Time for a Real Opposition to Step OUTA the Shadows.

Don’t get me wrong.  Today’s South Africa is a far more pleasant place in which to live for the majority of its people than it was in the evil past, when they were third-class citizens, without basic human rights, such as the right to vote.  However, this does not mean that the ANC, which many annoyingly refer to as the “ruling” party, should not be open to criticism, debate and challenge.

At a time when we have the most unpopular post-apartheid President, in Jacob Zuma, I believe that there are encouraging signs.

The DA remains the most potent opposition party, and with its control of the Western Cape it is showing us just how awful the cadre-corrupted ANC is at basic administration.  However, the EFF, with its overall and beret uniform and ability to speak to the ordinary citizen, is a powerful force – despite its apparent economic illiteracy.   Parliament is just what it is meant to be, at long last, a place where interesting and important issues are aired and the leaders are challenged.  Of course, we don’t want chaos all the time, but it is reassuring to see one group of parliamentarians which is not prepared to accept the stuffy and repressive rules of the past.

Organised business remains horribly disorganised, not helped by the breakaway movement of black businessmen who have every right to want to see a more even distribution of races in the business community, but whose strategy seems to leave others feeling a bit uncomfortable.

It was interesting to see the reports of the role which some of our top bankers played when President Zuma was playing musical chairs with his Finance Ministers, and if these reports are to be believed, they saved the day by ensuring the respected – but far from perfect – Pravin Gordhan was parachuted in to try to sort out the mess.     Of course, one should not ignore, either, the (weakening) voice of the Trades Unions, not the cries of civil society.

However, a true democracy requires that there is a voice for all, and that is why I delight in the emergence of a movement of citizens in the anti-toll road movement, under the banner of OUTA.  While this campaign may not fully overturn these horrible taxes imposed on Gauteng citizens as they drive along our highways, OUTA has caused several climbdowns, resulting in a far lower burden than first imposed.  And there are millions of people who have been inspired and encouraged by OUTA, headed by the impressive Wayne Duvenage, and are refusing to pay their tolls.   If you want a true example of people power in South Arica, here it is.

At the time when Zuma was changing Finance Ministers almost as often as he changed his underwear, OUTA appeared to be widening its message, with a warning that government might face a general tax revolt – and not just over motorway tolls.

Of course, OUTA is under-funded and under-resourced, but wouldn’t it be wonderful if it could move from the advocacy arena into the mainstream political arena in a more sustainable manner?   It has shown itself to superbly articulate the rights of citizens in a more united and uniting way than most existing political parties.

An OUTA parliamentary candidate?  She (or he) would certainly get my vote.

 

Tweet of the Day:

Jewish Comedians (@JewishComedians):  Lewis Black: Earth Day was created by my generation b/c we were doing so much drugs we needed a day to remind us what planet we lived on.

 

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AGOA Deal in Extra Time Good News for SA Wine

South African wine producers must be relieved.   A row with the US over meat exports to the SA market threatened to end billions of rands in benefits which SA exporters enjoy under AGOA.

The deal with Washington has been done in extra time, and our wine exports are safe.

The challenge is immense in selling our wines to the large and diverse US market, but with producers from here winning major accolades, the future can only be bright.

As for trade minister Rob Davies, he says he won’t be toasting the deal because he is both teetotal and vegetarian.   No wonder he looks so miserable.

We Should Worry More About the Economy than the Economist

Chris Hart

I am extremely proud of my friendship with economist and strategist Chris Hart, who is one of the most impressive thinkers I have ever known.  I edited the book he and colleague Glenn Silverman wrote on the BRICS, and last year spent many days working alongside them.  I am worried at the backlash against one of the tweets Chris put out.  While it may have been poorly worded, any suggestion that Chris is a racist or intended to be racially offensive is quite ludicrous, and he has apologised for any offence which he may have inadvertently caused.   The subsequent eruption of hatred against Chris is a symptom of the very deep wounds in South Africa which have yet to heal.  We have a society which still bears the scars of apartheid, and where many millions have failed to enjoy a better economic future since the advent of democracy.

I also have to declare that I have endured a difficult relationship with Standard Bank, which has sometimes treated me fairly, but which has also been puzzling unresponsive to my more recent requests to be kept up to date, in breach of personal assurances by CEO Sim Tshabalala.

