Andrew Stegmann

Key Points From the 2020 South African State of the Nation Address

President Cyril Ramaphosa has admitted that the country is facing serious challenges but said action was being taken to address them. The President delivered South Africa’s 2020 State of the Nation Address in Parliament, in Cape Town, last night.

Load shedding and Eskom

“The load shedding over the last few months has had a debilitating effect on our economy and our people. At its core, load shedding is the inevitable consequence of Eskom’s inability over many years – due to debt, lack of capacity and state capture – to service its power plants.”

Ramaphosa said that in order for Eskom to undertake the fundamental maintenance necessary to improve the reliability of supply, load shedding will remain a possibility for the immediate future. He said as Eskom works to restore its operational capabilities, government will be implementing measures that will fundamentally change the trajectory of energy generation in our country. These measures include to rapidly and significantly increase generation capacity outside of Eskom.

“We will put in place measures to enable municipalities in good financial standing to procure their own power from independent power producers,” Ramaphosa said. Municipalities such as the City of Cape Town, business leaders and, lately, the ANC, have backed a plan to allow municipalities to be less reliant on Eskom.

“Over the next few months, as Eskom works to restore its operational capabilities, we will be implementing measures that will fundamentally change the trajectory of energy generation in our country,” Ramaphosa said.

As part of Ramaphosa’s planned steps for the state to become less reliant on the troubled power utility, the president said that the Integrated Resource Plan of 2019 with be given effect to allow for the development of additional grid capacity from renewable energy, natural gas, hydro power, battery storage and coal.

“We will initiate the procurement of emergency power from projects that can deliver electricity into the grid within three to 12 months of approval,” Ramaphosa said. He said they will allow more independent power producers to supply energy to the grid.

Land Reform

The expropriation of land without compensation also remained key, said Ramaphosa, adding measures would be taken to implement the decision after Parliament has concluded all the issues. Ramaphosa emphasized that land expropriation would be done with caution as agriculture is one of the industries with the greatest potential for growth.

“Government stands ready – following the completion of the parliamentary process to amend section 25 of the constitution – to table an expropriation bill that outlines the circumstances under which expropriation of land without compensation would be possible. To date, we have released 44 000 hectares of state land for the settlement of land restitution claims, and will this year release around 700 000 hectares of state land for agricultural production,” Ramaphosa said.

The president also announced that this year his government would implement key recommendations of the presidential advisory panel on land reform and agriculture to accelerate land redistribution, expand agricultural production and transform the industry.

“We are prioritizing youth, women, people with disabilities and those who have been farming on communal land and are ready to expand their operations for training and allocation of land. A new beneficiary selection policy includes compulsory training for potential beneficiaries before land can be allocated to them,” he said.

State-owned Enterprises

Ramaphosa said serious action will have to be taken to deal with SOEs who are drowning in debt with the National Treasury providing guarantees of more than R570 billion.
“This year, we are moving from the stabilization of state-owned enterprises to re-purposing these strategic companies to support growth and development.

“After years of state capture, corruption and mismanagement, we are working to ensure that all SOEs are able to fulfill their developmental mandate and be financially sustainable,” the president said. “In consultation with the Presidential SOE Council, we will undertake a process of rationalization of our state-owned enterprises and ensure that they serve strategic economic or developmental purposes.

The extent of capture, corruption and mismanagement in SOEs is best demonstrated at South Africans Airways, which was placed in business rescue late last year. The business rescue practitioners are expected to unveil their plans for restructuring the airline in the next few weeks.”

The train system

Ramaphosa also committed to turning around the Passenger Rail Agency of South Africa to fix the commuter rail network and said a plan for restructuring South African Airways would be unveiled in the next few weeks, and said government’s successes included pushing back against corruption.

Gender-Based Violence

Ramaphosa said they will increase their fight against gender-based violence. “We will amend the Domestic Violence Act to better protect victims in violent domestic relationships and the Sexual Offences Act to broaden the categories of sex offenders whose names must be included in the National Register for Sex Offenders and we will pass a law to tighten bail and sentencing conditioning cases that involve gender-based violence,” said Ramaphosa.

The youth

One per cent of South Africa’s budget would be set aside to assist with youth employment, Ramaphosa said during his State of the Nation Address .
“This will be through top slicing from the budget, which will require that we all tighten our belts and redirect resources to address the national crisis of youth unemployment,” he said. The initiative would be prioritized when Finance Minister Tito Mboweni delivered his medium-term budget policy statement later in the year.

