Perhaps the most tangible evidence that JSE-listed Eqstra Holdings was tentatively starting to emerge from a bruising trough was that it had increased its employment numbers by 600 people over the last year, to reach a staff total of 6 600.
“We are investing in technical support, in ramping up production,” said CEO Walter Hill in Johannesburg on Wednesday.
“Of the 600, 320 are apprentices and field service agents in training.”
While the full 2010 financial year had dented the company’s earnings severely, with revenue down 12% to R6,9-billion, and operating profit down 23,9% to R718-million, the second half of the year saw a return to profitability, with profit before tax of R100-million, compared with a loss of R20-million in the first half of the financial year.
“This is a tale of two halves,” said Hill. “This will be the year of the trough for us . . . hopefully we are entering a recovery period now.”
He pointed out that the group’s operating margin had again inched up to 12% in the second half of the 2010 financial year, up from the 6% achieved in the second half of the previous financial year. Inventories had also been cut by 30% for the 2010 financial year compared with 2009.
Hill said Eqstra is “showing signs that we have taken control of the business . . . we have managed to stabilise the business, turning it around.”
None of the divisions within the Eqstra group achieved growth in revenue for the 2010 financial year compared with the previous financial year, with contract mining and plant rental (including MCC) dropping 1,2%; distributorships (including Terex and New Holland Construction) shedding a massive 45,1%; and industrial equipment (including Toyota Forklift) seeing revenue decline by 10,5%. The passenger and commercial vehicle division (including FlexiFleet) managed to curtail its revenue drop to 1,4%.
“We took the most pain in distributorships,” acknowledged Hill. “We are giving a lot of attention to the recovery of this business.”
He added, however, that a shrinking market was largely to blame for the division’s R116-million operating loss in the 2010 financial year, jumping from a R16-million loss in the previous year.
Terex supplies equipment into the mining industry, while New Holland Construction supplies capital equipment into the construction sector, with both sectors hard hit by the recession.
Hill said there was currently a lot of activity in the mining sector, which offered hope for the distributorship division, but added that the construction market in South Africa “was still very flat”.
He was also optimistic about the contract mining market, noting that it had now expanded by such a margin that it again offered alternatives should a particular project stall.
Tuesday, August 24, 2010
Gauteng To Unveil Industry Sector Plan Within Weeks
The Gauteng provincial government expects to unveil the identities of the business sectors that it plans to support under a refined provincial industrial policy action plan within weeks.
Economic Development MEC Firoz Cachalia reports that a team from the University of the Witwatersrand has completed a study of the potential industries and that his department is in the process of finalising the adoption plan.
The programme forms part of a broader national industrialisation thrust, which is also integral to the emerging ‘New Growth Path', being developed jointly by Finance Minister Pravin Gordhan, Economic Development Minister Ebrahim Patel and Trade and Industry Minister Dr Rob Davies.
Gordhan has indicated that this new plan should aim to achieve yearly trend growth of 7% for a sustained period of 20 years, but he has also stressed that its success will depend on the development of a social compact between government, business, labour and civil society.
A national industrial policy actions plan, or Ipap2, has already been unveiled and has a focus on rebuilding South Africa's manufacturing base, particularly around the R800-billion-plus public infrastructure roll-out.
However, it also has a sector focus with automotive, nuclear, metals fabrication, capital equipment, chemicals and so-called green industries receiving priority attention.
Cachalia reports that the provincial plan will focus primarily on labour-absorbing and growth-generating sectors, with automotive, information technology and green industries likely to feature strongly.
The plan will also seek to align local industrial capacity with provincial and municipal procurement programmes that have been designed to deal with social and economic infrastructure backlogs.
The province is also in the process rationalising various economic agencies - including Blue IQ, the Gauteng Economic Development Agency and the Gauteng Enterprise Propeller - Gauteng Development Agency, into a single development agency, which will help drive the new sector vision.
"The main challenge now is to identify the sectors and to build the capacity to deliver support to them," he says.
The industrial plan would also feed into a larger growth and development vision for the province, which Cachalia expects to unveil during September.
The current suite of Blue IQ projects, including several automotive supplier programmes, would also be synchronised with the new industrial strategy.
Also high on the agenda, is the overhaul of freight logistics in the province, with Blue IQ CEO Amanda Nair indicating that new freight hubs would be created in a bid to improve the competitiveness of landlocked Gauteng as a producer of exportable goods.
A task team has been set up involving Blue IQ, the Industrial Development Corporation and the Development Bank of Southern Africa, as lead arranger, to set in motion a plan to move more freight on rail and to limit freight transit through urban centres.
Three hubs are envisaged, including:
A development in Southern Gauteng along the N3, north of Heidelberg and south of Vosloorus.
A hub at Chamdor on the West Rand.
And, a freight centre around ‘Auto City', in Rosslyn, near Pretoria.
By January, Cachalia believes that the province will be in a position to outline its growth targets and to elaborate on the instruments and incentives available to support private sector growth in the province.
