global south african news wrap 26 july 2012

7/31/2019 Global South African News Wrap 26 July 2012

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Global South African Weekly News Wrap Up 26 July

2012

Contents

ANC to push job creation ............................................................................................ 3DA to unveil economic plan for 8% GDP growth .................................................. 4Revolution or planned future for SA, De Klerk warns.......................................... 5SA lodges among world's 10 best ................................................................................ 6ANCYL calls for Motlanthe for president ................................................................. 7Bizos warns against Protection of Info Bill................................................................ 9Winnie lays into ANC ................................................................................................ 10World Bank warns on inequality threat to SA ........................................................ 12State needs to unite business, labour on jobs ........................................................ 14Malema on whites and nationalisation ..................................................................... 15'If asked, I'll walk away' ............................................................................................ 20Dlamini Zuma is the right woman for AU ............................................................... 23SA had no option but to abstain on Syria vote ..................................................... 26Motlanthe to reject Zuma offer to stay as deputy ................................................... 27Dlamini-Zumas AU post a business opportunity for SA .................................... 30Trade with China too skewed, says Zuma ............................................................... 31Use wage subsidy for trainingANC .................................................................... 33Sims report fails to focus on growing mining sector ............................................ 34SKA telescope to turn brain drain in SA into brain gain ....................................... 36New AU boss vows to seek unity among divided blocs ........................................... 37Dlamini-Zuma has tough task ahead in her AU post ............................................. 38AG red-flags 95% of municipalities ......................................................................... 40Manuel falls off balcony of ANCs chosen few ........................................................ 41Arms deal: Manuel loses cool.................................................................................... 43Limpopo at fault for textbook supply fiasco .......................................................... 44Audit chief says R11bn misspent by councils .......................................................... 45ANC pickets, calls for MECs firing over threat to close schools .......................... 47Do not blame us for SAs poor education, says Sadtu ............................................ 48State shuns money from abroad for Telkom ........................................................... 50Cutting edge: Blade Nzimande ................................................................................. 51SA on track to reduce mother-to-child transmission ........................................... 54Legalised trade in horn could save rhino ............................................................. 56Sanyati CEO lifts lid on the chaos that sank his firm ............................................. 58Mantashe takes gamble with SACP position ........................................................... 60Labour laws hearings expected to be lively ............................................................. 62Labour, business enter next stage of negotiations on labour reforms .................. 64Jackie Selebi freed from prison: Released on parole .............................................. 66

Winnie a danger to ANCMantashe ...................................................................... 67


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Darkness visible in JZ's kingdom by the sea ........................................................... 67NPA in contempt, says Helen Zille ........................................................................... 74ANC to help probes of political murders ................................................................. 76Zuma: No action on Motshekga yet ......................................................................... 77We want to restore justice: Madonsela .................................................................... 78NPA overstepped mark........................................................................................... 78Boeremag would get rid of blacks.......................................................................... 79Attack on Vavi venomous and malicious .............................................................. 80Judge: NPA can't hide ............................................................................................... 82


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26 July 2012

The New Age

Warren Mabona

ANC to push job creation

The ANC on Wednesday said it was satisfied with the job creation progress in thecountry but vowed to accelerate the processes in order to stem the tide ofunemployment and tackle other socio-economic challenges facing South Africans.

ANC secretary-general Gwede Mantashe said that since 2010, employment growthhad been on track to meet the target set out in the New Growth Path. He described thepublic sector as the driving force behind whisking South Africans away from theunemployment queues, adding that nearly all job losses were experienced in theprivate sector.

Almost 750000 had been lost from the private sector between 2008 and 2010. The

slight improvement in the economy has led to the recovery of about 100000 jobs. Butthis does not mean we should be complacent, especially in the light of the ongoingweakness of the global economy, Mantashe said.

He was addressing reporters during a media briefing inJohannesburg. The gatheringwas aimed at outlining the contents of the agenda for the governing partys three-daynational executive committee (NEC) lekgotla, which begins today in Pretoria.

According to Mantashe, this years NEC lekgotla would focus on progress, obstacles

and urgent interventions required, as well as plans and priorities for the 2013/2014financial year.

He added that most of the new jobs that were created in the private sector were inGauteng and the Western Cape. He said the fundamental problem that was nowbesetting the ANC was that the majority of youths, women and poor people in ruralareas continued to be jobless.

The government approved the 20-year national infrastructure plan and

implementation framework in March this year, which was one of the ANCs plans toaddress unemployment, poverty and inequality.

Mantashe said that reports on education, health as well as rural development and landreform would be tabled for assessment and discussion at the NEC lekgotla. He saidthe meeting would focus on the recommendation from the ANCs policy conferencethat there must be bold state intervention in mining, instead of nationalising thesector.

I know there is agreement that wholesale nationalisation wont work but there will

be state intervention.


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I therefore cant talk about the disagreements onthe matter, Mantashe said inresponse to a question regarding the utterances made by opponents of stateintervention.

Mantashe said lekgotla developments in both basic and higher education and training

would be the key elements on education sector, while assessment of developments oninfrastructure delivery and capital expansion projects, among other things, would beemphasised in the health sector.

25 July 2012

Business Day

Page 3

Paul Vecchiatto

DA to unveil economic plan for 8% GDP growth

The overall strategy, termed R2D2 in the DA, will be unveiled to the media onThursday

THE Democratic Alliances (DAs) launch of an economic plan meant to get gross

domestic product (GDP) growing at 8% marks the beginning of the partys strategy of

targeting a larger section of black voters in the 2014 and later elections, party insiderssay.

The DA was the star performer in last years local government elections, but

questions around the partys lack of alternative policies have been cited as a possibleimpediment to its growth in the next national elections.

The overall strategy, termed R2D2 in the DA, will be unveiled to the mediatomorrow.

The acronym stands for "Reconciliation, Redress, Diversity and Delivery". Partyinsiders say this is based on the DAs own research showing that the major concernfor South Africans of all races was reconciliation between the various populationgroups.

The DAs economic policy is based on the experiences of other countries at similarstages of development such as Peru, Turkey, Brazil and Argentina. The partyannounced the "first phase" of its economic policy in November last year when itlisted a number of constraints to get the SA economy growing fast enough to absorbthe large number of unemployed.

Economists and political analysts say that while the DAs 8% is an objective target,the constraints on SAs economy meant that such a growth rate would only be

achieved in the long term and there was no quick fix, or "magic formula".

Standard Bank chief economist Goolam Ballim said it appeared that the DAs

economic plan would overlap heavily with the National Development Plan drawn upby the commission headed by Minister in the Presidency Trevor Manuel . It would


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also overlap somewhat with the New Growth Path spearheaded by EconomicDevelopment Minister Ebrahim Patel.

"For a long time we know what the constraints to SAs economic growth have been.

Also we know there is a big disjuncture between policy formulation and getting it

applied," he said.

The National Development Plan estimates that GDP would have to grow at anaverage of 5,4% in order to create 11-million jobs by 2030.

Econometrix chief economist Azar Jammine said he hoped the DAs economic plan

had a long-term view with education at its core.

"I think we can only realistically start talking about an 8% growth rate from 2020onwards."

26 July 2012Business Day

Page 1

Karl Gernetzky and Setumo Stone

Revolution or planned future for SA, De Klerk warns

Speakers at an FW de Klerk Foundation conference on the African NationalCongresss policy conference outcomes issue stark warnings about the future of the

ruling party and South Africa

SA could not ignore the policy debates within the African National Congress (ANC)alliance, which was facing "two roads", one mapped out by the National PlanningCommission, the other the "national democratic revolution", former president FW deKlerk said yesterday.

Speakers at an FW de Klerk Foundation conference on the ANCs policy conference

outcomes issued stark warnings yesterday about the future of the ANC and SA, ifmoderates in the party allowed radical elements to win the day.

"National policy is indeed at a crossroads: we can either take the road to economicgrowth and social justice that is indicated by the National Development Commission

or we can take the second phase road toward the goals of the national democraticrevolution," Mr de Klerk said.

The National Development Plan was hailed by speakers as promoting an open andcompetitive economy, while the national democratic revolution was criticised asbased on outdated communist theory.

Mr de Klerk said that if the ANC endorsed the national democratic revolutionphilosophy at its December conference, SA would embrace failed far-left socialism.


