Month: July 2024

South Africa’s 30-years of democracy presents a chance to reflect on how far the country has come while also providing the opportunity to create a path that promotes economic growth and nation-building.

‘The thirty-year mark of democracy is a crucial turning point for reflection on both how far we have come and, most importantly, where we are going in the immediate future and in the next 30 years as a nation.

‘In my considered view, I believe that we can all play a role in creating the country of our dreams. Not only the Government, but all sectors of society, including politicians, public sector, policy specialists, and the academia, must collaborate to create a path for our country that promotes economic growth, overall prosperity, and nation-building,” said Deputy President Paul Mashatile.

The Deputy President was speaking at the BBQ Awards ceremony and Gala Dinner in Kempton Park on Friday.

READ | Deputy President to address BBQ Awards ceremony

With South Africa having held elections on 29 May the De
puty President said: ‘Once again, as in 1994, we have the opportunity to build a united and prosperous South Africa under the GNU [Government of National Unity]’.

He added that the nation-building process is extensive with government’s vision being to establish a society that is founded on the most superior aspects of human civilisation, including political and human freedoms, socio-economic rights, value systems, and identity.

‘Indeed, the 2024 election outcomes present us with an opportunity to return to the task of building a South Africa that will not be defined by race, class, or gender.

‘However, we must not ignore the structural and systemic inequality that persists across all sectors of our economy, particularly in business and industry, if we are to build a truly united South Africa. Our dedication to non-racialism and working together does not mean we are unaware that the apartheid legacy still systemically disenfranchises individuals based on race, gender, and class 30 years later. However, we m
ust be positive about our nation’s future,’he explained.

He added that government remains committed to investing in people through education, skill development, and high-quality healthcare.

‘We aspire to improve our communities’ spatial perspectives by constructing inclusive cities and delivering services. We urge all segments of society to work with us to ensure that our democracy is stable, efficient, and effective, bringing all people together.

‘The Government remains resolute in its pledge to cultivate an environment conducive to the flourishing of black, youth, and women-led businesses.

Altering SA’s economic growth trajectory

As Government, we are leveraging the black-owned business sector to rebuild after the global economic downturn and COVID-19 pandemic. We are willing to have important conversations about how the informal economy can contribute to building our economy.’

He stressed that increase in the number of unemployed South is a concern.

‘The increase in the number of unemployed South Af
ricans, particularly among the youth, necessitates more immediate steps to assist us in fundamentally altering our economic growth trajectory. We must therefore have an open and inclusive conversation about rebuilding, which will result in increased economic activity.

‘We must acknowledge that there is a more pressing need to support aggressive means and forms of economic integration for black-owned firms, particularly in the historically untransformed sectors of the economy. We must pay close attention to how governments at all levels can create supportive policies and regulatory environments that support the informal economy.’

Hope and eradicating poverty

He added that amid the current discourse on the country’s economic trajectory, there is room for growth, development, and hope.

‘The Government’s efforts to restructure the economy through the B-BBEE [Broad-Based Black Economic Empowerment] policy, legislative framework, and other interventions have made progress, but further efforts are still required
. Despite the obstacles encountered since the passage of the B-BBEE Act two decades ago, our government remains unwavering in its mission to enhance and broaden economic empowerment and inclusion across all sectors.

‘This will continue to be the case even under the Government of National Unity.’

The Deputy President also called for collaboration in eradicating poverty.

‘If we do not collaborate, the Government alone cannot create stability or fulfil the National Development Plan and Vision 2030 goal of eradicating poverty. We must collaborate to broaden the scope of black-owned businesses beyond the convenience store chain, such as spaza shops.

‘Our economy has much to offer, and the informal sector, which is dominated by black-owned businesses, should take advantage of this reality.’

Source: South African Government News Agency

Trade, Industry and Competition (the dtic) Minister, Parks Tau has concluded a successful visit to the United States of America (USA).

The Minister was accompanied by a high-level delegation comprising the Deputy Minister of dtic, Andrew Whitfield, government officials, the private sector and organised labour. The delegation was participating in the 21st Africa Growth and Opportunity Act (AGOA) Forum that ran from 22-26 July 2024.

This followed the successful hosting of the 20th AGOA Forum in November 2023, in Johannesburg.

READ | Patel supports call for reauthorisation of AGOA

The Africa Growth and Opportunity Act is a unilateral trade preference scheme that provides qualifying sub-Saharan African countries with duty-free, quota-free access into the United States market. AGOA remains the cornerstone of the USA’s commercial relations with sub-Saharan Africa.

