South Africa: Ramaphosa Extends an Open Invitation to Investors

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ANC president Cyril Ramaphosa has promised to resuscitate the country’s ailing economy while implementing the ruling party’s policies on free education and radical economic transformation.

In his maiden January 8 statement at East London’s Absa stadium on Saturday, Ramaphosa attempted to reassure investors by painting a picture perfect South Africa under his rule.

He said the party required a programme of fundamental and radical change.

“We are going to restore our focus on building an economy in which all South Africans can flourish. An economy which benefits the people of our country as a whole rather than just to benefit a few privileged individuals and families in our country.”

He added that the party wanted an open and diverse economy that will provide opportunities for all, especially young people and women.

This economy he said, would welcome investment.

“We must not have an economy that discourages and chases away investors from investing in South Africa.”

He invited all investors from all over the world to come to South Africa to invest so that the country’s economy could grow “so that we can create jobs, so that we can end poverty, so that we can reduce inequality,” he added.

Realising historic objective

South Africa’s status has suffered one downgrade after another by ratings agencies.

The country has also been under great strain with expected growth for the year at less than 2% due to recent political uncertainty in the ANC.

President Jacob Zuma’s cabinet reshuffles have also fuelled the fire putting investor confidence in the country at an all-time low since the party took over in 1994.

Ramaphosa who now takes over from Zuma as party president will have to clean up the economy. He was the preferred candidate of business with markets responding positively to him during his campaign and victory in December at the ANC elective conference against former African Union commission chair Dr Nkosazana Dlamini-Zuma.

However, Ramaphosa’s business acumen will be challenged during his term as president of the ruling party.

He is tasked with implementing Zuma’s fee-free education proclamation, radical economic transformation as well as land redistribution without compensation.

Attempting to ease investor confidence, Ramaphosa said land will be redistributed while meeting the constitutional requirement of redress.

He added that the party would ensure that fee-free higher education for those families earning less than R350 000 would be implemented in a gradual process.

“As we accumulate more and more money, as we mobilise resources. We are going to realise this historic objective.”

Source: News24, allafrica.com

South Africa: Ramaphosa Outlines Plans for Radical Change – With Assurances

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 The African National Congress’s new leader, Cyril Ramaphosa, sketched out a path for the party’s future on Saturday which carefully balanced demands for radical change to address South Africa’s deeply-rooted inequalities with assurances to investors, business people, farmers and minorities feeling threatened by the change.

Key takeaways from the annual statement of the ANC’s national executive committee, traditionally delivered on the anniversary of the movement’s founding in 1912:

• On the state of the party: Ramaphosa said the ANC has become “deeply divided through factionalism, patronage, corruption and competition for resources” and will undertake “a deliberate programme of organisational renewal that decisively addresses problems of division and dysfunction…”

• On mismanagement and the influence that President Jacob Zuma’s friends, the Gupta family, and others have on government agencies and state-owned enterprises (SoEs) with big budgets for capital spending on infrastructure and services:“Several key SOEs are in financial distress, threatening not only their own operations, but the national fiscus. Many of these enterprises have experienced serious governance lapses and poor delivery of their mandate. These challenges have been exacerbated by state capture, through which billions of rands have been illegally diverted to individuals.”

• On the economic response to “state capture”: “Building on the work already underway in government to reform SOEs, we will act urgently and decisively to improve governance, financial management and performance in all SOEs and protect them from improper interference.” The party’s vision is “an economy that encourages and welcomes investment, offers policy certainty and addresses barriers that inhibit growth and social inclusion.” In addition, “We need cadres who are committed to serve no other interest than the interests of the people, who seek no advantage for themselves or their families from the positions they occupy, and who safeguard public resources.”

• On the criminal justice system, which has been undermined by the failure of partisan police, prosecutors, tax authorities and other government agencies to act against suspects deemed to be close to political leaders: “Anti-corruption efforts within the state must be more effectively coordinated and all forms of corruption must be exposed and prosecuted. This includes corruption, collusion and other criminal activity in the private sector, which must be fought with equal diligence and determination… [T]he country’s intelligence services, the police and prosecutorial authorities should be strengthened and fortified to act with professionalism, and without fear, favour or prejudice.”

• On President Zuma’s unplanned and unilateral announcement last month of free tertiary education for large numbers of students, beginning this month: The government will keep Zuma’s promise, but it will be implemented “in a phased approach to ensure sustainability of government finances and radically expanded access to education.”

• On the party’s decision last month to expropriate land without compensation, raising fears of Zimbabwe-style land reform which might collapse the agricultural economy: “We shall implement a comprehensive approach to land reform and agricultural development that utilises a range of mechanisms to accelerate the redistribution of land to black South Africans and to provide the necessary support to ensure that this is accompanied by an increase in agricultural production and food security.” Expropriation of land without compensation will be “part of the mechanisms available to government” but will be implemented “in a manner that not only meets the constitutional requirement of redress, but also promotes economic development, agricultural production and food security.”

• On foreign policy: Ramaphosa restated the ANC’s backing for “self-determination and independence” for the Western Sahara. This follows overtures made recently by Morocco to President Zuma. “The ANC condemns the withdrawal of Morocco from the UN-led peace process and calls on the UN to bring all parties back to the negotiating table,” Ramaphosa added. He also said the ANC would continue to support the peace process in Sudan and South Sudan, and firmly believed that a downgrade of the South African embassy in Israel to a “liaison office” would send a strong signal to the people of Palestine.

The full text of the statement follows:

Statement of the National Executive Committee on the occasion of the 106th anniversary of the African National Congress

Fellow South Africans,

The African National Congress turns 106 years this year.

We are in the Eastern Cape, the home of legends. As the newly elected leadership of the ANC, we visited and laid wreaths at the graves of the first ANC President, John Langalibalele Dube and former Presidents Chief Albert Luthuli, Josiah Gumede, Oliver Tambo and Nelson Mandela. We shook their bones and sought their blessing as we take the ANC into an era of unity and service to the people. We take this opportunity to reaffirm the ANC’s commitment to the values and principles to which so many of our legends dedicated their lives. January 8th Statement 2018 .

The African National Congress was formed to heal the wounds that had been inflicted on our people by colonial conquest. Our organisation belongs to the people of South Africa and it is our duty to safeguard and nurture it. The core ideal that is the reason for the ANC’s existence – the creation of a united, non-racial, non-sexist, democratic, prosperous and equitable society – is yet to be fully realised. As its newly elected leadership, we commit to our membership that we shall remain faithful and diligent custodians of this glorious vision.

