Andrew Stegmann

Two Major Durban Tourism Developments

Durban, an already popular tourist destination, sitting in South Africa’s third largest municipality, has two new ways of boosting travel through its borders.

Cruise Terminal

Managing Director of MSC Cruises South Africa, Ross Volk recently revealed that MSC Cruises will begin building its Durban Cruise Terminal in November. The terminal will eventually be 4516 square metres in size.

The news was confirmed at an exclusive media launch held at MSC Cruises head office in Sandton on 20 August. The new R200 million cruise terminal at South Africa’s busiest cruise port is due to be completed in 2021.

“MSC Cruises is committed to growing the cruise tourism sector in the country and Africa at large. We are investing heavily in infrastructure as well as training, which includes the new Durban Cruise Terminal that will also house the MSC Shosholoza Ocean Academy,” Volk said.

He added that the multi-user terminal will make Durban an even more desirable destination for cruise ships from all over the world.

“It will substantially boost tourism numbers, create thousands of jobs and lead to supplier development. The construction of this state-of-the-art terminal is an exciting project that MSC Cruises is proud to be a part of. The design phase took a little longer than we anticipated, but it was vital that we got this right as we want the Durban Cruise Terminal to be an iconic destination,” he said.

According to Tourism Update, the MSC Cruises fleet currently comprises 16 ultra-modern, innovative and elegantly designed ships.

It is said to be the world’s largest privately-owned cruise company and the number-one cruise line in South Africa, Europe, South America, and the Gulf. The company reportedly achieved 800% growth in its first 10 years, building a global reputation in the industry and one of the youngest cruise fleets at sea.

At the media launch, Angelo Capurro, the group’s Global Executive Director also said that South Africa is an important market for MSC Cruises and reflects its broader growing investment in cruising globally.

“In fact, in South Africa for the next cruise season starting in December, we will have two ships operating. The bigger MSC Musica with the capacity to carry 3 200 guests will be homeported in Durban, while MSC Opera will be homeported in Cape Town and have a capacity for around 2 500,” Capurro stated.

Coach Route

Intercoach has announced they are now running a route from Durban to Mozambique. With no direct flights between the two locations, it’s often an awkard transfer at Johannesburg that has to facilitate those who travel by air. But last year, things got a little easier on this commute.

The Maputo-Catembe Bridge was inaugurated by the President of Mozambique, Filipe Nyusi, on Saturday 10 November 2018. The three-kilometre-long suspension bridge, which extends 680 metres over Maputo Bay, has been lauded as a Southern Africa’s latest and greatest engineering feat, giving SA a direct route to the capital city of Maputo.

With this bridge now in place, it have shaved hours off of the journey time. And Intercape are ready to pounce upon the opportunity. Here’s everything you need to know about the new service.

Return tickets are around R600, which is multiple times cheaper than a flight. The trip takes 9.5 hours, has 12 stops, and officially opens on 6 September.

Four hours into the journey, passengers can grab refreshments and stretch their legs at the Hluhluwe PetroPort, before embarking on the remaining five-hour trek.

Border crossings, meanwhile, will take around 40 minutes. It’s essential you have the correct travel documents and your passport with you, in order to make any inspections run as smoothly as possible. You can no longer buy a visa on the Mozambique border, and travellers will have to sort theirs before departing.

 

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

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

Andrew Stegmann

Coca-Cola Beverages Africa Acquires Majority Stake in Eswatini Bottler

Coca-Cola Beverages Africa (CCBA) has announced that it has acquired a 60 percent share in the soft drinks business of Eswatini Beverages Limited. The non-alcoholic, ready to drink business in Eswatini will be referred to as Eswatini Coca-Cola Beverages (ECCB) and will operate as a subsidiary of CCBA.

The remaining 40% of ECCB is owned by Tibiyo Taka Ngwane.

Sanele Khumalo, country manager of ECCB, says that every effort will be made to minimise any disruption to customers. She notes that ECCB has appointed Logico Unlimited as the official distributor of all Coca-Cola products in Eswatini. Logico will also be responsible for collection of monies owed, while ECCB will be responsible for the negotiations of trading terms and relationships with customers.

“Eswatini customers will benefit from being part of a consolidated, successful Coca-Cola ecosystem that spans the continent, creating new opportunities for everyone across the value chain,” Khumalo says. “Access to shared best practices will enhance efficiencies and a better distribution capability will provide pervasive availability of cold beverages to end-customers,” she says. “We will also be able to respond to consumer demand more quickly.”

