Andrew Stegmann

Highlights From South Africa’s Second 2019 State of the Nation Address

South African President Cyril Ramaphosa delivered the country’s second State of the Nation Address yesterday evening, keying South Africans into his plans going forward, now that the country’s new Parliament is settling in, after the recent general election.

Below are 10 highlights from his speech.

  1. A special appropriation bill is to be tabled to allocate a significant portion of the R230 billion that Eskom needs to pay its debtors and keep the lights on.
  2. The president reaffirmed the constitutional mandate of the Reserve Bank “to protect the value of our currency in the interest of balanced and sustainable growth”.
  3. The Minister of Communications has been instructed to issue policy direction to the Independent Communications Authority of SA (ICASA) to begin licensing spectrum that will significantly reduce data costs.
  4. To return public money that has been looted, civil claims arising from investigations conducted by the Special Investigative Unit (SIU), estimated to be around R14.7 billion, will be fast-tracked.
  5. The Presidency plans to drive the implementation a comprehensive plan to create two million jobs for young people over the next 10 years.
  6. Government intends to double international tourist arrivals to 21 million by 2030, by introducing a “world-class visa regime”, and focusing on tourists from China, India and the rest of Africa.
  7. Government plans to accelerate efforts to identify and release public land that is suitable for smart, urban settlements, as well as for farming.
  8. Government plans to establish a gender-based violence and femicide council to guide the former’s efforts to eradicate gender-based violence in South Africa.
  9. Ramaphosa announced plans to train foundation and intermediate phase teachers to teach reading in English and African languages, and to deploy experienced coaches to provide on-site support to teachers.
  10. The President said he envisions the first new city built in the democratic era, with skyscrapers, schools, universities, hospitals, and factories, to ease the pressure on the congested cities of Pretoria, Johannesburg, Durban, and Cape Town. This includes the construction of a cross-country high-speed train.

To watch the full Address, click here.

South African President Cyril Ramaphosa delivers the country’s second State of the Nation Address on Thursday, 20 June 2019.

 

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], [3], [4]. Image sources: [1], [2].

Andrew Stegmann

54 Hours of Low Water Pressure Scheduled During Maintenance in Joburg Next Week

Johannesburg will shut off its water supply for more than two days from Monday June 24, the city said on Tuesday.

“Rand Water, which is our main bulk water supplier, is planning a major shutdown that will affect all our reservoirs and towers in terms of water supply for 54 hours from June 24.”

“The shutdown is on the B11 pipeline to install a 2,500mm butterfly valve from Lethabo to Vereeniging pumping station. This will result in limited water supply to all Rand Water customers,” it said.

Officials said this does not mean that there would be no water during that period. “However, due to the extremely long hours, some of the areas may experience a shortage of water or low pressure,” said the city.

“Johannesburg Water appeals to all residents of Johannesburg to use water sparingly during the shutdown in order to avoid a complete no-water situation and reminds all that level-1 water restrictions are still in place.

“The shutdown will also affect a number of municipalities across Gauteng. We apologise for the inconvenience.”

 

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].

Andrew Stegmann

Foreign Investment Secured to Build Zero-2-One Tower, the New Tallest Building in Cape Town

Despite delays due to city approvals and funding hurdles, construction on the Zero-2-One Tower – which will become the tallest building in Cape Town – is expected to launch soon.

The Zero-2-One Tower first made headlines in 2016, when plans to construct the R1.3 billion city centre project on the corner of Adderley and Strand Streets in Cape Town were unveiled, led by developers FWJK.

During the course of the planning for the tower, the project was hit by several delays, mostly related to the approval processes of the City of Cape Town, which included stipulations that new developments include ‘affordable housing’ – an incredibly difficult task in a city with some of the highest house and apartment prices in the country.

More recently, on the tail of the worst quarterly economic data in a decade, it was speculated that the project had been cancelled due to a lack of funding.

Speaking to BusinessTech, FWJK CEO, David Williams-Jones said that this was not the case.