With AGOA expiring in 14 months, the African Ministers of Trade urged the Biden Administration and the Members of US Congress, for expeditious renew
al of AGOA with non-controversial enhancements and amendments for a minimum of 16 years to provide the required predictability and certainty to buyers, exporters and investors.

The Ministers called for the renewal of AGOA to be concluded by the end of 2024. There was an agreement to promote stronger and closer investment relations to complement AGOA and change the structure of Africa’s trade towards value-added exports.

‘We welcome the support expressed by both the Biden Administration and Members of Congress for the renewal of AGOA,’ said Tau.

The forum also highlighted the critical role that South Africa plays in the development of regional value chains on the African continent in a number of sectors, including the auto sector.

The delegation held extensive engagements with members of the US Congress and House of Representative, US Administration, US private sector and think tanks. The engagements focused on sharing information on the political developments in South Africa in particular the establishmen
t of the Government of National Unity (GNU).

‘We welcome the warm reception, as well as productive and constructive discussions we had with Members of Congress across the aisle and with the US Administration. There was a lot of interest in the GNU and its priorities, including efforts to deepen and enhance bilateral relations with the US,’ Tau said.

The delegation also used the engagements to advocate for the early reauthorisation of AGOA including exploring enhancements that facilitate greater utilisation and create the necessary policy stability to promote private sector investment and African exports into the US.

There was broad support for strengthening bilateral trade and investment relations between South Africa and the United States.

TIFA

‘We welcome the positive discussions with the US Trade Representative, Ambassador [Catherine] Tai and the agreement by both sides to resuscitate the Trade and Investment Framework Agreement (TIFA) at a Ministerial level, that last met in 2014.

‘We instructed our
officials to prepare for our first meeting which will provide a good platform for constructive discussions and effective resolution of trade related matters from both sides. The resuscitation of the TIFA provides new impetus to our strategic partnership,’ Tau said.

The US remains South Africa’s strategic trading partner and South Africa is the largest non-oil Sub-Saharan Africa exporting partner to the US and through AGOA has been able to boost both agriculture and value-added exports, thus creating much-needed jobs for South Africans.

The AGOA Forum is held on an alternate basis between Africa and the US. The 2025 AGOA Forum will thus be held in the Democratic Republic of Congo.

Source: South African Government News Agency

The Labour Ministers of South Africa, Brazil and Spain have expressed concern that labour inequality remains an unmet challenge in many societies across the world.

‘The only way to address this challenge properly is to abandon traditional models and responses, such as those favouring deregulation and market-based solutions, that have already been proven not to work and to accept that an expansive social response must be consensual and shared.

“Thus, in an expression of strengthened cooperation from three different continents, the Labour Ministers of Brazil, South Africa and Spain seek to advance towards a fairer distribution of the products of labour at a global level, adopting a common approach to tackling this problem that reflects our collective commitment to expanding labour rights the world over,’ said the Ministers in a joint statement on Friday.

Luiz Marinho is Minister of Labour and Employment of Brazil and South Africa’s Minister of Employment and Labour is Nomakhosazana Meth.

Yolanda Díaz is the
Second Vice-President and Minister of Labour and Social Economy of Spain.

The Ministers comments come on the occasion of the G20 Labour Ministers’ Meeting in Fortaleza.

The three leaders said the decline in labour share has been observed in many of the world’s economies, particularly since the wave of neo-conservatism in the 1980s.

The term “labour share” refers to the proportion of national income allocated to workers in the form of labour compensation, as opposed to that going to capital owners. The decline means that a smaller share of economic income is reaching workers, with most of it being distributed as returns to capital.

They said the undesired effects of a digital transition at the service of the few, labour flexibility and deregulation policies, and painful and ineffective austerity measures are just some of the causes behind this worrying trend.

‘Such developments sometimes result in the delocalisation of production, in the absence of social dialogue and trade union participation, in the gro
wing precariousness of working conditions, in an imbalance in collective bargaining that gives rise to low salaries or to fiscal policies that prioritize capital over work, or restrict natural growth in salaries. Neither Brazil, South Africa nor Spain is unaffected by these trends.’

In Brazil, the recovery of the economy following the COVID-19 pandemic has been underscored by positive milestones, including robust growth of gross domestic product (GDP) and improvements in employment metrics.

Despite these positive results, enduring challenges persist within the Brazilian labour market. According to the International Labour Organisation (ILO), Brazil exhibited very slight productivity growth between 2015 and 2023 (an annual average of 0.1%), while real wages fell 6.9 % in 2023.

South Africa’s labour market is also a prime example of declining labour share. Real wages have shown significant fluctuations, failing to keep pace with steady productivity growth.