This year, we mark the anniversaries of several milestones in the history of our struggle for democracy:

  • It is 210 years since the 1808 rebellion of slaves in the Cape seeking a free state and freedom for all slaves. The rebellion, which was quashed by the colonial authorities, was one of the earliest instances of organised multi-racial resistance to tyranny and injustice in South Africa.
  • It is 105 years since the 1913 Land Act and 95 years since the Native Urban Areas Act, two pieces of legislation that were central to the deprivation of black South Africans of their land, assets and livelihoods. The effects of these laws continue to be felt today.
  • It is 100 years since the formation of the Bantu Women’s League, a forerunner of the ANC Women’s League and the first organisation in the country to take up the struggle of South African women.
  • It is 75 years since the adoption of the Africans’ Claims in South Africa document, which set out the demands of black South Africans for equal rights and self-determination. This seminal document January 8th Statement 2018 2 was a precursor to the Freedom Charter, the ANC’s Constitutional Guidelines and the country’s democratic Constitution.
  • It is 65 years since the Bantu Education Act was introduced, effectively depriving generations of black South Africans of quality education and skills and consigning them to grinding poverty. n It is 55 years since the start of the Rivonia Trial, during which Nelson Mandela and other leaders of Umkhonto we Sizwe were sentenced to life imprisonment for having the courage to take up arms against the apartheid state. We use this opportunity, today, to pay tribute to the two surviving Rivonia trialists, Isithwalande Andrew Mlangeni and Dennis Goldberg.
  • It is also 55 years since the establishment of the Organisation of African Unity, which was formed to help bring about independence from colonialism and promote the unity and solidarity of the African continent.
  • It is 45 years since the Durban strikes, which signalled the start of a new era in the struggle of the black working class and in the broader struggle against apartheid.
  • This year, we mark the 25th anniversary of the assassination of Chris Hani, whose murder at the hands of right-wingers on the eve of our democratic breakthrough remains a source of pain and anguish to our nation. We also mark the passing, two weeks later, of that giant of our struggle, former President Oliver Tambo.

The ANC has produced many great sons and daughters who lived lives of extraordinary activism in service to the people of South Africa.

This year, we celebrate the 100th anniversary of the birth of one of the greatest leaders this country, this continent and the world has known – Isithwalandwe Seaparankoe Nelson Rolihlahla Mandela.

We shall celebrate his centenary not only as the people of South Africa, but also as a continent and as the broader global community. We shall pay tribute to the contribution that he made, over the course of his 95 years, to the struggle for freedom and the cause of building humane social relations across the globe.

We shall draw lessons and inspiration from his life as we confront the challenges of the present. We shall use this historic occasion to unite, rebuild and renew the movement to which he dedicated his life and intensify our work to build the free and equitable society for which he fought.

As we do so, we shall reflect on the past year, in which we commemorated the life of his friend and comrade, former President Oliver Reginald Tambo, and the profound impact that that centenary had on every aspect of the political work of the ANC and the Alliance.

This year, as we celebrate the centenary of the birth of Nelson Rolihlahla Mandela, we shall intensify our efforts to realise his vision of a united South Africa in which all live in peace with equal rights and opportunities.

We shall renew our focus on comrade Mandela’s vision of a non-racial society in which the social and economic barriers that have separated black from white are torn down. We shall redouble our efforts to build a society in which black poverty and white privilege are consigned to the past, replaced by respect, solidarity and non-racial equality.

We shall place at the top of our agenda Madiba’s vision of a non-sexist society in which the oppression and exploitation of women – whether in the workplace, in communities or in the home – is eradicated. We will work to ensure we achieve comprehensive development of women in all spheres of life so as to ensure that there is equality between women and men.

We shall work to rekindle Madiba’s vision of a democratic society in which all citizens have equal opportunity to determine their own destiny. We shall achieve this not only through strengthening the instruments of representative and participatory democracy; but also by ensuring that people have economic opportunities and the ability to make choices about their own lives. We shall work to strengthen organs of civil society, including street committees and other community-based organisations, understanding that they provide the means through which people can participate fully in changing their lives for the better.

In 2018, as the African National Congress, we shall work to restore the confidence of the South African people in a shared vision for radical social and economic transformation. We shall confront, together, the lack of broad-based economic participation and the social marginalisation of millions of poor and landless people.

This we shall do, proceeding from the understanding that, an equitable society is in the interest of all South Africans, whatever their race, gender or social status.

Drawing on the wisdom of Madiba, and led by his example, we shall focus all our efforts on improving the lives of all South Africans, especially the poor.

This year, we will also celebrate the centenary of the birth of Albertina Nontsikelelo Sisulu, a stalwart of our struggle who is remembered for her strength, compassion and tireless commitment to the people of this country. As a prominent leader of the ANC, ANC Women’s League, Federation of South African Women and the United Democratic Front, Ma Sisulu represented the epitome of selfless service to the people. We will use this year to remember her life and outstanding contribution to the cause of freedom and democracy.

RENEW THE ANC AS THE VANGUARD OF TRANSFORMATION

At the centre of all our efforts this year must be the fundamental renewal and revitalisation of the African National Congress.

The ANC’s 54th National Conference, which met in Johannesburg in December 2017, recognised that the movement has become deeply divided through factionalism, patronage, corruption and competition for resources. Structures of the movement have been weakened and the confidence of the people in the ANC has been eroded.

This, and the development of social distance between elected leaders and the electorate, has damaged the bond between the ANC and the masses of the people.

Conference decided that the ANC should embark with immediate effect, on a far-reaching programme of organisation-building and renewal aimed at making it a more effective instrument of social and economic change. This will also involve extensive engagement with formations with which we used to work in the mass democratic movement and with organised civil society. We will reach out to our people as a whole through the various structures in which they are organised, from sports bodies to chambers of commerce to community based organisations and faith based groups. We will reach out to the veterans of the movement to ensure that they play a meaningful role in rebuilding the ANC and restoring its values. In doing this, we will build unity of purpose, ensuring that the ANC is strengthened as a vanguard of the process of social transformation.

In electing the new national leadership of the organisation, delegates at the 54th National Conference gave the new leadership a clear and unequivocal mandate to unite the movement, the Alliance and the people of South Africa.

PROGRESS IN IMPROVING PEOPLE’S LIVES

We find ourselves at a critical time in the history of the country, in the life of the African National Congress and in the course of the National Democratic Revolution.

Together with our Alliance partners and with the support of broader society, we have, over the last 24 years, qualitatively advanced the National Democratic Revolution.

We have made significant progress in forging a unitary democratic state founded on a Constitution which guarantees equal rights for all.

We have done much to dismantle the political, social and economic features of colonial exploitation and apartheid oppression, establishing enduring democratic institutions that are able to champion the will of the people.

We have directed public resources towards tackling poverty, building houses for the poor, electrifying houses, providing water to millions of additional households, redistributing land, improving education and health, and providing more than 17.4 million social grants to almost 12 million South Africans.

In 1994, we inherited a dysfunctional economy that had been in decline for many years. As the incoming government, we were forced to make some difficult decisions to turn around an economy in decline, and this at precisely the moment that our people’s expectations were at their greatest.

For much of the first two decades of democracy, the ANC-led government managed to ensure sustained economic growth, macroeconomic stability and prudent management of public resources, while pursuing redistributive policies.

We sustained high levels of investment in education and skills development, ensuring that 77% of learners in public high schools enjoy free basic education. There are currently almost a million students enrolled in higher education, up from just over 500,000 in 1994. We have directed resources to meet the needs of the poor while improving their prospects for access to opportunities. Government provides free meals to nearly 12 million school children every day, that is more than 75% of learners in more than 20,000 public schools.

