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How to Save Time and Get Your South African Smart ID and Passport at a Bank Branch

With lines at Department of Home Affairs offices around South Africa often being long, more citizens would be wise to know about another option for obtaining their Smart IDs, or renewing their passports.

The four major banks in SA – Standard Bank, FNB, Nedbank, and ABSA – offer ID and passport services at a number of their branches. By arranging an appointment online, through eHomeAffairs, you can skip the lines, and process everything at your bank.

The process

Create an account on the DHA’s eHomeAffairs website.
Capture your application.
Attach your supporting documents.
Make payment.
Schedule your appointment.

eHomeAffairs allows you to save your application progress, and come back to complete it at a later stage.

A bank branch visit is mandatory for the capture and verification of your biometric detail (photos, fingerprints, and signature). You will not be required to go to a Home Affairs office at any point.

Participating bank branches

This service is not available at all bank branches, nor is it available in all cities in South Africa. For a list of participating branches, click here.

Below is a list of current bank branches that support this process.

And below here is a list of scheduled bank branches that aim to support this process.

To find out more about the South African Smart ID card, click here. And for a how-to guide to arrange an appointment at your bank branch, click here. If, for whatever reason, you would prefer to get your Smart ID from a Home Affairs office, you can find a list of Smart ID-capable branches here.

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].

South Africa

Tourism: South Africa Prepares to Welcome the World Again

As South Africa’s government is mulling the reopening of its borders in September, international travelers and travel agents alike have started considering the safety implications of their travels. South Africa’s tourism industry, under the banner of the Tourism Business Council of South Africa (TBCSA), has been advocating for the phased reopening and is putting stringent measures in place to lower the risk and ensure the safety of travelers.

The protocols are aligned with guidelines from the World Health Organization as well as South Africa’s National Institute of Communicable Disease and Department of Health and have been approved by the South African Department of Tourism. They cover, among other things, the designation of Covid-19 health and safety officers and team leaders; requiring visitors to complete medical and travel declarations compulsory temperature monitoring; and standard physical distancing and capacity controls.

Blacky Komani, TBCSA board chairperson, said the manner in which South Africa’s government has dealt with Covid-19 has been lauded as a world-class approach to dealing with the pandemic. “The protocols have gone through a rigorous process. I’m proud to be part of this country. As South Africa, we are ready to receive tourists and do what we do best, which is take care of them when they arrive.”

Sisa Ntshona, CEO of South African Tourism, agreed and added that domestic tourism has currently opened for business travel with partial domestic air travel now allowed. He said: “This move is largely thanks to the sector’s proactive initiatives to de-risk itself. In this regard, the sector is taking the necessary steps to embed evidence-based health and safety measures at all touch points in the tourism value chain. This will go a long way in laying a foundation for a stronger and sustainable tourism sector.”

Ntshona said it is imperative that travelers feel safe and secure. “It goes without saying that health and safety will be top of mind whether we are visiting a local park, attending a conference, going on vacation, boarding a flight or staying at a hotel,” he said. “The need for such reassurance underpins the case for sectorwide health and safety protocols and standards in order to boost traveler confidence.”

Numerous South African hotels, lodges and activities have proactively started implementing the safety protocols and have shared what guests can expect from their travel experience.

Airports in South Africa offer a mainly touchless experience where distancing has become the norm and passengers are requested to scan their own boarding passes. Travelers will also be asked to remove any metal and electronic items at security checkpoints and place the items in a designated tray, a procedure that is not normally practiced on flights within the country. This is to minimize the need for physical pat-downs.

The wearing of masks is currently obligatory in South Africa. On arrival at the lodge or hotel, luggage will be sprayed and wiped down. Hand sanitizer will be available to travelers, and social distancing is expected be observed at all times. Travelers will also be requested to fill out a medical form that inquires about any symptoms they may be experiencing.

Extra care will be taken that meals are served in a safe and responsible way, which means that dining will happen a la carte and buffets will be scrapped. Solo travelers will not be permitted to share a table with strangers due to strict social distancing rules.

The number of people on a game drive vehicle will also be kept to a minimum, although travelers from the same group or family will obviously be able to experience game drives together. Game drive vehicles will be thoroughly sanitized after each use.

In case a traveler feels unwell, some lodges have set up dedicated isolation suites where travelers can get tested. If visitors test positive, it is important to note that South Africa boasts the highest standard of health care in Africa, with an extensive network of private doctors, specialists and clinics.

Although lodges have adapted to the new reality of Covid in their operations, the safari experience remains the same or is even better than before, according to industry players.

Robert More, CEO and founder of the More Family Collection, said that although the hospitality group is committed to doing what it can to curb the spread of Covid-19, none of the efforts will compromise the guest experience.

Said More: “Social distancing may well put space between people, but our business is still reliant on human connections and on the ability to create life-enriching experiences for our visitors. We realize that people will be seeking wide-open spaces, fresh air, beautiful environments and intuitive, warm human service — this is what we intend to deliver. Thankfully, ours is a product where distancing need not be negative: less people on a safari vehicle, for example, can only enhance the experience.”

Marcelo Novais, general manager of Ker & Downey Africa DMC and Grand Africa Safaris, said that even prior to the Covid-19 outbreak, a high level of safety was observed. He said: “For example, our vehicles are new, and our drivers maintain an impeccable level of hygiene during and after each client’s trip. This includes regular cleaning between and even during tours as well as drivers donning gloves. Going forward, our services will continue these high standards of hygiene protocols as well as implement the new regulations, such as wearing masks and implementing social distancing.”

Social distancing is not difficult in Africa, according to the TBCSA’s Komani. “We are not a mass tourism destination. South Africa is known for its space. You can drive for hours without seeing a single soul. We are geared for it,” he said.

