Monday’s official briefing on the Cabinet lekgotla announced that President Jacob Zuma would chair a new presidential state-owned entities (SOE) co-ordinating committee. Expected to be in place by year end, its structure will echo that of the Presidential Infrastructure Co-ordinating Commission which Zuma already chairs. This emerged amid the verbal candyfloss from Minister in the Presidency Jeff Radebe on the four-day government lekgotla which ended on Friday.

This decision effectively means Zuma is taking over from his deputy Cyril Ramaphosa, who since December 2014 has chaired the SOE inter-ministerial committee. Is this yet another twist to Cabinet power plays which previously have seen stand-offs with National Treasury?

Like infrastructure, SOEs have long been placed at the heart of government’s economic and transformative policies. But many are deeply troubled. SAA under chairwoman Dudu Myeni, who also chairs the Jacob Zuma Foundation, remains technically insolvent without a R5-billion government guarantee that National Treasury in these tough economic times is reluctant to hand over. Previous guarantees dating back years have not returned the national airline to financial health.

There are issues at Denel, embroiled in controversy over a joint venture with a company with links to the Gupta family and…

Africa has been touted as the new destination for investors. However, the continent still faces a myriad of challenges that hold back its potential, especially efforts aimed at improving business environment and alleviating poverty to ensure sustainable economic growth.

That's why Africa needs leaders who can tackle these challenges and translate them into opportunities to achieve the 'Africa we want' as per the theme of the recently-concluded 27th African Union summit in Kigali.

Supportive policies and infrastructure that promote entrepreneurship and trade on the continent will play a critical role in helping the continent rise from the 'ashes' to achieve the African renaissance dreams proclaimed by the likes of former South African President Thabo Mbeki, experts say.

According to Teddy Kaberuka, an economic analyst in Kigali, infrastructures, including transport, power and information and communication technologies (ICTs) facilities, are instrumental in supporting growth in the global economy. That's the reason why African countries must prioritise infrastructure development to ensure sustainable economic growth on the continent.

"The only way Africa can increase its production and strengthen its economy is by investing heavily in infrastructure development to support the production and ease access to markets and encourage intra-regional trade. Therefore, government must invest more in the energy, ICT and transport sectors because these are enablers of trade and development," he said. "Without enough power, the continent's production capacity will be affected, condemning the continent to rely on European imports."

Kaberuka adds that transport and ICT sector are essential to ensure access to markets by farmers and the industrial sector.

With the majority of the continent's enterprises falling in the category of small-and-medium enterprises (SMEs), experts call on African leaders to put in place policies and regulations that propel them further and help make them sustainable. The SME sector is the backbone of Africa's economies, employing the majority of the continent's youth and supporting millions of households.

However, the challenge of poor infrastructure and cumbersome border policies must be addressed for intra-country and intra-region trade to flourish. Most African countries are not trading with each other, preferring to trade with Europe and America where they face immense challenges as they largely deal in primary products.

According to AU statistics, improving the continent's infrastructures, like roads, energy and ICTs, can add up to 2 per cent to GDP growth rate per year and also increase productivity by 40 per cent. The World Bank attributed more than half of impressive growth recorded in Africa to infrastructure development on the continent because it offered many countries the required stimulus for growth.

Christian Rwakunda, the Ministry of Infrastructure permanent secretary, said putting in place right infrastructure is key driver for socio-economic development. He says improving transport networks and access to reliable energy and ICTs will reduce the cost of operations and ensure efficient production and service delivery.

"For instance, development of an efficient regional railway transport system would cut the cost of export/import by almost half and reduce the transit significantly. This would open up new opportunities for export and increase regional trade," he notes.

In addition, access to affordable and efficient energy for local industry is essential to grow the sector which is still almost dormant, he adds. Rwakunda says access to affordable power promotes growth of micro-industries allowing more Rwandans and Africans generally to engage in processing of raw materials into finished products and earn more revenue.

He says lack of efficient infrastructure facilities and skilled human resource has led to high costs of investment, while private investments remain low compared to the expectations of developing countries.

"As a result, development and operation costs remain high in Africa. For example, the recent development of the methane gas power project on Kivu Lake required skilled personnel do carry out research. Besides, implementation of infrastructure projects by foreign firms reduces benefits for local populations," he says. The PS notes that such situations are mitigated by knowledge transfer programmes to benefit the host countries.