South Africa is also poised to make more significant contributions in the technology field, for instance, through our work on the Square Kilometre Array, which, when completed, will be the world’s largest radio telescope, significantly expanding our ability to study space and answer fundamental questions of science. We were awarded the bid to build 65% of the SKA in 2012; and through the Meerkat telescope which will be completed in March 2018 South Africa and the continent at large will host the largest and most sophisticated research infrastructure. This is a scientific first for Africa and South Africa.

The number of people in employment in our country rose from 8.9 million in 1994 to around 16 million today. Even in the aftermath of the global financial crisis which started some 10 years ago, we were able to invest over R1 trillion in infrastructure over the last 5 years. As a consequence of these efforts and through our broad-based black economic empowerment policies, we have seen the black middle strata grow from approximately 1.7 million to 6 million.

Despite the progress we have made, we know that the most difficult challenges still lie ahead. As we noted in the National Development Plan, South Africa remains a highly unequal society where too many people live in poverty and too few have access to economic opportunities.

That is why the ANC’s 53rd National Conference in Mangaung declared that we were now entering the second phase of our transition, with a methodical focus on socio-economic emancipation.

Yet, despite the attention we have given to socio-economic transformation, our economy has not performed well. Economic growth has remained low, unemployment has remained high, and some of the advances we made in reducing poverty are in danger of being reversed. Levels of investment have dropped, our budget is under pressure, business and consumer confidence is low, and we have recently suffered a number of credit rating downgrades.

In the main, this is the result of an economy whose structure is largely unchanged since the end of apartheid. Over the last few years, this has been exacerbated by the effects of the global financial crisis, lower demand for our commodities and domestic challenges such as infrastructure constraints, low skills levels and the erosion of our manufacturing capacity. Our economy has also been severely undermined by corruption and state capture, institutional instability, policy inconsistency, poor performance of state-owned enterprises and a sense of drift within the ANC.

Therefore, if we are to turn the economy around and get the National Democratic Revolution firmly back on track, we need to work with urgency and seriousness to address these challenges.

We are encouraged by recent signs of faster growth following the country’s emergence from a technical recession and the recent stabilisation of our currency, the rand. We have noted indications from a number of investors who are expressing renewed confidence in our country and are looking at new investments that would lead to job creation.

A PROGRAMME FOR ACCELERATED RADICAL SOCIO-ECONOMIC TRANSFORMATION

The ANC 54th National Conference, which was held in Johannesburg last month, addressed many of these issues and adopted policies to accelerate the fundamental transformation of our society.

While it is undeniable that the ANC has made significant strides in meeting the basic needs of the people, it is equally true that the legacy of colonialism and apartheid still remains deeply entrenched in our society. We therefore require a programme of fundamental and radical socio-economic transformation that will ensure that, in the words of President Mandela, political freedom goes side by side with ‘freedom from hunger, want and suffering.’

Guided by the National Development Plan, we aim to restore our focus on building an economy in which all South Africans can flourish, an economy which benefits the people as a whole, rather than a privileged few.

We seek an open, dynamic economy that embraces technological innovation, pursues higher productivity, creates jobs that pay better and improves the quality of life of our citizens. We recognise the challenges of modernisation and the imperatives of structural change in all sectors, especially in mining, manufacturing, agriculture and finance.

Our vision is an economy that encourages and welcomes investment, offers policy certainty and addresses barriers that inhibit growth and social inclusion. Our commitment is to build strong partnerships in which efficient and accountable government agencies, responsible citizens and businesses, effective trade unions and civil society work together for the common good.

Fundamentally, we are determined to build an economy that reverses apartheid injustices and corrects continuing patterns of deprivation and inequality.

It is for this reason that the resolutions adopted at our 54th National Conference focused on the measures we need to take now to significantly advance growth, development and transformation.

Critical to the success of these measures is strong collaboration among all social partners. While such collaboration has been essential to the success of many of the milestones of our young democracy, we must acknowledge that we have not sustained these partnerships in recent years.

Guided by the decisions of Conference, the ANC aims to forge a social pact between government, labour, business and communities urgently to reignite economic growth and accelerate the process of transformation. Each of the social partners needs to make specific commitments on the contribution they will make to promote far greater levels of investment and job creation.

While this social pact will be wide-ranging, it will need to focus in particular on youth unemployment, whose devastating impact on young people is cause for major concern. Despite the progress we have made in expanding access to education, millions of young people do not have the skills that the economy needs. Even those with skills lack the work experience and readiness that most employers look for. Conference therefore agreed to prioritise effective public employment programmes, internships, job placement, youth entrepreneurship and set-aside programmes.

Critical to the expansion of access to economic opportunities is the implementation of a free higher education for students from poor and working class backgrounds whose household income is less than R350,000.

This will be implemented by providing full bursaries for tuition and study materials to qualifying South African students at public TVET colleges and universities, and subsidised accommodation or transport capped at specific levels for those who qualify, starting with first time entry students in 2018. For returning existing university NSFAS funded students, in 2018 and going forward, their loans will be converted into full bursaries.

This historic decision, which vindicates many decades of struggle for free education for the poor, will be implemented in a phased approach to ensure sustainability of government finances and radically expanded access to education.

This is a critical contribution to ensuring that students from poor backgrounds are able to access the kind of skills required for meaningful participation in the economy. This is giving effect to our objective of a skills revolution, which requires that we sustain our significant investment in basic education. This will enable us to modernise our economy, improve the beneficiation of our natural resources and prepare our workforce for the fourth industrial revolution.

The concentration of ownership of our economy in the hands of a white minority constrains sustainable growth and transformation. We will work to change the ownership structure of our economy through, among other things, ensuring access to, and ownership of, financial institutions by black people, youth and women. This will include new approaches to regulation and licensing in the financial sector to foster diversified ownership and competition.

Development finance institutions and state banks should be directed to give greater emphasis to employment creation, empowerment, industrial diversification, and the development of small businesses and cooperatives.

The Reserve Bank plays a critical role in the life of any nation with regard to monetary policy and safeguarding and promoting the value of its currency.

The ANC once more reaffirms the role, mandate and independence of the Reserve Bank. As mandated by Conference, we call on government to develop proposals, in line with international practice, to ensure full public ownership of the Bank.

South Africa needs to pursue a multi-faceted growth strategy. Among the efforts to promote job creation on a far larger scale, we need to revitalise our manufacturing sector through a number of measures, including preferential procurement in both the public and private sectors to stimulate demand for local goods and to reduce domestic manufacturing costs. Learning from the experiences of other emerging markets, our industrialisation strategy should focus on sectors with the greatest potential for growth and where we can make most effective use of our resources including in tourism, agricultural and mineral resources.

In order to reduce concentration of ownership and control in the economy and to open the market to new, black-owned companies, we have agreed to expand the mandate of the competition authorities. These institutions will have the responsibility and the means to reduce monopoly control of our economy and increase competition. State procurement and the award of concessions are going to be used more effectively to promote broad-based black economic empowerment and encourage greater worker ownership and board representation.