Basil Read Says H1 Earnings To Fall, Shares Drop
The share price of JSE-listed Basil Read dropped by 6% on Tuesday, after the construction company said that it expected to report significantly lower interim earnings.
The group said headline earnings a share would be between 25% and 35% lower in the interim period ended June 30, compared with the previously reported corresponding period.
Earnings a share could fall by 20% to 30%, the company stated.
Basil Read's share price fell by 6,2% on the news, to a low of R11,63 a share following the release of the trading statement.
By 15:45, shares were trading at R11,80 a share.
Basil Read would publish its results on August 31.
The group said headline earnings a share would be between 25% and 35% lower in the interim period ended June 30, compared with the previously reported corresponding period.
Earnings a share could fall by 20% to 30%, the company stated.
Basil Read's share price fell by 6,2% on the news, to a low of R11,63 a share following the release of the trading statement.
By 15:45, shares were trading at R11,80 a share.
Basil Read would publish its results on August 31.
Lazarus Zim’s Afripalm Forms Infrastructure Alliance With Chinese Group
China Railway Construction Corporation (CRCC) has agreed to form a joint venture (JV) with South African empowerment investment company Afripalm Horizon, led by Lazarus Zim, to pursue construction and infrastructure opportunities in South Africa and sub-Saharan Africa.
The companies announced in a joint statement on Tuesday that the JV would look at opportunities to build, develop, maintain and operate infrastructure, such as railway, roads, ports, electricity, real estate and water infrastructure.
CRCC is dual-listed on both the Hong Kong and Shanghai stock exchanges and is listed among the top 500 enterprises worldwide.
“This strategic alliance will foster greater economic cooperation between Chinese and South African businesses as part of a broader cooperation between Asia and Africa in the construction sector. Our aim is to help build Africa’s infrastructure in a manner that enhances investor returns while realising real economic empowerment of the African continent,” said Zim.
CRCC China-Africa Construction chairperson Chen Xiaoxing added that skills and knowledge transfer initiatives would be integral to the JV.
Skilled engineers, artisans, financial experts and construction specialists from China would be seconded to work on projects in South Africa to ensure skills transfers to, and the training of, South Africans, especially from historically disadvantaged communities, he stated.
The companies announced in a joint statement on Tuesday that the JV would look at opportunities to build, develop, maintain and operate infrastructure, such as railway, roads, ports, electricity, real estate and water infrastructure.
CRCC is dual-listed on both the Hong Kong and Shanghai stock exchanges and is listed among the top 500 enterprises worldwide.
“This strategic alliance will foster greater economic cooperation between Chinese and South African businesses as part of a broader cooperation between Asia and Africa in the construction sector. Our aim is to help build Africa’s infrastructure in a manner that enhances investor returns while realising real economic empowerment of the African continent,” said Zim.
CRCC China-Africa Construction chairperson Chen Xiaoxing added that skills and knowledge transfer initiatives would be integral to the JV.
Skilled engineers, artisans, financial experts and construction specialists from China would be seconded to work on projects in South Africa to ensure skills transfers to, and the training of, South Africans, especially from historically disadvantaged communities, he stated.
CO2 Tax Possible On All Cars, Old And New – Gordhan
Government is considering implementing a carbon dioxide (CO2) vehicle emission tax on all cars, both new and old, Finance Minister Pravin Gordhan said on Tuesday.
Speaking in the National Assembly on the Taxation Laws Amendment Bill and related legislation, he said this would be implemented by reviewing the approach to vehicle licence fees implemented by the provinces.
As public transport was improved, higher fuel levies could also be imposed and "we can also demand better quality of fuel" than was available in South Africa at present.
"All in all there is a place for all these mechanisms if we want to reduce the emission of greenhouse gases and ensure we leave our children with a better legacy when it comes to air quality and reducing the risks of climate change."
Gordhan said he had recently met with the CEOs of South Africa's largest vehicle manufacturers.
He had confirmed to them that the CO2 emission tax on new passenger vehicles would come into effect on September 1.
However, he had also taken into account some of their concerns, and therefore, the CO2 tax on double-cab bakkies would be delayed slightly and come into effect on an agreed date "in a few months time".
"It is the intention that this tax will be extended to all other light commercial vehicles at a later date," he said.
On the economy, Gordhan said the recession over the past two years had resulted in a massive drop of revenue last year of almost R68,9-billion – less than what had been budgeted for.
This resulted in the tax-GDP ratio dropping from almost 27% to about 24,4%.
"It is still going to take us another three to five years... to recover to a tax-GDP ratio of 28% that we had enjoyed and achieved in 2007/08," he said.
The GDP figures released earlier on Tuesday indicated growth of 3,2% and the leading indicators released by the South African Reserve Bank also indicated an uncertain economic climate ahead.
"However, let's be positive and hope that the prediction that our economy will still grow by three percent for the remainder of this year and for the year as a whole, happens to be true," Gordhan said.
The legislation gave effect to the tax proposals announced in the February budget, as amended.
