By John Fraser

Given the Belgians’ track record in Africa, with King Leopold II having been responsible for as many as 10 million deaths in the Congo, it was perhaps a tad ironic that the recent official visit of the Belgian King involved a broadside against our own government.

Last month’s state visit by King Philippe (cruelly demoted to Prince Philippe in tweets by both the Presidency and the DTIC) was, on balance, highly successful and will no doubt boost trade relations between our two nations.

However, President Cyril Ramaphosa was reportedly rattled when the Belgian Foreign Minister Hadja Lahbib, who accompanied her monarch, lashed out at South Africa over its love affair with Vladimir Putin, whose human rights breaches in Ukraine have triggered an international arrest warrant.

It was reported that the President hurriedly evicted the media from his meeting with the belligerent Belgians, but the Presidency denied this.

In a visit to Congo last year, King Philippe apologised for his country’s colonial record of “paternalism, discrimination and racism” but there is no doubt that the Belgium of today has nothing in common with the country ruled over by Leopold II, the brother of King Philippe’s great-great-grandfather.

What is not in dispute is that the Belgians are concerned about South Africa’s failure to publicly condemn Russia’s war crimes in the Ukraine conflict.  As are the other Western nations.

There have been the predictable defensive mumblings about SA having a constructive role to play in leveraging its relationship with Moscow to put gentle pressure on Putin to deflate the Ukraine conflict, but we all saw the futility of this tactic with SA’s impotent pressure on Robert Mugabe’s vile regime.

Indeed, it may well be that the Belgians did President Ramaphosa and his lily-livered cabinet colleagues a big favour by pointing out that our Western allies are frowning upon SA’s romance with Moscow.

SA’s awkwardness was cranked up by the news of an international arrest warrant against Putin, who is due to be hosted by President Ramaphosa at the BRICS summit later this year. 

It will be interesting to see whether SA will be able to welcome the Russian leader in defiance of the warrant, which was issued by the International Criminal Court (ICC) in The Hague.

If they let him come and go, this will further discredit our country in the eyes of the civilised world.

However, there is a good chance that SA will wave two fingers at the West, but not in a Churchillian sense.

Another reported solution will be that the BRICS Summit will be a hybrid event, as South Africa can’t be compelled to arrest a video image of the modern-day Tsar.

I have argued elsewhere that the widespread corruption and human rights abuses within the BRICS nations make it very hard for South Africa to retain its membership, especially now that there is talk of expanding the club to include more pariah nations, like Saudi Arabia, Iran and Afghanistan.

It is surely time to go one step further now and shut down the BRICS club in its entirety.

While there were some valid arguments for its initial formation, as a counter to the geopolitical dominance of the West, this informal alliance contains two of the least democratic nations on the planet – the Russians and Chinese.  And they are tainting the other members.

Putin’s annihilation of his political opponents, and his war crimes in Chechnya, Crimea and now his troops’ barbarity in the Ukraine War made him an undesirable member of any club – and that was before the ICC arrest warrant was issued. 

The human rights crackdowns in their own country, and in Hong Kong, which was meekly returned to them by Margaret Thatcher on a day when her iron lady armour was being polished, also make the Chinese unsavoury BRICS buddies.   

Of course, this is not the first time that South Africa’s international relations have raised concerns.

Because of our kowtowing to China, we refused the Dalai Lama (hardly a dangerous terrorist, but recent reports suggest you should keep an eye out when he is around children) a visa to travel here to meet the late and much-missed Archbishop Desmond Tutu.

Religious scholars are best placed to say whether they will eventually have their catch-up in heaven, as the Tibetan leader may not get to spend much time there before his next reincarnation.   Just no tongues, please.

However, it was a revelation to many South Africans at the time that our foreign policy was being crafted in Beijing. 

Others have already written extensively of the massive potential economic consequences if the West decides to withdraw favourable trade terms and all the other benefits that have been bestowed on Pretoria.   

And while this month’s Presidential Investment Conference demonstrates that there is still some appetite to do business in South Africa, there are grave risks if we allow the diplomatic dunces in DIRCO (SA’s foreign affairs department) to continue to flout our country’s commitment to human rights, democracy and freedom.

Of course, Brazil and India must also make hard choices about the BRICS alliance, as their turn will come to host the killer in the Kremlin and his Chinese chum.

In dissolving the BRICS, South Africa and the other democratic forces in this awful, awkward alliance would be sending a powerful message both to their Western critics and to Vladimir Putin and Beijing’s Xi Jinping – the despots to whom they are giving undeserved credibility.