Expanding African footprint

CCBA is the 8th largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent. It accounts for 40% of all Coca-Cola products sold in Africa by volume. The company’s African footprint now encompasses South Africa, Ghana, Ethiopia, Uganda, Kenya, Tanzania, Namibia, Mozambique, Comoros, Mayotte, Zambia, Botswana and now Eswatini.

The group employs more than 16,000 people directly, almost half of them in South Africa.

“Expanding our African footprint brings huge benefits to local consumers and businesses. By leveraging scale, we can do more for our customers and also drive our sustainability goals. The creation of ECCB is another milestone in that strategy,” Khumalo concludes.

 

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

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

Andrew Stegmann

What to Look Out For in the South African Healthcare System

This article was provided to us by Chartered Employee Benefits, an independent employee benefits consultancy, based in Johannesburg, South Africa.

What to look out for in the South African Healthcare System

Whether you are an experienced traveller, expatriate or travel as part of your work, you will always be faced with the uncertainty of what is around the corner when moving to another country. Legislation, infrastructure and institutions may vary significantly from your home country. Healthcare is by no means the exception and you may find yourself seeking answers.

South Africa’s Healthcare Environment

South Africa has two prominent healthcare systems, the public and private healthcare sectors.
Albeit that the public healthcare system is free and accessible to all, it is not enough for those seeking consistent, quality, medical treatment which is aligned with global standards and is cutting edge.

There is, however, a stark difference between the private and public medical sectors in terms of cost. An estimated 9 million residents in South Africa (out of a total estimated population of 60 million) participate willingly in the private medical insurance schemes, at an additional cost/premium. The private medical insurance industry currently consists of just under 20 open medical schemes. These schemes attempt to mitigate the costs of what is regarded as a high quality, yet expensive private healthcare system. Discovery Health’s top 10 individual member claims in 2017 amounted to R48 million or $ 3 200 000 (Rand to US Dollar exchange rate estimated at R15: $1, at August 2019).

Closed medical schemes also exist in the private sector and are available to employees who work for specific companies or industries.

The intricacies of the South African medical scheme environment

South African medical schemes are structured around complex rules and stipulated requirements that they must adhere to, and function within the realm of the Medical Schemes Act, some of which are listed below:

Open enrolment – Open enrolment is a principle set down in law which requires open medical schemes registered in South Africa to accept as a member or dependant, any and every person who wishes to join that medical scheme.

Community rating – this rule prevents a medical insurer from varying premiums. All members on a particular plan must pay equal contributions, however the Medical Schemes Act does make provision for the inclusion of a ‘Late Joiner Penalty’ which may be applicable to members over the age of 35 years.

Prescribed minimum benefits (PMBs) – there are 270 medical conditions which are covered in full, however, medical schemes are able to manage these costs somewhat. This includes emergencies. Emergency medical treatment is defined as, treatment required as a result of an onset of a sudden and unexpected condition which requires immediate treatment. If not immediately treated, one of three consequences would result: serious impairment to a bodily function, serious dysfunction of a body part or organ, or death.

Waiting periods – South African medical schemes like all insurance products need to protect themselves from ‘anti-selection’ to avoid people from joining medical schemes when they need healthcare and exiting the scheme when they don’t require medical care. There are three types of underwriting conditions which might be applicable, singularly or in combination such as:

• The 3- month general waiting period with access to PMB’s
• The 3-month general waiting period without access to PMB’s
• The 12 months condition specific waiting period

These waiting periods can be waived by medical schemes on condition that your employer has an exclusive and compulsory medical employer group.

Premium and benefit increases – It is the general practice for medical schemes to allow members to increase their benefits during a window period, generally, September to mid-December, to take effect in January the following year. Premiums, benefits and medical scheme plans across all medical schemes might be altered during this period as well.

What if I travel outside of South Africa?

The general rule is that medical schemes will allow insurance for a certain number of days travel outside of South Africa. This is applicable to medium/high benefit plans. Pre-existing conditions are excluded and so too are specific countries (additional insurance may be required i.e. travel insurance).

If you spend longer than 90 days outside of South Africa, alternative insurance would need to be considered.

Is a South African medical scheme sufficient?
What about co-payments?

Like most medical insurances, South African medical schemes have copayments and short falls.

Example: If a medical practitioner charges 500% above the medical aid rate, you are liable for the short fall. This may be the case for several medical practitioners at once e.g. for childbirth, a gynecologist, anesthetist, pediatrician and a mid-wife may be present or required. All of which may charge above medical scheme rates. You will be responsible for the shortfall.

Copayments may be applicable to several procedures such as MRI, CT & PET scans as well.

Gap cover insurance is available and may insure the shortfall between the medical scheme rate and the applicable fees. The annual limit applicable to these products is R157 000 per person and your insurance may cover the whole family. You may not purchase gap cover insurance if you do not belong to a medical scheme. These premiums are ‘risk-rated’ and may vary depending on age.