They also closed certain tax loopholes to ensure an equitable system.
Closing tax loopholes had become an international concern and something that South Africa would focus on much more seriously in future.
Practices continued to exist that sought to provide certain employees with salary packages containing undue tax advantages.
These left a select group of employees with a lower tax burden than members of the general public who received their salaries in cash, he said.
Speaking in the National Assembly on the Taxation Laws Amendment Bill and related legislation, he said this would be implemented by reviewing the approach to vehicle licence fees implemented by the provinces.
As public transport was improved, higher fuel levies could also be imposed and "we can also demand better quality of fuel" than was available in South Africa at present.
"All in all there is a place for all these mechanisms if we want to reduce the emission of greenhouse gases and ensure we leave our children with a better legacy when it comes to air quality and reducing the risks of climate change."
Gordhan said he had recently met with the CEOs of South Africa's largest vehicle manufacturers.
He had confirmed to them that the CO2 emission tax on new passenger vehicles would come into effect on September 1.
However, he had also taken into account some of their concerns, and therefore, the CO2 tax on double-cab bakkies would be delayed slightly and come into effect on an agreed date "in a few months time".
"It is the intention that this tax will be extended to all other light commercial vehicles at a later date," he said.
On the economy, Gordhan said the recession over the past two years had resulted in a massive drop of revenue last year of almost R68,9-billion – less than what had been budgeted for.
This resulted in the tax-GDP ratio dropping from almost 27% to about 24,4%.
"It is still going to take us another three to five years... to recover to a tax-GDP ratio of 28% that we had enjoyed and achieved in 2007/08," he said.
The GDP figures released earlier on Tuesday indicated growth of 3,2% and the leading indicators released by the South African Reserve Bank also indicated an uncertain economic climate ahead.
"However, let's be positive and hope that the prediction that our economy will still grow by three percent for the remainder of this year and for the year as a whole, happens to be true," Gordhan said.
The legislation gave effect to the tax proposals announced in the February budget, as amended.
They also closed certain tax loopholes to ensure an equitable system.
Closing tax loopholes had become an international concern and something that South Africa would focus on much more seriously in future.
Practices continued to exist that sought to provide certain employees with salary packages containing undue tax advantages.
These left a select group of employees with a lower tax burden than members of the general public who received their salaries in cash, he said.
Telkom Aims To Renew At & T Talks, Says CEO
Telkom is looking to restart talks with AT&T Inc about its Africa partnership, which has so far brought little new business, the acting chief executive of South Africa's largest fixed-line operator said on Tuesday.
Jeffrey Hedberg also told Reuters on the sidelines of the company's annual shareholder meeting that Telkom was not looking for new acquisitions now.
Telkom agreed in April 2009 to work with AT&T to provide IT and telecom services in Africa in a bid to win business from foreign firms expanding on the continent, but so far the partnership has failed to win many contracts.
"The partnership (with AT&T) has not progressed to an extent we would like to date," Hedberg said, adding the problems stemmed from issues related to pricing and after-sales support.
"I am going to re-ignite discussions with AT&T," he said.
Telkom in April 2009 signed a memorandum of understaning with AT&T that would allow the US firm's clients in Africa to use Telkom's Internet-based network on the continent.
Telkom's network - built by acquiring companies such as Kenya's Africa Online and MWeb Africa - was to be linked to AT&T's global network, helping it win business from AT&T's customers.
The company is now focusing on existing customers, not acquisitions or chasing new licences, he said.
"We now know what we want to do with our South African customers...they need to be serviced in Nigeria, Nairobi. That's where much stronger focus is going to be now, rather than buying a third mobile licence in Cameroon or a fourth licence in Zimbabwe," he said.
Telkom has announced an ambitious R6-billion plan to enter South Africa's competitive mobile phone market, a move analysts have said would be very difficult.
"We are working very hard and remain committed to launch our mobile before year-end," he said.
Jeffrey Hedberg also told Reuters on the sidelines of the company's annual shareholder meeting that Telkom was not looking for new acquisitions now.
Telkom agreed in April 2009 to work with AT&T to provide IT and telecom services in Africa in a bid to win business from foreign firms expanding on the continent, but so far the partnership has failed to win many contracts.
"The partnership (with AT&T) has not progressed to an extent we would like to date," Hedberg said, adding the problems stemmed from issues related to pricing and after-sales support.
"I am going to re-ignite discussions with AT&T," he said.
Telkom in April 2009 signed a memorandum of understaning with AT&T that would allow the US firm's clients in Africa to use Telkom's Internet-based network on the continent.
Telkom's network - built by acquiring companies such as Kenya's Africa Online and MWeb Africa - was to be linked to AT&T's global network, helping it win business from AT&T's customers.
The company is now focusing on existing customers, not acquisitions or chasing new licences, he said.
"We now know what we want to do with our South African customers...they need to be serviced in Nigeria, Nairobi. That's where much stronger focus is going to be now, rather than buying a third mobile licence in Cameroon or a fourth licence in Zimbabwe," he said.
