Andrew Stegmann

Amanzimtoti Set to Get Substantial Investment Boost in the Next 5 Years

Amanzimtoti on the South Coast of KZN is fast becoming an investor hot spot as it prepares to become the site of a massive new automotive park.

Gavin Parkins, a commercial and industrial agent at Seeff Amanzimtoti, said the town is expected to receive a boost when building commences of the KZN Automotive Supplier Park (ASP) in Illovo. Completion of the project is predicted as early as August 2022, he said.

The ASP model has been used with great success in three previous locations in South Africa, Parkins said. “The Gauteng Provincial Government/AIDC Automotive Suppliers Park in Rosslyn Pretoria North servicing Nissan and BMW, Ford South Africa, National, Provincial and Local Government initiated Tshwane Automotive Special Economic Zone (SEZ) in Pretoria and the Sunnyridge Automotive Supplier Park in East London.

“These initiatives resulted in thousands of personnel being relocated from areas across South Africa to create centralised automotive industrial zones servicing the local motor manufacturers. “These developments have not only created massive employment opportunities, but have also impacted the local economies in a very positive way.”

Parkins said that the R11 billion Dube Trade Port Auto Suppliers Park in Kingsburgh will service Toyota, MAN Trucks and Volvo Automotive – the largest development of its kind in South Africa. Once completed the 1,000 Ha project is anticipated to create more than 25,000 new jobs and also includes the construction of thousands of new affordable homes. Over a five year period it is anticipated that thousands of families will relocate to the area from areas where automotive suppliers are currently situated. As was experienced in East London, there will be a huge surge in demand for residential housing once the Auto Supplier Park commences operations, Parkins said.

Property boost

This sudden demand for thousands of homes will certainly have an effect on local property prices that have lagged behind national performance for the past three to five years, he said. However, he noted that there is limited supply in the local areas and such a sudden spike in demand will further affect pricing.

“On commencement of the project in the latter half of 2020 developers will be more confident in the potential of a rapid upturn in residential demand and it is advisable than savvy investors try to get their hands on vacant land earlier rather than later, before the inevitable price increases.” Parkins said that investors should turn their focus to areas like Kingsburgh, Warner Beach, Doonside, Amanzimtoti, Illovo and Winklespruit that are the residential suburbs closest to the expected ASP development.

“Over the past years prices in the new residential developments of Amanzimtoti have stagnated and retail development has been the primarily property development in the region. “More recently however there have been noted improvements in the residential market with rising prices and improved demand. “Low levels of residential development have however left a supply shortfall, but hopefully this will be corrected soon.”

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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Trade Benefits Between the US and South Africa May Be Changing

The Trump administration is changing a key exemption to America’s trade laws to make it easier to penalize about two dozen developing countries including China, India and South Africa. The announcement means that South Africa has effectively been removed from a list of nations that can receive preferential trade benefits and is now likely to attract higher import duties and levies to the US market.

It may also see the manufacturing sector losing billions of rand in revenue. Speaking to IOL, the National Association of Automobile Manufacturers of South Africa (Naamsa) said the move was a tragedy for the industry and economy as all preferential treatment was crucial.

“The US has been one of South Africa’s top export destinations and trading partners for the past three decades,” said Naamsa executive manager Norman Lamprecht. “In 2019, a total of 12,437 vehicles were exported to the US along with automotive components to the value of R4.8 billion.”

More changes incoming?

South Africa is also facing another US-related change due to the draft Copyright Amendment and Performers’ Protection Bills. The proposed legislation is a point of significant controversy because it could damage South Africa’s trade relations with the US as it is seen to violate terms of the Generalised System of Preferences (GSP) under the US Trade Act.

The Office of the United States Trade Representative is now holding public hearings in Washington D.C. on South Africa’s eligibility for the GSP program. The country’s eligibility for the GSP program has been called into question as a result of the passing of the Copyright Amendment Bill in parliament last year.

If South Africa loses its GSP eligibility, the country will potentially lose up to R34 billion in export revenue, the Copyright Coalition of South Africa (CCSA) has warned. The office of the United States Trade Representative said in October 2019 that it would review South Africa’s eligibility to participate in its GSP based on a petition it had received. The GSP is the largest and oldest US trade preference program.

It is designed to promote economic development by allowing duty-free entry into the United States for 3,500 products from the 119 designated beneficiary countries and territories. To remain eligible for these advantages, beneficiary countries must comply with 15 statutory eligibility criteria that are important to US interests, including taking steps to afford internationally recognized labor rights, providing adequate and effective protection of intellectual property rights, and assuring equitable and reasonable access to its markets.

“Coupled with the threat of losing our Generalized System of Preference (GSP) over the Copyright Amendment Bill and the distinct possibility that the US Congress will not renew the African Growth and Opportunity Act (AGOA), South Africa is heading towards a perfect trade storm with the United States which will cost us billions of rands and thousands of jobs,” said the DA’s Dean Macpherson.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Trendy, Affordable Apartments for Sale in First Fully Integrated Community in Cape Town (Conradie Park)

Conradie Park offers affordable housing while integrating mixed-income earners.

