Agri Portal South Africa

According to a recent IOL news piece, “Zambia’s Banda says copper windfall tax is ‘bad business’", Zambian President Rupiah Banda has “ruled out windfall taxes for mining companies enjoying record copper prices, saying that changing the rules for foreign investors was plain bad business”. South African authorities can take a leaf out of Banda’s book by rejecting out-of-hand the ludicrous proposals to nationalise SA mines, as opposed to drawing out the process by dispatching a task team to determine nationalisation’s viability.

The uncertainty created by drawing out this process is no doubt deterring investment as mining companies sit in limbo waiting to discover their future. Zambia is well aware of the consequences of interfering in the market by changing the rules of the game. After gaining independence in the 1960s the Zambian government thought that by controlling the copper companies they would be able to achieve their developmental goals with the revenues derived from mining operations. However, when the world price of copper dropped unexpectedly in the mid 1970s, it put the fiscus under immense pressure and Zambia was plunged into debt as the government attempted to sustain the now unprofitable mining operations.

The government was forced to make some painful decisions, the cost of which ultimately came at the expense of development in other sectors of the economy. As a consequence of the disastrous mine nationalisation policy, Zambia went from one of sub-Saharan Africa’s most prosperous nations to one of its poorest within a matter of decades. After privatising operations in 2000, Zambian copper output has made steady progress but has only recently recovered to output levels last seen when the sector was nationalised in the late 1960s.

Ghana nationalised its mining sector in the early 1960s with the objective of “maximising government revenue... and employment generation”. Instead, the industry experienced a dramatic decline following nationalisation, with gold production falling from 915 317 ounces in 1960 to 282 299 ounces by 1984. The reasons given by the World Bank for the decline were a “lack of foreign exchange to maintain and rehabilitate the mines; lack of capital investment for mining skills; infrastructure deterioration, particularly shortages of rail capacity for manganese and bauxite; mining company financial problems due to the greatly over-valued currency and spiralling inflation; a declining grade of gold ore; the exhaustion of high grade manganese ore; the depletion of the more lucrative diamond mines in many areas; high absenteeism and low worker discipline; and pilfering, illegal panning and smuggling of gold and diamonds”.

In 1983, Ghana introduced its “Economic Recovery Plan” (ERP), which implemented radical mine privatisation. At the time of the launch of ERP, gold production had fallen to 285 291 ounces. A dramatic improvement followed in the gold mining sector and rapid growth in annual gold production. After a mere 12 years, the privatised mines increased output from about 300 000 tons to approximately 2.5 million tons, an increase of over 700 percent. In contrast, when mining operations were held in the hands of government, output declined steadily over a period of 29 years, from about 750 000 tons to about 280 000 tons.Ghana’s gold production increased to 2.9 million ounces in 2009. Since privatisation, the annual gold production in Ghana has increased more than 10 times over the last 27 years, and revenue reached US$2.8 billion. As a country, Ghana has benefited from the improvement in its mining situation. According to the United States Geological Survey, “The contribution of Ghana’s mining sector to the country’s gross domestic product increased from 1.3 percent in 1991 to an average of about five percent in recent years. Export earnings from minerals averaged 35 percent, and the sector was one of the largest contributors to Government revenues through the payment of mineral royalties, employee income taxes, and corporate taxes”. Growth in the mining sector also contributed substantially to a rise in per capita GDP (measured on a ppp basis in 2009 dollars), which increased from US$449 in 1983 to US$1 571 in 2009.

Attempts at nationalisation reveal that whenever government involves itself with business, it unleashes a conflicting mix of social and efficiency objectives. To justify nationalisation, governments invariably make a raft of promises to voters but when faced with difficult but necessary decisions, often driven by changes internationally, they default on those promises. These promises do not come without their consequences and invariably inflict substantial damage on the domestic economy.

Nationalisation of private businesses is more perplexing because, in all cases, the government receives significant revenues from private companies without carrying any of the risks involved in operating a business.
(Jasson Urbach)

THE National Union of Metalworkers of SA (Numsa) called for a raft of radical policy shifts yesterday to transform the local economy, proposing nationalising the banks, mines and the telecommunication sector, without compensation.

 

Critics say the union has stepped firmly into the vacant domain left by the African National Congress (ANC) Youth League, which re-ignited the debate on nationalisation and placed it firmly on the ANC’s agenda.

 

Numsa, the Congress of South African Trade Unions’ second-largest affiliate, is adamant that the present economic trajectory would not stem the growing tide of inequality, poverty and unemployment in SA.