Telkom has announced an ambitious R6-billion plan to enter South Africa's competitive mobile phone market, a move analysts have said would be very difficult.
"We are working very hard and remain committed to launch our mobile before year-end," he said.
South Africas Economic Growth Slows To 3,2% In Q2
The 3,2% gross domestic product (GDP) growth figure for the quarter ended June, released by Statistics South Africa (Stats SA) on Tuesday, was lower than expected, particularly given that a significant part of the FIFA World Cup took place on South African soil during the period.
Investment solutions chief economist Chris Hart told Engineering News Online that 3,2% was "disappointing" as economic growth of around 3,6% was anticipated for the second quarter.
"A sturdy boost in the economy was expected over the World Cup period, but one should also account for the ‘holiday effect' that was created by the event, which would imply stronger growth in the services sectors and weaker growth in the country's production sectors."
He pointed out that the disheartening figure placed South Africa slightly above growth seen from developed countries, but below the strong growth experienced in emerging economies.
"One would have expected a stronger recovery by this stage, which may suggest that the authorities might be tempted to put in place additional measures for growth," Hart said.
Investec economist Kgotso Radira agreed, pointing out that the GDP outcome was weak despite the R93-billion that the National Treasury estimated was injected into the economy as a result of the World Cup. "Excluding this, GDP growth would have been much weaker than the 3,2%, showing that conditions remain challenging."
Radira said that given the weak growth in spite of favourable inflation outlook and the rand strength, Investec believed that an interest rate cut of 50 basis points was likely in September.
Nevertheless, speaking at the release of the GDP statistics in Pretoria, Stats SA director-general Dr Rashad Cassim said that sectors related to the World Cup event did show stronger growth rates. "This is evidence of some growth generated by the event, and we will see more of it in the next quarter, because the World Cup was spread over two quarters."
Even though quarter-on-quarter growth dropped from 4,6% in the first three months of the year, year-on-year growth climbed from a negative growth of -2,7% last year, to the 3,2% growth experienced this year.
Cassim told Engineering News Online that the main drivers behind the increase in economic activity during the quarter was the wholesale, retail, motor trade and accommodation industry that all climbed by 0,7 percentage points from the previous quarter.
Further, activity within the manufacturing industry rose by 1,1 percentage points, while government services were up with 0,5 percentage points.
In contrast, the mining and quarrying industry fell by -1,1 percentage points, owing to safety-related stoppages, stockpiling, labour issues and regulatory uncertainties.
Cassim said that if the third and the fourth quarter growth for the year was exactly equal to the first and second quarter of the year, South Africa was looking at a GDP growth of 2,3% for 2010.
Investec expected growth to remain below trend until 2012 as consumers remained overburdened by debt and rising job losses, and even then economists predicted growth rates of around 4%.
South Africa's Finance Minister Pravin Gordhan has recently called for a new sustainable growth path of 7% GDP growth for a period of 20 years, to alleviate unemployment rates, income inequality and serious health, education and infrastructural deficits in the country.
Hart emphasised that if the country was to even come close to such growth rates, it needed to "radically overhaul" its tax structures, industrial and regulatory structures, and seriously relook its labour legislation.
"Investors do not want to be faced with hostile unions and regulations.
"Growth is something you have to buy, which means that a country would need savings and a favourable investment climate to build additional economic capacity. A country could also resort to debt or cash float to acquire the capacity, but these methods are not sustainable over a longer period of time. This means that the burden side of our taxes need to be on the consumption side of the economy and relief is needed on the savings and investment side of the country's economy."
Further, Hart said that South Africa's industrial and sectoral policies also needed to be fundamentally amended. "The country's regulatory environment has increasingly become hostile to business and it is designed in such a way that it seems to protect the vested interests. We have too much regulation that supports the status quo of big businesses and not that of our smaller, entrepreneurial-type businesses.
"Without boosting small business, South Africa will never see the job creation that is needed. This has nothing to do with lowering interest rates or weakening the rand, but the cost of compliance that needs to be dropped. Regulatory authorities should act more like a police service, rather than being a process-orientated service."
Hart also said that the country needed a regime where labour negotiations were related to productivity rather than inflation, which would result in unions becoming allies of growth and company management, rather than enemies.
Investment solutions chief economist Chris Hart told Engineering News Online that 3,2% was "disappointing" as economic growth of around 3,6% was anticipated for the second quarter.
"A sturdy boost in the economy was expected over the World Cup period, but one should also account for the ‘holiday effect' that was created by the event, which would imply stronger growth in the services sectors and weaker growth in the country's production sectors."
He pointed out that the disheartening figure placed South Africa slightly above growth seen from developed countries, but below the strong growth experienced in emerging economies.
"One would have expected a stronger recovery by this stage, which may suggest that the authorities might be tempted to put in place additional measures for growth," Hart said.
