South Africa "radical" plan to hit mining, oil and gas

Subject Economic policy shifts in South Africa. Significance Mineral Resources Minister Ngoako Ramatlhodi yesterday confirmed that the government is considering proposals that would enable it to set below-market "developmental" prices for certain minerals to boost downstream manufacturing. Together with "radical" plans to accelerate greater ownership by black individuals, it signals the rise of Left-leaning figures in the cabinet. Impacts State plans for an 853 million dollar hydrocarbons port at Saldanha Bay will only bear fruit if global prices, and local policies, improve. More frequent power blackouts will undermine industrialisation goals, despite government incentives to assist manufacturing. Affirmative action policies using national demographics in provinces with big minority populations will likely spur continued court action. Increases in black home buying (49.2% of buys in 2014; 43.0% in 2005) is likely to continue, though more slowly given income stagnation.

Subject Djibouti's political and regional outlook. Significance On December 4, President Ismail Omar Guelleh announced that he would stand for a fourth term in April 2016 elections. Guelleh's announcement comes shortly after China confirmed that it was in talks to expand its presence in Djibouti, establishing its first overseas military base. The developments help to boost the government just as the UK High Court is scrutinising its role in alleged corruption. Impacts The impact on China's regional posture is modest, given its existing naval presence alongside a range of multilateral anti-piracy missions. Djibouti's UK High Court action against a former Guelleh ally has drawn in DP World, exacerbating tensions with Dubai over port management. Infrastructure links, including planned oil and gas pipelines, will deepen ties with Ethiopia, as well as interdependence.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paul Kariuki ◽  
Maria Lauda Goyayi ◽  
Lizzy Oluwatoyin Ofusori

Purpose This paper aims to examine the role of electronic governance (e-governance) in enabling asylum seekers’ access to public services in the city of Durban, South Africa. Because of COVID-19, the government scaled down its operations, limiting access to public services, including among migrants. Design/methodology/approach Because of COVID-19-related restrictions, a systematic review was conducted of the relevant academic literature as well as the information portals of relevant government departments, municipalities and research reports on migration and refugees in South Africa. A total of 320 peer-reviewed research articles were identified. These were filtered and 68 relevant articles were selected. Findings The study found that asylum seekers have limited access to public services via information communication technology-enabled mechanisms. Whilst the city government has embraced e-governance, it is still in its nascent stages. Research limitations/implications This study was limited to a desktop one because of COVID-19 restrictions and it focused exclusively on asylum seekers. Therefore, its findings can only be generalised to this category of people. Practical implications Future studies on this subject should gather data from all categories of migrants to gain in-depth perspectives. Social implications All spheres of governance in South Africa should recognise asylum seekers as a constituency that deserves access to public services. E-governance can facilitate easier access to these services, and policies need to be aligned with this reality. Originality/value This study examined the efficacy of e-governance in enabling access to government services by asylum seekers during COVID-19. To the best of the authors’ knowledge, no other study on this subject was conducted during this period.


Significance As in 2020 and 2021, this projected growth will be driven by the ongoing expansion of the oil and gas sector, and related investment and state revenues. These rising revenues will support the government’s ambitious national development plans, which include both increased social and infrastructure spending. Impacts The government will prioritise enhancing the oil and gas investment framework. Investment into joint oil and gas infrastructure with Suriname will benefit the growing oil industry in both countries. The expansionary fiscal policy may lead to a rise in inflation, leading to further calls for wage increases. In the medium term, strong growth in the oil and gas sector could lead to increased climate change activism in the country.