Another critical element of broad-based black economic empowerment are the ongoing interventions that are aimed at promoting township and rural economies. Our rural areas and townships were designed as labour dormitories. It is pleasing that work is already underway in many parts of the country to develop such areas as economic centres.

Through targeted investment, improved infrastructure and the creation of a conducive regulatory environment, more townships and rural areas can become sites for manufacturing and the expansion of the services industry.

We are pleased that agreement has been reached on the national minimum wage, which will be implemented on 1 May 2018. While recognising that the starting minimum wage is not a living wage, it is nevertheless a significant mechanism to immediately improve the lives of as many as 6.6 million low paid workers and establish a platform for further measures to reduce income inequality.

We applaud all social partners for having reached this historic agreement. We salute, in particular, our ally COSATU, which has struggled relentlessly for the realisation of this demand of the Freedom Charter.

The National Conference underlined how profoundly the dispossession of the indigenous people of this country of their land has contributed to poverty, hardship, unemployment and social dislocation. While important progress has been made in improving security of tenure and undertaking land restitution and redistribution, the pace has been too slow and the impact limited. There has also not been a sufficient link between the return of land and the provision of support to beneficiaries.

The 54th Conference decided that the historic injustice of land dispossession, therefore, needs to be addressed with greater urgency. There was overwhelming support at the Conference that the ANC must pursue the expropriation of land without compensation.

We will do so in a manner that not only meets the constitutional requirement of redress, but also promotes economic development, agricultural production and food security.

At the same time, we will pursue the enormous potential of agriculture to promote industrialisation, create employment and transform our economy. By modernising agricultural production and developing a substantial pool of skills in this area, we would not only improve food security, but also develop agro-processing, the manufacture of agricultural inputs and increase exports. This would have a profound effect on the sustainability of rural communities.

We need also to act with urgency and purpose to restore state owned enterprises (SOEs) as drivers of economic growth and development. Several key SOEs are in financial distress, threatening not only their own operations, but the national fiscus. Many of these enterprises have experienced serious governance lapses and poor delivery of their mandate. These challenges have been exacerbated by state capture, through which billions of rands have been illegally diverted to individuals. Governance of these state owned enterprises has been severely weakened and confidence in the public sector generally has been undermined.

Building on the work already underway in government to reform SOEs, we will act urgently and decisively to improve governance, financial management and performance in all SOEs and protect them from improper interference.

Corruption in SOEs and other public institutions has undermined government’s programmes to address poverty and unemployment, weakened key institutions, discouraged investment and contributed to division within the ANC and the Alliance. The ANC therefore welcomes the announcement by President Jacob Zuma of the establishment of a commission of inquiry in line with the findings of the Public Protector’s report on state capture.

Anti-corruption efforts within the state must be more effectively coordinated and all forms of corruption must be exposed and prosecuted. This includes corruption, collusion and other criminal activity in the private sector, which must be fought with equal diligence and determination. Strong and efficient law-enforcement agencies are critical to the fight against corruption and crime generally, and to the restoration of the integrity and legitimacy of the state. In this regard, the ANC is of the firm view that the country’s intelligence services, the police and prosecutorial authorities should be strengthened and fortified to act with professionalism, and without fear, favour or prejudice. They should continue to be at the forefront of the fight against corruption and state capture, and work with communities to deal decisively with acts of criminality that threaten to tear communities apart. These include child abuse, genderbased violence, substance abuse, human trafficking and many contact crimes that have been on the rise.

Improving access to justice and accelerating the transformation of the judicial system remains a key priority for the ANC. Conference reaffirmed the imperative to continue enhancing efficiency and effectiveness of the legal services across all levels of government.

There was a further commitment to widen the allocation of the State’s legal work for broader participation by black people, in general, and women in particular.

We will intensify efforts to improve the health of our people, particularly in the context of the devastating impact of the AIDS epidemic and the emergence of other diseases. As South Africans, we must never accept as permanent or irreversible our status as the country with the world’s biggest HIV epidemic. We need to take decisive steps to bring an end to the epidemic through systematically implementing the 90-90-90 strategy, which will entail, among other things, the addition of two million more people to our antiretroviral treatment programme.

We are alarmed by the dramatic growth of non-communicable or lifestyle diseases. We need to launch a sustained national campaign against cancer and intensify our efforts to reduce smoking, alcohol and sugar consumption.

The present outbreak of listeriosis, a disease that has been in South Africa for the past 40 years and has suddenly grown into an epidemic, is worrying. While the Department of Health and scientists are searching for the source, we call upon South Africans to heed the advice of the World Health Organization and the Department of Health, which have five key commandments for food safety. These are to keep clean and wash hands before and while preparing food; to separate raw and cooked food; to cook food properly; to keep food at safe temperatures; and to use safe water and raw materials.

The ANC 54th National Conference reaffirmed the ANC’s vision of a united, democratic, non-racial, non-sexist and prosperous society.

We must follow Madiba’s example and become activists for the cause of non-racialism. This becomes particularly important at this time in our history when there is a seeming resurgence of racism and narrow ethnic nationalism across many parts of the world. The ANC must remain a beacon of hope for progressive values.

The 54th National Conference resolved on a range of measures aimed at building social cohesion and a common national identity. In this regard, one of the most important tasks of ANC cadres is to be effective leaders of change and be integrally involved in community dialogues and community fora. Members must have dynamic links with inter-faith organisations, sports and cultural leaders, the private sector and traditional leaders to enhance moral regeneration, social cohesion and nation building.

More importantly, every ANC member must fight the demon of racialism, guard against narrow ethnic nationalism and other backward tendencies such as xenophobia. As a country, we must condemn all acts of racism and work together to end all racist practices.

South Africa has made tremendous strides in the emancipation of women, but much more must be done. We must confront the seeming resurgence of patriarchy and backward attitudes towards the role of women in society.

Members of the ANC must be at the forefront of all campaigns aimed at engendering equality between men and women at all levels. We call on ANC men in particular to be activists in the campaign to eradicate gender stereotypes that not only oppress women; but also have the effect of keeping men in psychological bondage. Part of this campaign should be the socialisation of children to respect one another and to shun gender stereotypes.

Gender-based violence and violence against other vulnerable groups such as children, the elderly, people with disabilities and members of the LGBTQI community is a scourge that needs to be eradicated.

The ANC also commits to practical measures aimed at the full realisation of women’s leadership potential.

In building a caring society that is cohesive and which protects the vulnerable, the 54th National Conference resolved that street, block and village committees, in which ANC members are active, are key vehicles of social cohesion and transformation. These committees must know exactly what is happening in each street in relation to violence against women and children, substance abuse, crime and be able to ensure that there are safe houses for victims, and that the police and social workers fulfil their functions. ANC branches must also be active in and strengthen the Community Policing Forums and Community Safety Forums. Members of the communities must know their neighbours and be concerned about their lives.

The above programmes must be backed up by practical measures such as making access to education easier for the girl-child by providing safe and reliable public transport for learners who live far from schools and providing free sanitary products to indigent learners and young women.