Investec economist Kgotso Radira agreed, pointing out that the GDP outcome was weak despite the R93-billion that the National Treasury estimated was injected into the economy as a result of the World Cup. "Excluding this, GDP growth would have been much weaker than the 3,2%, showing that conditions remain challenging."
Radira said that given the weak growth in spite of favourable inflation outlook and the rand strength, Investec believed that an interest rate cut of 50 basis points was likely in September.
Nevertheless, speaking at the release of the GDP statistics in Pretoria, Stats SA director-general Dr Rashad Cassim said that sectors related to the World Cup event did show stronger growth rates. "This is evidence of some growth generated by the event, and we will see more of it in the next quarter, because the World Cup was spread over two quarters."
Even though quarter-on-quarter growth dropped from 4,6% in the first three months of the year, year-on-year growth climbed from a negative growth of -2,7% last year, to the 3,2% growth experienced this year.
Cassim told Engineering News Online that the main drivers behind the increase in economic activity during the quarter was the wholesale, retail, motor trade and accommodation industry that all climbed by 0,7 percentage points from the previous quarter.
Further, activity within the manufacturing industry rose by 1,1 percentage points, while government services were up with 0,5 percentage points.
In contrast, the mining and quarrying industry fell by -1,1 percentage points, owing to safety-related stoppages, stockpiling, labour issues and regulatory uncertainties.
Cassim said that if the third and the fourth quarter growth for the year was exactly equal to the first and second quarter of the year, South Africa was looking at a GDP growth of 2,3% for 2010.
Investec expected growth to remain below trend until 2012 as consumers remained overburdened by debt and rising job losses, and even then economists predicted growth rates of around 4%.
South Africa's Finance Minister Pravin Gordhan has recently called for a new sustainable growth path of 7% GDP growth for a period of 20 years, to alleviate unemployment rates, income inequality and serious health, education and infrastructural deficits in the country.
Hart emphasised that if the country was to even come close to such growth rates, it needed to "radically overhaul" its tax structures, industrial and regulatory structures, and seriously relook its labour legislation.
"Investors do not want to be faced with hostile unions and regulations.
"Growth is something you have to buy, which means that a country would need savings and a favourable investment climate to build additional economic capacity. A country could also resort to debt or cash float to acquire the capacity, but these methods are not sustainable over a longer period of time. This means that the burden side of our taxes need to be on the consumption side of the economy and relief is needed on the savings and investment side of the country's economy."
Further, Hart said that South Africa's industrial and sectoral policies also needed to be fundamentally amended. "The country's regulatory environment has increasingly become hostile to business and it is designed in such a way that it seems to protect the vested interests. We have too much regulation that supports the status quo of big businesses and not that of our smaller, entrepreneurial-type businesses.
"Without boosting small business, South Africa will never see the job creation that is needed. This has nothing to do with lowering interest rates or weakening the rand, but the cost of compliance that needs to be dropped. Regulatory authorities should act more like a police service, rather than being a process-orientated service."
Hart also said that the country needed a regime where labour negotiations were related to productivity rather than inflation, which would result in unions becoming allies of growth and company management, rather than enemies.
Ghana Says Oil Production To Start In December
Ghana is on track to pump its first barrel of crude in December but must be wary of seeing oil as the answer to all its problems, Vice President John Dramani Mahama said on Tuesday.
The West African State is poised to become one of the world's fastest-growing economies next year after its offshore Jubilee field comes on line.
It has said it is eager to avoid the "oil curse" of unevenly distributed wealth that has triggered unrest in other developing oil exporters.
"In December this year, Ghana will join the league of petroleum producing nations as commercial production begins in the Jubilee field," he told an oil and gas conference in the capital Accra. "Ghana cannot see the oil industry as a miracle wand to solve all problems."
He said the government was seeking to ensure transparency in the use of oil revenues from Jubilee, which he said holds about 1,6-billion barrels of crude, and to guarantee locals are employed in the sector.
Tullow Oil, operator of the Jubilee field, said in February output was scheduled to start in November, though the company and Ghanaian government officials have since said ouput would start by the end of the year.
The field will take four-to-six months to reach planned output of 120 000 barrels per day - a level it will maintain for three years, Ghana's energy minister told Reuters in an interview last month.
The government has projected oil production will boost GDP growth to 20% in 2011, up from around 6% in 2010, making it one of the world's fastest growing economies.
Mahama said on Tuesday that oil revenues based on current reserves could account for about 7% of Ghana's GDP.
Analysts have said a key challenge for the government will be to ensure petroleum revenues benefit ordinary Ghanaians, many of whom live on less than $2 per day.
The West African State is poised to become one of the world's fastest-growing economies next year after its offshore Jubilee field comes on line.
It has said it is eager to avoid the "oil curse" of unevenly distributed wealth that has triggered unrest in other developing oil exporters.
"In December this year, Ghana will join the league of petroleum producing nations as commercial production begins in the Jubilee field," he told an oil and gas conference in the capital Accra. "Ghana cannot see the oil industry as a miracle wand to solve all problems."
