South Africa’s economy has staged a solid recovery in the third quarter – with every single sector growing after the devastation of the second quarter, when the country was basically shut down in the first phase of lockdown.

Manufacturing, trade and mining saw strong growth, and there was also a notable jump in construction work, after eight straight quarters of contractions, says Momentum economist Sanisha Packirisamy.

The economy grew by 13.5% compared to the previous quarter, after a massive 17.5% contraction in the second quarter. Still, the latest GDP data shows that, after the first three quarters of the year, the South African economy was 7.9% smaller than a year ago.

Some sectors have been absolutely decimated by the lockdown and the pandemic’s impact on demand, given mass retrenchments and continuing uncertainty. The construction sector, for example, shrank by 20% in the first nine months of the year. Manufacturing (-15%) also contracted while trade, catering and accommodation – which includes the ravaged tourism and restaurant industries – shrank by almost 11%.

There are only two sectors that actually grew in the first nine months of this year: government services (+0.8%) and agriculture, which is now 11% bigger than a year ago. The sector boomed this year thanks to bumper summer crops, strong exports and solid prices.

After a lean 2019 due to foot-and-mouth disease and various droughts, good rains have fallen in many parts of the country this year. The country’s 2020/21 winter barley and canola harvests are expected to be the largest on record, while wheat production is predicted to reach a 19-year high, and the maize harvest is expected to be a third bigger than last year.

Exports of various produce have also been strong. For example, South Africa may export almost 10 billion pieces of citrus fruit this year, in what is expected to be one of the best seasons on record. This was thanks to a solid local harvest – but also strong demand, especially in Europe, for vitamin C as the coronavirus caused consumers to become more conscious of protecting their immune systems.

Maize exports increased by 235% to 963,441 tons in the third quarter, compared to the same period last year, reports Paul Makube, Senior Agricultural economist at FNB Agri-Business. “On the back of a bullish weather outlook with the La Niña pattern having taken hold above 90% chance for Southern Africa, agriculture’s outlook for the year ahead is even more positive,” says Makuba. La Niña, a weather pattern that begins in the Pacific Ocean, usually brings more rain to South Africa.

The preliminary intentions to plant report for summer crops indicates a 5% increase in planted area for the 2020/21 season to 4.15 million hectares. “This is likely to increase further in subsequent reports given the high commodity prices and better production conditions.”

 

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].

Bank of Ghana Governor Ernest Addison ruled out providing more loans to the government to help narrow the budget shortfall, saying it would put exchange-rate stability at risk.

The central bank shelved its zero-financing policy this year to lend the government 10 billion cedis ($1.7 billion) to help mitigate the impact of the coronavirus pandemic on the West African economy. Ghana’s budget deficit is projected to reach 11.4% of gross domestic product by the end of December, against an initial target of 4.7% of GDP.

“The wide fiscal gap raises important financing issues,” Addison said in a speech late Thursday, in the capital, Accra. “Its financing should not be by recourse to central bank funds, as this will weaken the central bank’s ability to serve as the anchor of monetary- and exchange-rate stability.”

The cedi has had its most stable spell in more than a decade this year, weakening 2.6% to the U.S. dollar. That’s even as the global health crisis drove Ghana’s ratio of debt to gross domestic product to 71% in September, the highest in four years.

“Going forward, difficult decisions will have to be taken to reorganize public finances and expenditure priorities, while exploring more sustainable revenue sources,” Addison 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].

Nigeria’s Air Peace began Lagos to Johannesburg flights on 17 December 2020, using its sole B777-200ER.

The 4,511-kilometre route currently has no direct competition and is operated twice-weekly with an elapsed time of six hours in both directions.

It leaves Lagos at 0100, arrives Johannesburg at 0800, departs at 1100, and arrives back at 1600.

South African Airways has operated the route for years on which the airline had over 232,000 seats – its most – in 2014. It’ll resume the route on a daily basis from 1 February 2021.

Arik Air operated it until 2017 and depending on the year it variously used B737-800s, A330-200s, and A340-500s.

Virgin Nigeria operated it briefly in 2012 using A330-200s.

At its peak in 2014, Lagos – Johannesburg had over 462,000 seats, but this diminished to just 179,000 in 2019.

 

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].

The COVID-19 pandemic has triggered a funding crisis for global Non-Governmental Organisations (NGOs) when they are needed most. As tax revenues from donor countries continue to shrink, and corporate social responsibility (CSR) budgets dwindle, NGOs must utilise all available measures to achieve potential savings without compromising the quality and quantity of their aid.

One way where potential savings could be achieved is through satellite connectivity. Continuous developments in the satellite industry offer a prime cost-cutting opportunity for cash-strapped NGOs. This is especially true for those operating across the African region, where satellite communication is already an established tool among the NGO community, so there is existing ground infrastructure to receive the satellite signals.

Notably, satellites have unique characteristics; such as their global unrivalled reach, as well as their reliability and resilience that enables them to provide truly ubiquitous coverage, covering 99% of the world’s population. Then there is also their rapid deployment that exceeds any currently available infrastructure.

Considering that limited connectivity infrastructure poses a major challenge to many NGOs, especially those operating in underdeveloped areas, satellite communication across these regions should be easily accessible and affordable.

Frank Bauner, CEO of IABG Teleport

Historically, an NGO would commission satellite links per location or project. Today, however, it is possible to establish a pool bandwidth for all remote locations across an expansive region like Africa, and save up to 25% of an NGO’s very-small-aperture terminal (VSAT) budget, by using the available bandwidth in an efficient way, without impacting the user experience.

This is because time-division multiple access (TDMA) technology allows private bandwidth pools to be set up with customisation of bandwidth allocation per remote location. And due to the vast coverage of satellite beams, it is possible to add all remote locations across Africa within one single beam – SES’s NSS-12 satellite is ideal in this instance, as it covers the entire African continent.

The specific solution is called Private Supra-regional Pool Bandwidth (PSPB), and the idea behind it is quite simple. Instead of procuring a single link for each location, a private pool bandwidth is established for all remote locations in the region. NGOs can also combine forces and procure the bandwidth together to reduce individual costs. But in order to ensure that unused bandwidth within the network is only used by other remote locations from the NGO, this pool bandwidth has to be private.

This means that the degree of efficiency achieved by the pool bandwidth, increases with the number of remote locations connected to it. This creates the opportunity for NGOs to join forces and maximise the cost-saving benefits. With a growing number of sites, even in one time zone or country, the probability of a simultaneous internet use will decrease. This probability then decreases even further when sites are located across different regions and time zones.

To put this into context, IABG has leveraged SES’s NSS-12 C-band capacity since June 2020, in order to upgrade our broadband satellite network infrastructure and support cost-effective iQ modems for African NGOs.

Thanks to the very powerful and economical new modem generation, IABG Teleport is enabling NGOs with connectivity services delivered via satellites with a low one-time investment.

Frank Bauner, CEO of IABG Teleport

Over and above these cost-saving benefits, the private pool bandwidth also allows backup service for sites that are connected via terrestrial networks. This backup service comes at no additional cost. Terrestrially-connected sites can be connected as a backup link to the pool bandwidth. In case of an outage of the terrestrial link, the connectivity can therefore be continued by the VSAT pool bandwidth.

 

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].