But I assume my own discomfort is nothing compared to that of Chris, who was suspended following his tweets, and suffered the indignity of his employer publicly distancing itself from him.    This was a knee-jerk reaction, although one would have expected a top bank to act with caution, with judgement and with fairness.   In this instance you were sub-standard, Standard.  I have no idea how many of their customers have been in touch to seek an explanation of their betrayal of Chris, but I hope there have been many.    The career and reputation of a fine and sensitive man has been irreparably damaged and his employers have failed in their duty of care.

Meanwhile a totally false and further damaging public discussion is taking place on Chris’ academic qualifications.  If course, had he lied while he was negotiating his latest move to Standard Bank, that would be a serious matter.  I really doubt it.  A caring employer would by now have put out a statement assuring people that Chris acted honestly and with integrity, and that he was hired because of his obvious and impressive analytical and communications skills.   Standard Bank has once again acted in an odious manner, and is, for me, the real villain in the current saga.  Unless, of course, they have put out a statement on Chris’ credentials, and have once again forgotten to send it to ZA Confidential as well.

The Economy in 2016

As we prepare for a return to crowded rush-hour roads and our kids head off for another year of schooling, which will prepare them so efficiently for a life of unemployment, it is worth wondering what 2016 will bring.   Over the past few weeks, I have been lucky enough to have chats with a number of esteemed economists, all of whom are a bit worried about the South African economy, and not all of whom have been suspended.   The consensus seems to be that there will be sustained pressure on the rand, which will weaken further, and that this will lead to higher inflation and hikes in interest rates.   It will be difficult for South Africa to avoid further ratings downgrades, which will speed up this negative spiral.   There are all sorts of political undercurrents battering the economy, and these may increase the danger of tax increases in next month’s budget.   Last month’s musical chairs in the finance ministry will not have helped matters.   Meanwhile, there are tensions with the US, which may explain the failure to conclude AGOA negotiations on time, and consistent concern that SA business has yet to find a firm voice in its dealings with our wayward politicians.

ZA Confidential Introduces Animalia.

ZA Confidential was launched as a business newsletter, but is evolving.  One issue which no progressive business can afford to brush aside is that of Sustainability.   And we are now part of a new initiative being launched, called Animalia.

There is something very tragic about the way in which man has become such a menace to wildlife, through the destruction of habitat, and by hunting animals not just for food, but also for gain and for sport.  Something needs to be done to inform and to educate before the rhino, the elephant, the panda, and the tiger join the dodo on the list of extinct species. Animalia is part of this initiative.   It is a virtual kingdom, where animals enjoy human rights, are nurtured, protected and loved.   By joining Animalia, people are pledging their support for the wildlife on our planet, and taking a stance against the hunters, the poachers and all other humans who are threatening our fellow creatures.    Animalia was founded in South Africa by the Fraser brothers, but will grow to become a global movement.  This Kingdom will seek new platforms to promote its message, through conferences and publications, its website and an application to join the United Nations

Animalia is a virtual Kingdom, ruled not for man but for the animals.  Anyone with an interest in, and a concern for, wildlife can apply for citizenship.   We will spread the message through news updates and through our website; we will build a comprehensive and authoritative database on wildlife; and we will lobby against the enemies of the animal kingdom.

More information on Animalia will be provided during this launch stage through ZA Confidential.

People often ask how they as individuals can help to make a difference.   Now you know!

 

Out and About

From time to time, ZA Confidential is invited to events, and although we do not always report on them, they add to our understanding of the world, and enable us to meet and greet some fine people.   A few highlights of the last few months are worth recalling.

Tsogo Sun invited us to the re-launch of the Grand West Casino, and added an extra level of luxury by arranging one of those services which drives you and your car home at the end of the evening.  The music was a bit loud, but they have done a good job, the CEO’s speech was mercifully short, and it was a special evening.   The nicest casino I have visited outside of Monte Carlo.

We were also invited to the Stellenbosch at Summer Place gastronomic event where Stellenbosch food and wine were highlighted.  The food was almost universally fiddly and unimpressive, but there was an excellent selection of wines, I loved the brandy, and really enjoyed my evening.

I was also invited (possibly by mistake) to a Standard Bank evening where CEO Sim Tshabalala launched the All From One campaign – an initiative to celebrate our common African heritage.   It was impressively organized, the hospitality was lavish, and there were several interesting and impressive guests.