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"What will happen if economic management is increasingly dominated by outmoded,divisive and discredited ideologies, rather than by a pragmatic understanding of globaland national economic realities and market forces?"

Democratic Alliance leader Helen Zille said there were members of her party and

some in the ANC "who should be in the same party". She said the ANCs focus on thenational democratic revolution concept, and the related developmental state, wouldincreasingly present the ruling party with challenges, due to its refusal toacknowledge the lack of capacity of the state to implement policies. Ms Zille said theideological faultlines in the ANC could be seen in the differing solutions to SAs

problems posed by the National Development Plan, and the national democraticrevolution concept.

ANC spokesman Keith Khoza said its policies were debated publicly. He said Mr deKlerk "has never been a specialist on the ANC and does not understand the party".

18 July 2012The Times

Page 2

Denise Williams

SA lodges among world's 10 best

South Africa once again showed its tourism muscle when two bush lodges claimedtop-10 status in the US Travel and Leisure World awards.

South African Luke Bailes will receive the sought-after best hotel in the world awardtomorrow night for his lodge the Singita Grumeti, in Tanzania.

This is the second consecutive year that the Tanzanian lodge has won the prize.

Singita's sister lodges in South Africa have also been accorded top-10 status, withSingita Kruger National Park and Singita Sabi Sand coming in at 7th and 10threspectively.

South African hotels that took top-100 awards included the Sabi Sabi private game

reserve lodges (13), Cape Town's One&Only (14), the Saxon boutique hotel inJohannesburg (33), the Twelve Apostles (41) and the Cape Grace (44).

"We are always striving for top-notch world standards but have one main objective: topreserve and protect significant tracts of land, pristine wilderness for futuregenerations," said Bailes.

He attributed the Singita lodges' success to their authenticity and originality.

"I often ask foreign visitors why they consider the service to be such an outstandingfeature during their stay and most say it's because the staff are so warm and

embracing. That's the African way," Bailes said.


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However, only a select few South Africans will ever be able to experience the SingitaKruger National Park's hospitality because it doesn't come cheap.

According to the lodge's website, a stay could cost as much as R13000 a person anight.

"We acknowledge the high price, driven by the quality of the offering," said chiefmarketing officer Lindy Rousseau.

She said South Africans comprised between 4% and 5% of the visitors to theTanzanian lodge and about 10% of the clientele at the South African lodges.

The Department of Tourism said that more than 2million tourists had visited localesin South Africa between January and March.

This represented a 17.8% rise in overseas arrivals, most of whom were from Europe.

Tourism Minister Marthinus van Schalkwyk said the UK, South Africa's biggesttourism market, had recovered from an overall decline in 2011 to an increase for thisyear of 9.5%.

SA Tourism's chief marketing officer, Roshene Singh, said: "Readers of LonelyPlanet, in India, recently voted South Africa the world's best wildlife destination.

"We're very proud of our country's breathtaking wildlife tourist experience."

22 July 2012

Mail and Guardian

Online

Staff

ANCYL calls for Motlanthe for president

Made an indirect reference toward Zuma serving only one term.

The ANC Youth League has called on Deputy President Kgalema Motlanthe to

become president, and made an indirect reference toward President Jacob Zumaserving only one term.

ANCYL deputy president Ronald Lamola said it was a tradition in the ANC fordeputy presidents to later be elected as president of the organisation.

"One day comrade Kgalema Motlanthe will become president of the ANC," Lomolasaid. "It is written in the history books of the ANC."

Lamola was speaking at a ANCYL Nelson Mandela memorial lecture in Hillbrow,Johannesburg.


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Immediately following his endorsement of Motlanthe, Lamola noted that Mandelahad promised to serve only one term as state president.

"We are inspired by the man's word," Lamola said. "When he saw the nice life of thepresident of the country. He never let it divert [him] from that promise."

Lamola also referenced the ousting of former ANC President AB Xuma with the helpof the ANCYL at a conference in 1949.

"He was not even given those minutes to finish his term," Lamola said to cheers fromthe audience.

Lamola also slammed ministers for poor service delivery and malfeasance and calledfor their firing.

Lamola singled out Police Minister Nathi Mthethwa, Water and Environmental

Affairs Minister Edna Molewa, and Basic Education Minister Angie Motshekga forcriticism.

"Those who say it was not their responsibility to deliver books must also be fired," hesaid.

Lamola criticised Molewa for not delivering water to Carolina.

He argued that ministers were quick to make claims that they would deliver butdeflected blame when they came up short.

"When things go bad you say it is not your responsibility," said Lamola.

He criticised Mthethwa for having a security fence built around his house with publicfunds.

"You cannot have a person where they built a security fence around his house and hedo not know... how does he get in and out of his house," asked Lamola.

Immediately after criticising Mthethwa, Lamola argued that public officials who don'tmeasure up should be fired despite who they support politically.

Lamola also defended the independence of the Youth League and argued that, usingthe example of Mandela, they should continue to push the ANC into more radicalaction.

"A child in any family must be different from its parents," Lamola said. "If a childbehaves like its parents, then there is no reason for the child to have been born."

He defended the Youth League's rough language and argued that in other developingcountries, such as China, government officials were younger.

"That is why [in China] you never see a sleeping politician in parliament," Lamolasaid.


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"The politicians they even fight and moer each other. They moer each other becausethey are fighting for the direction of their country," he said.

Lamola also lauded the youth and their talents before expanding the Youth League's

call for mine nationalisation to include land expropriation.

"[The youth] can be used in the mines we are going to nationalise and the land we aregoing to expropriate," Lamola said.

He argued the state should not have to compensate farmer's for their land because ithad previously been stolen from indigenous Africans.

"We do not understand why we must pay them because they took it for free," Lamolasaid.

18 July 2012

The New Age

Chris Makhaye

Bizos warns against Protection of Info Bill

Civil servants should report the rot of fraud and corruption happening in front of thembecause keeping quiet is dangerous and will lead the country down a slippery slope.

Anti-apartheid lawyer and former president Nelson Mandelas advocate, GeorgeBizos, said this during the International Association for Media and CommunicationResearch conference at the University of KwaZulu-Natal on Tuesday.

Hundreds of delegates from all over the world are attending the conference, whichbrings into the spotlight challenges facing the media at a time of growing repression,increased competition from social media and the perceived regulation of information.

Bizos said the proposed Protection of Information Bill would make it easy forofficials to use it to suppress information on corruption and fraudulent activities if it is

passed.

He said even municipal officials would be able to classify information as a state secretand use it to conceal documents relating to fraudulent tenders.

With this law everyone from the Minister of State Security can delegate his

responsibility to his officials down to the mayor of a small town who would obtain astamp that declares certain information classified.

This stamp would state that nobody has a right to make public the content of

fraudulent activities. That is why silence is dangerous in public affairs, he said.


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Bizos was addressing a panel discussion chaired by the SABCs Siki Mgabadeli andincluded public protector Thuli Madonsela.

Madonsela said South Africa enjoyed a free media but there was an ongoing debate asto how far journalists could go in doing their jobs.

One of the issues we have grappled with since the dawn of democracy is the issue ofthe limits of freedom of expression, including the limits of the freedom of the media.

The dialogue was much sharper not so long ago when certain provisions of the

Protection of State Information Bill forced the nation to grapple with the idea oflegitimate limitations of freedom of expression in pursuit of national security, theprotection of valuable information and related matters.

There was national consensus that like most rights and freedoms, (the) freedom ofexpression, incorporating press and media freedom, could be legitimately restricted,

Madonsela said.

Investigative journalist Mzilikazi wa Afrika said there were still journalists in SouthAfrica who were prepared to risk their lives in order to expose corruption.

Some of us are fearless. We have had our phones tapped, there have been death

threats against us and we have had trumped-up charges brought against us. We havebeen labelled and called names but we carry on because we see our role as the voiceof the public. We have refused to listen to leaders who want us to be praise singers,

said Wa Afrika.

22 July 2012

Sunday Times

Page 5

Mantombi Makhubele and Sibusiso Ngalwa

Winnie lays into ANC

Winnie Madikizela-Mandela has questioned President Jacob Zuma's frequent

marriages, and has accused the ruling party of sidelining influential ANC leaders.