 

"If nationalisation is not the way to go, we must accept that the Freedom Charter must be dumped," said Numsa general secretary Irvin Jim, releasing the union’s draft policy documents ahead of its conference next month.

 

In the draft document, Numsa argues that should the ANC "dump" the Freedom Charter — which it uses to justify nationalisation — it would risk losing Cosatu’s support during elections.

 

"Once the Freedom Charter and its basic tenets have been dumped, we … shall be left with no option but to ask a secondary question: ‘Why must Cosatu call on workers to continue to vote for the ANC if it has taken a decision not to implement the Freedom Charter’," the document reads.

 

Numsa also wants to ensure that the ANC leadership elected in December at the party’s national conference is "equal to the task of implementing the Freedom Charter".

 

The union further wants the state to take control of the Reserve Bank, a complete overhaul of the country’s monetary and financial policies, for an industrial strategy focusing on creating jobs and for the ANC to initiate a process of review of the constitution.

 

"We are convinced that the time has come to end the sunset clauses and to do a thorough review of the performance of the 1996 constitution with a view to exposing the extent to which it has helped SA undo its apartheid capitalist features in the economy and society," said Mr Jim, referring to the property clause.

 

Mr Jim rejected the ANC’s report on nationalisation — the study advised against "asset grabs" and buying stakes in mines — saying the team that produced the report had failed in its task.

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Have you ever had a meal that just made you feel instantly good? You know the type I mean — comfort food that isn't great for your long-term health, but it makes you feel good at the moment.

A 1999 article in the journal Public Health Nutrition explained that such foods prompt the body to release endorphins, which trigger positive feelings.

But that's just a temporary feel-good reaction. The real effect of food on mood happens over time.

Our internal organs need nutrients in order to function properly, and the brain is no exception. We need a steady flow of nutrients from our diets to maintain good health, and a good mood.

One nutrient that may affect our mood is folate. A 2009 study in the journal Nutrition Reviews found that as many as 38 percent of adults with depressive disorders were low or deficient in folate. Researchers wrote that the deficiency may impair the body's ability to produce neurotransmitters that act as important mood stabilizers.

Thiamine can also help improve your mood, according to the Public Health Nutrition study. Four double-blind studies showed that an increase in thiamine levels was associated with improved mood in participants. People who were deprived of thiamine showed signs of anorexia, muscle weakness, irritability and depression.

And magnesium is important to have in your diet, if you want to keep that rosy disposition, according to a 2006 article in the journal Medical Hypotheses. Patients recovered from major depression within 7 days of taking a magnesium supplement with each meal, that study reported. Though those results may not be typical, and people with major depression should seek the care of a doctor, the researchers concluded that inadequate levels of magnesium in the body can result in damage to the brain's neurons, which may cause symptoms of depression.

To combat deficiency-related symptoms of depression, eat a balanced whole foods diet filled with mood-boosting nutrients. Here are some examples:

• Folate: Lentils are among the most folate-dense foods, so try to incorporate them into your diet. Leafy greens, such as spinach, kale and collard greens, are also high in folate.
• Thiamine: Kidney beans are rich in thiamine as well as folate, making them a really great mood-boosting food. Sesame seeds, pistachios and macadamia nuts are also good sources of thiamine.
• Magnesium: Wheat bran, pumpkin seeds and cocoa powder are all rich in magnesium. Do you really need another reason to pour yourself that glass of hot cocoa?
(Woman'sHealth)

The following dietary strategies for maintaining health and preventing disease are strongly supported by scientific literature and include:

 • A diet rich in vegetables, especially green leafy vegetables – recommended

 • Whole grain sources of carbohydrates – recommended

 • A diet high in fibre – recommended

 • Sugar-sweetened beverages and foods with added sugar – not recommended

 • Highly processed, refined carbohydrates – not recommended

 • A diet with a high-glycaemic load – not recommended

 • Dietary fats which are rich in omega-3 fatty acids and mono-unsaturated fatty acids – recommended

 • Trans-fats or partially-hydrogenated vegetable fats – not recommended

 • Maintenance of a healthy weight – recommended

 • Regular physical activity, at least 30 minutes of moderate activity on most days – recommended

It is also clear that individuals respond differently to different weight loss interventions, and there will be individuals for whom a particular dietary strategy is more or less effective. In practice, this means that there is no “one size fits all” approach when it comes to finding the best nutritional strategy for any given individual. Instead, a holistic approach that takes into account a person’s history (dietary, medical, age, budget, lifestyle, physical activity, psychological factors, family history of disease, and genetics), will be helpful in determining the most effective strategy to promote long-term adherence and quality of life. It also recommended that individuals with chronic, non-communicable diseases (such as cardiovascular disease, diabetes, or hypertension), those struggling to manage their weight, or those with a history of weight or dietary concerns, should ideally consult with a registered dietician or an appropriate health professional, to decide on the most effective dietary strategy to promote health.
(Runnersworld)

Developed countries must deliver on their promises to Africa

As the G8 leaders meet in the United States this week, agriculture and food security must be at the forefront of the discussions, and ways to prevent price volatility, including halting grain-based biofuels production, establishing grain reserves for emergency use, eliminating food export bans and increasing the transparency of food and agricultural market information, should be addressed.