An important component of building a non-sexist society is to promote gender equality in sports at all levels and to enhance support for women’s sport.

Madiba was resolute that because we live in an interdependent world, we must learn from and take advantage of what is happening in other parts of the world. He was fully aware that South Africa depended a great deal on international solidarity and was adamant that the ANC and South Africa will always stand with the oppressed and marginalised across the world.

Our membership of BRICS is an important tool to enhance multilateralism and we must leverage our 2018 chairpersonship of BRICS for the advancement of South Africa’s national interests and the promotion of a more equitable world order.

The ANC has a long tradition of internationalism, based on the understanding that an injury to one is an injury to all. It has consistently lent its support to the peoples of the world living in situations of conflict, who have been displaced and who are subject to discrimination, oppression and exploitation. We are particularly concerned about the resurgence of slave trading in Africa and will work with partners on the continent and further afield to combat it. We salute those South African organisations and individuals that are actively engaged in international solidarity work and humanitarian assistance.

The ANC reaffirms the inalienable right of the people of Western Sahara to self-determination and independence. The ANC condemns the withdrawal of Morocco from the UN-led peace process and calls on the UN to bring all parties back to the negotiating table.

The ANC will continue with its work of supporting the peace process in Sudan and South Sudan so as to find lasting solutions to the outstanding matters on the Comprehensive Peace Agreement and solutions to the border conflicts.

The ANC reaffirms its commitment to give practical support to the oppressed people of Palestine and we are of the firm view that the downgrade of the South African embassy in Israel to a Liaison Office would help to send a strong signal in this regard.

The ANC calls on the South African government to increase trade between South Africa and Cuba as a reinforcement of our international solidarity with the people of that country. We call on the United States to remove the illegal economic embargo against Cuba.

TASKS OF THE AFRICAN NATIONAL CONGRESS

In giving practical expression to the resolutions of the 54th National Conference – and inspired by the life, contribution and vision of Nelson Mandela – the following priority tasks for the movement have been identified for 2018.

  • We shall undertake a deliberate programme of organisational renewal that decisively addresses problems of division and dysfunction within the organisation. This will include concrete steps to empower members of the ANC to determine the direction of the movement and to decide – free from manipulation and coercion – on who should lead the movement. They need to guide its policies, priorities and programmes informed by the needs and concerns of the communities in which they are located. We shall therefore work to get rid of the gate-keeping, vote buying and undue interference that strips ANC members of their rights, responsibilities and influence. We will build a membership system that is transparent, efficient and credible.
  • We shall work to restore the integrity and credibility of the ANC. We need cadres who are committed to serve no other interest than the interests of the people, who seek no advantage for themselves or their families from the positions they occupy, and who safeguard public resources. We shall strengthen the Integrity Commission to deal with matters of ethics in the organisation and finalise its standing and the status of its decisions by June this year.
  • We shall undertake measures to bring the ANC closer to the people, building our branches as vibrant, dynamic units that take up the most pressing social and economic challenges in our communities. Our branches need to attract the most active, brightest, most upstanding, and most committed members of our communities – young and old, women and men, black and white – and thus become examples of the best citizens that our society offers.
  • The ANC will work with renewed determination to unite all South Africans – regardless of race, class or affiliation – around a shared vision of fundamental transformation. We need to restore the unity of purpose and sense of common destiny that was forged under the leadership of Nelson Mandela.
  • We shall mobilise all social partners, in particular government, labour and business, behind an economic recovery plan. The urgency of this task is underlined by low levels of growth and job creation, constrained public finances, ratings downgrades and corruption which undermine efforts to tackle poverty and inequality. It is only through working together, in pursuit of a common objective underpinned by mutual respect and trust, that we shall be able to turn the economy around.
  • We shall confront corruption and state capture in all the forms and manifestations that these scourges assume. This includes the immediate establishment of a commission of inquiry into state capture. The investigation and prosecution of those responsible will be given top priority. Mechanisms for the appointment of individuals to senior government positions, state owned entities and law enforcement agencies will be strengthened to improve transparency, prevent undue influence and ensure adequate vetting of candidates.
  • We must work to restore the credibility of public institutions, including state owned enterprises and law enforcement agencies, by addressing excessive turnover in senior positions, undue political interference, poor coordination and corruption.
  • As part of the work needed to improve access to relevant quality education, we must urgently develop and implement an affordable and sustainable funding model to ensure that poor, working class and ‘middle class’ students progressively receive free higher education. We must do this not only to promote social justice and redress the inequities of the past, but to ensure that we produce capable graduates on a scale that feeds economic growth and social development.
  • We shall implement a comprehensive approach to land reform and agricultural development that utilises a range of mechanisms to accelerate the redistribution of land to black South Africans and to provide the necessary support to ensure that this is accompanied by an increase in agricultural production and food security. The NEC will develop proposals with regard to expropriation of land without compensation as part of the mechanisms available to government.

These are the central tasks that must occupy all ANC structures, leaders, cadres and members during the course of 2018.

As we work to implement all the resolutions of the ANC 54th National Conference, we are resolute in our commitment to make this the year in which we rebuild our movement and turn around the South African economy.

TRIBUTE TO FALLEN HEROES

The ANC honours the courage, dedication and selfless service of those activists who passed away over the past year.

We dip our banner in honour of Ahmed Kathrada, Major General Mxolisi Petane, Sindiso Magaqa, Emma Mashinini, Essa Moosa, Laloo Isu Chiba, Mochubela Seekoe, Ronnie Mamoepa, Kay Moonsamy, John Ncinane, John Pilane, Reverend Jakes Alberts, Andimba Toivo ya Toivo, Keorapetse Kgositsile among others.

Their contribution to the struggle for humane social relations must continue to guide and inspire our actions.

In recognition of the enormous responsibility we have to unite, rebuild and revitalise the movement and lead an urgent programme of economic growth, job creation and transformation, the NEC declares 2018 as ‘100 YEARS OF NELSON MANDELA: THE YEAR OF RENEWAL, UNITY AND JOBS.’

Source: Allafrica

Fixing education system is key to solving Nigeria’s problems

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European countries have begun to mobilise in earnest to combat the large-scale unlawful migration of Africans seeking a better life.

These economic migrants are putting a strain on Europe’s already stretched budget. A logical solution would therefore appear to be greater policing of the borders. Such efforts appear effective at face value. However, they are at best sticking plasters seeking to cover deep lacerations.

They do not contemplate why adults would risk their lives (and those of their children) to embark on perilous journeys across the Sahara desert and across the Mediterranean. In Nigeria, 1.8m students applied for admission into the country’s institutions of higher education this year, but there were only about 850,000 places available.

Consequently, most Nigerians will not be able to obtain a university degree, which is a prerequisite for the year-long National Youth Service Corps scheme. Without a NYSC certificate, job seekers cannot be formally employed in government service or most corporate jobs in Nigeria. Most Nigerians are likely to remain trapped in the informal sector, performing low-skill/low-wage jobs.