Ramaphosa said the initiative was one of six “priority actions” spanning five years to reduce youth unemployment. The initiative would start immediately he said, under the banner of the Presidential Youth Employment Intervention. Ramaphosa said the six actions would ensure that the capabilities of every young South African was “harnessed”, enabling them to contribute to the growth of the country.

“We are building cutting-edge solutions to reach young people where they are – online, on the phone and in person. This will allow them to receive active support, information and work readiness training to increase their employability and match themselves to opportunities.”

He said that starting this month, government was launching five prototype sites in five province “that will grow to a national network reaching three million young people through multiple channels”. The network would allow young people to receive active support, information and work readiness training to increase their employability and match themselves to opportunities.

“We are fundamentally changing how we prepare young people for the future of work, providing shorter, more flexible courses in specific skills that employers in fast-growing sectors need. We are developing new and innovative ways to support youth entrepreneurship and self-employment,” Ramaphosa said.

“We are scaling up the youth employment service and working with TVET colleges and the private sector to ensure that more learners receive practical experience in the workplace to complete their training. We are establishing the first cohort of a presidential youth service program that will unlock the agency of young people and provide opportunities for them to earn an income while contributing to nation building.”

As part of the intervention, he said, the National Youth Development Agency and the department of small business development would provide grant funding and business support to 1 000 young entrepreneurs in the next 100 days, “starting today”.

Crime

He said that while police statistics showed that violent crime, rapes and murders have not gone down, improved detective methods would be effected through the training of officers. Ramaphosa said: ” Anti-Gang Units will be further strengthened, with priority given to the Western Cape, Eastern Cape, Gauteng and Free State.

“Following the graduation of 5 000 police trainees last year, 7 000 new police trainees have been enlisted this year to strengthen local policing. To improve the quality of general and specialized SAPS investigations, we are establishing a Crime Detection University in Hammanskraal,” the president said.

Cannabis

Ramaphosa also told the nation about his plans for hemp and cannabis. “This year we will open up and regulate the commercial use of hemp products, providing opportunities for small-scale farmers; and formulate a policy on the use of cannabis products for medicinal purposes, to build [the] industry in line with global trends”, Ramaphosa said.

Our take-aways

A number of Relocation Africa team members were able to attend a British Chamber round-table, to discuss SONA 2020. Key opinions and take-aways from those in attendance (not our own stances on the issues) were as follows:

  • There appears to be a faction within the ANC pushing back against the President, and this creates hurdles for his agenda for South Africa. However, a full-scale rebellion against him is highly unlikely.
  • An independent panel may be considered to remove the Public Protector.
  • There are still limitations in existence against independent power producers (IPPs) putting electricity back into the national grid, to take pressure off Eskom.
  • The budget speech may need to announce a cut in public sector wages in order to avoid a status downgrade by Moodies.
  • It was disappointing to see many promises not having deadlines attached to them in the SONA proceedings.
  • Overall, the President’s speech reassured many South Africans, who are hoping to see if the economy can develop sufficiently in 2020.

 

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

An Update on the 2019 Novel Coronavirus in Africa

With the rapid spread of the 2019 novel coronavirus (COVID-19) across the globe, we would like to inform all our clients and partners that we are closely monitoring the situation, in cooperation with our Consultants on the ground across Africa.

The virus

Health officials have determined that this novel strain of the coronavirus respiratory illness capable of spreading through human-to-human contact, droplets carried through sneezing and coughing, and germs left on inanimate objects. About one-fifth of all patients have been observed to become severely ill, ultimately leading to pneumonia and respiratory failure. Since symptoms take some time to show, health officials are also concerned that people with mild (or asymptomatic) symptoms may not be seeking medical care, and hence, all the cases are not being reported.

Avoiding those who have symptoms similar to those the virus causes, as well as washing your hands frequently (or using alcohol-based hand sanitizer if an alternative is needed) is recommended.

The current situation 

The virus has spread rapidly ever since it first appeared in the Chinese city of Wuhan in late December 2019. The World Health Organization has declared the disease a global health emergency.

More than 98% of all cases are coming from mainland China. It is also believed the actual number of 2019-nCoV cases in mainland China is likely much higher than that reported to date.