‘This has led to a situation where workers are not
proportionally benefiting from the wealth they help create. The volatility of real wage growth compared to productivity underscores the disparity, which has been further exacerbated by shocks like the COVID-19 pandemic, which severely impacted economic growth, job stability, and both productivity and wage levels, leading to declining living standards and economic inequality for many South Africans.’

These disruptions highlight the vulnerability of workers’ livelihoods and contribute to widening labour inequality.

In Spain, productivity growth over the past few decades has been sluggish, with certain significant exceptions such as the upturn seen in 2022. However, salaries have grown at a considerably lower rate than corporate profit.

Overcoming challenges

‘In order to expand labour rights, our countries must overcome at least four fundamental challenges. Firstly, we must continue to raise wages. Real wages are growing at a far slower pace than productivity. As we have already demonstrated, abandoning neol
iberalism and embracing policies aimed at increasing labour compensation -and in particular the legal minimum wage- contributes decisively to ensuring that productivity gains are distributed to workers, reducing inequality and the scourge of the gender pay gap. We are committed to doing what we know to work.’

The Ministers said that while substantial progress has been made in terms of equality and diversity in the world of work, there are major challenges that must still be overcome in order to ensure that all people -irrespective of their gender, race, sexual orientation or gender identity- enjoy equal opportunities, fair treatment and decent working conditions.

‘Thirdly, the digital transition must be just, and workers’ individual and collective rights must be safeguarded throughout. We must make certain that digitalisation is placed at the service of decent work and not the other way around, ensuring that the use of technology makes human work less onerous.

‘Fourthly and lastly, we must combine our effo
rts to strengthen collective bargaining, halting, once and for all, the continuing decline in its coverage rate across the world. In this regard, we have trust in social dialogue as a powerful tool for mutual understanding and collaboration and thus as a means of achieving better living and working conditions.’

‘This is why, today, the Labour Ministries of Brazil, South Africa and Spain -reaching across the traditional and antiquated North-South divide- have agreed to establish a permanent and strengthened framework of collaboration and exchange on social and labour matters between our countries.’

According to the Ministers, the framework will guide policies in defence of increasing labour participation to ensure that workers receive a just share in national wealth.

‘In short, Brazil, Spain and South Africa will advance towards a new labour international, a global alliance that is fully aware that the major challenges to be overcome -the climate crisis, rising inequality, the erosion of democracies- must b
e tackled by expanding labour rights, and not by cutting them,’ said the Ministers in the joint statement.

Source: South African Government News Agency

President Cyril Ramaphosa has signed into law amendments to the Companies Act of 2008 that promotes the ease of doing business and imposes greater corporate transparency on the earnings gap between the highest and lowest paid persons in a company.

The Companies Amendment Bill and Companies Second Amendment Bill referred to the President for assent jointly constitute initiatives by government to make the conduct of business less burdensome, to tighten the pursuit of delinquent directors or prescribed officers for wrongdoing, including state capture and addresses disparities in earnings.

The Companies Amendment Act as signed by the President streamlines company law to be clear, user-friendly and less burdensome on the conduct of business. This reform is important for the efficient and effective conduct of the domestic economy as well as the attraction of foreign investment.

The Act is also aimed at achieving equity between directors and senior management on the one hand and shareholders and workers on the ot
her hand.

‘In addition, the law addresses public concerns regarding high levels of inequalities in society by introducing better disclosure of senior executive remuneration and the reasonableness of the remuneration.The law requires the preparation of a remuneration report by all public and State-owned companies in respect of the previous financial year,’ said the Presidency in a statement.

This remuneration report must be accompanied by the company’s remuneration policy and an implementation report that must set out detail on the total remuneration received by each director and prescribed officer as well as the total remuneration for the employee with the highest and lowest total remuneration.

Among other indicators, companies must report the average and median total remuneration of all employees, and disclose the remuneration gap between the total remuneration of the top 5% highest paid employees and the total remuneration of the bottom 5% lowest paid employees of the company.

Public and State-owned com
panies are now required to prepare and present a remuneration policy for shareholder approval.

Other provisions include the empowerment of a court to validate the creation, allotment or issue of shares, which would otherwise be invalid, upon application before the court by a company or any person who holds an interest in the company.

The law also requires paid shares to be transferred to a stakeholder and held in terms of stakeholder agreement, until fully paid.

These measures are directed at preventing unethical, reckless and criminal conduct in businesses that will impact negatively on shareholders, workers, clients and customers and the economy as a whole.

Companies Second Amendment Act

The Companies Second Amendment Act signed by President Ramaphosa contains a response by Government to one of the recommendations of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector, including Organs of State (State Capture Commission).