Just don’t hold your breath.

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By John Fraser

How long does it take you to eat breakfast? Having been to a boarding school where if you didn’t shovel it down, you might be too late to get seconds, I can eat fast. I really don’t need an hour to scoff down a fry-up.

So it was frustrating when today’s breakfast briefing with tardy Trade, Industry, and Competition Minister Ebrahim Patel started over an hour late.

The invitation had been for 8.30. It kicked off just after 9.30. Lots of journalists, business leaders, and my new chum – the Norwegian Ambassador – were left kicking our heels.

The Minister himself didn’t pitch. Instead, he turned up on a wobbly video link from Cape Town. And, boy was it wobbly. He came and went. We may be in the 4th Industrial Revolution, but these technicians hadn’t reached the first.

The event’s aim was to give some flavour of the preparations for the President’s Fifth Investment Conference, which is due to take place next week.

Ramaphosa has been seeking a total of R1.2 trillion over 5 years, and he will probably get there next week when the current cycle ends.

He has done reasonably well in previous conferences, and it seems investments are still taking place – including some from state organs that would have happened anyway, but are likely to inflate the total.

The catering at the far-from brief briefing breakfast at the Maslow Hotel was not the finest I have eaten, but it was OK. To my relief, there was bacon. A bit dry, but better dry than never.

I find the efforts to appease the pork-hating Muslims an affront to those of us with a Christian heritage and always look out for the bacon.

So while you could have tried a bit harder to serve really appetising food, at least you were able to appease my dietary requirements, Mr Maslow.

Shame there was no wine list, but I accept that public money should not be squandered before noon on damaging journalists’ livers.

Patel’s message was a positive one – previous investment pledges are now coming on stream, and it won’t be hard to crash through the target at the investment conference.

In his hide-and-seek video appearance, the Minister accepted the damage that SA’s power crisis is having on investments – and noted that Covid hasn’t helped much either.

However, he suggested that most investors are accepting assurances that the government is sorting out the mess.

And with every cloud having a silver lining, there will be a surge in green energy investments in the next five-year cycle – where the total target will be doubled.

Despite efforts by a government communications official to disqualify me from asking a totally legitimate question, I asked when Patel will be announcing his plans to support efforts by SA’s auto industry to transit to Electric Vehicles (EVs).

While failing to answer the question (at great length) the minister noted the EU has been buggering about on its own targets, and as this is an important export market for SA, he is following suit.

One wonders, though, what is happening behind the scenes. There does not seem to be much appetite by the Treasury to incentivise production, and Patel warned that even if there is a desire to produce more EVs for the SA market, this might boost demand for electricity and make SA’s current electricity problem even more problematic.

As I suggested to my Norwegian chum, a few solar panels on the roof of your garage, linked to some storage, and maybe also using the car’s battery as part of the mix, might facilitate Eskom-free charging.

In response to another question, Patel voiced his concerns about SA’s inefficient visa regime. We tend to show the red card rather than the red carpet – even to top executives seeking to work here.

He said his own officials will try to help to sort this out, which is to be welcomed. As with so much else, the government has been pretty useless, over an incredibly long period, in resolving this problem.

So, it is on to next week’s Presidential Investment Conference, where one can only hope the audiovisual technicians will be less useless.

Expect a catwalk of pledging investors, lining up to have their pictures taken shaking hands with our President.

Will they save the country’s bacon? Will the conference sizzle with excitement?

Watch this space.

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By John Fraser

I have just been on a factory tour…where we didn’t tour the factory.

The event was one of the run-up attractions ahead of next week’s Presidential Investment Conference, where despite corruption, power cuts, a hostile visa regime and uncontrolled crime, Cyril Ramaphosa is expected to announce he is still succeeding in attracting new companies to set up in SA.

Today’s event was organised by an arm of the Gauteng Government and involved a visit to the OR Tambo Special Economic Zone (SEZ), right next to the airport.

The factory we had been invited to tour belongs to In2Food, a facility that makes sandwiches, ready meals, soups, pizzas and a vast array of other fresh grub.  

It is large, the second-largest CO2 refrigeration facility in the world (whatever that means?)

It supplies Woolworths in SA, Britain’s M&S and customers in Australia and the Middle East.  Next stop the USA!    Export growth was slowed by Covid, but the aim is to really ramp up exports.

