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].

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].

Team Member Profile: Our HR Manager, Joy Jackson

At our Head Office, we are constantly looking for ways to adjust our team members’ roles so that we can best match their strengths to their responsibilities. As part of some recent tweaks to our internal structure, Joy Jackson, who has been our Recruitment and Training Manager since 20, has been appointed as Relocation Africa’s Human Resources Manager.

Joy’s History

Joy has completed a number of certifications, including Train the Trainer (Swiss School of Tourism & Hospitality) ; Service Culture Trainer (Italy, Florence); Excellent Service Delivery in the Mobility Context (MIM – Managing International Mobility); and Advanced Counselling.

Her career history spans numerous industries, such as health & beauty, human resources, clothing, jewelry, hospitality, and recruitment.

Since 2013, while at Relocation Africa, Joy has successfully managed the recruitment of all Head Office staff, as well as the recruiting and training all part time consultants throughout Africa. Her passion and curiosity for “what makes people tick” has led her to embarking on a counselling course which has yet again upskilled her in many other areas. Joy sets very high standards for the business, including strict compliance in the recruitment and training portfolio and consistently has her hand on the pulse of the team, ensuring the highest standards of service delivery for our assignees throughout Africa.

New HR Role

As we grow and evolve as a business, it is important to keep in mind the valuable HR functions that enable the team, and by extension, business, to operate smoothly.

As part of her new role, Joy will be performing familiar as well as new functions. As well as the recruitment and training she did before, she will be managing internal HR responsibilities and managing the Head Office’s staff wellness and skills development programs.

We wish her all the best in her new role.

 

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].

Naspers, One of South Africa’s Largest Corporations, Is Restructuring and Listing in Amsterdam

Naspers announced that it will list NewCo, a new global consumer Internet group, on Euronext Amsterdam.

“NewCo will also have a secondary, inward listing on the Johannesburg Stock Exchange in South Africa,” said Naspers.

NewCo will be made up of Naspers’ “Internet interests outside of South Africa”. This includes its companies and investments in the online classifieds, food delivery, payments, etail, travel, education, and social and Internet platforms segments.

Companies included in these segments are Tencent, mail.ru, OLX, Avito, letgo, PayU, iFood, Swiggy, DeliveryHero, Udemy, eMAG, and MakeMyTrip.

“NewCo is expected to be approximately 75% owned by Naspers and have a free float of approximately 25%. As Europe’s largest listed consumer Internet company by asset value, NewCo will give global Internet investors direct access to Naspers’ unique and attractive portfolio of international Internet assets.”

The transaction will be subject to regulatory and shareholder approvals, and is expected to be implemented in 2019.

Bob van Dijk, Naspers CEO, said that forming this new company will allow them to attract investor capital.

“The listing aims to reduce our weighting on the JSE, which we believe will help us maximise shareholder value over time,” said van Dijk.

He said that the company’s “outsized weighting on the JSE exceeds most South African institutional investors’ single stock limits” – and as a result, many have been forced to sell as Naspers grows.

Naspers said it will retain its primary listing on the JSE and will continue to directly hold its South African assets – Takealot and Media24 – alongside its majority stake in NewCo.

“NewCo’s free float is expected to be created by Naspers through a capitalisation issue of NewCo shares to Naspers shareholders.”

Naspers N shareholders will be issued with newly-created Naspers M Ordinary Shares, which can be exchanged for NewCo shares once the latter is listed. Alternatively, these shareholders can choose to be issued with additional Naspers N Ordinary Shares.

NewCo is set to be discussed with shareholders on 28 June in Cape Town.

 

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].

The South African Revenue Service Has Increased The Tax Return Threshold

SARS commissioner Edward Kieswetter presented his plans for the 2019 tax season on Tuesday morning (4 June), including the announcement that taxpayers earning below R500,000 are now no longer required to submit returns.

This is an increase from the previous threshold of R350,000. However, SARS said that taxpayers still need to meet the following criteria:

  • Your total employment income for the year before tax is not more than R500,000;
  • You only receive employment income from one employer for the full tax year;
  • You have no other form of income, such as car allowance, business income, rental income, taxable interest or income from another job; and
  • You don’t have any additional allowable tax related deductions to claim, such as medical expenses, retirement annuity contributions and travel expenses.

Kieswetter said that the taxman would be especially hard on those that miss their payment deadlines.

“We continue to encourage taxpayers to convert to online filing. This makes the submission of returns simpler and convenient but also facilitates our overall objective of improving voluntary compliance”.

South African taxpayers should beware of simply ignoring their normal tax filing obligations due to the recent tax threshold change, according to North West University professor Herman Viviers.

“People should be very wary not simply ignore filing their normal tax returns as there is always the possibility of getting a tax refund due to additional tax deductions and/or tax credits only allowed upon assessment,” Viviers said.

He added that people should also take into account their retirement annuity contributions and medical schemes when considering filing their tax return, as they will need to declare these to claim back tax on these payments.

“Individuals will lose out on these deductions and tax credits if they do not submit their tax returns,” Viviers said.

He added that if people are uncertain about whether to submit their return, they should consult with a registered tax practioner to determine if they are compliant with the Tax Administration Act.

The tax season will officially start on 1 July for eFiling, and 1 August for other types of filing. Submissions need to be in by 31 October for walk-ins, and 4 December for online filing. For more info about personal income tax, visit the SARS website here, and to register for eFiling, click 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], [3]. Image sources: [1], [2].