"To address these issues, Rwanda has put in place an investor-supportive investment policy as well as created an enabling environment. The government also promotes public-private partnerships, especially for key projects and export-oriented investments."

"In addition, technical and vocational education has been given priority to bridge the skills gap in the industrial and other sectors," he says.

He adds that the government encourages local content development at all levels, including human resources, local materials, local partnership or sub-contracting. Rwakunda says the African leaders need to address the key challenges affecting the continent's development through regional frameworks that will help fast-track the implementation of the African Agenda. These efforts are crucial for the realisation of the ambitious continental free trade area (CFTA) initiative that seeks to promote trade with the continent, among others.
 

The CFTA will be made up of over one billion people, with a GDP of $3 trillion. It will also boost trade by 50 per cent among African countries by 2022. The continent's gross domestic product (GDP) is also estimated to rise from $1.7 trillion in 2010 to $2.6 trillion by 2020, while consumer spending will grow from $860 billion to $1.4 trillion over the period.

Already, plans are underway by three regional blocs on the continent to create the largest free trade area on the globe, from the Cape to Cairo. The tripartite free trade area will bring together the East African Community, the Common Market for Eastern and Southern Africa and the Southern African Development Community into a single new zone. This is envisaged to ease barriers to trade, and stimulate $1 trillion worth of economic activity across the region of more than 600 million people.

However, there is need to support the private sector with improved infrastructure and other facilities and initiatives to enable free movement of people and goods. Easing movement of goods and people is critical in driving the trade and that why the launch of the African e-passport at the Kigali AU summit was a key milestone for the continent that could help in the realisation of this goal. This remarkable step could help drive trade on the continent and spur sustainable socio-economic development.

Some of these efforts could eventually help address most of the challenges hampering business growth across the continent, which will in the long-run contribute to the realisation of the new Africa aspirations, making the African renaissance a reality.

Tanga — Minister of Energy and Minerals, Professor Sospeter Muhongo, has called on the private sector in Tanzania to take fully participation in a big multimillion East Africa Crude Oil Pipeline in order to benefit from it.

Professor Muhongo gave the remark yesterday as he visited chongoleni area in Tanga city, the site where the crude oil from Kabale, Ohima District in Uganda will be received for exportation at Tanga Port.

He said the projects was one of the biggest projects that the country has been undertaking, therefore the private sector should prepare and fully tape the opportunities which come with the project.

He said the project would bring in the country, particularly in Tanga region, people from different countries who would need some essential social services like hotels, transportation and food.

Therefore the private sector must prepare to meet the demand. "We don't like to see private sector blaming the government that they are not involved in a big project like this one.

That is why we call upon them to start investing so that the world may see that we are prepared to serve the big community that will fly in," he stated. He further said that for the project to become successful, it needs the readiness and commitment from the government and wananchi, thus everyone has an opportunity to benefit from it.

He, however, had challenged Tanga Region authorities to be active enough in promoting their services so that other neighbouring countries would see the readiness of Tanga people in receiving and utilizing the opportunities of the project.

"You people of Tanga have done nothing so far to promote the oil project and announcement of your service….you are waiting until the minister visits here…you must be aggressive and start to promote your region and services like hotels," he further said.

Speaking about compensation, Prof Muhongo said that everyone would be compensated according to initial survey satellite pictures taken.

Therefore those who developed their lands after that survey would not be compensated.

"Some people, after hearing that we are taking their land for the project, started to develop it in order to be compensated …we already have satellite photos which shows everything which was there on the land during the survey, therefore a new development will be a lose to the land owners," he clarified.

"In our country the land is a property of the government, but in other countries the land is fully owned by an individual..therefore here the oil pipeline will pass through road reserve areas which need no compensation except in few areas like here ..this is one of the reason which enabled us to qualify for the project rather than our neighbouring competitor ..apart from that Tanga port has efficient depth," he said.

Offering free Wi-Fi to all Johannesburg residents opens opportunities for employment and empowerment, according to the city’s head of broadband Zolani Matabese.