He said the government was seeking to ensure transparency in the use of oil revenues from Jubilee, which he said holds about 1,6-billion barrels of crude, and to guarantee locals are employed in the sector.
Tullow Oil, operator of the Jubilee field, said in February output was scheduled to start in November, though the company and Ghanaian government officials have since said ouput would start by the end of the year.
The field will take four-to-six months to reach planned output of 120 000 barrels per day - a level it will maintain for three years, Ghana's energy minister told Reuters in an interview last month.
The government has projected oil production will boost GDP growth to 20% in 2011, up from around 6% in 2010, making it one of the world's fastest growing economies.
Mahama said on Tuesday that oil revenues based on current reserves could account for about 7% of Ghana's GDP.
Analysts have said a key challenge for the government will be to ensure petroleum revenues benefit ordinary Ghanaians, many of whom live on less than $2 per day.
Standard Bank To Work With China Rail
South Africa's Standard Bank Group said on Tuesday it has signed memorandum of understanding with China Railway Group to cooperate on funding for rail and infrastructure projects in Africa.
Bloomberg News reported earlier on Tuesday that China Railway is in talks with South Africa's government to build a $30-billion high-speed rail network, citing the chairman of the firm.
South African President Jacob Zuma and a delegation of more than 370 business representatives are on a three-day trip to China, to encourage more investment in Africa's biggest economy.
South Africa is looking for expanded trade and investment to meet its development needs by improving roads, communications and power and by generating more manufacturing jobs, Zuma told a forum of executives from the two countries.
Standard Bank, which is 20% owned by Industrial and Commercial Bank of China, said in an e-mailed statement the agreement "does not relate to any specific project at present".
The talks between China Railway and the South African government are at an early stage and no funding is in place, Li Changjin said at a forum in Beijing, according to Bloomberg.
Ahead of the 2010 soccer World Cup, South Africa launched the initial phase of the continent's first high-speed urban train, which cost R24-billion.
South Africa's Transport Minister Sibusiso Ndebele in April proposed the construction of a multibillion-rand high-speed train network linking Johannesburg and the city of Durban.
Ndebele said at the time he would ask the cabinet in this financial year to approve a feasibility study.
South Africa wants Chinese banks to help fund the project and China Railway wants South Africa to contribute up to 40% of the capital, Li told Bloomberg.
Bloomberg News reported earlier on Tuesday that China Railway is in talks with South Africa's government to build a $30-billion high-speed rail network, citing the chairman of the firm.
South African President Jacob Zuma and a delegation of more than 370 business representatives are on a three-day trip to China, to encourage more investment in Africa's biggest economy.
South Africa is looking for expanded trade and investment to meet its development needs by improving roads, communications and power and by generating more manufacturing jobs, Zuma told a forum of executives from the two countries.
Standard Bank, which is 20% owned by Industrial and Commercial Bank of China, said in an e-mailed statement the agreement "does not relate to any specific project at present".
The talks between China Railway and the South African government are at an early stage and no funding is in place, Li Changjin said at a forum in Beijing, according to Bloomberg.
Ahead of the 2010 soccer World Cup, South Africa launched the initial phase of the continent's first high-speed urban train, which cost R24-billion.
South Africa's Transport Minister Sibusiso Ndebele in April proposed the construction of a multibillion-rand high-speed train network linking Johannesburg and the city of Durban.
Ndebele said at the time he would ask the cabinet in this financial year to approve a feasibility study.
South Africa wants Chinese banks to help fund the project and China Railway wants South Africa to contribute up to 40% of the capital, Li told Bloomberg.
Record Number Of Entries For EELDC
Power utility Eskom this year received a record number of 567 entries from designers for its Energy Efficient Lighting Design competition (EELDC), which closed for entries on July 30.
The biennial competition aimed at encouraging the integration of energy efficient lighting in architectural, engineering, and interior design. Professionals and students too up the challenge to integrate energy efficient lighting sources with novel design solutions.
Each entrant assembled a working lighting fixture, designed specifically for energy efficient light bulbs.
"We are delighted by the large number of high quality entries that offer exciting new options and creative design solutions for energy efficient lighting in the future. This competition also encouraged and inspired designers, architects and engineers to integrate energy efficiency in their work for the rest of their careers," said Eskom EELDC steering committee member Barry Bredenkamp.
Many designers used natural fibres, coarse textures and beads in luminaires with an ethnic or environmental theme, while others opted for high-tech lamps using wire, metal, granite and glass.
Some bold designs incorporate energy efficient lighting as part of a coffee table or chair. Designers used compact fluorescent lamps (CFLs) in their designs, making full use of the versatility offered by a variety of shapes, colours, sizes and warmths of CFLs and LEDs that are now commercially available.
In addition to designing and building the working prototype, entrants had to prepare a budget, submit a sketch and a photograph for each entry, and also had to comply with strict safety and quality standards.
The final judging of participants would take place at Radiant Lighting in Johannesburg on September 21, where semi-finalists would have to present their lamps to a panel of judges. Regional judging expos would take place nation wide during August and September.