Apart from China, the virus has also been diagnosed in several other countries, including the United States, Canada, Hong Kong, Thailand, Macau, Australia, Japan, Malaysia, Singapore, Taiwan, France, South Korea, UAE, Vietnam, Cambodia, Germany, Belgium, Spain, Finland, Sweden, Ivory Coast, Sri Lanka, India, and Nepal.

Africa

Africa, along with South America, has recorded zero cases of the new disease despite its increasingly intimate links with China.

Ethiopian Airlines, Africa’s largest airline, is still running flights from China. As much as 1,500 passengers arrive from China each day – many of whom go on to travel to other African countries for business and tourism. Kenyan President Uhuru Kenyatta has urged Ethiopian airlines to cancel flights to China.

Ethiopian Airlines Chief Executive Officer Tewolde Gebremariam has defended the company’s decision to maintain flights to China, arguing that suspending flights to the country would not end the spread of the coronavirus outbreak.

“As WHO clearly stated that suspending flights to China would not end the coronavirus outbreak as victims of the virus are located in other countries,” Tewolde told The Reporter.

‘‘If we stop flying to China we can still bring passengers from Korea, the Philippines, Japan, Malaysia, Indonesia and Thailand and that originated from China. So the most important thing is to strengthen the passenger screening mechanism and follow the WHO procedures.’‘

Seventy percent of the Chinese passengers arriving Addis Ababa Bole International Airport transit to other African countries.

Tewolde says the airline has opted to follow the World Health Organisation’s (WHO) recommendations that emphasize screening, rather than travel restrictions.

We have received information from our Consultants in numerous countries in which we provide services, including Algeria, Angola, Cameroon, Ethiopia, Ghana, Ivory Coast, Kenya, Morocco, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Tunisia, Uganda, Zambia, and Zimbabwe. These countries are well-aware of the potential impact the virus could have locally, and many major airports have passenger screening systems set up. Many governments also have systems in place to provide information to citizens, to help them learn about the virus, and prevent its spread.

We have also been notified that the following number of cases have been recorded, but tested negative, thus far:

  • Ethiopia (4)
  • Ghana (9)
  • Namibia (1)
  • Botswana (1)
  • Zambia (1)

Morocco, Zimbabwe, Mozambique, Nigeria, Uganda, and Angola are among the African countries that have quarantine systems set up for those who may be carrying the virus.

South Africa

South Africans in the region had banded together, said Winslow Forbes, a South African who has been teaching in Wuhan since 2019. “The South African chat group compiled a list on Wednesday evening, and there were 78 of us in Wuhan. There may be more added now. “Many of my colleagues who went on vacation can’t travel back to Wuhan and they are stuck. The government hasn’t said anything about this coming to an end soon”.

South Africa’s National Institute of Communicable Diseases encourages the public to undertake measures to prevent the spread of respiratory infections. “People should adhere to avoiding close contact with people suffering from respiratory illness, wash their hands frequently, avoid markets where live animals are sold, and travelers with symptoms of acute respiratory infection should practice cough etiquette.”

Wuhan, China

Zhou Xianwang, the mayor of Wuhan, the Chinese city at the center of the coronavirus outbreak, has acknowledged criticism over his handling of the crisis, admitting that information was not released quickly enough.

Zhou wore a mask for protection as he told the Chinese state broadcaster CCTV: “We haven’t disclosed information in a timely manner and also did not use effective information to improve our work.”

There is anger among residents that the public were not informed earlier about the potential risks posed by the outbreak, which is thought to have begun in December, or told about what precautions to take.

Wuhan, home to 11 million people, remains under strict lock-down. Hospitals in the city are severely overstretched, running out of beds, testing kits and basic equipment. In response to the crisis, officials have built two designated hospitals to deal with an expected increase in cases.

Zhou stated in an interview with CCTV that 5 million residents left Wuhan before it went into lock-down. This includes people who traveled for the lunar new year festival, as well as those who fled to escape the virus and impending shutdown.

Experts have questioned whether the quarantine measures are helpful. The restrictions were announced hours before they were introduced, potentially encouraging cases to scatter across the country. Some fear severity of restrictions also risks creating anger towards health officials at a time when the public’s cooperation is desperately needed.