Novais agreed, pointing out that Africa’s sought-after wilderness destinations are not densely populated and therefore the virus has had a low impact.

According to Novais, we can expect an influx of luxury and family travelers seeking out safari destinations in 2021. He said that according to a recent survey conducted by Ker & Downey, 63% of clients want to visit Southern Africa going forward.

Said Novais: “We predict that family travel will be highly sought-after once the global travel bans are lifted, as families will be looking to spend quality time together after being cooped up indoors and potentially missing their 2020 family holiday. The combination of travelers seeking exclusive holidays in remote destinations and the postponed bookings from 2020 will pose a challenge for availability in 2021.”

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], [3], [4].

South Africa

South African Solar Energy Tax Incentives You May Not Be Aware Of

A little-known amendment to the Income Tax Act allows for depreciation in the year of commissioning of the full cost of a grid-tied solar PV system of less than 1 MW used for electricity generation by a business in the course of its operations.

South Africa’s government, energy regulator and Eskom have often been criticised for obstructing the introduction of distributed, small-scale embedded generation (SSEG) which would help businesses to cut costs and ensure the stability of their power supply during load shedding.

But in fact, there are significant and far-sighted tax breaks which have been put in place by National Treasury to encourage and incentivise business owners to install their own generation in the form of grid-tied, rooftop or ground-mounted solar PV systems on buildings, parking lots, warehouses, factories and farms.

Accelerated depreciation allowances

From 1 January 2016, a little-known amendment to Section 12B of the Income Tax Act (Act 58 of 1996) allows for depreciation in the year of commissioning of the full (100%) cost of a grid-tied solar PV system of less than 1 MW used for electricity generation by a business in the course of its operations.

The capital depreciation allowances for solar PV systems greater than 1 MW remained unchanged in the January 2016 amendment to the legislation, which continues to allow full depreciation over three years. This permits depreciation of 50% of the capital cost in the year of commissioning, 30% in the subsequent year, and 20% in the third year.

The accelerated depreciation allowance for solar PV systems applies whether they are installed for the business by contractors or developers, or paid for by the business in a credit sale agreement (as defined in Section 1 of the Value-Added Tax Act) — either upfront in a single payment or in multiple payments over an extended period.

The cost of the solar PV system allowed for accelerated depreciation includes its full direct capital cost, including design and engineering, project planning, delivery, foundations and supporting structures, solar PV panels, AC inverters, DC combiner boxes, racking, cables and wiring, and installation. Finance costs are excluded.

This allowance was confirmed in a binding private ruling by SARS dated 11 October 2018 (BPR 311) in respect of an application by a private company in South Africa to clarify the deductibility of the capital expenditure incurred to install solar PV systems at a number of sites owned and leased by the applicant. The systems were being installed to reduce the company’s electricity costs.

The improved business case

Whether paid for upfront after commissioning, or in multiple payments over an extended period, the benefits of this tax incentive to business owners, particularly for solar PV systems of less than 1 MW, are significant.

Where the company tax rate is 28% and payment is upfront, a 100% tax-deductible depreciation allowance in the year of installation and commissioning will result in a 28% nett discount on the purchase price of the system at the end of the tax year.

This significantly affects and reduces the payback period of a solar PV project of less than 1 MW.

Better still, when paying for the same solar PV system on a credit sale agreement through multiple payments over an extended period, the transaction can be cash-flow positive for the business over the lifetime of the solar PV plant in all but the first months to the end of the tax year during which commissioning takes place.

With these significant tax incentives and the rapidly rising price of grid electricity, the business case for installation of grid-tied, rooftop and ground-mounted solar PV is fast becoming a no-brainer.

Awareness of the incentives

What is most surprising, however, is how few business-owners and companies are aware of these tax breaks, which can make such a positive impact on their cash flow and bottom line.

This lack of awareness is perhaps a result of the difficulties faced in accessing relevant information on the subject from SARS itself.

For example, efforts to simply download or view the up-to-date amended Section 12B of the Income Tax Act from the SARS website and the public internet proved fruitless. Similarly, no response or even acknowledgement of receipt was received to a query sent to the SARS media desk at sarsmedia@sars.gov.za.

Only after a time-consuming search and a paid subscription to a private tax information service provider was this possible.

In an article in Engineering News on 14 August 2019, entitled “Time to end silence on renewables misinformation — SAPVIA chair”, the new chairman of the South African Solar Photo-Voltaic Industry Association (SAPVIA), Wido Schnabel, said:

“The organisation will become more assertive in outlining the benefits of solar for South Africa and in correcting some of the prevailing misperceptions about the role of variable renewable energy in the country’s future electricity system.”

The tax incentives available to businesses for the installation of solar PV systems is certainly something that SAPVIA and other related industry associations should be “shouting from the rooftops” in the interests of their members, as well as those of developers, installers and suppliers of solar PV systems, components and services.

The challenge

Businesses which have installed solar PV in the 2018/19 tax year, or are about to do so, stand to benefit substantially. The Council for Scientific and Industrial Research (CSIR) estimates that there was close to 400 MW of installed solar PV in the country at the end of 2017 and that up to 200 MW was installed the following year. With a wider understanding of the business case, this could be much higher in future.

Most of these installations are less than 1 MW — which is all that most private businesses require across a wide range of sectors of the economy, including manufacturing and retail.

If only the various arms of government, business, labour and communities were on the same page and working with a common purpose to bring the benefits of SSEG to the productive economy and the environment, to address the current electricity and water supply constraints, and to facilitate economic growth and the creation of quality jobs.

This article was written by Chris Yelland (investigative editor at EE Publishers) and Mariam Isa (a freelance journalist).

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: Mariana Proença [1], [2].

South Africa, United States

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.”

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