News in South Africa 25th April:
1. SA still an attractive for investors:
South Africa, the continent’s most industrialised economy, continues to be an attractive emerging market investment destination for global business leaders, thanks to the continuing presence of “stable governance and a robust legal framework”.
This is according to findings contained in Kearney’s 2023 Foreign Direct Investment (FDI) Confidence Index, an annual survey of global business executives, released on Monday.
The index, which ranks the markets most likely to attract investment, found that within sub-Saharan African region, South Africa remains a strong investment destination.
It was one of four African markets out of 25 to be ranked on the FDI Confidence index focusing on the investment prospects for emerging markets, earning 17th spot, alongside Egypt (14), Morocco (16) and Ghana (25).
China earned the most attractive spot on the emerging market rankings, followed by India, the United Arab Emirates, Qatar, Thailand and Saudi Arabia, all featuring as the top six emerging markets attracting the attention of global business leaders.
“South Africa stands out as an investment hub in the emerging market landscape. With its sophisticated infrastructure, skilled workforce, as well as aggressive expansion of South African businesses into growing African markets, the country offers an enticing opportunity for investors,” the report said.
“Despite facing domestic challenges, South Africa continues to foster an environment conducive to investment, as the most advanced and broad-based economy in sub-Saharan Africa with relatively stable institutions and a rule of law.”
2. Diesel price set for cut next week:
The wholesale diesel price looks set for a cut on Wednesday next week, but petrol may become pricier.
Based on the latest oil and rand prices, the latest data from the Central Energy Fund shows that diesel prices could be lowered by 26c to 51c a litre, depending on the grade. Unleaded 95 petrol, however, may be hiked by around 60c.
Fuel prices are determined by the price of oil and the rand-dollar exchange rate.
The rand has been volatile over the past month: it slumped to R18.53/$ two weeks ago, but the local currency is now back at around R18.10, which is slightly stronger than a month ago.
The oil price has climbed steadily from $78 a barrel a month ago to around $81 currently. The Organisation of the Petroleum Exporting Countries recently announced plans for additional supply cuts, while a rebound in the Chinese economy also supported the oil price.
At the start of April, the diesel price was cut by more than 73c a litre on Wednesday, while 95 petrol increased by 2c.
The price of a litre of 95 unleaded petrol is now R22.97 in Gauteng, compared to R21.60 a year before – and a record price of R26.74 in July last year.
The wholesale diesel price is currently around R20.89 a litre. As recently as in November last year, diesel cost close to R25.50.
3. New rules for claims of up to R20,000:
South Africa’s new rules for small claims have come into effect, adjusting key aspects of the country’s small claims courts.
Small claims courts offer a quicker and easier way of resolving certain civil disputes that involve amounts of up to R20,000.
The new rules outline the various procedures that must be followed when making small claims, including all the necessary forms that must be filled in and submitted – by both applicants and defendants – and the fees involved.
The draft rules were first gazetted in October 2022. Deputy Minister of Justice and Constitutional Development, John Jeffery, announced that the changes came into effect from 1 April 2023.
Jeffery said that small claims courts are the “frontline courts” at the very coalface of people’s need for an accessible and user-friendly justice system.
“An accessible justice system must be inexpensive, easy to understand and deliver results speedily. This is exactly what our small claims courts do. They are a speedy, simple and cost-effective way to resolve disputes,” he said.
Changes
Because the small claims court often deals with laymen in the legal processes, more leeway is given in the rules. This includes not having errors and misspellings with dates and figures invalidate claims, and not having default judgements against parties where certain rules aren’t complied with.
The fees charged in the execution of court duties are also lower than one would expect from legal proceedings and billed to the mandator of the claim.
- Issuing a summons comes with a charge of between R45.00 and R70.00, depending on the distance from the office;
- An attempted service of a summons between R37.50 and R63.00;
- Execution of a warrant between R63.00 and R87.50;
- An attempted execution between R52.00 and R79.50;
- In addition to these fees, the sheriff of the court is allowed a travelling allowance of R6.00 per kilometre travelled for the shortest possible route in executing their duties;
- Ejectment of a defendant is R22.50 for the first 30 minutes, thereafter R67.50 per hour;
- Other fees include charges for telephone calls, writing letters or emails related to the matter for R11.00; sending faxes and emails for R6.50; and making copies of official documentation for R5.00.
If parties want to review the proceedings of the small claims court, they would have to apply to the High Court. This can only be done on certain grounds, the rules state. These include:
- The small claims court does not have jurisdiction over the matter
- There is an interest in the cause, bias or malice by the commissioner
- There is a gross irregularity in proceedings.
4. Eskom COO gives brutally honest view on problems:
Outgoing chief operating officer, Jan Oberholzer, supports the idea of extending the life of some of the utility’s ageing coal-fired power plants but believes it’s not the quick fix like Ramokgopa makes it out to be.
Oberholzer says it would be a mistake to think that the entire coal-fired fleet could be fixed quickly and added that near-term targets to raise the utility’s overall energy availability factor (EAF).
He added 2023 would continue to be a difficult year in terms of power cuts, and a substantial easing of load-shedding intensity will only be evident by early next year.
5. Top public officials are in line for a 3.8% increase:
It has been recommended that South Africa’s top 20,000 public servants should get a salary increase of 3.8%.
Some judges demanded 7%, and others pointed to a 20.6% decrease in their effective pay in recent years, while finance minister Enoch Godongwana noted that the fiscus can only afford a 1.5% increase.
However, it is up to President Ramaphosa to decide if the ministers, MPs, judges and traditional leaders in that group actually get such an increase.
Whichever way he goes, the commission’s report makes clear, Ramaphosa can expect trouble.
During its consultations, the commission reported, finance minister Enoch Godongwana “pleaded with the commission to consider the prevailing adverse economic conditions and the extent to which the general population is affected by the low economic state in which the country finds itself.”
Some ministers, lawmakers and some judges are overpaid, Godongwana said, tools-of-trade benefits mean public office bearers get effective increases above just their salary increases, there isn’t money in the budget, and people may not be impressed to see them get a big increase.
Godongwana recommended 1.5%, plus a once-off cash payment of the kind given to bureaucrats and technocrats – and which do not increase the baseline salary when it comes to increases in future years.
Some judges, on the other hand, wanted much more than Godongwana thought they were due, the commission’s report shows.
All information sourced from articles posted by: Moneyweb, Fin24, BusinessTech, DailyInvestor, and News24.