The media mob had the option of a ride to the event from the government’s communications HQ in Hatfield, Pretoria, but some of us wanted to make our own way there.   As any bank robber will tell you, it is always wise to plan for a speedy escape.

Arriving at the precinct of the SEZ, I queued for a while to get through security and was then directed to the factory, where the extremely hostile security guard barked at me to wait.

Eventually, I and a few other media visitors were directed to the reception.

The bloke who (almost) greeted us (and later turned out to be the factory manager) advised we were in the wrong place, and then sent us off to a building site…which was also the wrong place.

I phoned a Gauteng media minder, who eventually directed us back to the entrance to the factory – the first place I had gone to, and she then pitched up in a commuter taxi to collect us.

We were taken to the very plush offices of the SEZ, where it was easy to see that those in charge of procurement had not been watching the pennies, and were taken to a boardroom, where a briefing had already started.

No effort was made to welcome us or to recap what we had missed, but mercifully it was over quite soon.

The speaker whose address I had largely missed turned out to be MEC Tasneem Motara of the Gauteng Department of Economic Development.  This big cheese was also on our food factory tour. 

We were then shoehorned back in the taxi, and then driven back to – you guessed it – the factory reception.

The MEC, clearly being a more pampered guest, took her own chauffeur-driven limo between the two venues, thus avoiding the need to be squashed up close to any of the unwashed media.

On the way, when we got back to the entrance of the SEZ precinct, the security guard refused to allow us in, and our hosts were forced to get on the phone, while we waited, cramped and incredulous.

After a few minutes and frantic negotiation, the barrier went up and on we went.    Fort Knox had been penetrated!

Our Gauteng hosts had warned us how busy they all were at the factory, and how lucky we should feel that we were being admitted at all.    If the place has a red carpet, it must have been at the cleaners.    

Finally, inside a meeting room, we had a presentation by two food factory folk, including the bloke who had first misdirected me, and a few questions were allowed before the tour itself began.  We were shown a video of the factory’s operations, which was the closest we were to get to properly seeing them for ourselves.

I never did get the name of either of our hosts, which is fine, as they don’t seem like the jolly bunch I normally follow on Twitter.

We went nowhere near the factory floor but were allowed to peer down at it from windows in the upstairs offices and in the staff canteen.   We could also peer through into the food development lab, but no developing food samples were provided, and there was no insight into what they do and how or why they do it.   A shame. 

Then we were shown a range of the grub they make, but no samples, no insight into the logistics for getting this food from the factory to foreign supermarket shelves.    A newly developed Mexican ready meal for Woolworths was waved at us, but that was as much excitement as we experienced.

The reason for the media visit and our whistle-stop tour was that this factory had been subsidised by the SA taxpayer to the tune of R145 million, and the decision to build the factory had been announced at one of the President’s Investment Conferences.

This is clearly a welcome investment, directly employing more than 2 000 people and processing tonnes and tonnes of SA produce.

A few random numbers:  They can make 2 000 litres of soup an hour and can get through 40 tonnes of veg a day.  My dietician would be in rapture.  

They also process meat, bake bread, and make salads – and the video had shown them filleting fish. 

When the underwhelming factory tour (such as it was) had ended, we were all offered a sandwich, from the rather limited range they make for Woolworths.

What a revelation!  Succulent fillings, brilliantly fresh bread.  A far cry from the almost dried-out sandwiches I tend to find on the shelf of my local Woolworths. 

This begs a question:  this factory is half an hour’s drive from that store.   Why is Woolworths’ supply chain so dysfunctional that a truly impressive sandwich can deteriorate so noticeably between the factory where it is made and the store where it is sold?

I am not saying the sandwiches I buy at Woolies are awful or unsafe (a less diplomatic chap might suggest they are overpriced!) – but they are a far cry from the quality of the product I grabbed for lunch in the factory.

Just to check I was not mistaken I tried two different sandwiches – a chicken mayo and an egg mayo – both superb.  (On this occasion, the chicken came before the egg).

We were told that if we made yet another Toyota taxi trip back to the SEZ office, there would be more food on offer.  

The folk in the factory were seemingly too challenged or indifferent to showcase more than their sandwiches to this unruly media mob.  Or to graciously offer us a few takeaway samples of their goodies.   RIP PR.   

Having seen how the SEZ bunch had organised the tour, I decided to make my escape, mumbled my excuses and left, grabbing a short and cramped taxi trip from the reception to where my car was soaking up the sun.