In a candid interview likely to rile the ruling party, Madikizela-Mandela:

Raised concerns about the ANC's commitment to democracy;

Said ANC youth leader Julius Malema should merely have been "spanked" by theANC - instead of expelled - and she attacked the decision to take disciplinary actionagainst party stalwart Ben Turok;Blamed the bruising Polokwane elective battle in 2007 for the emergence offactionalism and tribalism. Referring to the actions of Zuma supporters ahead of the

conference, she said: "It is an open secret that you have people printing T-shirts[saying] 100% Zulu ... those were the consequences of this kind of language";


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Said that instead of improving the lives of the poor, ANC members now jostled forpositions and money; andImplied she was opposed to the controversial Protection of State Information Bill.This is the first time a sitting member of the ANC national executive committee hasopenly criticised Zuma.

The interview, at her home in Orlando West this week, is part of MTV Base Meets ...with MTN, in which young people from across Africa interview influential people.

With reference to the challenges of today, Madikizela-Mandela said youths had tofind a balance between African culture and what was morally right or wrong.

She asked how the idea of a single partner could be recommended when "thepresident's culture is that he can spring up [with] another fiance tomorrow - and it isan observation of his culture".

She said people "have to redefine an acceptable culture that is going to define you asan African and, at the same time, retain your dignity as an African.

"If we want to keep our society together and have a respectable society tomorrow, youhave to return to those values that were observed by our forebears and find a way ofbalancing and explaining a culture that sometimes seems to be retrogressive," saidMadikizela-Mandela.

She lamented the brain drain from the ruling party and blamed Zuma and formerpresident Thabo Mbeki for a divided ANC.

Neither had heeded her warnings prior to the ANC's 2007 elective conference inPolokwane that a contest between them would polarise the party, and that the loser'ssupporters would be purged by the victor.

"What happened? Where are the brains of the ANC, ministers who were appointed bythe old man [Nelson Mandela] and who had the experience from Comrade Madiba ofgovernance? Automatically, they fell by the wayside."

Madikizela-Mandela gave the interview on Monday, two days before she shared aplatform with Malema and suspended youth league leaders Floyd Shivambu and

SindisoMagaqa on Mandela Day.

The struggle stalwart's public appearance on Wednesday attracted the wrath of theruling party, with ANC secretary-general Gwede Mantashe saying her appearancewas a "dangerous" move.

On Friday, however, Malema responded: "We have always said Mantashe does notknow and he does not understand the ANC.

"Mantashe never grew in the ANC, was never in the underground movement, wasnever involved in any operation against the apartheid regime, was never arrested and

never went into exile like all freedom fighters his age did."


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Asked about her views on the secrecy bill, Madikizela-Mandela said it wasunfortunate that, although the ANC professed to being a democratic government, ithad difficulty accepting divergent views.

"I would have my views about the secrecy bill," she said, but the ANC was

disciplining "one of the last icons of the ANC, Ben Turok, for answering this veryquestion".

"I'm sure you would know what I would think about that [bill]," she said.

ANC MPs Turok and Gloria Borman abstained from the vote on the bill, despite aparty directive, and are facing disciplinary action as a result.

Madikizela-Mandela was not in parliament on the day of the vote.

The interview with Madikizela-Mandela is due to be broadcast on DStv channel 322

on September 5.

25 July 2012

Business Day

Page 1

Mariam Isa

World Bank warns on inequality threat to SA

INEQUALITY had become a "corrosive" reality threatening growth in South Africa,and without social grants, 40% of the population would have seen incomes decline inthe first decade after apartheid, the World Bank said yesterday.

The Washington-based lender revised its growth forecast for South Africa this yeardown to 2,5% from a 3,1% estimate in Novemberwell below the latest estimatesfrom the Reserve Bank, which sees the economy expanding by 2,7% this year and3,8% next year.

The pace was expected to quicken to 3,2% next year and 3,5% in 2014, the WorldBank said yesterday, but it warned that the economy would not be able to achieve a

faster pace of growth unless it became more inclusive.

Sandeep Mahajan, the World Banks lead economist on South Africa, said the

economy would have to grow faster than 3,5% in order to tackle the countrysunemployment rate of 25,2%one of the highest in the world.

"Growth has been mediocre and its been inequitably distributed. In South Africas

case, high growth can only come from inclusive growth," he said at the launch of thereport, titled Focus on Inequality of Opportunity.

"South Africa is a complete global outlier in terms of inequality it has been

persistent over time and that has been a very corrosive reality."


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Global rating agencies have repeatedly highlighted the risks to social and politicalstability in South Africa posed by high unemployment, huge income disparities andwidespread poverty.

These issues have constrained its credit ratings, which determine a countrys cost of

borrowing and investor appetite for local assets.

South Africa is one of the most unequal countries in the world, with the top 10% ofthe population accounting for 58% of its income and the bottom half less than 8%, theWorld Bank said in its report.

Poverty reduction had been modest since the late 1990s and would have been"untenable" without the growing level of social grants, it noted.

The Treasury allocated R105bn this year to social grants for the elderly, disabled andpoor children, which will reach more than 16-million people, up from 2,5-million in

1998.

"Even after accounting for the equalising role of social assistance, income inequalityremains extraordinarily high," the World Bank said in the report.

"To reduce it to more reasonable levels over the long run, social assistance is clearlynot enough and needs to be complemented by other initiatives."

Nomura economist Peter Attard Montalto said it was important to distinguish betweenequality and poverty.

"There is plenty of evidence that South Africa has done a lot to meaningfully increasethe standards of living of its poorest. But the development payoffs have been directedmore towards the rich and a certain segment of the population," he said yesterday.

"You need to have a larger amount of social stability for a proper investment climate."

The World Bank said nearly 70% of the poorest 20% of South Africans were joblessin 2008a warning bell for social cohesion.

The causes of inequality in labour markets had changed over the past four years, with

the contribution of education increasing and the effect of circumstances of gender andrace falling slightly, the report said.

"Where a person seeking employment lives, however, matters more now than it didfour years ago," it noted.

Employment was "particularly challenging" for young workers and residents oftownships, rural areas and informal settlements.

This is not out of step with the global trend, as the jobless rates for young people incountries such as Greece and Spain are similar to the levels in South Africaabout

50%.


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But the World Bank said that age was an "unusually large" contributor to inequality inemployment in South Africa compared with other middle-income countries, with the"odds extremely stacked" against the youngest workers.

In analysing the reasons for high inequality in South Africa, the World Bank said it

would be useful to focus on equitya reference to access to opportunitiesratherthan equality. Basic opportunities included access to education, health insurance, safewater, sanitation and electricity.

"Except for electricity, where South Africas average annual progress has been

exceptional, the progress on the other four dimensions puts it in the bottom half ofinternational comparators," the bank said.

Location was particularly important, while the level of education of a household headcontributed most to finishing primary school.


Page 5

Natasha Marrian

State needs to unite business, labour on jobs

Economic Development Minister Ebrahim Patel says a wider accord on jobs is on thecards to address rising unemployment

A wider accord on jobs is on the cards to address rising unemployment, according toEconomic Development Minister Ebrahim Patel.

But it would require the government to dig deep to prompt business and labour tospeak with one voice and agree on job-creation strategies, he said last week.

Business and labour are often at loggerheads, blaming each other for SAs poor track

record in creating employment. This can be gleaned from their differences over thegovernments proposed youth wage subsidy, with business supporting it and the

African National Congresss (ANCs) alliance partner, the Congress of South African

Trade Unions (Cosatu), opposing it.

The subsidy has been shelved, if the ANC policy conference is anything to go bydelegates rejected it, opting for a job seekers grant instead. Discussions over the

subsidy, however, remain before the National Economic Development and LabourCouncil.

Mr Patel, addressing the Cosatu-affiliated South African Commercial, Catering andAllied Workers Union on Thursday, said the "wider accord on jobs" would look at thecontribution that the government, business, labour and community organisationscould make toward creating jobs, and address the needs of the "most vulnerable

workers".


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The accord would look at job targets, investment levels and the social wage, he said.

"It also means that a shared solidarity is needed in which every major constituency

identified what it can contribute to job creation. That those at the top, those withwealth make the biggest contribution."

According to Statistics SA, unemployment in the first quarter stood at 25,2%. It isestimated that the economy shed about a million jobs during the 2009 recession.Labour economist Andrew Levy described the idea of a jobs accord as "pie in thesky".