On Saturday, the City of Johannesburg promised free Wi-Fi for all residents within the next five years.

At the helm of the project, Matabese believes that the initiative will empower and create new opportunities for all citizens.

“You can use the internet to search for jobs. It is just an enablement of your ability to be a digital citizen because if you aren’t these days then you’re getting left behind,” he said.

“The internet is really just high-tech plumbing. You care about the applications that you can use on the internet and you do become reliant on them,” Matabese added.

The City of Johannesburg is aiming to install 1 000 hot-spots by the end of 2016 and become a Smart City by 2020.

Hot-spots have already been installed in and around Johannesburg at bus stations and rates offices – offering users 300MB of data per day.

“We generally see about 150 to 200 people per hot-spot per day that we have. The data is for users to do with as they wish. Obviously we don’t allow things like not-safe-for-work sites and how to make bombs. Other than that we’re not prescriptive on how people use it,” Matabese told Fin24.

The City of Johannesburg is currently working on a programme where digital ambassadors go out to citizens in public venues and teach them how to make use of the free Wi-Fi.

“I think it takes time for people to start using the technology in a way where you can say you’re really a Smart City but I think we’re getting there,” Matabese said.

“These days you do become reliant on technology and there is nothing wrong with that. As a government department or municipality iterates their offerings to the public there is of a pressure to keep up and to make sure that you’re not left behind by the rest of society and the rest of the arms of government,” he said.

A motorist was slapped with a R18 000 speeding fine for clocking 220km/h, n a 120km/h zone along the South Coast, the KwaZulu-Natal department of transport said on Monday.

Transport MEC Mxolisi Kaunda in a statement commended the Park Rynie’s Department of Transport’s Road Traffic Inspectorate team for arresting Ivan Botha, 28, on August 14, for speeding in a Golf 6 GTI at 220km/h on the N2 national route.

Kaunda said in a statement that Botha had been held in custody at the Scottburgh police station.

“The Scottburgh’s magistrate today [Monday] handed down a fine of R18 000,” said Kaunda.

“[This] should be a great lesson to all who endanger our lives. Speedsters are like murderers, because at any moment their actions could lead to devastating consequences, including death and maiming of other road users.

“More so, we commend the great work of the department’s Road Traffic Inspectorate team in the Park Rynie station, who always catch speedsters travelling to the South Coast. It is high time all road users, especially motorists, started taking our call for road safety seriously, and realise that it’s about life and death,” said Kaunda.

Abuja — The Presidency has denied media reports that President Muhammadu Buhari is seeking emergency powers to tackle the nation’s economic challenges.

The Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande, said in a statement to our correspondent late last night that the economic management team was considering several measures to urgently reform the economy but they had not yet been communicated to the president.
The vice president’s spokesman stated that those measures had also not been passed to the Federal Executive Council and the National Assembly.
He said: “The economic management team has indeed been considering several policy options and measures to urgently reform and revitalise the economy. Some of these measures may well require legislative amendments and presidential orders that will enable the executive arm of government move quickly in implementing the economic reform plans.
“As far as I know, this has not been passed on to the president, the Federal Executive Council or the legislative arm of government. So, at this point, there are no further details to share.”

A newspaper report yesterday said Buhari would be seeking emergency powers from the National Assembly to get the economy out of recession, shore up the value of the naira, create more jobs, boost foreign reserves, improve power and revive the manufacturing sector.
The report said the decision was based on a proposal from the economic team headed by Vice President Yemi Osinbajo
In the bill, the executive will be asking for the President to be given sweeping powers to, among other things, set aside some extant laws and use executive orders to roll out an economic recovery package within the next one year.

Mixed reactions

However, before the denial by the vice president’s office, the proposal had already found acceptance among industrialists and experts as well as some legislators who spoke to Daily Trust.

Many industrialists and experts said such proposal was long overdue and should be granted by the National Assembly.
Some senators and representatives interviewed said the request should be specific to avoid “issuing a blank cheque to the President”.

