Ban on Alcohol Advertising will cost almost ZAR 6bn in lost Revenue
A proposed ban on alcohol advertising will result in a loss of ZAR 4.3bn for sports development and cost the broadcast media R1.4bn, said the Industry Association for Responsible Alcohol Use. It charged today that the health department made it impossible for the alcohol industry to make input on a proposed ban on alcohol advertising. “We have made numerous efforts to meet with the department to present our proposals to no avail,” said the Industry Association for Responsible Alcohol Use. It said it recognised the harm caused by alcohol abuse, but urged the government to consider the economic implications of the control of marketing of alcohol bill. In its current form, the bill bans all forms of alcohol advertising and sponsorship. The l…
Minister Davies needs more Clout to tackle Greed
Greed, self-interest and lack of political will are costing South Africa easy gains when it comes to boosting the economy and creating jobs. This is the view of a number of government officials, academics and competition-law practitioners with intimate knowledge of South Africa’s industrial policy strategies and competition law.
The Organisation for Economic Cooperation and Development released a report last week that highlights how investment in manufacturing is increasingly moving from developed countries to developing countries. The report, titled Perspectives on Global Development 2013: Industrial Policies in a Changing World states that a number of developing countries have begun to put in place industrial policies to increase m…
V&A Waterfront major GDP Contrinutor
Most people regard the Waterfront in Cape Town only as a prime dining and shopping destination but forget, that the revenue had so far as well as will have still an increasingly positive effect for the South African economy.
Contribution to GDP
Over the past decade, the economic hub of the V&A Waterfront has contributed almost ZAR 200bn to South Africa’s economy. In nominal terms the V&A’s contribution to the gross domestic product (GDP) increased from ZAR 10.4bn in 2002 to ZAR 28.9bn in 2012. This translates to an average of 11% increased contribution to nominal GDP every year for the last 10 years, which is 1.5 times greater than the rate of inflation. The real growth in the contribution of the V&A Waterfront, at an average…
Gold Miner Strikes almost over
A three-day strike by tens of thousands of South African gold miners wound down today with most strikers agreeing to return to work after accepting the latest wage offer from employers, the National Union of Mineworkers (NUM) said. Gold producers said they had offered entry-level workers pay increases of 8 percent and a 7.5 percent rise for other employees from July this year, slightly above consumer inflation which was 6.3 percent in July. For next year, employees would get inflation-linked increases, the companies said. The pay rise offer is far below the 15 to 60 percent NUM had originally been seeking. The unexpectedly quick end to the strike is a relief to Africa’s largest economy, hit by stoppages across a range of sectors includin…
WEF releases new Global Competitiveness Report
The World Economic Forum (WEF) released the World Competitiveness Report 2013-2014 today. This year’s annual report indexes 148 countries in the world according to a variety of criteria, ranging from accounting to safety and from business sophistication to literacy.
As Switzerland retains its 1st place again this year as a result of its continuing strong performance across the board due to the country’s most notable strengths in innovation and labor market efficiency as well as the sophistication of its business sector (ranking 2nd in all three), Germany moves up by two notches to 4th place this year. The country is ranked an excellent 3rd for the quality of its infrastructure, boasting in particular first-rate faci…
Business Confidence sinking
Business confidence dropped by six index points in the third quarter of this year, RMB/BER reported today. The Rand Merchant Bank (RMB) and the Bureau for Economic Research at Stellenbosch University (BER) business confidence index decreased to 42, they said in a statement. “After fluctuating around the neutral 50 mark for about a year now, the RMB/BER business confidence index (BCI) fell notably into net negative territory in the third quarter,” RMB chief economist Ettienne Le Roux said. “[This] indicates that close to three fifths of the respondents rated prevailing business conditions as unsatisfactory.”
Business confidence fell in three of the five sectors in the third quarter. Declines were particularly sharp in the case of new m…
The New Labour Relations Amendments
On 20 August 2013 the Labour Relations Amendment Bill (LRAB) was adopted by the National Assembly in Parliament. These amendments have been extremely contentious and have far reaching consequences and will have a significant impact on labour relations in South Africa going forward. The Labour Relations Amendment Bill will provide more protection to fixed-term employees. The proposed amendment to s186(b) of the LRA provides that a failure by an employer to permanently retain an employee, who was engaged under a fixed term contract of employment and who reasonably expected to be permanently retained on the same or similar terms, constitutes a dismissal.
The amendments seek to achieve a balance that takes into consideration the commercia…
Mandela back home with Family
Former president Nelson Mandela’s family are celebrating his return this morning after being discharged from hospital, his grandson Mandla Mandela said. “It is a day of celebration for us that he is finally back home with us,” said the young Mandela. He added that Madiba’s discharge was “particularly heartening because it flies in the face of those who have been busy spreading lies that he was in a ‘vegetative state’ and just waiting for his support machines to be switched off”. Madiba’s grandson said these kind of people had been “in effect declaring him dead while he was fully alive”. He said the family thanked all those who had prayed for Madiba’s wellbeing. "Finally everyone can breathe a sigh of relief that our prayers have found fa…
SARS eases up on VAT Legislation
As most of our clients know, the registration for Value-added Tax (VAT) has become a slow and frustrating process for taxpayers in South Africa, with more and more documentation and proof required by SARS. The reason given for this by SARS is the amount of fraud and abuse that crept into the registration system where taxpayers would get large upfront VAT refunds and then abandoned their VAT returns and duties. The recently published Taxation Laws Amendment Bill, 2013 shows a compromise by the South African Government, which is aiming on the one hand at allowing the free flow of commerce but on the other hand to block the mentioned abuse of the VAT system. The long awaited new tax legislation in this regard will now come into effect on 1…
Strike in the Automobile Industry continues
The strike in the automotive industry will continue, the National Union of Metalworkers (Numsa) said today. “The strike is still going ahead until we have received a new mandate from our striking workers,” Numsa spokesperson Castro Ngobese said in a statement. A final decision on the matter would probably be announced on Wednesday after a meeting of the union’s national executive council. The council would gather after a special meeting of shop stewards, where the employers’ latest 10% pay rise offer would be discussed. "The national office-bearers of the union will be convening a special auto national shop stewards council tomorrow [Tuesday]… to consolidate a way forward based on the various mandates that have been received from membe…