He said the government was proceeding with legislation to regulate labour brokerswhile Cosatu wanted an outright ban on labour broking. "Its absolutedoublespeak on the one hand, government wants an accord, and on the other, its doing huge

damage by displacing workers through the labour-broking legislation," he said.

It is understood that discussions on the jobs accord were already under way. ButCosatu president Sdumo Dlamini on Friday said the federation had not yet beenapproached.

The general secretary of the Black Business Council, Sandile Zungu, said despite thedifferences between labour and business, the severity of the situation required thatthey unite to tackle the problem. He said the council would be happy to participate insuch an initiative.

Mr Zungu said it was imperative to create employment opportunities for young peoplethe council had supported the idea of a youth wage subsidy and found laboursargument against it "unfounded".

However, he said it was clear the subsidy was no longer on the cards and newstrategies had to be developed.

22 July 2012

Business Report

Online

AdriaanGroenewald

Malema on whites and nationalisation

The BR Leadership Platform recently had a leadership conversation with former ANCYouth League president Julius Malema. What follows is the second part of a Q&Afrom the interview by AdriaanGroenewald, where Malema shares his thoughts.

BRLP: Whats yourvision for the future of South Africa?

Malema: We need an equal society, a proper well-resourced society. We need to liveequally in this country, peacefully and happy. Our society into the future can only be

an equal society through economic freedom. There must be decisiveness, we are notcalling for anarchy, we are not calling for the collapse of the economy.


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Those who are opposed to the proposals we have put forward, let them putalternatives forward. Lets share the wealth of the country. Let us de-racialise theeconomy.

We have no problem with the white man, but the white man must be prepared toshare. Let those who have voluntarily begin to give to othersnot use our democraticlaws to want to perpetuate the apartheid inequalities. Wait for the day when peopleare going to participate in an uprising, you must tell us wheres the constitution,

because then you cant stop them, not the judiciary, not even the army, not NATO itwill never stop the masses. So before we experience an uprising let there be a genuinedebate on the table on how do you redistribute.

BRLP: What about teaching a man or a woman to fish rather than giving them thefish? We cant just give givegive. Thats the concern I have the mentality of justreceivingit doesnt build character, but there is a case for somehow redistributing.

Malema: How am I going to fish with an empty stomach? There is nothing wrongwith you saying to meheres fish but these fish, you can even get more by doingone, two, three. We must build schools, we must be able to identify kids in those areaswho have potential, take them to the best schools and in that way we are also givingthem the rod to go and fish.

But those people do not have any hope. They dont see any possibility of a bright

future unless something drastic happens. An example is a township that has justturned 100 yearsthose rich families in Stellenbosch, they can come here and make acontribution and say we want to build the best city ever, as their contribution to ademocratic South Africa with a commitment to sharing.

BRLP: Would that work in the bigger picture of trying to teach skills, of making surepeople dont have that entitlement mentality?

Malema: We dont want to create a welfare state, that has never been our inte ntion.Hence we said to Pres Jacob Zuma when he became president, part of your legacywill be to produce well-qualified young people, so take 10 000 students from thecountry every year, to go and learn in the best countries while we are stilltransforming our education system here.

We cant wait for this system to be transformed; we dont have that luxury, lets take

others out of the country to be equipped with the necessary skills, 10 000, and thenbring them back. By the time you leave your office in five years you would havegraduated not less than 50 000 young people who are now in the service of ourcountry. Nobody cares to listen. The Ruperts can do this without Zuma.

BRLP: I can march a lot of top chief executives in here and they will tell you aboutthe millions that their organisations spend to uplift schools, education and much more

theyll state a very good case of what they are doing.

Malema: No, you will find them having put a fence around a school. Theyve not builta school. I will tell them go and show me that school. At least now Patrice Motsepe


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and his company are trying to build a proper road in an area, and Anglo inThabazimbi try to build houses for people there. I was very happy with that. But theyneed to do more.

BRLP: People are asking how the nationalisation of the banks and mines will put

money into the pockets of the poor.

Malema: Mines are accounting for trillions of rands here into the country. But if youlook at their contribution through tax, its not what you would expect coming out ofthose trillions. So we need a state that is involved in mining through taking over 60percent of the shares in mines, but not only in shares, it must be involved in theoperations of the mines. And when those dividends are declared our coffers will getmore money.

That 40 percent that remains in the hands of the private sector must still be taxed androyalties must be paid, so effectively the majority of the money will remain here with

the investor not leaving with more than 20 percent after tax. Thats what we aretalking about. We want our government to be involved in mining.

And then the farms that have not been mined yet, if a private company comes, wantsto do exploration in those areas, the state is not involvedwe give you a licence to gocheckyou bring a report. If it is profitable we are going with you 60 percent. Yougo 40 percent. Why should we pay for that? You bring the mining machines, we willbring the mineralwe bring the land, we bring the minerals. Those things belong tous. We are meeting each other half way. Its not like we are coming empty-handed.We are bringing minerals, you bring the machines. We mine together.

BRLP: People wouldnt trust that the government would distribute those dividends,

those taxes fairly, wisely and without corruption. That may not always be a faircomment but that perception exists.

Malema: But Adriaan, youre paying tax now. You dont stop paying it now because

you believe the government wont use your money properly.

BRLP: We can complain, but we cant really do anything about it.

Malema: Yes, thats how a democratic government is there will be those elements.

Even today there is corruptionhow people get licences, get bribes, all kinds ofthings, theres no state involved in thatwhat happens there, youd be shocked.

Thats why we are saying it must not be given to individuals. As opposed to what

Zimbabweans are talking about in nationalisation where you must appoint aZimbabwean indigenous person and you must give him 51 percenta businessperson.

The state has got a proper mandate from its people to manage the assets of its people.But it has got too little resource, it needs additional resources. Where are the extraresources? They are in the banks, they are in the monopoly industries and they are in

the mining sector. Thats where extra resources must come from.


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BRLP: Theres no doubt that we mustnt just follow a free market or capitalist model,

but then, are you pushing for something in the middle, a blend between socialistic andfree market, or are you pushing for a socialistic state?

Malema: Im not pushing for a socialistic state, Im pushing for our people to get

bread on the table and if you call that socialistic then its fine with me I have noproblem with what you call it. But anything that will result in our people being able tobuy school uniforms for their children is what I want.

I am not here calling for a socialist agenda thats why I am not calling for wholesalenationalisation to the exclusion of the private sector. The private sector still plays amajor role in the whole thing, but with the state being a leading partner.

BRLP: What place in society do you see for minority voices whites, coloured etc? Iam a white Afrikaans speaking male who wants to be part of the solution. So when Ihear you stand up and say we must take back the land and our money, I get the strong

feeling I am excluded. And that creates a lot of alienation. Many South Africans feelexcluded, they feel that race relations are regressing.

Malema: No nononono the white minorities, theyre just scared of nothing. If we

wanted to do anything to them we would have done it in 1994. We had all the reasons,but look, we are not anti-whites, but we cant ignore what happened historically andthey need to come to terms with that. The sooner they appreciate that they havecaused us so much pain, the better.

They need to know that. They must never behave like nothing happened. Thats the

problem, they want to behave like nothing happened, and they want to say to people,put everything behindwe cant, we cant. Never ever try to push us to puteverything behind because youre going to force us to pretend to you and once we are

pretentious the anger in us is going to boil. And then it will explode.

BRLP: So how do we confront and really clear up the race issues?

Malema: They must open up, this is their country, they too should feel comfortableand never feel attacked when we speak about redressing the imbalances of the past.They must open up and one of the ways of opening up is to accept that apartheid hascaused us this trouble we find ourselves in now.

Then they need to ask themselves a questionhow do I contribute? Ive got landhere, some of which Im no longer using; Ive just dumped my workers there to lookafter it. Why cant I, as part of my contribution give the state some of it, as my

contribution towards land redistribution?

And the state will then decide how to utilise that land. If its agricultural land it will

have to go and look for competent people who have got what it takes to utilise theland because we must also be worried about the food security. We are not just goingto take land, tomorrow theres no production.

The mistake we did with the state buying of land and giving people withoutmentorshipwe dont need that. We need to get land, give it to people, but employ


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somebody, even if its the Afrikaner, employ him to supervise the production there.

He must be on the payroll of the state, he must know that hes paid to do that.

