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Global South African News Wrap 21 December Update

Global South African News Wrap 21 December Update

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Published by glosaf
Global South African News Wrap 21 December Update
Global South African News Wrap 21 December Update

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Published by: glosaf on Dec 22, 2012
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Global South African News Wrap – 21 December 2012
How Zuma persuaded ANC to drop the ‘N’ wordSouth Africa's Zuma pledges ANC renewal to dispel doubtsDon't bet against Zuma: ABZ left out of the NECOne love: Zuma picks Motlanthe to lead ANC's political schoolCope whizz kids boost ANC mediaZuma savours victory, but still has mountain to climbCyril Ramaphosa the key to urban votersIt's not all doom and gloomThe saviour returnsMotlanthe to head political educationZuma calls for unity after leadership battle Anti-Zuma camp hit by purgeSchizophrenia grips ANC at Mangaung conference ANC gets serious about curbing corrupt membersMinerals: 'We want fair share' ANC executive now almost 100% ZumaMiners breathe sigh of relief with nationalisation debate ‘off table’Motlanthe to lead ANC’s political school ANC Youth League’s future in balanceDlamini-Zuma tops the list as ANC chooses national executiveZuma victory bad for MugabeRamaphosa's election may boost planZille scathing on Zuma's re-election Achmat to consult veterans league over ANC support ANC slaps down Vavi over election slatesRamaphosa move makes sense if he is delegated wide powersMan of action Ramaphosa good for Zuma ANC must cement unity with actionRamaphosa’s rise could bring conflicts of interest‘Boost for business’ in Ramaphosa comeback ANC members must learn economics — ManuelJZ needs rivals closeMotlanthe must retain his position: delegatesParty's pinnacle of power Blueprints for 'death plot'Unionist-turned-tycoon is now SA's second most powerful manOut in the cold
 
 21 December 2012
 
Business Day
 
Page 1
 
Carol Paton and Mariam Isa
 
How Zuma persuaded ANC to drop the ‘N’ word
THE African National Congress (ANC) has ditched the concept of "strategicnationalisation" in favour of "strategic state ownership" after an 11th-hour interventionby President Jacob Zuma.He told the drafters of the party’s economic policy resolution at its conference inMangaung to remove the word "nationalisation" — a bold effort to restore policycertainty for investors and turn around South Africa’s flagging credit ratings. An attempt by the ANC Youth League to have the word reinstated when theresolution was presented to conference delegates on Thursday, failed."The state will increase state ownership in strategic sectors where deemedappropriate, on the balance of evidence ," the resolution read.The state would further increase its participation in the mining sector through equity,using the state-owned mining company as its vehicle.The resolution implied that there will be higher taxes for the mining industry, but didnot specify what form these might take. It said the state should "capture an equitableshare of mineral resource rents and deploy them in the interests of long-termeconomic growth, development and transformation".Enoch Godongwana, chairman of the ANC’s economic transformation committee,told a media briefing this could take the form a resource rent tax, a "windfall tax" onsuper profits or another, unspecified, measure. "There will be a tax, what form it willtake has not been decided."The resolution further raised the prospect of export taxes on designated "strategicminerals" deemed important for industrialisation or as key inputs into downstreamproducts. Among those in line for designation are iron ore, coal, base metals andgas.The party said it wanted to assure investors that "nationalisation was off the table"."The national conference has refused to be drawn into the (use of) the wordnationalisation," said Public Enterprises Minister Malusi Gigaba. "This means that theissue of nationalisation, that we have discussed over the past few months, is off thetable."We are providing final clarity. There shouldn’t be any expectation from here that wewill come out and say we are going to nationalise."
 
Mr Zuma called the drafters of the resolution — who included Thaba Mufamadi,chairman of Parliament’s standing committee on finance, Mr Godongwana and Mr Gigaba — to an early morning meeting on Thursday. Participants close to theprocess said the president told them they should take out "that word".Provincial chairpersons and secretaries were hurriedly briefed before thepresentation to the plenary on Thursday and asked to support the resolution.But global rating agencies are likely to continue sitting on the fence for a while interms of their assessment of South Africa.Standard & Poor’s (S&P) MD for Southern Africa Konrad Reuss said on Thursdaythe agency would wait to see what follow-through action the government took beforerevisiting its sovereign rating of South Africa, which it downgraded in October. "Fromour perspective the jury is out — we have to see what it is that is going to beimplemented as far as policy action is concerned ." Anything that would support growth in the economy, deal with social and labour market issues, and support fiscal consolidation, would be constructive for South Africa’s rating, Mr Reuss said.S&P has put a negative outlook on its BBB credit rating for South Africa, citing therecent wave of strikes, which it said might increase "uncertainties" related to thecountry’s economic policy framework.The Black Business Council (BBC) said it was "relieved" that the ANC had "once andfor all buried the threat" of the wholesale nationalisation of mines and banks. "TheBBC believes the ANC should better manage the perceptions around its economicpolicy choices and reaffirm the private sector as the appropriate agent for accelerated economic growth and employment creation."The council believed the role of the state should be to create conducive conditionsfor good and socially responsible business.MD of Pan African Investment and Research Iraj Abedian, said the ANC’s economicpolicy resolution was " more of the same"."The ANC has always engaged in rigorous, left-sounding debate, or more recently,populist oriented, but when all is said and done there are fairly pragmatic andrealistic policy choices ."The ANC further resolved that there would be no ban on labour brokers. The South African Chamber of Commerce and Industry welcomed the resolution." One must take it as an appreciation by the ANC that labour broking has a role toplay in job creation," CE Neren Rau said."On the issue of nationalisation, it’s good that this has been clarified. It will bepositively received by the international community."
20 December 2012
 

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