Wine Update

There is still quite a backlog of the Die Vine Intervention Wine Tasting Podcasts which I host with the legendary Michael Olivier, but we hope to post more of these in the coming weeks.  In the meantime, why not wander through the archives? These are not stuffy and snobbish events, but the aim is to enjoy a lot, learn a bit, and convince people South Africa is a wonderful booze-producing nation, despite the efforts of more than one government ministry to clobber our producers.

Tweet of the Day

ANN7Reporter (@ANN7Reporter): In finance news, we can confirm that the rand can buy you… nothing. Absolutely nothing.

 

ZA Confidential is a subscription newsletter.   To join the elite, to invite us to events with edible food and drinkable wine, for sponsorship discussions or any other communication, please contact:    zaconfidential@gmail.com    

Follow us on twitter:  @zaconfidential @dievinein @clasfras1    

ZA Confidential Cellphone Review. Xiaomi Mi 4.

There is a first time for everything.   Despite many decade of journalism and a fascination with electronic toys, I have never before reviewed a smartphone.   I know the geeks among you will pour over specifications, and that you can Google a pretty authoritative assessment at the click of a mouse, but that is not my style.   So it has taken me a while to work out what to say about the Mi 4 from Xiaomi.   On the plus side, this is a device which seems to be on a par with a lot of far more expensive smartphones.  I think the world has gone rather mad when you spend more on a phone than you do on a TV – something I have already done this year.   And, let’s face it, some of us like to own a decent phone while still having enough cash left over for food, drink and merriment.  On the negative side, this is not yet a well-established brand in South Africa, but it is being launched and distributed by the people behind Apple imports and distribution, and they should know a thing or two million about cellphones.   So, before I return the trial device to the mad fools who let me play with it, I shall sum up my thoughts:  If you want a cellphone which does all the good stuff of its far more expensive rivals, and even makes phone calls, then the Mi 4 is well worth considering. The same people make a range of other phones and I believe their tablet devices may soon also reach the South African market.  The Chinese are all the rage in Africa at the moment, as they buy up most of the Continent, so why not give this Chinese phone a try?   Unless you plan not to eat very much for the next 24 months?   One thing is for sure.  The Mi 4 will impress you a lot more than my first ever cellphone review.

 

Tweet of the Day:

Famous-Quote.net (@famousquotenet):  The minute you read something that you can’t understand, you can almost be sure it was drawn up by a lawyer. – Will Rogers

 

ZA Confidential is a subscription newsletter.   For subscription details, to invite us to events with edible food and drinkable wine, or any other communication, please contact:    zaconfidential@gmail.com    

Follow us on twitter:  @zaconfidential @dievinein @clasfras1    

Does the AGOA Spat Signal a Wider Distaste for Zuma’s Government?

It was uncomfortable today to see SA’s Trade and Industry (dti) Minister Rob Davies on the back foot as he briefed the media on the worrying spat with the US.

It is all about a trade concession from the US, known by the initials AGOA, which offers qualifying African countries a degree of duty-free access to the American market.

AGOA helps to explain some of the investment in the local vehicle industry, as cars from German manufacturers can win AGOA benefits, if they are manufactured in SA.   Indeed, the vehicle sector is reported to be the biggest beneficiary of AGOA.

The latest spat, as so often in trade disputes, centres on Agriculture – and controls on US exports of poultry and some other meats by SA.

If Davies is to be believed, veterinary experts have been working away on this, and are close to tying up a pact.

However, he admitted it was serious when President Obama raised the issue, as he did yesterday, giving a 60 day deadline for a settlement.   If not, the Agricultural aspects of AGOA from which SA benefits will be suspended.

Bad news for our wine producers, who would love to sell more in the US, as well as for others such as the growers of macadamia nuts (don’t tell the Aussies).

Reading some of the comments on the spat (and questions in the media conference also addressed this theme) is there a bigger picture issue?

The ANC was a revolutionary movement, and the current ANC government is very good at being nice to its unpleasant anti-Western mates, while voicing an element of hostility to its big trade partners in the West.

Davies, of course, was not going to admit anything of the sort, but AGOA is a concession and not an agreement, and the American politicians who are being aggressively lobbied by their farming interests have none of the respect for Zuma they once had for Mandela, and would probably not get very far if they were asked to name Zuma’s merry band of wives.

Maybe this latest chicken roasting of South Africa is the White House’s way of warning SA that friendship is a two-way street.

Zuma might reflect on this the next time he is having a pally chat with the leader of Hamas.   We don’t want to move from AGOA to AGONE.