But the point is, if you have nothing, as an ordinary white person why should you

be worried, you have nothing, you have not stolen from anybody, you just have your

house, you dont have anybodys land, you dont have all the monies, we are nottalking about you. We are speaking to the Ruperts, the Oppenheimers; we arespeaking to all those who are owning the means of production.

White working class belongs to our struggle. They must come and join us to fight forequal distribution of wealth in this country, and when we say equal distribution ofwealth we dont refer only to blacks we refer to the white working class who has gotnothing.

BRLP: What I hear you say now can potentially convince the ordinary guy on thestreet to enrol in your cause if he heard it that way. But you dont say it that way?

Malema: Ive always said it; Ive said no white person is going to be driven to the

river here. Not by us. That would be to the disappointment of Nelson Mandela. Wewould be undoing his work.

But we need to be honest about what we want. And the media does not help. Thosewho own the media are those who own the means of production. You say you want totake from them, they use everything else they have to prevent you from taking fromthem; they then use the media to discredit our achievement, the struggle. But we arenot worried about thatthe truth will come out. Everybody needs to appreciate thatactually I belong here.

BRLP: So you expect the farmer to realise or make some sort of breakthrough in hisown mind and change his attitude and then perhaps give some of what he has. Its a

big ask. And you are challenging a Laurie Dippenaar, a Paul Harris, the individualsfrom Stellenbosch, to stand up and give a billion as a token to show we still need toredressits asking a lot, perhaps.

Malema: Its not asking a lot. Out of billions youre giving R1 billion; its not asking

a lot. Its also clearing your own conscience youre an individual who has billions,you can do a lot with it. And you dont have to involve the state, if you dont trust

them, then do it yourself. Call a press conference, announce that as part of acontribution this is what I am going to do and Im calling upon fellow white SouthAfricans to make this contribution.

We will celebrate that and you are actually going to break these hostilitiesone of usis actually appreciating that there is a contribution to be made. But why are they notdoing thatbecause the majority are still holding on to the pastthinking they aresuperior, must remain superior and what makes me superior? Its the big land, big

money and they must all come work for me. It cant be.

Lets all make a contribution. We are now going for 20 years with all those

expectations we had under Pres Mandela where we didnt achieve them, we are stillpatiently waiting that one day when things will be fine.


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But for sure you know what happened in Africa 20 years after democraticbreakthroughspeople gave up and said, no, this is too much now, enough is enough,and they started chasing those who are seen to be perpetuating oppression.

BRLP: What most people out there attack or query is your own wealth, as someonethat fights for the poor and downtrodden, yet you have so much, and the suspicion isthat you could only have acquired it illegally? What is your response to sucharguments and views?

Malema: Joe Slovo was not a black person but he fought against black peoples

oppression by white domination. Im not rich but creditworthy because of my

previous occupations. I never stole anything from anybody and neither was I oncefound guilty of illegal activities by a credible court of law. Im a child of a domestic

worker and I grew up in a poverty stricken family. I dont read about poverty, Ive

lived a poverty life.

BRLP: You seem fearlessI think thats one of the reasons why people arefascinated with you.

Malema: Im not compromised other leaders are compromised. Theyve gotskeletons in their own wardrobes. I dont owe anybody anything. They try and scareme and put investigations against me, put all manner of pressures against me.

Ive never in my own conscious life took a decision to engage in a criminal activity

and if you say you are investigating me about this or that let me get a day where Illanswer those allegations and deal with them. Im not going to be threatened. If I have

done wrong, I should take responsibility for what Ive done wrong. But Im not going

to suppress my views and my ideas.

24 July 2012

The Times

Philani Nomembe and Nashira Davids

'If asked, I'll walk away'

President Jacob Zuma sat in the hot seat for almost an hour on Talk Radio 702yesterday.

Redi Tlhabi had a candid interview with the president on 702 and on 567 CapeTalk,asking for answers to the many questions his tenure has sparked.

Questions were asked about his leadership, his polygamy and his friendship withSchabir Shaik.

Though his spokesman, Mac Maharaj, said Zuma regularly gives "in-depth", "off thecuff" one-on-one interviews this one was one of the most intensive and expansive in

some time.


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The interview started on a light note with Tlhabi joking that she thought Zuma mightbe a no-show because he had to catch up on the reality show Idols.

Then the gloves came off.

She asked Zuma to rate himself as president.

"I'm not sure whether Jacob Zuma could rate himself. I doubt that would beappropriate because I could exaggerate," Zuma replied.

"I think the performance of an individual is better rated by other people. All I couldsay is I have tried my best, given the task.

"I have tried to put every effort, every initiative, every imagination to ensure that whatis expected of me I do in a manner that would be acceptable and in a manner thatwould actually make a contribution to whatever the government is supposed to do in

the country."

Tlhabi went on to criticise his administration and took aim at the ANC .

Basic Education Minister Angie Motshekga

Motshekga has come under fire from all corners for the shocking state of education.

"One of the criticisms of your leadership is that you take a long time to act onsomething that is urgent. We have a situation of textbooks in Limpopo, there is thistask team, that task team ....when are you going to fire the education minister?" askedTlhabi.

"Well, I'm not sure about that criticism and I'm sure if, each day there was a reportand I fired people, I would be [harshly] criticised that I don't follow through processesof the law," replied Zuma.

He went on to explain that he first had to establish who was responsible for theproblem in Limpopo before heads could roll.

Former ANC Youth League president Julius Malema

Tlhabi said Malema - whom Zuma once likened to former ANC leaders AntonLembede and Oliver Tambo - had turned against him.

She said that Malema had been similarly disrespectful of former president ThaboMbeki in the run-up to the ANC's Polokwane conference, at which Zuma was electedpresident of the ANC.

"Firstly (you might not have noticed this) the ANC Youth League, not just JuliusMalema, after I was relieved of my duties [in June 2005] started insulting PresidentMbeki.


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"I stood up in many meetings to say: 'This is not done. You cannot do it. You can'tdeal with the president in the manner in which you did.' I'm on record," said Zuma.

"On the issue of Julius, where I said there was a leader in this young man, I did notcompare him with Lembede or Tambo. I think this is an addition to what I said. I said

there was a potential leader in this young man that, in fact, we needed [to] nurture[him]. I still hold the view that in him is a leader."

SchabirShaik and Jackie Selebi

The talk show host read out an e-mail from a listener asking for Zuma's thoughts onthe release of Schabir Shaik and of former top cop Jackie Selebi on medical parole.

"Well, the release of people is in accordance with the conditions that are set out in theconstitution, and powers given to either ministers or departments. After considering anumber of facts, they take particular decisions.

"I don't think I can take a view on each and every prisoner that gets parole. They getparole each and every day for a variety of reasons," said Zuma.

Tlhabi interjected: "But these are not just ordinary people. They are prominent peoplewho were 'connected', and there is a lot of cynicism about the extent of their 'terminalillnesses'. South Africans believe they are getting special treatment.

"One [of them] is your friend and the other has formidable struggle credentials [andSouth Africans suspect] that, if you are connected, you will get medical parole."

Zuma denied that Shaik and Selebi got preferential treatment.

Winnie Madikizela-Mandela

Madikizela-Mandela, who has sympathised with the ANC Youth League, hascriticised Zuma for his polygamy.

But Zuma would not be drawn on his personal life.

"I don't think it is wise to try to discuss personal things unless those things impact on

what you do."

Job creation

Zuma's relationship with trade union federation Cosatu also came under the spotlight.

The federation has vigorously opposed the government initiative to create a fund forunemployed young people.

"Your finance minister has expressed a level of frustration and impatience that wecan't get going because labour doesn't want to. Who is in charge here?" she asked.


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"The government is in charge here, absolutely. It will always be in charge. It has amandate, there is no doubt about it," he replied.

ANC succession debate

It is believed that Zuma will seek a second term as president of both the ANC and thecountry, but Zuma claimed he would step down if the party asked him to.He said he does not have an "appetite" to rule.

22 July 2012

The Sunday Independent

Page 15

Dirk Kotze

Dlamini Zuma is the right woman for AU

The election of Nkosazana Dlamini Zuma as the new chairwoman of the AUCommission has been analysed from various perspectives.

Most commentators view it as a major achievement for SAs reputation on the

continent, but it is also regarded as a serious loss of ministerial capacity for thegovernment.

Dlamini Zuma served in three ministries since 1994: Health, Foreign Affairs andHome Affairs. All three gave her valuable experience in matters of priority for the

continent. It also gave her managerial and leadership experience urgently required inthe AU Commission.

