Thabo Mbeki 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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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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