Williams-Jones acknowledged that procuring funds locally proved difficult because of the economic downturn – however, he said the development was able to secure funding through foreign direct investment.

“The procurement of project funding has faced headwinds and has had to be secured through foreign direct investment,” he said.

“Raising property development finance of R1 billion to undertake the project through conventional SA banking sources has proved impossible due to the current state of the economy and cautious bank appetite at the present time to lend on projects of this scale.”

New timeline

In terms of new timelines, Williams-Jones said that the project is targeting a construction launch within the next few months, pending approvals from the Reserve Bank.

“Once the SA Reserve Bank approval of the foreign funding has been processed, we are targeting to commence construction works on site within the next three to four months, bringing with it the added benefit of 3,000 new on and off site jobs being created,” he said.

Zero 2 One Tower, at 44 storeys, will become the tallest building in Cape Town and will comprise 570 apartments and 7,000 sqm of retail shops on ground level and station concourse level, he said.

The current tallest building in Cape Town is Portside Tower, at 32 floors, which is jointly owned by FirstRand Bank and Accelerate Property Fund. At the time of its completion in 2014 (at a cost of R1.6 billion), Portside was Cape Town CBD’s first new skyscraper in 15 years.

More info about the building can be found here. Below (left) is a render of the intended final building, (center) the location in the CBD where it will be constructed, and (right) Portside Tower.

 

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], Discott [3].

Andrew Stegmann
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Greenpeace States Eskom Should Get Rid of Coal Power Stations

A recently published study by Greenpeace Africa has urged Eskom to start phasing out its coal power stations and open IPP auctions for renewable energies.

A study commissioned by Greenpeace Africa titled ‘Eskom: A road-map to powering the future‘ has recommended that the struggling power utility get rid of its coal power stations.

With reports that Eskom’s debt will reach a quite staggering R500 billion, the future of the state-owned company looks increasingly uncertain.

Eskom relies on coal due to the local market producing it relatively cheaply and the significant infrastructure geared towards coal power.

Greenpeace Africa’s senior political adviser Happy Khambule said: “Fundamental reforms of the South African electricity sector and Eskom’s business model are inevitable and urgent.

“This report presents a road-map with solid options for the country’s electricity supply industry crisis, outlines a realistic and sustainable future for Eskom, and ensures that all crucial functions of the South African electricity system improve.”

The negative environmental impact of coal power stations and doubts over its long-term viability as a power source led Prof. Dr. Uwe Leprich, the author of the study, to conclude Eskom needs to start phasing it out.

Key recommendations for Eskom reform include:

  • The gradual phase-out of coal-fired power generation from Eskom to new generation companies (GenCos)
  • The refinancing of Eskom through the decommissioning of coal-fired power stations older than 40 years, and the sale of all remaining coal-fired power plants
  • The retention by Eskom of the important role of the transmission system operator with the possibility of operating its own grid-supporting (non-coal) power plants
  • The opening of the IPP auctions for renewable energies to Eskom as well in order to make it a significant part of the utility’s business model
  • The possibility for Eskom to participate in the newly created six regional electricity distributors
  • The opportunity for Eskom to create new services for end-use customers on the basis of the digitization revolution that is evolving all over the world

To read the full study, click here.

Government sued for air pollution

The recommendation comes in the wake of environmental justice group groundWork and Mpumalanga community organisation Vukani Environmental Justice Movement in Action taking the South African government to the Pretoria High Court over a perceived violation of citizens’ constitutional right to clean air.

“Living in Witbank, one of the most polluted areas in the country, has hugely affected our health and lives,” says Vusi Mabaso, Chairperson of Vukani.

“Both government and industry have continuously failed to deal with the problem, irrespective of our efforts to engage with them to ensure they take steps to protect human health.

“Together with groundWork, Vukani has decided to use litigation to push government to take urgent steps to deal with the high air pollution and in the interest of our health and to protect our right to clean air.”

 

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: Dominik Vanyi [1], [2].