Moreover, Dlamini Zuma has never been compromised by accusations of corruptionor maladministration. Powerful and vested interests have not intimidated her, asproven by her challenge of the main pharmaceutical companies regarding genericmedicines. SA was not the only country to have benefited from this challenge.

As Minister of Home Affairs, she reduced corruption levels in the department,professionalised its service to citizens and modernised its internal processes. This isthe type of leadership change that the commission and AU bureaucracy will have to

undergo.

Home Affairs plays a very important role as the most critical contact point withcitizens of other African countries living as refugees or asylum seekers in SA. Theproblems of inter-state migrations affect many African states, and Dlamini Zumasterm as minister has exposed her to these dilemmas.

As minister of foreign affairs, Dlamini Zuma with president Thabo Mbeki, deputyforeign affairs minister Aziz Pahad and senior officials like deputy director-generalWelile Nhlapo were the architects of SA foreign policy and relations.

She played a critical part in converting the conceptual basis of the Mbeki ideas intoline-function, government programmes such as the African renaissance fund, the New


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Partnership for Africas Development (Nepad), the African diaspora, the

establishment of the AU and hosting of major UN conferences.

In her AU capacity, it is expected that she will not only to be a managerial success butthat she will provide more prominent intellectual leadership to Africa as a concept

almost similar to the role of Jacques Delors in the European Commission in the1990s.

Dlamini Zumas election has several implications. So far the commission

chairpersons have originated from median or small states. Her election broke with thistradition. It is not only an AU tradition but also a UN tradition: secretaries-generalwere from Burma, Austria, Sweden, Ghana, Egypt, Peru, Norway and South Korea.The unknown consequence of Dlamini Zumas election is whether it has set aprecedent that will irretrievably change dynamics within the AU.

Several commentators emphasised the divisive nature of the latest election. The

continent is diverse in many respects: regionally, linguistically, religion, politically,etc. The AU is built on the pillars of the five regional economic communities someof them overlap in formations, like the Common Market for Eastern and SouthernAfrica (Comesa).

Although the final vote was 37:14 in favour of Dlamini Zuma, it is skewed by SADCsupport. If that is accounted for, the remainder would be 22:14 in her favour. TwoEconomic Community of West African States (Ecowas) members are suspended andtheir presence would have changed it to 22:16. (Ecowas consists of 15 members andtherefore it can be assumed that the majority of opposition came from this region). Itmeans that Dlamini Zuma has to address reconciliation in the first instance betweenSADC and Ecowas. One of her priorities will have to be to integrate North Africa as aregion more into Africaespecially given the new opportunities after the ArabSpring.

She will also have to manage unrealistically high expectations. Although thecommission is the AUs executive authority, it cannot be compared to the EuropeanCommission. It does not have the powers to play the same prominence and providethe same leadership. State sovereignty is still dominant and therefore the AU is not afederation but a loose confederation.

Expectations about Dlamini Zumas potential must therefore be tempered.

The AU organisational structure is dominated by the assembly (summit of heads ofstate and government). Its chairman is annually appointed on a rotational basis.

The commissions longer term of office provides much more continuity but has notyet been used to that effect to enhance its role in the AU.

Peace and security remain priorities for the AU. Dealing with conflict is thereforeshared between the AU Peace and Security Council (PSC) and the commission. TheAU PSC depends largely on the initiatives taken by regional organisations and

therefore the commission has the potential to take the lead in the AU regarding peaceand security matters. It is expected of Dlamini Zuma to be more pro-active, to be


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quicker with AU responses (consider the AUs lack of clarity in the cases of bothLibya and Cte dIvoire) and for the commission to be more assertive in using the

powers and instruments of the Constitutive Act.

While regional economic communities are better designed to deal with economic

matters, the AU does not have strong institutions to lead the new era of economicdevelopments in Africa. Nepad is not designed for it; neither are the UN EconomicCommission for Africa, the African Development Bank nor the Economic, Social andCultural Council. None of them can be compared with the AU PSC in terms ofpowers and prominence. Under the guidance of Dlamini Zuma the AU Commissionwill have to develop leadership capacity in this regard.

The continental objectives of intra-Africa trade and free trade areas have beenovertaken by economic partnership agreements, strategic partnerships and others.

Economic co-operation as a pan-African ideal has fallen behind these new dynamics

of globalisation and therefore protecting and promoting African trade interests in thenew context requires stronger leadership from the AUs centre.

Much speculation is taking place about how SA might benefit from Dlamini Zumas

new position. Does it create a new leadership role for SA? We have seen alreadyaccusations that SA bullied some states to vote for Dlamini Zuma.

SAs leadership in Africa is not self-evident and is also challenged. It is dominant inSADC but not necessarily in the other regions.

Militarily, SA is not the most dominant force in Africa. Some other defence forces aremore professional and have more experience.

In the next 15 years, some economies will overtake the SA in terms of GDP, mainlybecause of the growth in oil production and the fact that they have bigger populationsand bigger domestic markets.

The SA economy might become smaller than the others, but it will be morediversified, technological and less dependent on commodity exports. Politically, SAs

position has been challenged in the past and several regional powers have emerged,such as Nigeria, Egypt, Kenya, Algeria and Angola.

It is unrealistic to expect that Dlamini Zumas election will provide SA with a new

leadership role. It will depend much more on SA government leaders, the role of theSANDF in conflict and the sophistication of the economy. Its roles in global issueslike climate change, international human rights and humanitarian law, and nuclearnon-proliferation are equally important.

Given her experience, Dlamini-Zuma will be able to link the AU more effectively tothese issues. And SA should receive some credit for it.


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20 July 2012

Business Day

Page 3

Karl Gernetzky

SA had no option but to abstain on Syria vote

Deputy International Relations Minister Ebrahim Ebrahim says UN resolution aimedat ending violence in Syria was unbalanced

SOUTH Africa had "no option" but to abstain on a vote this week on a Western-backed United Nations Security Council resolution on Syria, as the unbalancedresolution would have led to an escalation of violence in the country, DeputyInternational Relations and Co-operation Minister Ebrahim Ebrahim said on Friday.

On Thursday, South Africa abstained from voting on the resolution, which was aimedat pressuring President Bashar al-Assads government to end the turmoil in Syria,where hundreds are dying nearly every day, adding to a death toll of more than 17000in 16 months of protests and a violent government crackdown that spawned amilitarised revolt.

The 11-2 Security Council vote on Thursday saw Russia and China exercise theirpower of veto, while Pakistan also abstained.

Addressing the media at a briefing in Pretoria, Mr Ebrahim said the resolution had not

provided for measures against the opposition for non-compliance with a plan of actiondrawn up by Kofi Annan, the UN-Arab League joint special envoy for Syria, and hadtherefore been "unbalanced".

South Africas recommendations to balance the text had been rejected, which left it

"no option but to abstain in the vote", he said.

Mr Ebrahim said South Africas opposition to the resolution had not been "merely anissue of language", as a one-sided resolution would "only make the situation on theground worse".

The Syrian government would be pushed further into pursuing a military solution tothe conflict, and the opposition would be emboldened to reject talks, he said.

Mr Ebrahim said he could not understand why the vote went ahead when Russia hadindicated it would use its veto power.

Vitaly Churkin, Russias UN ambassador, said on Thursday the resolution shouldnever have been put to a vote because the sponsors knew it had no chance ofadoption.

The vote went ahead "probably to score some type of political point", said Mr

Ebrahim, adding: "We are therefore deeply disappointed that the council was not ableto apply pressure to both sides to bring an end to the violence."


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"It is members of the ANC who will decide; it will not be a group of people who willmake deals. He has said he will not be part of any group," Masebe said.

Masebe's comments could be seen as a clear indication that Motlanthe will challengeZuma if nominated by party branches to stand.

This would be a blow to Zuma backers hoping to avoid a contest for the three topposts during the conference.

That the party is headed for another bitter leadership battle was driven home this weekwhen ANC veteran Winnie Madikizela-Mandela launched an unprecedented attack onZuma, questioning his polygamous lifestyle and the axing of ANC Youth Leaguepresident Julius Malema.

In an interview scheduled to be broadcast by MTV Base in September - and which theSunday Times has seen - Madikizela-Mandela speaks of the difficulty of convincing

the youth to have one sexual partner when the president "can spring up anotherfiance tomorrow".