Tweet of the Day:

Freud’s Twin (@FreudsTwin): I plan to donate my liver to an alcoholic so I’ll know it’s a match

You can contact ZA Confidential on:  zaconfidential@gmail.com

Mini Budget. Mini excitement, apart from the riots.

There is often not much to keep you awake on budget day.   But for today’s mini budget, there was excitement outside Parliament with revolting students, and excitement inside the chamber as revolting MPs tried to delay the speech.

If all this depressed you, the underlying message wasn’t much more cheerful.

Minister Nhlanhla Nene’s mini-budget today a stark outlook for the SA economy, and little new insight.

His forecast for economic growth this year has been adjusted downwards from 2% to 1.5%, and it is down for next year from 2.4% to 1.7%.

Meanwhile the Minister warned that as a result of the economic slowdown (partly due to electricity supply constraints) tax revenue will be down by R7.6 billion this year, and by R35 billion over the next three years.

“Without stronger economic growth, the revenue trend will remain muted.  If revenue does not grow, expenditure increases cannot be sustained,” he told Parliament.

However, he indicated no major slowdown in spending, and said he did not expect any downgrading by ratings agencies this year.

“Even though the economic climate has deteriorated, we have been able to stay the course with discipline.”

He noted an up-creep in inflation to around 6% a year “over the period ahead.”

As 6% is the upper end of the 3%-6% target band on which the Reserve Bank focuses, this suggests there may well be renewed pressure for interest hikes, which would put further pressure on cash-strapped consumers.

The minister noted that proceeds from the sale of the State’s stake in mobile telecoms provider Vodacom will mainly go to Eskom, to the tune of R23 billion.  A further R2 billion will go towards SA’s contribution to the setting up of the new BRICS bank.

Minister Nene said Cabinet has approved a bill on the planned new Carbon Tax, but said there will still be more consultation, and that this might delay its introduction beyond the current target of mid-2016.

The mini-budget is by its nature more of a numbers exercise, with most major taxation announcements coming in the main budget each February.

However, it does give the Finance Minister an opportunity to provide an update on how he sees the economy, and how revenue and expenditure are progressing.

Major Energy Efficiency Fund to Expire

What did you learn this month?   Well, I learnt that a vital South African energy efficiency programme for business is about to run out of cash, and could grind to a halt.

The Private Sector Energy Efficiency (PSEE) scheme has helped businesses small and massive to identify ways to cut down on energy use at a time when our public utility Eskom cannot cope with demand.

However, the main funder for this initiative was the British government, which is now pulling the plug.   Surely this cannot be because the magic of Mandela has been replaced by the sleaze of the Zuma era?

Now, energy efficiency is a good thing, because you can achieve it without the scale of investment which might be required to generate new capacity through renewable energy schemes.   Companies which pursue this route are not just helping themselves, but are also helping to solve this country’s biggest capacity challenge.

So what is to be done?    An obvious solution came from green energy expert Duane Newman from Cova Advisory, who addressed a conference being held last week by the PSEE – an event which was more a celebration of success than a wake to bury the programme.

Newman suggested that SA government should step up to the mark and provide the necessary funds to keep the programme going.

A lot of work has been done, a lot of expertise has been built up, and the benefits of keeping the PSEE programme going must surely be obvious.  Certainly, it was praised by Eskom’s participant in the conference Andrew Etzinger.

And there was a small ray of hope from the government official who read out the Energy Minister’s speech (she presumably didn’t have the energy to attend in person?)    He said that ways were being looked at to keep the scheme afloat, and I suspect that if this is the case we might see some sign of this in this week’s mini-budget.

However, one does wonder why there is this last-minute panic, as it seems the UK made clear two years ago that its funding would draw to a close by the end of next month.

Hospitality

ZA Confidential attends a lot of events, pleasurable and awful.    On balance, this event was well staged, with useful breakaway sessions, an MC who kept his ego under control, and edible food.   They stuck to the schedule, and I was pleasantly surprised by the set-up in the Wanderers Club.   My one gripe is becoming a major concern – the conference room had hardly any power points, which is a major drawback, as the paper notebook has now largely been replaced by electronic devices.