According to UNICEF, over 10.5m children are not enrolled in school, and that figure is growing. We also know that the public education system is fraught with challenges. These range from insufficient, dilapidated infrastructure to outdated and limited teaching aids, as well as insufficient numbers of teachers (many of whom are not qualified to teach).

This system therefore produces large numbers of people who are unemployable. Employers continue to express their frustration at being unable to fill positions because the local talent pool is too shallow. Many jobs remain vacant for this avoidable reason.

Without access to jobs, millions face destitution. In Western countries people can turn to the state for social safety nets. In Nigeria, they turn to their extended families, whose own financial obligations are already overwhelming.

Certain well-intentioned solutions to this conundrum involve private-sector-led initiatives to provide students with better quality teaching using technology (through online learning, for instance). This approach is welcome, as it bypasses the shortcomings in the public system.

However, it is still largely inaccessible to the majority. Online learning cannot be a broadly impactful option when, according to Freedom House, internet penetration still stands at only 47% in the country. Building more private schools will also not fix the problem because most will be unable to afford the fees. It is a vicious cycle.

To truly address Nigeria’s problems, citizens must hold the government to its core function of providing them with adequate public services (including a decent education). Funding for basic education must be increased to significantly improve the infrastructure of public schools, modernise the curriculum while emphasising instruction in science, technology, engineering and maths, and ensure that the best teachers are deployed en masse.

Public funds must also be better deployed to ensure that they are invested in projects that benefit the majority. Short of fixing the educational system for everyone, Nigeria’s aspiration to industrialise will remain unrealised.

Source: African Business Magazine

Botswana: Ministry Aims to Improve Transport Sector

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Minister of Transport and Communications, Mr Kitso Mokaila says there is need for the ministry to look into moving freight off the road to air and rail transport to ease movement on the roads.

Mr Mokaila said this recently when presenting the transport sector roadmap during the first session of the five day transport sector retreat in Palapye recently.

“The statistics of the SADC freight for example, reflects that 80 per cent is being transported by road. We need to ease such road usage in order to make our roads last longer and have less accidents in keeping up with the target 2020 of reducing fatalities,” he said.

He said considering that the ministry was tasked with ICT and transportation responsibilities, they must strategically look at how they could use ICT to get people off the roads.

“We are gearing towards working with the Department of Roads and Transport Services (DRTS) to develop a taxi system that works for the economy. There is need to facilitate for taxis to get passengers to their destinations without hassles through the use of ICT,” he said.

Mr Mokaila said their responsibilities as a ministry included ensuring the safety of the people and making sure that they reached their destination on time hence the need to build a sound road transport system.

“We have to get out of our comfort zone and introduce something different in the public transport system,” stated Mr Mokaila.

Based on the developments being introduced by the Ministry of Land Management Water and Sanitation Services, Minister Mokaila said there was need for his ministry to see what they could change to ensure ease of transportation from high concentration areas such as bus ranks and airports.

“With regard to financial prudence and the usage of funds, we have the road fund which collects around P1.6 billion annually. This fund can assist in the maintenance and development of roads, but it has been used as a sludge fund in over-paying contractors, for work they could not perform,” he said.

He said the Ministry was now going to be ruthless in monitoring, so that projects were delivered on time and within budget to enable the fund to cater for developments.

He urged the team to be fearless in performing their duties.

“Do what you have to do in the public interest at all times, regardless of who you know. You should habour zero fear in telling me 100 per cent of the truth,” he said.

The ministry’s permanent secretary, Mr Kabelo Ebineng said the objective of the workshop was to introspect, re-focus and align ministry priorities.

“As we reflect before mapping our way forward, we shall look at those aspects that have been previously analysed, conclusions reached and found to be beneficial, but have not been implemented, quicken the pace and make sure that it happens,” he said.

Source : Thuso Kgakatsi, BOPA, Allafrica.com

Will Cape Town be the first city to run out of water?

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Cape Town, home to Table Mountain, African penguins, sunshine and sea, is a world-renowned tourist destination. But it could also become famous for being the first major city in the world to run out of water.

Most recent projections suggest the its water could run out as early as March. The crisis has been caused by three years of very low rainfall, coupled with increasing consumption by a growing population.

The local government is racing to address the situation, with desalination plants to make sea water drinkable, groundwater collection projects, and water recycling programmes.

Meanwhile Cape Town’s four million residents are being urged to conserve water and use no more 87 litres (19 gallons) a day. Car washing and filling up swimming pools has been banned. And the visiting Indian cricket team were told to limit their post-match showers to two minutes.

Man filling flagon from tap

Such water-related problems are not confined to Cape Town, of course.

Nearly 850 million people globally lack access to safe drinking water, says the World Health Organisation, and droughts are increasing.

So it seems incredible that we still waste so much of this essential natural resource. In developing and emerging countries, up to 80% of water is lost through leakages, according to German environmental consultancy GIZ. Even in some areas of the US, up to 50% of water trickles away due to ageing infrastructure.

A growing number of technology companies are focusing their work on water management – applying “smart” solutions to water challenges.

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For example, French company CityTaps is on a mission to streamline water access in urban homes with its smart water meters linked to an internet-based management system.

The company is first targeting poor homes in urban areas and its system, CTSuite, is currently being trialled in Niger.

Users buy “water credits” via their mobile phones and a smart meter dispenses only as much water as has been paid for. Users receive alerts when their credit balance gets low, and if they don’t top up the account, the meter automatically switches off the flow.

Engineer installing water meter
Image captionThe CityTaps smart water meter is fairly easy to install

The utility can track water usage remotely in near real-time via the internet. A sudden spike in water outflow and a change in pressure, measured by “internet of things” sensors, can then help identify leaks across the network.

Water companies are also using drones and satellites to help spot leaks, and in some circumstances even divining rods – despite scientific doubts, some firms say they do work.

“The internet of things offers new avenues for technological innovation in the water field, mostly by providing real-time data that – we hope – can be used to help utilities become ever more efficient and high-performing,” says Gregoire Landel, chief executive of CityTaps.

Better water management also helps save on the electricity and chemicals required to produce drinkable water.

Woman and child filling bucket with water
Image captionFamilies in Niger now have access to metered water they pay for via mobile phone

Meanwhile, other companies are using technology to harvest water from new sources.

US-based WaterSeer, for example, is developing a device capable of collecting water from the air.

An internal fan draws air into an underground collection chamber where the vapour condenses, making use of the earth’s cooler temperatures. Solar or electricity grid-powered coolers also help the condensation process.

The company says water can be produced with “less than a 100 watts” of electricity – the power requirement of an old-fashioned light bulb.

Man gardening next to WaterSeer water condenser
Image captionWaterSeer’s water condenser prototype is currently being tested and developed

“Individuals and businesses will pave the way for innovative solutions, as they will be able to move and adopt a series of them quicker than large utilities that are sometimes mired in regulatory constraints and rigid decision-making cultures,” says Nancy Curtis, a founding partner of WaterSeer.

“However, utilities offer the opportunity to make large-scale impacts on replenishing depleting water supplies.”

A number of water-restricted municipalities in the US are exploring how WaterSeer devices could be used to improve water security, the company says. But the device is still being tested in the field, so these are early days.