This law amends the
Companies Act to extend the period during which proceedings may be launched to recover any loss, damages or costs for which a person may be held liable under the law.

The State Capture Commission recommended that Section 162 of the Companies Act be amended so as to ensure that an application for a declaration of delinquency may be brought even after two years on good cause shown.

While the recommendations applied to specific cases, the new law extends the time bar for declaring a director of a company a delinquent director, from 24 months to 60 months. It also gives the court the power to extend the period on good cause shown.

This provision ensures that directors and prescribed officers in companies can be held accountable for a significant period after they have committed alleged offences.

Source: South African Government News Agency

Sport, Arts and Culture Deputy Minister, Peace Mabe has emphasised the importance of exercise in the overall wellbeing of the nation.

‘We are a winning nation and as a winning nation we need to be healthy. So encouraging our people to be involved in being active and exercising is part of us moving forward as a healthy country.

‘Being active in sport is not about having money, this kind of activity of bringing people together to walk as nation is one of the indicators that it is possible for people to organise themselves as communities [to take up walking],’ said the Deputy Minister in an interview with Radio 702.

This as the radio station hosted the Walk the Talk event in Tshwane on Sunday in celebration of 30 years of democracy following the historic elections of April 1994 where South Africans of all races went to the polls for the first time. The 1994 elections ushered in a new democratic dispensation.

The walk started from the Freedom Park Heritage Site and finished at the southern lawns of the Union
Buildings.

The Deputy Minister also encouraged South Africans to support Team South Africa as it participates in the 2024 Olympics in Paris, France. The opening ceremony of the games took place on Friday.

‘We are expecting more medals… they never disappoint. Let us tweet and send messages of support to encourage them [as they] represent the country. Let us rally behind the team,’ she told the station.

President Cyril Ramaphosa has wished Team South Africa the best success for the games.

READ | Well wishes for Team South Africa at Paris Olympics

In a post on X, President Ramaphosa congratulated the Springboks Sevens on obtaining South Africa’s first medal at the games on Saturday.

‘Well done to our Springbok Sevens on your bronze-winning 29-16 victory over Australia to open #TeamSA’s medal harvest at #Paris 2024. This is a great start to our Games,’ said the President.

Mabe as well as Minister in the Presidency Khumbudzo Ntshavheni and Gauteng MEC for Health and Wellness, Nomantu Nkomo-Ralehoko, were
among the many South Africans who participated in the walk.

‘Eight kilometre walk done (1h25) and the route was magnificent,’ said Minister Ntshavheni in a post on social media platform, X.

Source: South African Government News Agency

Igwe Samuel Asadu, Chairman South East Council of Traditional Rulers, at the News Agency of the Nigeria (NAN) Forum in Abuja

By Kingsley Okoye and Emmanuel Jonathan

Igwe Samuel Asadu, Chairman, South-East Council of Traditional rulers, says the council is not in support of the planned nationwide protest slated for Aug. 1 to Aug. 10.

Asadu is the traditional ruler of Edem-Ani Ogwugwu kingdom, Nsukka Local Government Area of Enugu state.

At the News Agency of Nigeria (NAN) forum in Abuja on Sunday, he said that the council would not support any agitation organised by some faceless people.

He urged those behind the protest to find other ways of ventilating their anger to avoid causing chaos across the country.

Asadu said that peaceful protest could be infiltrated by miscreants who would take laws into their hands to cause anarchy.

‘It is easier to destroy than to build, so all we are asking is for calm, we are asking for dialogue,’he said.

He urged the Federal Government to engage the people behind the m
ove in a dialogue as they may have their reasons for the protest.

The traditional ruler said that times are hard with the current economic situation in the country, coupled with the fuel subsidy removal.

‘I am feeling it in my community because the people come to me every day for assistance. We are not in any way supporting the protest at all.

See also Enugu Govt. to revamp 85 abandoned tourist sites

‘But I still want the government to see a way of engaging them in dialogue, the President is the Father of the nation,’ he said.

Asadu encouraged traditional rulers in the country to find a way to engage their people by organising festive activities periodically.

‘Find a way to engage the people, everything is not about government alone, insist on what you can do for your people and not what they can do for you as their leader,’he said.

NAN reports that several groups have announced their withdrawal from the planned nationwide protests against economic hardship.

A group from the South East, under the aegi
s of Enugu Innovative Youths, said they were opting out of the exercise to avoid exacerbating the security situation in the state and the country.

They recalled what transpired during the #ENDSARS protest, adding that the tendency to hijack the protest was too high and called for patience.

Source: News Agency of Nigeria