There are also doubts about the effectiveness of airport screening, following suggestions it is possible to be infected but not have any symptoms.

Chinese police censored doctor, and the government deleted online posts

The death of a whistleblowing Chinese doctor who was punished for trying to raise the alarm about coronavirus has sparked an explosion of anger, grief and demands for freedom of speech among ordinary Chinese.

Li Wenliang, 34, died in the early hours (local time) of Friday 7 February, after he was infected during the fight against the outbreak, said Wuhan central hospital, where he worked, in a statement.

Li warned colleagues on social media in late December about a mysterious virus that would become the coronavirus epidemic and was detained by police in Wuhan on 3 January for “spreading false rumors”. He was forced to sign a police document to admit he had breached the law and had “seriously disrupted social order.”

His death crystallized the outrage and frustration felt across China over the initial cover-up of the deadly virus. On Friday, China’s social media was awash with posts expressing immense anger and grief.

Li’s death became the top-read topic on China’s micro-blogging site Weibo overnight on Friday, with more than 1.5 billion views, and was also heavily discussed in private WeChat messaging groups, where people expressed outrage and sadness.

Even blog posts from state media outlets mourned his death and issued veiled attacks on the Wuhan authorities who censured him.

The strong public reaction appeared to have drawn the top leadership’s attention. The central commission for discipline inspection, the Communist party’s powerful internal anti-corruption body, and the national supervisory commission, the country’s highest anti-corruption agency, issued a one-sentence statement on their joint website that investigators will be sent to Wuhan to carry out “a comprehensive investigation into the problems reported by the public concerning Doctor Li Wenliang”.

Fearing that the uproar over Li’s death could spill over onto the streets, the authorities quickly deleted posts calling for action. A post forwarded on WeChat but now deleted said: “I hope one day we can stand on the street holding Li Wenliang’s picture.”

In Li’s last blog post on Weibo, China’s Twitter-like micro-blog, on 1 February, Li poignantly wrote: “The test results come out positive today. Everything is settled. It is confirmed.”

After his death, academics around China signed open letters addressing the Chinese government. 10 Wuhan professors signed one letter demanding the government enforce its own freedom of speech articles in the Constitution of the People’s Republic of China, along with apologizing to and compensating 8 coronavirus whistle-blowers.

Li was one of eight people who were detained for “spreading rumors” about the deadly disease’s outbreak – the fates of the other seven, also believed to be medical professionals, are not known.

Track the spread of the virus

In response to this ongoing public health emergency, researchers at Johns Hopkins University (JHU), in Baltimore, Maryland, USA, have created an online dashboard to track the spread of the virus across the world. You can bookmark this map to see live coronavirus updates.

 

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], [3], [4], [5], [6], [7], [8]. Image sources: [1], [2].

Andrew Stegmann

TradeMark East Africa and Mombasa County Ink $2.7 Million Financing Deal for Critical Kenyan Road

TradeMark East Africa (TMEA) and the Mombasa County Government have inked a $2.7 million financing deal towards construction of the Mbaraki-Nyerere Road.

The amount will cover design, building and supervision consultancy for the project. TMEA will provide US$2.3 million for the project.

The funding is provided through TMEA donors, with the UK Department for International Development (DFID) contributing US$ 1.7 million while Denmark’s development co-operation agency (DANIDA) contributing US$ 0.5 million. The Mombasa County Government will fund the balance amounting to US$ 0.4 million.

The project is expected to unclog the Mbaraki Wharf region and the adjacent Likoni Ferry area, which suffer frequent traffic snarl ups as a result of cargo trucks offloading cargo from oil tankers and clinker ships.

The project scope will entail tarmacking the 1.2 kilometer road, constructing a parking bay for trucks waiting to collect cargo at the oil terminal, paths for non-motorized transport, proper road drainage systems and a road solar lighting component.

The Mbaraki-Nyerere Road Project has been hailed as a ‘Green-Road Project’ by transport experts, due to the significant reduction of the carbon footprint anticipated. Speaking during the deal signing ceremony Mombasa Governor Hassan Joho noted that the project would greatly improve traffic flow in the region.

‘As a government we are committed to improving both the lives and business competitiveness of Mombasa. This project is going to tackle congestion in a short yet extremely critical and busy section of Mombasa. We are grateful for the strong support by TradeMark East Africa and its partners in this project and look forward to the project’s ground-breaking’ said Joho.

