asian Tigers like South Korea, Singapore, Malaysia and Vietnam bear testament to the strength of their U2 economies and the fact that this lays the foundation for a growing U1 presence in industries like cars, computers and smartphones. The showcase of them all is China. As one Chinese woman whose father is closely connected to the Politiburo said to me the other day: "Westerners completely miss the principal driving force behind China shooting up 98 places in 33 years to become the second largest economy in the world. It is not foreign investment or state-owned enterprise though both played their part. The real reason was that Deng unleashed the entrepreneurial spirit of our country in 1978 and constructive economic anarchy has prevailed ever since." In South Africa, every town has its U2 China shop and the latest figure for Chinese-owned small clothing businesses in all provinces is 10 000. Elsewhere in Africa, the pattern is being repeated.

3. The History of U1/U2 in South Africa

When all those 19th century diggers were around in Kimberly and Johannesburg prospecting for and extracting diamonds and gold, South Africa was a U2 economy. With the consolidation of the mining industry and the formation of large state-owned corporations, we rapidly turned into a highly centralised U1 economy. Apartheid completely stunted the growth of the U2 economy as black entrepreneurs were severely restricted in the geographical areas in which they could do business.

After 1994, over-regulation and sheer ignorance of the workings of a U2 economy have substituted for apartheid in destroying any potential for growth. At the recent ANC policy conference in Midrand, nationalisation dominated the debate which is all about changing the ownership of the U1 economy. Apparently, little if nothing was said about fostering the growth of enterprise in the U2 sector. The SACP has never given the idea of small worker co-operatives the passion it deserves as a key component od the U2 economy. The National Planning Commission document is totally U1-oriented with its recommendation of boosting infrastructural projects. Entrepreneurship was hardly given a mention which is not surprising as nobody on the NPC has experienced the U2 world.

Black economic empowerment has concentrated solely on changing ownership and management structures in the U1 universe. Even when BEE was converted to broad-based empowerment, it was still restricted to U1. Generally speaking, big business has utter contempt for the parallel universe of U2 and in particular uses its authorised vendor programmes as an excuse to pay the defenceless U2 suppliers and service providers months after the goods or services have been provided. Big business also gouges unreasonable discounts out of smaller enterprises using its superior negotiating clout.

The only company I know of which actively incorporates U2 players in its supply chain is Anglo American through its Zimele programmes. Please tell me is there are other examples. The banks steer clear of the U2 sector given that transaction costs overshadow the interest costs on micro loans and they have no way of evaluating the risks. I would bet you that not a single bank economist could tell you what the growth rate of the Sowetan economy was last year or which township economy in South Africa performed best.

Lastly, the financial media in this country is totally focused on the U1 economy whether we are talking about newspapers, the internet, TV or radio. It is as if the U2 economy does not exist. But then they would not get the readership, viewership or listenership if they devoted too much time to the U2 champions. The exception is 702 with its Lead SA initiative.

Conclusion

So there you have it. We are a totally U1-based economy even though many of the great businesses in this country began their life as U2 gambles. If we are to meet the target of creating five million jobs by 2020, it will largely be as a result of creating one million new businesses in the U2 economy. We must do everything to find out more about it and then nurture the animal spirits – as Keynes would say – which make entrepreneurs bet their life and their money on new start-ups.

Steve Biko would agree with every word in this article because he believed that life was about people doing it for themselves. That is real empowerment and China, India, Brazil and Nigeria ate great examples to follow in terms of a U2 revolution here.

http://www.news24.com/Columnists/Cle...verse-20120725
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Old July 28th, 2012, 05:03 AM   #395
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I Dont Know,

Why do South African companies are not very present in Francophone Africa? Shoprite, Engen, SAB Miller, Pick n Pay, Mr Price, Stanbik Bank, MTN, etc..

for example in my country in Gabon. (except of Engen)
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Old July 28th, 2012, 10:56 AM   #396
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Language barrier perhaps? It's much easier for our companies to operate in anglophone countries.
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Old July 28th, 2012, 06:24 PM   #397
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No, his country is a corrupt, dirt poor shithole with nothing to offer. Why would companies want to spend capital in a place thats not going to deliver any profits? Gabon, seriously?
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Old July 28th, 2012, 07:07 PM   #398
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Quote:
Originally Posted by SUNS 25 View Post
I Dont Know,

Why do South African companies are not very present in Francophone Africa? Shoprite, Engen, SAB Miller, Pick n Pay, Mr Price, Stanbik Bank, MTN, etc..

for example in my country in Gabon. (except of Engen)
I think it's to do with the strong near monopoly the French State has on industries in francophone countries. These countries must change that relationship and do more to encourage trade with the rest of the continent.

There are some new exceptions like Senegal in some areas and Mali, (oops not a good example) But nonetheless, i think things will change in the near future. even Angola is starting to open up a bit more, yes yes i know, Angola is Portuguese, but you know what i mean.

Don't argue with briker, that's what he wants.
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Old July 28th, 2012, 09:34 PM   #399
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No, his country is a corrupt, dirt poor shithole with nothing to offer. Why would companies want to spend capital in a place thats not going to deliver any profits? Gabon, seriously?
Gdp per capita ppp.

Gabon: $15.000 Per capita.

SA: $11.000 per capita.

Source: WB, IMF, African Development Bank.

life expectancy.

Gabon: 61,7 years old
SA: 54 years old

Source: UN.

AIDS

Gabon: 5,6 %
SA:

Source: OMS, UN.

Crimes:

Gabon: 130 by years
SA: 18.000 by years

Middel class ( $2 a day)

Gabon: 75%
SA: 47%.

source: African Development Bank.

more of source if you want! pussy!!
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Last edited by SUNS 25; July 28th, 2012 at 09:59 PM.
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Old August 8th, 2012, 12:24 AM   #400
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SA, Jamaica eye stronger relations

South African President Jacob Zuma and First Lady Nompumelelo Zuma are welcomed by Jamaican Prime Minister Portia Simpson Miller at Norman Manley International Airport, Kingston, 6 August 2012



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President Jacob Zuma says he would like to see increased volumes of trade and investment between South Africa and Jamaica.

"We are committed to encourage and facilitate South African companies doing business in Jamaica, resulting in the steady growth in trade and investment between our two countries," Zuma said on Tuesday.

Zuma, who was on a working visit to Jamaica, was speaking following talks with Jamaican Prime Minister Portia Simpson Miller in Kingston.

As a first step towards this goal, the two countries envisage cooperation among universities on joint research projects, and student and academic exchange programmes.

A number of additional agreements are being negotiated between the two countries in the fields of science and technology, defence and security, social development, sport and culture, bilateral air services and public works.

Zuma said these agreements would serve to foster mutual cooperation, translating into stronger economic, social and developmental relations between the two countries.

"The talks are a clear indication of our collective determination to take our relations to higher levels for the mutual benefit of our respective countries," Zuma said.

Currently, the Jamaican and South African governments have waived visa requirements for all South African and Jamaican passport holders to enable nationals to enter each others' countries for up to 90 days without visas.

This provision has facilitated the smooth movement of South Africans and Jamaicans who are engaging in music, education and sport, among other things.

Zuma's visit culminated in his attendance of a grand cultural gala to mark Jamaica's 50th year of independence from British rule.


Source: SANews.gov.za

Read more: http://www.southafrica.info/news/int...#ixzz22tx6kzLj
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