Madikizela-Mandela gave the interview on Monday, just two days before spendingformer president Nelson Mandela's birthday in the company of Malema andsuspended youth league leaders Sandiso Magaqa and Floyd Shivambu.

The youth league has become the public face of the campaign to have Zuma replacedby Motlanthe.

At the ANC's national policy conference last month, it became clear that the party wassplit between Zuma and Motlanthe supporters and that neither of the leaders wasguaranteed victory.

It is partly because of this that some in Zuma's camp are seeking the "no contest" deal.

Among senior pro-Zuma ANC leaders said to be pushing for this deal are PoliceMinister Nathi Mthethwa, Free State premier Ace Magashule, and members of theKwaZulu-Natal provincial executive committee.

A Gauteng-based ANC leader supportive of the proposed deal told the Sunday Times

that such a compromise ought to be possible as Motlanthe had never said he wanted totake on Zuma.

"Kgalema has not come out and said he wants to be president. Our view is thatKgalema and JZ complement each other. Kgalema is an intellectual; the president is apeople's person," he said.

A North West ANC leader aligned to Zuma said the party could not afford ashowdown between Motlanthe and Zuma.

"You cannot remove Kgalemanow, the organisation is going to be torn apart. The

KZN people have always been saying that the deputy president should not be


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compromised because of factional battles. Whoever is campaigning in Kgalema'sname is doing that on their own," the leader said.

An ANC national executive committee member opposed to Zuma's re-election said hewas aware of talk about a deal ahead of Mangaung.

"There's a realisation from all candidates that no one is running [in a one-horse race].No candidate has overwhelming support. So that's the discussion ... It's at its initialstages.

"[Zuma supporters] were being arrogant ... but they were marginalised in the policyconference ," said the NEC member.

Motlanthe's refusal to show his hand before the formal leadership nomination processopens in October appears to be frustrating his supporters and opponents alike.

A youth league regional leader aligned to the Zuma camp said: "There is a strongview that Kgalema is double-dipping and does not distance himself from the [anti-Zuma grouping]. We only know from people close to him that he has committed tocontinue to serve the ANC under the leadership of JZ. But comrades are sayingKgalema must come out clear ... he must not allow his name to be used by theseboys."

He said if Motlanthe decided to stand against Zuma, the Zuma camp would push forbusinessman and former ANC secretary-general Cyril Ramaphosa to stand as Zuma'sdeputy.

"The view about Ramaphosa is very strong in that you have JZ managing the politicalside and then have a strong deputy in Ramaphosa, who is a globally recognisedbusinessman, running government business.

"It would be good for our image. But we will accommodate Kgalema as long as hedoesn't contest JZ," he said.

Motlanthe supporters in Gauteng are now punting NEC member Joel Netshitenzhe astheir preferred candidate to take on Mantashe for the post of secretary-general,although they point out that he has not yet been approached to stand. U ntil now,

Sports Minister Fikile Mbalula has appeared to be the clear favourite for the postamong Motlanthe's supporters.


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Page 2Helmo Preuss

Dlamini-Zumas AU post a business opportunity forSA

Public Investment Corporation CEO Elias Masilela says there is nobetter time than now to drive an African investment programme with aSouth African elected as the head of the African Union Commission

There is no better time than now to drive an African investment

programme with a South African elected as the head of the African Union(AU) Commission, but it is critical to use this opportunity

responsibly, Public Investment Corporation (PIC) CEO Elias Masilelasays.

Mr Masilelas remarks at the second Nedbank New Partnership forAfricas Development (Nepad) Business Foundation Networking Forum on

Friday followed the recent election of Nkosazana Dlamini-Zuma as AUCommission chairwoman.

Despite being met with scepticism in the rest of the continent, the

move is seen as having the potential to open new business opportunitiesin SA, while testing the countrys diplomatic credentials in creating

partnerships and consensus across Africa.

The aim of the Nedbank forum was to provide insight into the investmentenvironment in Africa.

"SAs growth depends on the development of the rest of the continent,therefore it is important that we start looking at investment

opportunities for SAs businesses in the rest of the Africancontinent," Mr Masilela said.

This had prompted the PIC to launch an Africa strategy in which it has

committed 5% of assets under its management, or about R50bn, to investin the rest of the continent, Mr Masilela said.

The global perception of Africa has improved.

The continent now boasts rapid growth, a more stable politicallandscape, improved governance. The trading environment in which

African businesses operate today has changed significantly.

The economies of Europe, Africas largest trading partner, are undersignificant pressure, Chinas influence as the continents single-

largest trading partner is on the rise, and the need for increasedintra-Africa trade has become more pressing, given that intra-Africatrade is only 12% of total trade.

"At the moment we are partnering with private equity and developmentfinance institutions," Mr Masilela said.


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"Part of our focus is infrastructure as that way we fulfil our dual

mandate of providing good investment returns to our members, while atthe same time promoting economic development and job creation," hesaid.

Mfundo Nkuhlu, managing executive for Nedbank Corporate, said that theNedbank-Nepad Networking Forum filled a gap in the market for a

platform where big business could interact and engage with publicsector players on matters pertaining to doing business in Africasustainably.

At the inaugural Nedbank-Nepad networking session in April, which

looked at the effect of the continuing eurozone crisis on business inAfrica, South African Reserve Bank deputy governor Lesetja Kganyago

also highlighted the need for diversification into intra-African trade.

20 July 2012

Business Day

Page 1

Sam Mkokeli

Trade with China too skewed, says Zuma

President Jacob Zuma says Africas experience with Europe dictates need to be

cautious

President Jacob Zuma has praised Chinas commitment to Africa, but warned that atrade relationship heavily tilted in the Asian giants favour was not "sustainable in thelong term".

He was speaking yesterday at a high-level Forum on China-Africa Co-operation inBeijing, where Chinese President Hu Jintao pledged a $20bn credit line for Africaover the next three years.

The pledgedouble what China promised to lend Africa at the last joint forum threeyears agois likely to boost Chinas relations with Africa. Chinas friendship withAfrica dates back to the 1950s, when Beijing backed its liberation movements

fighting to throw off western colonial rule.

The government relies on trade with China, which it considers a strategic partner, tohelp meet SAs development needs. Chinese firms have been invited to invest in the

R3,2-trillion infrastructure programme.

Trade with Africa last year reached $166,3bn, according to Chin a. Over the pastdecade, African exports to China have risen from $5,6bn to $93,2bn.

Mr Zuma said while China provided industrial goods as well as skills developmentand investment to Africa, the continent supplied raw materials, other products and

technology transfer.


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"As we all agree ... this trade pattern is unsustainable in the long term. Africas past

economic experience with Europe dictates a need to be cautious when entering intopartnerships with other economies." But the relationship with China was different as"we are equals and agreements entered into are for mutual gain".

"We certainly are convinced that Chinas intention is different to that of Europe,which to date continues to attempt to influence African countries for their solebenefit," Mr Zuma said.

The European Union has rejected what it call Chinas "chequebook" approach to

doing business with Africa, saying it would continue to demand good governance andthe transparent use of funds from its trading partners.

But China says the West still views Africa as though it were a colony, and manyAfrican countries say they appreciate the Chinese no-strings approach to aid.

Mr Hu brushed off such concerns in his speech yesterday, made just before MrZumas.

"China wholeheartedly and sincerely supports African countries to choose their owndevelopment path, and will wholeheartedly and sincerely support them to raise theirdevelopment ability."

Mr Zuma emphasised the need for joint ventures between Africa and China, to ensurethat there was diversification and beneficiation of raw materials, in order to improvethe trade balance.

Partly because of Chinas "unrelenting" support over the past decade, Africa had

become one of the fastest-growing continents.

Trade and Industry Minister Rob Davies said on the sidelines of the meeting :"Certainly, quite a number of us are thinking we need to move into more valueaddition.

"We need to export mineral products in a more processed form ... We need to bite thisbullet very seriously."


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26 July 2012

Business Day

Page 3

Natasha Marrian

Use wage subsidy for training ANC

African National Congress secretary-general Gwede Mantashe says the R5bn set asidefor the youth wage subsidy should be accessible to fund other interventions toalleviate youth unemployment

The R5bn set aside for the youth wage subsidy should be "accessible" to fund "otherinterventions" to alleviate youth unemployment, African National Congress (ANC)secretary-general Gwede Mantashe said yesterday.