A ranking senator who spoke to on condition of anonymity said that the granting of the sweeping power to the President would negate the principle of separation of powers between the Executive and Legislature.
“What will be the function of the National Assembly if we grant these powers to the President? He has to be specific on what he wants. Approving this will amount to issuing a blank cheque to him. This will not be good as it will bring about dictatorship,” he said.
He said it would be very difficult for the bill to sail through at the National Assembly.
But on his part, the chairman of the Senate Committee on Ethics, Privileges and Public Petitions, Senator Samuel Anyanwu (PDP, Imo East) said they would support it if it would stimulate the economy of the country.
“Anything that would revamp the economy, reduce unemployment and put food on the tables of Nigerians would be supported as you know hunger is everywhere in the country,” he said.
Anyanwu, however expressed reservations about the request to empower the President to vire projects in the Appropriation Act without recourse to the National Assembly.
When contacted, the Senate Leader, Ali Ndume (APC, Borno South) said, “I haven’t seen the details of the bill, therefore I won’t comment on it.”
Also, the chairman of the Senate Committee on Rules and Business, Senator Baba Kaka Bashir Garbai (APC, Borno Central) said that they would support anything that addressed the challenges facing the country.
When contacted, the spokesman of the House of Representatives, Abdulrazak Namdas (APC, Adamawa) said the House would wait until such a time the president formally notifies members of his decision.
“For now, it’s in the realm of speculations. As you know, the House is currently on recess, but when we resume and if he eventually forwards the request, we’ll look at it and know what to do. But for now, we can’t say anything concrete,” he said.
However, an APC member in the House told Daily Trust that should the president write the National Assembly for such power, he might face serious challenge as many lawmakers would demand full explanation on what exactly he would want to achieve.
“There will be serious problem from the opposition. Some of us in APC too can be critical. For example, members will say let the president tell them the exact things he’s thinking about doing. What if he retrenches the workforce or reverses the minimum wage? What if it will have adverse effects on tax while industries are down? What if he says taxation should be escalated to 100 percent?
“So, we can’t just give him blanket powers. But if he says something like they’ll ban rice importation, that one is positive; he doesn’t need any powers from the National Assembly for that. Even among APC members, there will be resistance.”
Experts differ

While some industrialists and experts have expressed support others have expressed concern over the request.
The National President of the Nigerian Association of Small Scale Industrialists (NASSI), Ezekiel Essien, told the Daily Trust that industrialists were behind the President in this latest move, describing it as “long overdue.”
“Most of our contracts go to foreigners. All the monies go offshore. They only take local people here as carpenters and drivers. The money goes out of the country,” he said.
An economist, Gabriel Offiong, who is the Chief Executive Officer of an Abuja-based consultancy firm, Moon Global Ventures, said the President was right in that direction as long as it would help to revamp the flagging economy.
“He needs to intervene otherwise we are in trouble. He needs to overrule the period set in the procurement Act so that capital projects in the budget can be delivered before the end of the year,” he said.
He recommended that the National Assembly should give the president the powers he seeks by approving the emergency bill within one week.
Daniel Ikhouria, a development researcher, said: “This is a serious matter because the president is asking for a double edge sword which is anchored largely on his integrity.
“It will be good for the president to also demonstrate the measures that would be put in place to check abuse because if he is asking for the suspension of the procurement law, can we vouch for his lieutenants not to abuse this by awarding contract to themselves?”

The President of the National Association of Nigerian Traders, (NANTS) Barr. Ken Ukaoha said: “we need to do extra ordinary things if we must pull out this economy from the woods and that includes some of the things the president is seeking the National Assembly approval to do.
“For instance, do we need the amount of aircraft we have on the presidential fleet, off course no. And if we need the president to grant waivers for the procurement of a very essential item that would help in propelling the economy, why not?”
Barr Liborous Oshoma in his submission said: “The problem we currently have is one of trust because at every turn in our National life, the government had come out with proposal like this especially in the disposal of assets as we saw with the Ajaokuta steel, Alaja steel and the power holding companies and the exercise did not achieve its intended aim.
“So you would excuse the fears been expressed by some people, therefore what the government now needs to do is to continue to give the assurance that the implementation would be adequately monitored”
In the bill, the president is seeking powers to give contractors 50 per cent mobilization fees unlike 15 per cent obtainable today. “The 15 per cent is grossly inadequate according to the source.
This is why most projects are abandoned because the 15 per cent the contractors get is not enough to substantially execute projects,” an aide of the president said.