On his part, TMEA Country Director Ahmed Farah explained that the project is expected to enhance service delivery to the residents of Mombasa, tourists and most importantly the business community especially while evacuating cargo from the port of Mombasa.

‘By modernizing this road, cargo will leave the port faster, translating into reduced transport costs and ultimately reduced cost of business in one of the leading ports in the region. Further, by providing a safe and adequate parking bay for trucks in the area, we will eliminate roadside parking, which itself contributes to traffic congestion’ noted TMEA Country Director Ahmed Farah.

Head of UKs Department for International Development in Kenya, Julius Court said: “The UK Government is committed to supporting Kenya’s economic growth and this includes good infrastructure which not only provides access to basic services but also creates jobs and boosts business. Our support to this road will complement existing projects that the UK Government is funding through UK Aid and benefiting the population of Mombasa.”

Mette Knudsen, Ambassador of Denmark to Kenya said: “By combining trade facilitation with a reduction of the carbon footprint this ´Green-Road Project’ is both innovative and very important for DANIDA as well as an inspiration for the continued collaboration between Kenya and Denmark.”

Following the financing agreement signing ceremony today, design works are expected to be completed by early 2020, paving way for ground-breaking in March 2020. A construction period of 10 months is envisioned.

Over the next few days there will conclusion of the formation of KPA and Mombasa County joint technical committee to spearhead partnership and collaboration that will pave way for the two entities move this port City to new heights of global competitiveness and make Mombasa a World class Port City it ought to be.

 

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

Today Marks The 30 Year Anniversary of Nelson Mandela’s Release

February 11 marks the 30th anniversary of the release of former president Nelson Mandela who was jailed for 27 years following his arrest in 1962. South Africa will mark the anniversary with a string of events commemorating the historic moment when Mandela walked out of Victor Verster prison in the Western Cape.

The Nelson Mandela Foundation will host three events in the province that will highlight the “new prisons of Africa”. On its website, the foundation said the “prisons” ranged from physical prisons that were the site of high levels of incarceration and the failures of restorative justice to the effective prisons that defined people’s lives.

From 08:00 to 10:00, the foundation is expected to host a reunion of the original members who were in the reception committee that facilitated Madiba’s homecoming from Victor Verster, now called Drakenstein Correctional Services. President Cyril Ramaphosa is also expected give an address from Cape Town City Hall’s balcony, where Mandela gave his first speech after his release from prison, between 14:30 and 16:30.

In his Monday morning newsletter, Ramaphosa commemorated the release of the former president and ANC leader. He said while the country’s democracy was “well-entrenched” with robust and durable institutions and the lives of people had improved over the past 25 years since the first democratic elections, more needed to be done.

“Yet, there is so much further we need to travel. Inequality, especially as defined by race and gender, remains among the highest in the world. “Unemployment is deepening and poverty is widespread. Violence, including the violence that men perpetrate against women, continues to ravage our communities. In confronting these challenges, it is vital that we remain united,” Ramaphosa said.

Archbishop Emeritus Desmond Tutu and his wife Leah, who will be commemorating the anniversary on Tuesday, also paid tribute to Madiba, saying while circumstances and priorities changed over time, good values were timeless. “Thirty years ago, Nelson Mandela emerged from prison to dazzle South Africa and the world with his warmth and human values… We miss him,” the Tutus said.

Also commemorating the historic release will be the head of the Mvezo Traditional Council and Mandela’s grandson, Nkosi Zwelivelile Mandela, who called on South Africans to remember the leader as well as the vision his grandfather had had for the nation.

“We can make South Africa great again. We can fight the scourge of poverty and corruption. We can overcome all obstacles and achieve the vision of a united, free, non-racial, non-sexist and just South Africa in which all can enjoy prosperity and a better life for all,” he said.

Road Closures

Darling Street and surrounds will have traffic restrictions in place until 10pm on Tuesday, February 11 2020. Darling Street will be closed to traffic between Lower Plein and Buitenkant streets until the conclusion of Tuesday’s events. No parking will be permitted in Corporation and Parade streets. “The city appeals to motorists to seek alternative routes where possible as the restrictions/closures will likely result in some traffic congestion. Staff will be on duty in the area to redirect traffic,” Cape Town traffic service spokesperson Maxine Bezuidenhout 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].