Tweet of the Day:

Jewish Comedians (@JewishComedians):  Rodney Dangerfield: My wife only has sex with me for a purpose. Last night she used me to time an egg. | #Quotes

ZA Confidential is a subscription newsletter.   For subscription details, to invite us to events with edible food and drinkable wine, or any other communication, please contact:    zaconfidential@gmail.com    

Follow us on twitter:  @zaconfidential @dievinein @clasfras1    

Die Vine Intervention: Ystervark and Bontebok Craft Beers

Crafty chef and wine guru Michael Olivier has selected two craft beers for our latest podcast tasting – the Ystervark and the Bontebok.

John Fraser is joined in the Jo’burg studio by Anelise Taljaard from the Taljaard wine dynasty, Stuart Thompson from Loxton Lager, Duane Newman from Cova Advisory and Dino Fagas from Prosopa Restaurant.

Check out the podcast:

New 10 Minute Rule. Get to the Point or I Leave.

OK. I admit that I may be a bit intolerant. However, when someone invites me to an event, I expect it to start on time, and that whoever is in charge will get to the wheat without an excess of chaff first. Hence my decision to leave two events early…in two days. The first was hosted by SACCI, to announce the new head of the business organisation. Admittedly it started only slightly late, but the President of the organisation chose this occasion to demonstrate his Olympic-level skill at saying nothing in a very large number of words. Had I been hosting the event, I would have started with an information sheet (one was e-mailed several hours later) and allowed the new boss of this business body to give a proper assessment of the challenges facing business, and how he plans to handle them. As it was, I got to lunch early, and a damm good pizza it was, too.
Today’s event was the important release of new info on SMEs in SA, and my earlier piece on this is on the ZA Confidential website. I got there by 9.30, as that was the time on the invitation, but nothing happened until 10, when instead of IT expert Arthur Goldstuck, who is an excellent speaker, the event kicked off with an awfully boring business coach, whose droning ability would make him an asset in the US war against terror. After 10 minutes, feeling at threat of my vital organs shutting down in protest, I left. Once again I was early for my pizza.
I have recently decided on a rule for attending events. If they don’t get to the point fast, I point myself towards the car park. Unless the event is of vital importance, I wait 10 minutes and if nothing of value has happened, I then leave. Same if it starts late – and government ministers are the worst.
In coffee shops and restaurants, if I am ignored for 10 minutes or more, there is no tip. If I ask for the bill and there is no rush to bring it to me, it is the same story.
Now, I am not claiming that my campaign for rapid delivery of worthy info at events, and for even more rapid delivery of my morning coffee, is going to change the world.
But we all have a limited time on this planet. So if you do not get to the point fast, and control your presentations to the pithy, you will see my least attractive feature – my backside – as I pith off through the door.
After all, why get very bored when there is pizza calling?

Tweet of the Day:
Natalie Andrew (@NatalieAndrew): @mynameisjerm: So basically anyone can walk a mile in someone else’s shoes, the real challenge is someone else’s socks. 😋

ZA Confidential is a subscription newsletter. For subscription details, to invite us to events with edible food and drinkable wine, or any other communication, please contact: zaconfidential@gmail.com
Follow us on twitter: @zaconfidential @dievinein @clasfras1

SME Survey 2015: Eskom is the Major Threat to ZA Small Business

It is said a lot, but that doesn’t make it less true: small businesses (SMEs, SMMEs or whatever abbbbbreviation you prefer) are the lifeblood of the economy, the key to future growth and employment. So the annual SME survey, headed up by my IT chum Arthur Goldstuck, provides some useful insight into the concerns of this vital sector of the economy.
The most worrying development is what Arthur calls the “dramatic shift” in what keeps ZA SME owners awake at night. Previously the answer was crime, for reasons that any South African will understand. Now it is the electricity crisis, which is of concern to 71% of respondents, twice the 36% who regard crime as the greatest external threat to their business.
Says Arthur: “While load shedding (rolling blackouts) has been punted as a temporary problem, it is clear that business fears that it is going to be with us for the foreseeable future.
“The impact of even short periods without power is greater on SMEs than it would be on larger companies that likely have generators and other fall-back options.”
He advised businesses to ensure they frequently back up their data”
“Unexpected load shedding is one of the events most likely to lead to a loss of data,” he warned.
The survey was sponsored by Standard Bank and by Forest Technologies.

Tweet of the Day:
Famous-Quote.net (@famousquotenet): Common sense, isn’t. – Will Spencer

ZA Confidential is a subscription newsletter. For subscription details, to invite us to events with edible food and drinkable wine, or any other communication, please contact: zaconfidential@gmail.com
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