A range of trendy apartments, ranging from studios through to duplexes, are now for sale in SA’s first fully integrated, mixed-income, mixed-use development, near Cape Town’s CBD. Conradie Park is virtually a self-contained town, comprising residential, commercial and retail elements, a business hotel and an emphasis on community and connection. The development includes extensive green spaces, sports and recreational facilities and an urban gym.

Foot and cycling paths are part of a non-motorized transport plan to promote “active streets” where families can walk safely and play freely. The pet-friendly campus includes two schools and three daycare centers. Studio apartments start from R950,000, including transfer costs, while one- and two-bedroom units and duplexes are among 99 properties for sale in the first phase of construction of a block called Kirstenbosch, named after the iconic Cape Town botanical gardens due to its emphasis on green spaces.

Green technology has been applied to energy, water and waste management, while integrated solar heating is also part of a sustainability focus. Basement parking, fiber-ready internet, an integrated camera network and 24-hour security are among the attractions. Other features include trendy finishes, vinyl flooring, oven hobs and extractors, engineered stone kitchen counter tops, track lighting, aluminium windows and internal elevators.

The revolutionary 22ha community comprises more than 3,500 homes – some subsidized or grant funded. “This is a connected, multicultural community marked by affordability, sustainability and security,” says Toni Enderli, founder of Realtor of Excellence.

Conradie’s head of sales, Wayne Lawson, said public excitement was high, adding that 25% of the first phase had been snapped up during the launch weekend. Construction starts in May 2020 and occupation is set for mid-2021. The project is a partnership between developers, Concor, and the Western Cape government, described as one of seven provincial “game changers”, providing affordable housing close to jobs while integrating mixed-income families. Concor project leader, Mark Schonrock, said the model showed how state-owned land could be unlocked to boost economic growth in an attractive and affordable mixed-income neighborhood.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

A Look at South Africa’s New Coins

The South African Mint, a wholly-owned subsidiary of the South African Reserve Bank, aims to mark memorable events and anniversaries that capture the nation by striking these stories onto coins each year.

A new R2 coin will come into circulation – the product of a competition which ran in 2019 following the launch of the SA25 coin series commemorating “25 Years of SA’s Constitutional Democracy”.

The South African Mint invited members of the public to submit designs for the reverse of the new R2 coin, depicting a right from South Africa’s Bill of Rights.

The winning design has been selected and will enter circulation during the course of 2020.

Local inventions

Numismatists will be able to add another example of South African ingenuity to their collection with the launch of the sterling silver crown and tickey coins featuring the Retinal cryoprobe, a local invention that revolutionised cataract surgery.

South African doctor, pioneering inventor and biomedical engineer, Selig Percy Amoils, is credited for the invention of the cryoprobe, which is a pen-like instrument that is inserted into a cut in the eye to remove a cataract with no risk of destroying healthy adjacent tissue. This technology has even been used on former President Nelson Mandela.

The ‘South African Inventions’ theme was introduced on the crown and tickey coin series in 2016, to highlight globally relevant inventions and firsts by South Africans.

Last year’s coin featured Pratley Putty, the world’s first epoxy adhesive invented by South African engineer George Pratley. It was used by NASA aboard its Ranger moon-landing craft some 50 years back.

The R2 crown features the anatomy of an eye on the reverse, while the tickey shows a gloved hand holding the retinal cryoprobe when the 2.5c tickey is placed on top of the crown in the designated area, the surgical procedure is recreated.

Big five

2020 will also see the launch of two new Big 5 designs in 2020, featuring the Rhino and Leopard.

The ‘Big Five’ term originated when big game hunters visited the shores of Africa to shoot for trophies, and locals warned them about the five most dangerous animals in Africa: the elephant, lion, leopard, rhino and buffalo.

The Lion and the Elephant were featured on the previous coins.

Natura coins

Following the runaway success of the fine silver Natura coin in 2019, the 2020 series will repeat the coin exclusively in silver and feature the Coelophysis Rhodesiensis, a diminutive, bi-pedal carnivore which preyed on small animals and mammals which appeared around the same time.

The Coelophysids were highly successful primitive theropod dinosaurs that occurred worldwide between the late Triassic to early Jurassic period.

Coelophysis Rhodesiensis occurred in South Africa and Zimbabwe during the early part of the Jurassic period (approximately 201–199 million years ago). Fossil records found in Zimbabwe allude to their propensity to hunt in packs.

Kurgerrand

The design of the Krugerrand has remained unchanged over its 50 years of existence. The obverse features the bust of President Paul Kruger, while the reverse, originally designed and engraved by Coert Steynberg, depicts a prancing springbok, a well-known South African symbol.

The iconic Krugerrand in 2020 stars individually, as well as in the existing four and five fractional sets available.

It is also available in 1oz and 2oz both gold and silver and in bullion and proof quality

Flora

Featuring on the 2020 sterling-silver colour coin range are the flowers Protea repens (Sugarbush) and Serruria florida (Blushing Bride), and birds Coccopygia melanotis (Swee Waxbill) & Ploceus capensis (Cape Weaver).

The quartet of coins which seek to celebrate SA’s rich flora fauna are the subject of this year’s series and are found in the Cape Winelands Biosphere Reserve, The SA Mint said.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].