Students designed lighting fixtures for residential use, and the winning student would receive R30 000, with R20 000 for the runner-up, and R10 000 for the third place winner. There was also a cash prize of R10 000 for the institution where the winning student is enrolled. Ten most promising previously disadvantaged designers will win R1 000 each.
Professionals competed in the Innovative Energy Efficient Lighting Design category and the winner would receive R30 000.
The biennial competition aimed at encouraging the integration of energy efficient lighting in architectural, engineering, and interior design. Professionals and students too up the challenge to integrate energy efficient lighting sources with novel design solutions.
Each entrant assembled a working lighting fixture, designed specifically for energy efficient light bulbs.
"We are delighted by the large number of high quality entries that offer exciting new options and creative design solutions for energy efficient lighting in the future. This competition also encouraged and inspired designers, architects and engineers to integrate energy efficiency in their work for the rest of their careers," said Eskom EELDC steering committee member Barry Bredenkamp.
Many designers used natural fibres, coarse textures and beads in luminaires with an ethnic or environmental theme, while others opted for high-tech lamps using wire, metal, granite and glass.
Some bold designs incorporate energy efficient lighting as part of a coffee table or chair. Designers used compact fluorescent lamps (CFLs) in their designs, making full use of the versatility offered by a variety of shapes, colours, sizes and warmths of CFLs and LEDs that are now commercially available.
In addition to designing and building the working prototype, entrants had to prepare a budget, submit a sketch and a photograph for each entry, and also had to comply with strict safety and quality standards.
The final judging of participants would take place at Radiant Lighting in Johannesburg on September 21, where semi-finalists would have to present their lamps to a panel of judges. Regional judging expos would take place nation wide during August and September.
Students designed lighting fixtures for residential use, and the winning student would receive R30 000, with R20 000 for the runner-up, and R10 000 for the third place winner. There was also a cash prize of R10 000 for the institution where the winning student is enrolled. Ten most promising previously disadvantaged designers will win R1 000 each.
Professionals competed in the Innovative Energy Efficient Lighting Design category and the winner would receive R30 000.
Friday, April 30, 2010
India and Pakistan meet at Bhutan summit PMS
The history of India-Pakistan relations is full of examples of leaders from both countries travelling to distant points on the globe — from Tashkent and New York to Sharm el-Sheikh and Havana — to meet each other only to end up standing still. Meetings held in the subcontinent, on the other hand, have invariably led to breakthroughs, big and small. Think Simla and Lahore, Islamabad and Delhi. Each of these encounters produced conceptual breakthroughs that briefly carried some promise of momentum before being swamped by the forces of inertia, dead habit, treachery or bad faith that are the constants in this cursed relationship.
To the list of promising South Asian summits can now be added the name of Thimphu, where Manmohan Singh and Yusuf Raza Gilani met on Thursday. Defying naysayers within their respective establishments and wider strategic communities, the two Prime Ministers crafted a simple but elegant formula for breaking the current impasse, thereby ensuring that the process of engagement — stuck for several months — now has some chance of moving ahead. The Foreign Secretaries and Foreign Ministers have been tasked with meeting each other to assess the current state of the relationship and identify the reasons for the trust deficit. This is to be the first step in what will eventually lead to a dialogue process aimed at discussing and resolving all outstanding issues and disputes.
With the “composite” nature of the dialogue becoming a political stumbling block, India and Pakistan wisely decided to transcend the confines of nomenclature. The process they engage in may eventually take the form of the composite dialogue or, more likely, improve upon it. But that will depend on two factors, both equally important: the results of the review the two sides conduct, and their ability to reduce the trust deficit.
For India, the restoration of trust depends on very simple metrics. New Delhi's overarching priority is to get Islamabad to honour its commitment to prevent terrorists from using Pakistani territory to launch attacks on India. Mr. Gilani reiterated this promise in Bhutan but the Manmohan Singh government will need more than mere words in order to convince sceptics at home. It needs the seven Lashkar-e-Taiba men currently on trial in Rawalpindi for their involvement in the November 2008 terrorist attacks in Mumbai punished. And it needs credible evidence that anti-India terrorist organisations like the LeT and their leadership no longer have the freedom to operate. Infiltration levels in the valley, which have been rising over the past few months, also need to fall.
Even within the constraints of what Pakistan's increasingly independent judicial system is prepared to accept, there is a lot more that the Pakistani government can and must do to address Indian concerns. The current thaw assumes the absence of engagement is making it easier for the military establishment in Pakistan to justify the continuation of its links with anti-Indian extremists. Prime Minister Singh's decision to agree to the resumption of dialogue is based on the principle of trust but verify. If terrorist groups continue to speak and operate with impunity, chances are any substantive talks the two sides begin on issues like Kashmir or Siachen will flounder. After all, the oxygen of trust is needed to scale those daunting heights, which no leader has managed to ascend so far. As for water, it is hard to imagine India agreeing to surrender rights given to it by the Indus Water Treaty or shouldering obligations not enumerated there — which is essentially what Pakistan would like it to do — in the absence of trust and normality. Putting the terrorists out of business is, therefore, very much in Pakistan's interest.