Implementation of the contentious policy, budgeted for by Finance Minister PravinGordhan in this years budget after being first announced by President Jacob Zuma in

2010, hit a snag when it was rejected at the ANCs policy conference last month.

Mr Mantashes latest comments appeared to indicate that implementation of the youth

wage subsidy was no longer guaranteed in its present form and the subsidy could beheaded for the drawing board. It had already come under attack from the Congress ofSouth African Trade Unions (Cosatu), which argued that it would benefit employersand see older workers displaced.

While Mr Mantashe did not say the subsidyunder discussion before the NationalEconomic Development and Labour Councilwas off the table, he said it shouldnot be viewed in "isolation".

"We said the question of cost sharing, this will entail the wage subsidy, can only workif it is a part of a more multipronged approach to youth employment," Mr Mantashesaid at a media briefing yesterday.

He was speaking ahead of a meeting of the partys top brass starting today, with job

creation featuring on the agenda. "The question of internships, both in the public andthe private sector, all those elements are issues that we should be looking into because

there is not one solution that will resolve the question of youth unemployment," hesaid.

ANC members rejected the concept of the subsidy at the policy conference butendorsed a job seekers grant the details of which have yet to be sketched out bythe party.

Mr Mantashe said the budget directed at the youth wage subsidy should be used tofund other initiatives such as internships, training, for young people wanting to attendfurther education and training colleges and for learnerships.

"But you must always look at that budget in conjunction with the huge budget that iswith the Setas (sector education and training authorities).


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"That money to me should be money that is used to target young people for skillingand therefore increasing their labour mobility in general," he said.

Business and the Democratic Alliance were pushing for the implementation of the

youth wage subsidy, with the latter marching on Cosatus headquarters to drive theirpoint home.

The outcomes of the ANCs national executive committee lekgotla would feed intothe next Cabinet meeting and the mid-term budget in October. The party leadershipwere also set to polish the recommendations from the policy conference, which wouldbe released in time for its conference in December.

Mr Mantashe moved to dispel confusion around the ANCs position regarding

nationalisation of the mines, after mixed messages emerged in the aftermath of thepolicy indaba. "I know there is agreement that wholesale nationalisation will not work

I know there is agreement that there must be bolder state intervention and stateparticipation in the economy and that is phrased in the resolution as strategic

nationalisation which means that it will be based on the assessment of merits of eachcase," he said.

After the policy conference, the ANC Youth League accused the party of wateringdown its recommendations on nationalisation.

"I dont know what the disagreement on nationalisation is, because when we give

resolutions, we dont do a roll call of whether Gwede is happy or not. Once we haveresolutions, thats what we take to national conference," he said.

Auditor-general Terence Nombembes report on municipal finances would also comeunder discussion.

The three-day meeting ends on Saturday.

26 July 2012

Business Day

Page 3

Setumo Stone and Karl Gernetzky

Sims report fails to focus on growing mining sector

Business Unity SA vice-president Michael Spicer says that he is cautiouslyoptimistic that most proposals in the State Intervention in the Mining Sector reportcommissioned by the ANC in 2010 are unlikely to be implemented

Business Unity SA vice-president Michael Spicer said yesterday that he was"cautiously optimistic" that most proposals in the State Intervention in the MiningSector (Sims) report commissioned by the African National Congress (ANC) in 2010

were unlikely to be implemented because of the importance of a growing industry.


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Speaking at a conference organised by the FW de Klerk foundation in Johannesburg,Mr Spicer said that the Sims document had made some positive proposals, but thefundamental flaw in the report was that the overall intention of the authors was not tofocus policy on growing the mining industry, but "a static redistribution approach".

This "flaw" was based upon the assumption that the industry would continue tooperate "on autopilot" regardless of the nature of state intervention, said Mr Spicer.

He said the authors assumed that with the planned interventions, investment andproduction would continue "magically," with the industry unhindered.

Among the recommendations in the Sims report was a 50% resource rent tax on"super profits", increased regulation and ring-fencing of certain minerals would provedamaging and drive off investment.

This came as critics pointed out that the ANC policy conference last month left

investors somewhat confused about which policy direction the party intended to takein the future, amid niggling talk of nationalisation in a bid to enable more stateintervention in the economy.

Ratings agencies and economists have warned a lack of policy clarity would increaseinvestor jitters.

Mr Spicer said both the politicians and business had mismanaged the "so-calleddebate on nationalisation," with the fallout resulting in SA missing "not one, possiblytwo commodity booms".

The exception had been Resources Minister Susan Shabangu , who was "courageousfor remaining resolutely opposed to nationalisation," while President Jacob Zuma hadissued "delphic statements" which rejected nationalisation but left a lingering "yet"hanging over investors. But Mr Spicer said there was growing recognition ingovernment about the nature of the damage caused by the lack of clarity over the roleof the state in mining, and the downturn in commodity prices could mute the push for"resource nationalism".

He described the latter as a "global phenomenon" apparent whenever there was aboom. Governments "get tempted into feeling they are not benefiting enough and

resort to policy interventions". He said the Sims report was commissioned late "todeal with something that was threatening to get out of control. I think (the writers)were instructed to make a finding against nationalisation and come up withalternatives."

The vacuum left by the policy conference was highlighted by the South AfricanCommunist Party (SACP) at its congress this month, saying the ANC got boggeddown on technocratic detail and failed to clarify the partys position.

However, speakers at the conference fingered the SACP as the source of confusion inthe ANC policy discussions. "The ANC is chasing down the blind alley of the

SACPs design," said special research consultant to the South African Institute ofRace Relations, Anthea Jeffery.


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25 July 2012

Business Day

Page 4

Sarah Wild

SKA telescope to turn brain drain in SA into brain gain

THE multibillion-rand Square Kilometre Array (SKA) telescope is attracting some ofthe best brains within and outside SA and is causing an "inverse brain-drain",according to SKA SA director Bernie Fanaroff.

In May, the international SKA Organisation decided that SA would share the R23bnradio telescope with Australia.

While foreign direct investment is an important benefit of the telescope, humancapital development, renewed interest in science among the youth in SA, as well asthe world class science expertise the project will bring to the country are also seen ascrucial gains.

"There is inverse brain drain from the US and Europe," Dr Fanaroff said. "People aresaying that they want to come and work in Africa. As the SKA is built, we will seemore of that."

Associate director for science and engineering at SKA SA Justin Jonas said yesterday

that a large part of this brain gain was because of the excitement surrounding theproject, but he added that it was also because of the bad global economic conditions.

However, Prof Jonas was careful to emphasise that the project would not be inundatedwith foreign scientists.

"We have a commitment to the government to include local candidates (and) to

keep the balance between excellent (world-leading) foreigners and our owncandidates," he said.

SA was "attracting very good talent" within the country as well, he said. "In the past,

a lot of people applying were second-and third-string candidates, but the peopleapplying are really top class."

Since the South African Research Chairs Initiative was established in 2005 throughthe National Research Foundation, the Department of Science and Technology hasinvested R1,1bn in the programme.

There are five SKA research chairs and five astronomy-related chairs. The idea is thatthese research chairs focus on their research and postgraduate supervision, rather thanlecturing.


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The Black Management Forum added to the congratulations and praise of DrDlamini-Zumas previous government portfolios yesterday, saying she had been"effective and outstanding" during her time in government.

Former president Thabo Mbeki said she had the qualities to help mobilise the

continent to address its challenges of underdevelopment, unity, peace and security.

17 July 2012

Business Day

Page 3

Sam Mkokeli

Dlamini-Zuma has tough task ahead in her AU post

There are simmering conflicts in the Democratic Republic of the Congo, Sudan andGuinea-Bissau

Nkosazana Dlamini-Zuma , who became chairwoman of the African Union (AU)Commission on Sunday night, has her work cut out. After the celebrations die down,she will wake up to the reality of the tough job she has on her hands.

There are simmering conflicts in the Democratic Republic of the Congo, Sudan andGuinea-Bissau. That is the reality of this job, which is about running theadministrative arm of the 54-member AU.

This is a baptism of fire for her, as she prepares to sit like a company CEO, at thehelm of the AUs administrative arm.

While the AU members were deliberating on her e

global south african news wrap 26 july 2012

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