2020 ◽  
Vol 18 (4) ◽  
pp. 417-435
Author(s):  
Christopher Amoah ◽  
Kahilu Kajimo-Shakantu ◽  
Tanya van Schalkwyk

Purpose The concept of government reconstruction development programme (RDP) social housing in South Africa was rolled out in 1994 after the African National Congress Government came to power when the apartheid rule was abolished. The main aim of the government was to enhance the lifestyles of the poor in society through the provision of houses that they could not afford in the open market. However, many concerns have been reported about the social housing project in terms of poor project implementation and the delivery of deliverables that do not befit the need of the end-users. This study aims to assess the flaws in the application of project management (PM) principles in the construction of these social houses. Design/methodology/approach A quantitative approach was adopted for the study by making use of closed- and open-ended questionnaires to collect data from 1,893 social housing inhabitants in Bloemfontein, Free State. Descriptive statistics and R programming language software were used to analyse the data collected. Findings The findings reveal that there was a profound failure in the application of PM principles in the construction of the social houses leading to the provision of deliverables that do not meet the needs of the beneficiaries. There are also poor project deliverables and lack of consultations that could have probably been prevented had proper PM systems been put in place by the government throughout the project lifecycle. This lack of proper PM philosophies has generated dissatisfaction among the beneficiaries leading to numerous complaints about the social housing programme. Research limitations/implications The survey was done in only RDP housing communities in Bloemfontein in the Free State Province of South Africa; however, the result may be applicable in other RDP housing programmes. Practical implications The empirical results indicate that the government has been providing houses with disregard to project objectives by not instituting an appropriate PM systems; hence, the main objective of providing befitting houses to the less privileged to enhance their living conditions has woefully failed, as the inhabitants do not see any improvement of their social standings after receiving the houses. This means the government might have wasted resources as a result of ineffective PM throughout the project implementation. Originality/value This study has identified PM flaws in the construction of the RDP houses, which have led to poor project deliverables. This study thus gives recommendations with regard to proper PM strategies for the implementation of the same or similar project in the future to achieve project objectives.


Subject Proposed reforms in the oil and gas sector. Significance In the face of strong resource nationalism, President Joko 'Jokowi' Widodo's government faces strong pressure to improve the balance between public control and private participation in the oil and gas sector. To that end, the government proposes to amend the 2001 oil and gas law. Its draft amendment proposes, most notably, that state enterprises should control all production operations, while private investors provide technology and capital. The government is also considering revisions to the upstream regime, which is currently based on production-sharing contracts (PSCs). These changes require parliamentary approval. Impacts Private firms, especially foreign ones, are likely to delay fresh investment in energy assets, given the oil and gas market glut. Indonesia's vast natural resource endowment will attract private interest, but regulatory uncertainty will be an abiding problem. Transparency in the extractive sector will continue to rise at the national level, but local level reforms will be slow.


Significance Another field, Chouech Essaida, has been shut since February 28 because of labour unrest. Demonstrations extend beyond the oil and gas sector. Months of protests across Tunisia are beginning to exact a toll on the coalition government as demonstrators return to the streets of the capital to challenge the latest effort to pass a controversial ‘economic reconciliation’ bill that would in effect give amnesty to businessmen who engaged in corrupt practices under the former regime. Impacts The unity of the coalition government will come under further pressure as ministers struggle to respond to demonstrations. Political parties risk becoming more isolated from the electorate without major internal reforms. The government will be tempted to return to more authoritarian techniques of rule as protests deepen.


Subject Nigerian banking sector. Significance Some of Nigeria’s largest banks made significant profits in 2017 despite the country’s recession, benefitting mainly from high-yielding Nigerian Treasury Bills. This is unlikely to be repeated this year, with yields falling as the government replaces expensive domestic debt with cheaper Eurobonds, and banks attempt to shore up their balance sheets. Higher oil prices will help this process, yet many smaller banks are struggling to replicate their larger rivals' success. Impacts A restructuring of telecommunications company 9Mobile’s loan would benefit banks' non-performing loan numbers. Any uptick in Niger Delta insecurity could negatively impact banks, as most have significant loans with the upstream oil and gas sector. The CBN may issue more loans via commercial banks to small businesses and farmers in the run-up to next year's national elections.


Subject African oil and gas exploration. Significance Stakeholders in the African oil industry met in Cape Town in early November, for the annual Africa Oil Week conference, amid speculation of new prospects in South Africa and Namibia. While several countries in West and Central Africa are offering acreage in licensing rounds, oil and gas companies are focused on upcoming wells in Southern Africa, which will dictate decisions on companies’ future exploration focus. Impacts Exploration success for Southern Africa’s most watched wells could bring an investment boost to new areas, such as South Africa. Angola and Nigeria will try pushing reforms and new licensing to revive a largely moribund exploration sector to renew reserves and growth. IOCs will need more reassurance before committing to new Nigerian investment after Buhari's failure in 2018 to sign a key industry bill.