As the two sides review the relationship, they will try and come up with a framework that can build on what the composite dialogue has accomplished so far while transcending its limitations. It is clear, for example, that bureaucrats and officials have done all they could to resolve Sir Creek and Siachen and that those discussions have reached the stage where a dialogue between politically-empowered envoys is the only way a settlement can be produced. Similarly on the “core issue” of Jammu and Kashmir, the back channel has proved to be a more effective platform for serious negotiation than the front channel operated by the two Foreign Secretaries. Should the Kashmir dialogue, too, be made political?
An obstacle here, of course, is that the Pakistani side appears to have repudiated the understandings reached between 2004-2007 on maintaining the territorial status quo, making borders irrelevant, demilitarising the area and crafting administrative links between the two parts of Kashmir. But even that is not the biggest problem since either party is well within its right to walk away from the back channel. Today, however, the real challenge in reviving and working the back channel is the lack of clarity in Islamabad about who Riaz Mohammed Khan — the designated counterpart of Satinder Lambah — will report to.
Political circumstances allowed General Musharraf to work within the dictum of l'etat c'est moi and India dealt with him as such. But today there is no clarity. Depending on how the wider internal politics in Pakistan plays out over the next year, some clarity may emerge. It is in India's long-term interest that democracy in Pakistan gets stabilised and empowered. This means, every effort must be made to work with Prime Minister Gilani and his government, while keeping lines of communication open with other political parties and leaders. There have also been suggestions in several high-level Track-II meetings that a dialogue between the intelligence chiefs of both countries could serve a useful purpose. These are issues that need to be discussed and evaluated when the Foreign Secretaries and Ministers take stock of where the relationship stands.
Alongside this evolving process, forward movement on trade, investment and energy sector cooperation would produce mutual gains that could enlarge the constituency for peace in both countries. None of this will work, however, if the leadership in India and Pakistan succumbs to the temptation of playing to domestic galleries. Going by the record of the past few years, terrorists will attempt to destroy this latest attempt to restart the dialogue. Acting with maturity and restraint in the face of provocation will pay more dividends in the long run. In Thimphu, both Foreign Secretary Nirupama Rao and Pakistani Foreign minister Shah Mahmood Qureshi struck the right tone even when “nationalist” questions were thrown at them. If the dialogue process is to survive the critical early months, leaders and officials up and down the food chain in India and Pakistan need to exercise great caution.
Telecom Minister Raja played king, defied PM
New Delhi: Telecom Minister A Raja has told Parliament that there was complete transparency in the allocation of 2G spectrum and he had nothing to hide. But hide he did -- from the Prime Minister.CNN-IBN has evidence to show that Raja defied Prime Minister Manmohan Singh and his written suggestion of auctioning 2G spectrum. A series of documents available with CNN-IBN show Raja was in a clear hurry in allotting spectrum, overruled the Prime Minister and even dismissed suggestions of taking the matter to the high-level EGOM (empowered group of ministers).A letter of 2 November 2007 from Singh to Raja clearly asks him to ensure fairness and transparency and cautions him against taking any measures without informing the Prime Minister’s Office. "Let me know of the position before you take any further action in this regard," says Singh’s letter to Raja.In the two-page letter, Singh objects to Raja's model of first-come-first-serve policy in allotting spectrum, and the 2001 pricing for sale in 2008.The PM also clearly instructs him to consider introduction of a transparent methodology like an auction and revision of the entry free.The letter appears lost on Raja, who responded to Singh the same day but offered no real reasons for his decision. His letter remains silent on Singh’s idea of an auction.For days there is no communication and then in a letter on December 26, Raja tells Singh he has received a consent from then External Affairs Minister Pranab Mukherjee and the Solicitor General.The locus standi of the two is questionable in this case but what further challenges the Telecom Minister is a letter from the Ministry of Law and Justice, which was always clear that the issue had to go to an EGOM for consideration.The documents make it clear that Raja was in a hurry and flouted Singh's written directions to take the PMO’s clearance before acting on the matter. He also risks being charged with dismissing the important suggestion of taking this matter to an EGOM that would have ensured transparency.The fact the government decided to auction 3G allocations is often seen as an admission that 2G was not so great and transparent as Raja claims.History of rowThe government issued new telecom licenses in January 2008 along with bundled 4.4 MHz spectrum for Rs 1,658 crore. The Opposition alleges that the licenses were given at 2001 prices and caused huge loss to the government. More on: spectrum allocation row Previous Story Spectrum scam returns to haunt A Raja Comments0 Existing Member Login Username Password Remember my password on this computer Not a member yet? All comments will be published after moderation. More from The Gallery The Gallery Inter reaches Champions League final Bayern sail into Champions League final Bull gores Spanish matador
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