Media captionHow fog nets are catching water for the slums in Lima

“A community of 500 would save 40 million US gallons (150m litres; 33m gallons) of water or more each year, reducing stress on traditional surface and underground sources,” argues Ms Curtis.

Technology may have its place in helping us use water more efficiently, but it is unlikely to have much impact on those without any access to water in the first place, says Alexandros Makarigakis of Unesco’s international hydrological programme (IHP).

“Smart water systems cannot be expected to have much impact regarding provision of access for the unconnected. [They] are more effective in the urban context,” he says.

This is echoed by Vincent Casey, senior manager at the charity WaterAid.

Maasai women carrying water in Kenya
Image captionIn many rural areas around the world people have to walk miles to fetch water

“The technology to connect people to a water supply has been around since ancient Egypt. It’s not a technical problem,” he says.

More important is how water supplies are organised, he argues, which is an issue primarily for governments, with support from the private sector.

“The priority is mobilising resources and paying sufficient attention to the management arrangement to keep people connected,” says Mr Casey.

That’s not to say WaterAid eschews tech completely. It has successfully used mobile app mWater to monitor water access and existing networks.

For those with no direct-to-home supply, services like Grundfos’ “water ATM”, which enables people to access water from a local dispenser using a pre-paid card, are also proving useful.

But there is a sense that much of this technology is merely tinkering at the edges. The overarching issue is the potentially devastating effect of global warming on water availability and how we, collectively, endeavour to tackle it.

Source: Gabriella Mulligan,Technology of Business reporter

 BBC.COM

Zimbabwe: Forbes – Masiyiwa Now Worth $1.7billion

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ZIMBABWEAN telecoms, media and financial services tycoon, Strive Masiyiwa, is now worth US$1.7 billion and ranked 14th on Forbes’ list of African billionaires.

According to the US-based business magazine, Masiyiwa becomes Zimbabwe’s first billionaire and the country’s only representative on its list of Africa’s super rich.

Masiyiwa, a globally respected business leader and philanthropist, is executive chairman of the Econet Group which was founded in 1993 with the launch of mobile phone company Econet Wireless Zimbabwe after a five-year legal battle against the Harare government.

His telecoms venture has since expanded internationally with operations now spanning Africa as well as in Europe, South America, North America and the East Asia Pacific Rim.

Listed on the local stock market, Econet Wireless Zimbabwe is one of the country’s biggest corporations with interests now extending beyond telecoms to financial services, insurance, e-commerce, renewable energy, education, Coca-Cola bottling, hospitality and payment gateway solutions.

Another unit of the Econet Group, Liquid Telecom Group, successfully raised $700 million in a bond and term loan financing package from international financiers.

In addition, Masiyiwa has since moved into media with pay television firm Kwese TV, which is already operating in several African countries.

Masiyiwa serves on a number of international boards, including Unilever, Rockefeller Foundation, the Council on Foreign Relations’ Global Advisory Board, the Africa Progress Panel and the UN Secretary General’s Advisory Board for Sustainable Energy.

Along with his wife Tsitsi, the telecoms tycoon also runs the Higher Life Foundation which pays the school fees of over 40,000 students across the Primary, High school and Tertiary education levels.

Meanwhile, at the top of Forbes list of Africa’s super rich is Nigerian Aliko Dangote who is worth $12.2 billion dollars followed by South Africa’s Nicky Oppenheimer who is said to be worth US$7.7 billion.

Only two women make the 23-name list of Africa’s billionaires with Angola’s Isabel Dos Santos in ninth place with a net-worth of $2.7 billion.

Nigerian oil entrepreneur is the other female entrant on the list Folorunsho Alakija at US$1.6 billion.

Source: Allafrica

Ethiopia: Projects to Develop Livestock, Fishery Sector

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The Ethiopian government has recently signed 470 million USD loan and donation agreement with the World Bank, of which 170 million USD loan goes to livestock and fishery resource development.

The Project aimed at transforming the sector through developing livestock and fishery resources, educating low income farmers and pastoralists towards animal husbandry, and upgrading the status of small livestock cooperatives, Ministry of Livestock and Fishery Project Coordinator Dr. Tomas Cherinet told The Ethiopian Herald.

According to Dr. Tomas, the Project works in four value chain components- dairy, poultry, fishery and red meat.

“The Project is ready to assist all actors at the same time. Primarily cooperatives or common interest group would be created in poultry and dairy. As they are working in an organized manner, they will able to assist others.”

Domestic dairy cattle yield from 1.5 to 2.0 liters of milk a day which is below the expected average. Hence, the Project has planned to increase the yield from 8 to 12 liters per day by crossbreeding domesticated cattle with exotic high yielding species.

“The Project is the first in its kind. The previous projects were handled many issues in one. But this Project is focusing on animal issues alone and the government is also dedicated to transform the sector.

As states have potential livestock and fishery resources, the Project will open animal health laboratories, forage production and distribution centers and develop livestock extension, Dr Tomas remarked.

As to him, the Project which aimed at benefiting 1.2 million farmers and pastorialists could not cover all woredas of the country. Hence, it would operate in some selected 58 woredas of the six states, Amhara, Oromia, Tigray, SNNPs, Benishangul and Gambella and embraces 1784 kebeles.

According to the Manager, the Project would be fully operational when the allocated loan is ratified by the Council of Ministers and House of Peoples’ Representatives and released. As a tentative schedule, the Project is set to be launched in June.

The Ministry is working aggressively for Project’s implementation. In states, project coordination units will be opened to operate accordingly.

The Project will be applicable within five years time and is expected to bring differences in the sector: transforming peoples’ nutrition culture, and augmenting livestock product export.

Source: Girmachew Gashaw, allafrica.com

Uganda: World’s Longest Heated Crude Oil Pipeline Almost Complete

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The East African Crude Oil Pipeline is has already been completed and it holds great opportunities businesses can benefit from.

Among the partners that played a role to make the construction successful include China National Offshore Oil Corporation Uganda, Tullow Oil Uganda, Total E&P Uganda and American firm Gulf Interstate Engineering.

Other development partners are Uganda National Oil Company and the Tanzania Petroleum Development Corporation.

The export pipeline will serve the East African Community (EAC) states as an integral component to boost trade.

The firm has invited local companies dealing in engineering, procurement and construction to grab the opportunities that will be available after the conclusion of the project. They will be able to invest in there sectors and enhance their growth.

With the final investment set to be made on the pipeline, Gulf Interstate Engineering has invited firms to a conference to discuss various business opportunities they can invest in to bolster the economy of the country.

The crude oil export pipeline from the Albertine Graben to Tanga Port in Tanzania will as well be improved.

The 1445km long and 24-inch diameter pipeline is set to be the world’s longest heated crude oil pipeline, which will effectively serve the country’s waxy oil in nature.

Source: allafrica.com

Will Zimbabwe’s reforms go far enough?

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In early November, Patrick Chinamasa, a veteran member of Zimbabwe’s ruling Zanu-PF party, was staring into the political abyss.