I spent two years in corporate communications for a JSE-listed company and during that time, I had to organise several site visits, media briefings and other events.

They all required a lot of planning and immense effort.  It was bloody hard work.

I know how these things can and should be done, and, boy, was I underwhelmed today?

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By John Fraser

Yet another action-packed South African wine-tasting extravaganza, hosted by ZA Confidential.

Our food and wine mentor Michael Olivier led the tasting, introducing the Darling Cellars Sir Charles 2019, a red blend from the Cape.

Once again, our VIP tasting trio comprised IT consultant Malcolm MacDonald, DA MP Mat Cuthbert, superstar economist and venture capitalist Chris Hart.

The discussion also turned to nostalgia for a time when people had lunches that were as enjoyable as they were long. And how much are webcasts and remote meetings to blame?

ZA Confidential Wine-Tasting Podcast: Darling Cellars Sir Charles 2019

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Do also check out:  http://www.michaelolivier.co.za

By John Fraser

Not a red letter day, but certainly a red wine day. The ZA Confidential team tastes a delicious Cape Red, which I think should have matured a bit longer, and was opened a few years early.

The Koelenbosch Nineteenfortyone 2020 is poured by the master of the corkscrew Michael Olivier, who also leads the tasting.

Once again, our VIP tasting trio comprises IT consultant Malcolm MacDonald, DA MP Mat Cuthbert, and superstar economist and venture capitalist Chris Hart.

We also chat about the need to cellar some wines, giving them time to develop in the bottle.

Click below to listen in:

Meanwhile, do seek out Michael Olivier’s latest cookbook, which is a tribute to South African cuisine. If you already have one, buy lots more for all your friends.

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Do also check out:  http://www.michaelolivier.co.za

By John Fraser

Corkscrews at dawn for the latest star-studded ZA Confidential wine-tasting podcast, with food and wine guru Michael Olivier introducing the Nitida Golden Orb Single Vineyard Sauvignon Blanc 2021.

Our tasting trio was IT consultant Malcolm MacDonald, DA MP Mat Cuthbert, and superstar economist and venture capitalist Chris Hart.

The panel also had a discussion about tourism – and the danger of an invasion of Spurs fans.

Meanwhile, do seek out Michael Olivier’s latest cookbook, which is a wonderful celebration of South African cuisine. If you already have one, buy lots more for all your friends.

Like this podcast? Subscribe to ZA Confidential to receive our newsletters.  Twitter:  @zaconfidential  

Do also check out:  http://www.michaelolivier.co.za

By John Fraser

Once again, the ZA Confidential team is slurping away, having just popped the cork on a Cape bubbly, the Björls CC Brut 2020.

Michael Olivier kicks things off with his scholarly assessment, and then the posh panel is allowed to comment.

Our tasters are IT consultant Malcolm MacDonald, DA MP Mat Cuthbert, and superstar economist and venture capitalist Chris Hart.

There is also a discussion of the way in which SA’s power crisis is ravaging wine producers and other farmers, and the potential of solar.

Click below to listen in:

Meanwhile, do seek out Michael Olivier’s latest cookbook, which is a wonderful celebration of South African cuisine. If you already have one, buy lots more for all your friends.

Like this podcast? Subscribe to ZA Confidential to receive our newsletters.  Twitter:  @zaconfidential  

Do also check out:  http://www.michaelolivier.co.za

By John Fraser

It’s a first for ZA Confidential – a tasting of Georgian wine. We uncork an unusual red, the KTW Kakhetian Iveria Mukuzani 2020.

We also have not just one expert, but two – Cape Wine Master Debi van Flymen and our own much-loved food and wine guru Michael Olivier.

The tasting team is automotive industry executive Jeff Osborne, broadcasting legend Cobus Bester, EY Cova partner Duane Newman, and IT whizz-kid Malcolm MacDonald, who selflessly popped to the Balkans to pick up the wine.

As well as the tasting, we discuss the wonders of wine production around the world and the delights of travelling and seeing what wines are on offer in different countries.

Click below to listen in to the fun:

Meanwhile, do seek out Michael Olivier’s latest cookbook, which is a wonderful celebration of South African cuisine. If you already have one, buy lots more for all your friends.

Like this podcast? Subscribe to ZA Confidential to receive our newsletters.  Twitter:  @zaconfidential  

Do also check out:  http://www.michaelolivier.co.za

By John Fraser

Another edition of the leading SA wine-tasting podcast bursts on the scene. Michael Olivier introduces the intriguing and complex Grand Vin de Stellenbosch Sauvignon Blanc 2022 to a panel of tipsy tasters.

