Jacob Zuma Business News

BRICS – Brazil, Russia, India, China … and South Africa (or BASIC?)

Denmark's Queen Margrethe (C) gives a toast to German Chancellor Angela Merkel (3rd L), U.N. Secretary General Ban Ki-Moon (L), China's Premier Wen Jiabao (3rd R), South Africa's President Jacob Zuma (2nd R), Mexico's President Felipe Calderon (R) and other guests during a dinner at the United Nations Climate Change Conference 2009 in Copenhagen December 17, 2009.

Denmark's Queen Margrethe (C) gives a toast to German Chancellor Angela Merkel (3rd L), U.N. Secretary General Ban Ki-Moon (L), China's Premier Wen Jiabao (3rd R), South Africa's President Jacob Zuma (2nd R), Mexico's President Felipe Calderon (R) and other guests during a dinner at the United Nations Climate Change Conference 2009 in Copenhagen December 17, 2009.

BRICS or BASIC? For many a year mere mention of the term BRIC has been guaranteed to set South African officials’ teeth grinding.

As the economic powerhouse of sub-Saharan Africa, South Africa has long dreamt of being a global player since the end of apartheid – and been frustrated by the fascination of so many economists with the big four emerging economies, the so-called BRIC nations (Brazil, Russia, India, and China), to the exclusion of South Africa.

Now, however, South Africa is daring to dream again, as is Jacob Zuma, its sometimes controversial leader, who just may have found a compelling geopolitical theme for his nine-month-old presidency.

Much has been made of the dramatic final evening at December’s climate change conference in Copenhagen when Barack Obama paid a call on the Chinese delegation, only to find that a meeting was already under way between Chinese, Brazilian, Indian, and South African leaders. Read the rest of this entry »

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Working in South Africa, the Country of Contradictions

After working for seven years in the UK, Tyron Whitley last year made the move back home to South Africa with some trepidation. But 18 months on, his company, the South African Car Import Agency (SA-CIA), which helps other returnees ship their vehicles back from emigre destinations – has been a success and the 34 year old now feels pretty positive about his native land.

“When we first came back, we wondered what we were doing. Crime was a concern and initially power cuts meant that we found ourselves sitting in the house with candles studying how generators worked,” he says. “But doing business here has been a breeze.”

Johannesburg, South Africa

Johannesburg, South Africa

His experience illustrates the contradictory character of South Africa as a place to work. On the one hand, its legal system, banking and financial facilities, and road infrastructure compare favorably with those of the developed world. On the other, around early 2008, South Africa experienced a period of erratic electricity supply. Also, the incidence of crime, especially violent crime, is among the worst anywhere. It must be noted that, over the past year, South Africa has made significant progress in dealing with the power issue and power blackouts are, for the most part, now a rarity.

A glance at this year’s tables measuring the ease of doing business and prepared by the International Finance Corporation (IFC) – the business arm of the World Bank – highlights South Africa’s advantages. South Africa ranks 34th, only three places behind France, well ahead of other European countries such as Spain, Portugal, and Italy and substantially ahead of fashionably large emerging markets such as Brazil, Russia, China and India, the so-called BRICs. Read the rest of this entry »

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VIDEO: CNBC Interview with Joseph Wambia, CEO of Wambia Capital. Does the Recent Would-Be Terrorist Act Affect Investment Sentiment towards Africa?

Does it make sense to criminalize Nigeria, a country of 150 million people, due to the single act of one Nigerian citizen? Apparently, the US Government thinks “YES”!

Nigeria, a country that is evenly divided along religious lines between Christianity and Islam, was recently placed on the United States’ list of so-called “terrorist” countries. This list includes the likes of Iran, Sudan, Syria, Afghanistan, Algeria, Iraq, Lebanon, Pakistan, Saudi Arabia, Somalia, and Yemen. This extreme measure was taken as a response to the recent attempted terrorist attack by a Nigerian, Umar Farouk Abdulmutallab, of a Detroit-bound Northwest Airlines flight.

This is just a power play by the US government. US put Nigeria on that list because it rightfully thinks it can get away with this action … which it certainly will. The US government had to do “something” to Nigeria to show the US population that the US government was “punishing” the so-called “Nigerian terrorist country”.

Interesting proposition: how about adding UK, France, and Germany to the list? London (or Paris or Frankfurt?) is arguably the one non-Middle Eastern city with the highest probability of originating a terrorist. Of course, the idea sounds ludicrous, just as ludicrous as Nigeria being given “terrorist country” status.

ChairmanKing.com strongly condemns Umar Farouk Abdulmutallab and his attempted terrorist act. However, the US should not criminalize a country for the single act of one person.

Wambia Capital

Source(s): CNBC

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Bobby Godsell, Chairman of South Africa’s National Power Company Eskom, Quits over Race Row

Bobby Godsell, Former Chairman of Eskom

Bobby Godsell, Former Chairman of Eskom

The chairman of South Africa’s national power company Eskom has resigned, days after he was accused of forcing out his black chief executive, Jacob Maroga.

Eskom board chairman Bobby Godsell and Jacob Maroga had been engaged in a power struggle for some time.

Last week, it was reported that Jacob Maroga had resigned, leading the Youth League of the ruling ANC to allege he had been pushed out because he was black.