Sacked as finance minister by Robert Mugabe after delivering a budget deemed insufficiently radical, Chinamasa faced an extended period in the wilderness. By 7 December, much to his surprise and that of others, the 70-year-old found himself back in parliament, delivering the first keenly awaited budget of the post-Mugabe era following the coup that brought Emmerson Mnangagwa to power.

For Zimbabwean businesses, foreign investors, and international financial institutions alike, the budget was the first major test of whether the new administration would deliver on the promise of Mnangagwa’s bold inaugural speech and break with the disastrous economic policies of the past. Keen to capitalise on rare international goodwill, Chinamasa promised to cut spending, re-engage with international lenders and re-invigorate the flagging private sector by rolling back indigenisation.

While the plans have been welcomed as a positive start, analysts say that Mnangagwa’s government will have to deliver a far more ambitious reform agenda if it is to command the respect of the lenders whose capital it requires to reverse decades of economic stagnation. 

“Chinamasa is a reformist, he’s pragmatic with the economic situation and realistic about how bad it is,” says Judith Tyson, research fellow at the Overseas Development Institute (ODI).

“In terms of economic reform their approach is quite positive, and when you look at the budget they’re pushing for the same things that Mugabe had vetoed. The big problem is persuading people to give them finance – it’s going to be tough,” she adds.

Foremost among those yet to be convinced is the International Monetary Fund (IMF). Harare has a long and troubled  history with the Washington-based lender, which has refused to extend additional credit in recent years following Zimbabwe’s accumulation of billions of dollars of international debts.

Until now, the government has struggled to clear its arrears, and has resisted conditions laid down by the Fund, including compensation for white farmers dispossessed in the controversial land reform programme of the early 2000s.

While Mnangagwa broached the thorny subject of white farmer compensation and promised to safeguard the interests of foreign investors during a well-received inaugural speech, the IMF is likely to demand concrete action on dozens of metrics before seriously mulling extensive financial support.

“They’ve been very hard-nosed about it. Chinamasa has a good relationship with the IMF – much more so than Mnangagwa – but they’ve really been keeping his nose to the grindstone and saying no, not until this has been delivered,” says the ODI’s Tyson. “The trouble is, that creates a catch-22 where even if the government has the best intentions, they need the finance to do it. If you don’t give it to them you create failure immediately.”

Wage bill

One of the Fund’s most enduring demands – progress on which is essential to ease the finance logjam – is action on a public sector wage bill estimated to account for over 90% of the budget. For decades, that wage bill has included overly generous salaries for well-connected Zanu-PF cronies, comfort payments to the police and army to ensure loyalty, and cash for thousands of infamous ‘ghost workers’ who draw salaries without performing any functions. 

In his budgetary speech, Chinamasa took aim by slashing 3,700 youth officers, reducing the number of official vehicles and cutting costly foreign travel. He also pledged to more than halve a 10% of GDP budget deficit and roll back indigenisation, the process by which 51% stakes in foreign-owned enterprises are handed over to black Zimbabweans – often the politically well-connected. Nevertheless, many see plans to phase out public workers over the age of 65 and the opening of a voluntary retirement scheme as insufficient.

“It’s not going to make much difference. The numbers I looked at a year ago suggested you need a 40% fall in wages, and I would suggest these measures would take just a couple of percentage points off the wage bill,” says Charles Robertson, global chief economist at investment bank Renaissance Capital.

Those hoping for more radical action from Chinamasa may be discouraged by his chequered history. While his hands were undoubtedly tied by Mugabe and the hardline factions of Zanu-PF who ultimately had him sacked in November, Chinamasa’s previous four-year stint as finance minister from 2013 was marked by continued stagnation and a botched attempt at introducing bond notes as an alternative currency.

“It’s hard to know how much of this was his responsibility, but since 2008 the government spent all of the gains from rising commodity prices on public wages, didn’t invest enough in infrastructure investment and when commodities prices collapsed they didn’t cut wages,” says Robertson. “They introduced bond notes to try and fill the gap, and they’ve lost perhaps 40% of their value relative to the dollar.”

Committed to reform?

Whether or not Chinamasa is committed to a more pragmatic economic stance, the fate of his fragile reform agenda in Zimbabwe’s febrile post-coup atmosphere is likely to lie elsewhere. Any attempts to cut army wages – or limit the military’s access to the patronage systems and natural resources on which it has long gorged – are likely to be fiercely resisted given its key role in bringing Mnangagwa to power. Mineral resources reform, including reasserting civilian control of diamond mine ownership, looks distant, as does reform of a crucial agricultural sector mired in inefficient smallholder ownership.   

Meanwhile, the president himself – a regime loyalist through decades of political repression and economic stagnation – disappointed analysts with his appointment of a continuity cabinet and a spurning of opposition voices. With such a mixed picture, many believe next year’s elections could prove a watershed moment for the country’s political and economic future and a key metric for the IMF.

“If they have good elections next year and allow the opposition to campaign in a fair way and it’s well conducted, that would be a significant signal for international financial institutions and private investors,” says Tyson. “In the meantime they need to be enacting reform and won’t see much finance until they do.”

Nevertheless, there remains residual confidence that Chinamasa can help push through basic reforms which could go a long way to rescuing a country which, despite decades of economic abuse, retains undoubted potential.

“Improve the business environment, sort the budget and current account out and Zimbabwe’s electricity, literacy and proximity to South Africa all suggest it should boom,” says Robertson. “It’s a struggle to keep that country down. You have to work hard.”

Source: David Thomas, African Business Magazine

Nigeria: Electricity Supply to Rise As NNPC Restores Escravos Gas Pipeline

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Abuja — The country’s electricity supply situation is set to improve as the Nigerian National Petroleum Corporation, NNPC, yesterday, said it had concluded repair works on the Escravos-Lagos Pipeline, ELP, and gas supply had been restored to the affected power plants.

The NNPC, in a statement by its Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said the speedy repair of the pipeline followed the directive by the Group Managing Director, Mr. Maikanti Baru, to carry out an assessment of the damage with a view to promptly resolving same.

He said: “Escravos-Lagos Pipeline, ELP, which came down last week as a result of a fire incident has been restored and gas supply to customers on the line including power generating companies resumed.”

He stated that with the restoration of the ELP and resumption of gas supply, the affected power plants with a combined generating capacity of 1,143 megawatts, MW, will resume power generation.

Ughamadu identified the affected power plants as: Egbin Power Plant in Lagos State; Olorunshogo Power Plant, PEL Olorunshogo and Paras Power Plant in Ogun State and Omotosho Power Plant in Ondo State.

He noted that a section of the ELP at Abakila in Ondo State, had went up in flames on January 2, 2018 as a result of bush fire, affecting gas supply to customers in Ondo, Ogun and Lagos states with subsequent shutdown of a number of power plants.

The NNPC spokesperson explained that the 36-inch Escravos to Lagos Pipeline System, ELPS, is a natural gas pipeline built in 1989 to supply gas from Escravos in the Niger Delta to various consumption utilization areas.

Source: Michael Eboh , allafica.com