The tasting team are automotive industry executive Jeff Osborne, broadcasting legend Cobus Bester, EY Cova partner Duane Newman, Cape Wine Master Debi van Flymen and IT whizz-kid Malcolm MacDonald.

The panel also discuss a new trend of semi-abstinence during social and business lunches.

Click below to listen in:

Meanwhile, do seek out Michael Olivier’s latest cookbook, which is a wonderful celebration of South African cuisine. If you already have one, buy lots more for all your friends.

Like this podcast? Subscribe to ZA Confidential to receive our newsletters.  Twitter:  @zaconfidential  

Do also check out:  http://www.michaelolivier.co.za

Philippe Burger, University of the Free State

The Financial Action Task Force has placed South Africa on a list of countries under increased monitoring, commonly known as the grey list after it failed to address all of the shortcomings on money laundering and the financing of terrorism that the task force identified in its 2019 evaluation of the country. The decision has serious implications for the country, more specifically its financial services sector as well as its ability to attract investment. The Conversation Africa’s political editor Thabo Leshilo talks to Philippe Burger, an economics professor and the dean of the Faculty of Economic and Management Sciences at the University of the Free State, about what the greylisting means for South Africa.

What does greylisting mean?

Greylisting refers to a country being placed on a list of countries under increased monitoring by the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog. The FATF evaluates each member country’s implementation and effectiveness of measures to combat money laundering and the financing of terrorism.

South Africa has been placed on FATF’s grey list because it does not have sufficient mechanisms in place to monitor and combat money laundering and terrorist financing activities.

The country undertook to work with the FATF to identify strategies and time frames to improve its monitoring mechanisms. Specifically, it undertook to work with the FATF on eight specific topics. These include increased investigation and prosecution of money laundering and terrorist financing activities. It’ll also enhance its capacity to identify, seize and confiscate the proceeds of such crimes.

South Africa also needs to improve its terrorist financing risk assessment to inform its strategy to counter the financing of terrorism activities. In addition, it needs to ensure the effective implementation of targeted financial sanctions, and create an effective mechanism to identify individuals and entities targeted by such sanctions.

What are the implications?

Though the FATF does not explicitly require increased due diligence, greylisting will nevertheless in effect require increased due diligence. Banks dealing with cross-border financial flows and companies wanting to invest in South Africa will have to vet their clients and the sources of client income better before they invest. This can be costly and, therefore, discourage investment. The increased risk associated with South Africa could also result in higher interest rates and cost of capital.

The higher costs that domestic and international companies will incur when they trade or invest across South African borders will put upward pressure on the cost of living of ordinary South Africans. However, of probably even more significance to ordinary South Africans is that the greylisting will likely deter foreign investment, which is needed to stimulate economic growth and job creation.

Which other countries are grey-listed?

In being grey-listed South Africa joins a list of countries, none of which are known as paragons of governance. Some, such as the Cayman Islands and Panama, are known tax havens that potentially attract laundered money. Others are known as war zones or countries with jihadist and Islamist terror groupings operating on their land. These include Syria, Yemen, Mali, Nigeria, and Mozambique. The list also includes countries with very weak governments, such as Haiti and the Democratic Republic of the Congo.

What needs to happen for the greylisting to be lifted?

South Africa needs to work with the FATF to identify strategies and time frames to improve its monitoring mechanisms. It must then implement these improvements at the latest by January 2025. This might require improved legislation and better monitoring mechanisms to red-flag potential money laundering and terrorist funding flows.

Although the country recently made a belated effort to improve its legislation to avert being grey-listed, it will need to do more. Doing so will require a dedicated focus from the government to

• pass additional relevant legislation,
• fund the investigative authorities to combat money laundering and terrorist financing activities, and
• ensure the effective and speedy prosecution of individuals and institutions undertaking such crimes.

With the recent history in South Africa of state capture for private gain by individuals, some of whom are themselves probably guilty of money laundering, the onus will be on the government to show that it is serious about implementing effective legislation and mechanisms to combat money laundering and terrorist funding. Thus, to get out of the rut of greylisting the country will have to fight the rot of money laundering and terrorist funding. The jury, or in this case the Financial Action Task Force, is still out on whether it will succeed in doing so.

Philippe Burger, Professor of Economics and Head of Department, University of the Free State

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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