How do I compare medical schemes?

An independent ‘non-tied’ (licenced to advise on a specific medical scheme) consultant may compare several medical schemes, objectively.

Healthcare consultants earn a maximum of R94.77 plus vat per month, or 3% plus VAT in respect of the contributions of that member, or whichever is lesser (this is already included in the premiums).

Participating in a medical scheme will reduce the potential risks associated with the public healthcare system.

If you are employed in South Africa, ask your employer if they have a medical scheme group in place and whether they have favourable underwriting. If you are eligible to join such a group, you may pay premiums and claim immediately. Seek advice from an independent employee benefits/ healthcare consultant. Open a South African bank account as soon as possible to ensure that you may get insurance coverage on arrival.

Many medical aid schemes in South Africa have information about the various plans they offer, what they cover, and their pricing, readily available on their websites, so it is a good idea to compare this way, before signing up. Major medical aid providers include Discovery Health, Bonitas, Fedhealth, Momentum, Genesis, and Medshield.

 

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

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

Andrew Stegmann

South Africa Sets Up National Committee for New African Trade Agreement Action Plans

South African Minister for Trade and Industry, Ebrahim Patel set up a National Committee, comprising business, labor and government, to develop action plans around the new African Continental Free Trade Agreement (AfCFTA).

This was done at a strategic session held between the Ministry and social partners at NEDLAC (the National Economic, Development and Labour Council, South Africa’s statutory social dialogue forum).

The engagement was chaired by Minister Patel, and was the first session held with the new Ministry at NEDLAC following the start of the Sixth Administration, and the combination of the dti and Economic Development Department into the new Department of Trade, Industry and Competition.

The day-long session gave rise to a number of tripartite working groups to speed-up actions to grow the number of jobs in the South African economy.

Both Business and Labour sent high level delegations to the engagement, including leaders from BUSA, CEOs of large companies and sector business organisations; as well as trade union leaders from COSATU, FEDUSA and NACTU.

Representatives of the Public Private Growth Initiative were also present in the meeting. The state was represented by Deputy Ministers of Trade and Industry, Fikile Majola and Nomalungelo Gina, senior officials from the new Department and a number of regulators, including SARS and ITAC. Minister Patel opened the all-day engagement by reflecting on the state of the economy.

“The South African economy produced R5 trillion worth of goods and services in the last year. We need to boost the size of that output and bring more people into the economy. There are currently 16,3 million people in employment in South Africa. We need to create more jobs, and better jobs for the 10 million South Africans who are willing and able to work but are unable to find employment. Neither despair nor blame constitute effective solutions. We have an opportunity to build on our real strengths as a nation, to turn the relatively modest job creation into a significantly larger effort, with workable and actionable solutions to unblock growth, investment and job creation in the economy,” he said.

The engagement focused on a number of key developments in the local and global economy, including the new Industrial Strategy outlined by President Cyril Ramaphosa during the State of the Nation Address in June, and the African Continental Free Trade Area (AfCFTA), which has been ratified now by 27 African countries, including South Africa.

The AfCFTA is intended to be implemented from July 2020, and has been recognize by all constituents as a game-changer for African economies, with the opportunity for new markets for South African goods, balanced by the risk that certain industries may come under threat from imports from across the continent.

The NEDALC parties agreed that a National Committee with sector-level task teams should identify which products South Africa could export to other African countries and what steps needed to be taken to realise such exports. The teams should also point to products that are vulnerable and develop measures to strengthen such sectors.

Government officials also provided updated presentations on South Africa’s export and investment promotion services, plans to improve the ease of doing business, development of special economic zones, changes to the Competition Act, empowerment and black industrialists programs, and the trade dimensions of the digital economy.

The engagement has now resulted in a number of working groups and committees, with constituents drawn from government, business and labor. These include a Ministerial Export Promotion Panel that will be constituted shortly, a Special Economic Zone reference team and a Working Committee on trade policy and the digital economy. Working groups are expected to meet during August and September.

Minister Patel commended social partners on their approach to the engagement, which he noted as solutions-driven.

“Partnership requires that every constituency brings concrete commitments by members to the table and also identifies what it seeks to achieve for its members. We need bold commitments from business and labor. Government will need to be more effective in creating the foundations for growth, transformation and development. This is an opportunity to do things differently. What we have seen in this dialogue begins to reset the tone for a collaborative approach to unlock inclusive growth and job creation in our country,” said Patel.

For more information about AfCFTA, visit the African Union’s website by clicking here.

 

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

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