Eskom has been in the spotlight since power cuts hit the country last year.

Jacob Maroga, Former CEO of Eskom

Jacob Maroga, Former CEO of Eskom

The Star newspaper reports that President Jacob Zuma met Mr Godsell over the weekend.

The Black Management Forum also criticized the announcement that Jacob Maroga had resigned, saying state-owned enterprises were becoming “slaughterhouses” for black professionals.

Eskom spokesman Andrew Etzinger said Jacob Maroga had returned to work on Monday and blamed the confusion on an “interpretation of a discussion”.

“Mr Maroga’s interpretation was that he hadn’t resigned, the board’s was that he had. Mr Maroga had offered to resign and the board had accepted that offer… it was in a context of a discussion and not a formal resignation,” he told the Sapa news agency. Read the rest of this entry »

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MTN-Bharti Merger Veto May Signal Bigger Zuma Role

MTN Bharti AirtelSouth Africa’s decision to block a $23 billion merger between MTN Group Ltd. and India’s Bharti Airtel Ltd. may indicate President Jacob Zuma favors more state involvement in the economy to protect jobs and local industries.

Bharti and MTN abandoned talks after the deadline for an agreement expired on Sept. 30. Bharti said the structure of the deal failed to get approval from the South African government.

Zuma, who was swept into office in May with the backing of labor unions, is under mounting pressure to stem a slump in manufacturing output and the loss of tens of thousands of jobs as the economy suffers its first recession in 17 years. Until now, he has stuck to the business-friendly policies of the previous government, headed by Thabo Mbeki. Read the rest of this entry »

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White South Africans Feel Pull of Home

Cape Town life: some younger professionals take a more realistic view of their country’s prospects

Cape Town life: some younger professionals take a more realistic view of their country’s prospects

After 15 years in London, Willem De Klerk was apprehensive when he came home to South Africa at the end of last year.

“When I raised it with my friends they told me I was making the biggest mistake of my life,” says the 41-year-old former civil servant. However, it has not taken him long to realize he made the right decision.

“Life in the UK has got very hard and in the last six months we found it impossible to break even,” says Mr De Klerk, who says he, his wife, and small child opted to swap their house outside London for a property three times as big near Pretoria, South Africa’s capital.

“We liked what we could get for our money here and are doing better than we have ever done before in our lives,” he says.

Mr De Klerk may be part of a growing trend. A year ago, with power cuts, xenophobic violence, persistently high crime, and political uncertainty contributing to a mood of near despair in better-off suburban areas, it appeared that white South Africans could not get out of the country quickly enough. Read the rest of this entry »

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Private Equity Fund, International Housing Solutions (IHS), Eyes Africa’s Housing Markets

International Housing SolutionsA U.S.-based private equity fund plans on doubling its investments in South Africa by year-end as it seeks investment opportunities across Africa during a global economic downturn.

International Housing Solutions (IHS) is a private sector fund targeting lower to middle-income earners and does not partner with government except in certain projects. The fund shares in the profits of housing projects by giving money directly to private developers, allowing them access to bigger bank loans at reduced borrowing costs. Active in South Africa since 2006, IHS has injected ZAR500 million (USD63.56 million) to build affordable houses and hopes to invest in other African countries. Affordable housing projects could offer big profits. Read the rest of this entry »

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VIDEO: The South African Economic Climate

In Africa, the world’s second-biggest continent, it’s usually South Africa that investors look to first. However, South Africa has been struggling with high unemployment and a contracting economy, partly due to the global slowdown.

See more videos on South Africa

Econometrix

Source(s): CNBC

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Zondwa Mandela, Mandela’s Grandson, Eyes Africa Deals

Zondwa MandelaAs a small boy, Zondwa Mandela regularly visited his grandfather Nelson Mandela and grew close to the legendary leader of the anti-apartheid struggle. After Nelson Mandela was released from prison in 1990, he would often interrupt his paperwork to conduct impromptu exercise sessions and dispense advice to his young grandson.

“We would do press-ups … and he would do them on two fingers, he was a very strong man.” laughs Zondwa Mandela, who is the son of Nelson Mandela’s youngest daughter. “The big key, he used to say, was education and that you always needed to remain grounded. But the lesson I always learned from him is that everything is possible.”

Two decades on, Zondwa Mandela, who is now 25, is putting his grandfather’s counsel to the test as he sets his sights on a business career. Together with another man with a prominent political name, Khulubuse Zuma, the 39-year-old nephew of South Africa’s new president, Jacob Zuma, Zondwa Mandela has launched an ambitious venture that will invest in African emerging markets.

“We want to find something, improve it, and expand on it. But we want to do something for Africa and empower its people,” says Zondwa Mandela. His language clearly seeks to echo the idealism that led his grandfather to sacrifice the best years of his life to the fight against apartheid.

His new venture still has much to prove if it is to be seen as a serious business and not an instance of two scions of prominent families trading on their famous names.

The business will certainly have a rather easier ride than his grandfather faced in his youth. The pair are well placed to benefit from controversial black empowerment policies, under which, since 1994, large chunks of corporate South Africa have been transferred to black owners. Read the rest of this entry »

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