2017 ◽  
Vol 8 (4) ◽  
pp. 462-473 ◽  
Author(s):  
Temitope Lydia A. Leshoro

Purpose The commonly adopted view of the relationship between government spending and economic growth follows the Keynesian approach, in which government spending is considered to determine economic growth. However, there is another theory, which suggests that economic growth in fact determines government spending. This is Wagner’s hypothesis. The purpose of this paper is to investigate which of the two approaches applies to South Africa, and further observes the level of non-linearity between the two variables. Design/methodology/approach This study was carried out using quarterly time series data from 1980Q1 to 2015Q1. Granger causality technique was used to observe the direction of causality between the two variables, while regression error specification test (RESET) was employed to determine whether the variables exhibit linear or non-linear behaviour. This was followed by observing the threshold band, using two techniques, namely, sample splitting threshold regression and quadratic generalised method of moments. Findings The causality result shows that South Africa follows Wagner’s law, whereby government spending is determined by economic growth, supporting Odhiambo (2015). The RESET result shows that the variables depict a non-linear relationship, thus the government spending economic growth model is non-linear. It was found that if positive economic development is to be achieved, economic growth should preferably be kept within the −1.69 and 3.0 per cent band, and specifically above 1 per cent band. Originality/value The unique contribution of this study is that no previous study has attempted the non-linear government spending-economic growth nexus whether within the Keynesian or Wagner law for South Africa.


Obiter ◽  
2017 ◽  
Vol 38 (2) ◽  
Author(s):  
Heleen van Niekerk

The social rules of standing and waiting in a queue do not require explanation. When queuing at the post office, supermarket, or the theatre entrance, it is common knowledge that someone trying to enter the queue at any place but the rear end will cause, to say the least, an unfriendly reaction. Leaving the queue without good reason and without discussing this with the person behind one, may very well lead to losing one’s place in the queue. There are nuances, of course, informed by other important social norms or common decency, such as allowing leniency to queuing decorum for the infirm or disabled; or to be reasonable in allowing someone back into the queue when he/she had to leave for a good reason and with the promise of return, for example, to fetch an ID document accidentally left in the car. Adherence to these rules and norms is an expression of the deeply democratic principle of “ordinality” – something going more commonly by the statement “first-come; first-served”. Very simply, with limited exceptions, the person that is first in the queue must be served first.The “first-come; first-served” principle is not only a social rule of queuing. The notion that priority must be given according to the time of arrival is a manifestation of distributive and procedural justice, and is also “one of the most primitive canons of property jurisprudence”. In South African mining law, the “first-come; first-served” principle is associated with the notion that overlapping applications for a licence to conduct extractive-related activities, must be processed in order of receipt. In the mining context, the application of rules related to queuing and the “first-come; first-served” principle is, of course, more complex in a social setting. The reason for this stems from the different, and at times conflicting, interests that must be taken into account. While a simple application of the “first-come; first-served” principle may benefit individual queuers, the government, for example, may be interested in granting rights to entities that have the best financial and technical skills to exploit a mineral deposit optimally. The government may also be interested in granting rights to entities that are best able to advance the objectives of transformation and equitable access to mineral resources.The decision in Aquila Steel (South Africa) Limited v Minister of Mineral Resources ((72248/15) [2016] ZAGPPHC 1071) presents a striking illustration of the importance of rules related to queuing in the South African mining industry. This illustration is even more vivid, taking into account legislative changes to the Mineral and Petroleum Resources Development Act 28 of 2002 that were pending at the time of the judgment and that has subsequently taken effect. The judgment and legislative developments, furthermore, illustrate the interrelationship between the “first-come; first-served” principle and the notion of “exclusivity” as understood in the mining context.This case note discusses all aspects of the Aquila Steel judgment, but hones in on its implications for the queuing system in the South African mining context and, in particular, the relationship between the “first-come; first-served” principle and the notion of exclusivity.


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