Most importantly, the G8 leaders should fulfill their commitments on global food security.

In 2009, G8 leaders made considerable financial commitments to global agriculture and food security, pledging to mobilize $22 billion over three years through a coordinated, comprehensive strategy focused on sustainable agriculture development. But as of May 2011, it was estimated that only 22 percent of these commitments had been disbursed.

In addition to the G8 leaders, the heads of states from Ethiopia, Ghana, Benin and Tanzania will take part in the summit discussions. The direct participation by these African leaders underscores the seriousness of the food security situation on the continent, where more than 220 million people are undernourished. Millions suffer from micronutrient deficiencies, a total of 100 million women and children are iron deficient, and 33 million children have Vitamin A deficiencies. The 2011 Global Hunger Index, a combined measure of the proportion of undernourishment, child malnutrition, and child mortality, shows that Sub-Saharan Africa is home to all the countries with "extremely alarming" scores and many of the countries with "alarming" scores.

In addition, it is projected that smallholder farmers, particularly those living in the highland areas and semi-arid savannahs in Sub-Saharan Africa, face increasing natural resource scarcity risks, including land degradation, which can cost as much as 10 percent of national GDP. Many parts of the region are extremely vulnerable to both man-made and natural shocks. Last year, more than 13 million people were affected by the drought in the Horn of Africa. This year more than 15 million people across seven countries in the Sahel region are already suffering from severe food insecurity or at risk.

It is crucial that developed countries take action to fight starvation in Africa. The cost of hunger is high, and the damage is irreversible.

For over three decades now, the International Food Policy Research Institute has been engaged in promoting the transformation of smallholder agriculture across Africa through evidence-based research and support to country-driven development initiatives. Priority areas include: building capacity for agricultural and food policy analysis and supporting country-led development strategies; improving nutrition along value chains to increase poor people's access to nutritious foods and increasing the availability, access, and intake of nutrient-rich, biofortified staple foods for the poor; resilience-enhancing schemes such as productive social safety nets, weather insurance index, and other risk management tools that help reduce vulnerability and enhance resilience to shocks and contribute to overall long-term growth and prosperity.

Technological innovations such as biotechnology, nanotechnology, and biofortification are crucial to increasing agricultural productivity, building resilience to weather-related shocks, enhancing the nutritional value of food crops, and ensuring food safety. Biotechnology has great potential to improve crop yield, nutrition and resilience to weather shocks, which will be even more frequent in the future due to climate change.

As the world's population increases, there is enormous pressure on the planet's ecosystems. The most reasonable solution to feeding the ever-growing population is sustainably producing more food on the existing land. Scaled-up investments in science and technology and support for improved country capacities are essential to accelerate progress and achieve development objectives.While the governments of developing countries have taken important steps to boost food security-related investments, support from the G8 countries remains critical.
(ChinaDaily.com)

South Africa, which receives a quarter of its crude from Iran, is holding almost daily discussions with the United States, EU Union and Iran about reducing its purchases and is “confident” a deal can be struck to avert US sanctions, a senior energy official said on Thursday.

 

Washington, which with the EU is putting pressure on Iran to end activities that they believe may be a front for nuclear weapons research, has threatened to penalise the banks of countries that do not significantly cut oil imports from Iran.

 

But Africa's biggest economy, which has suffered fuel shortages in the past because of strikes and refinery problems, may struggle to offset any reduction in imports from Iran to secure a waiver from these sanctions.

 

“Engagements continue, they are continuing probably on a daily basis with all these players and we are, I must say, confident we will find a solution, as the minister indicated, that will work for South Africa,” Tseliso Maqubela, a deputy director general at the Energy Department, told reporters.

 

Maqubela said there would be a significant economic impact as companies would be forced to secure fuel elsewhere. At least one refinery, Engen, majority-owned by Malaysia's state oil company Petronas, is heavily reliant on Iranian fuel.

 

Speaking at the same briefing, Energy Minister Dipuo Peters said South Africa was not certain to seek a waiver of sanctions.

 

“At present we can't say that the waiver is the route that we will ultimately be chasing, but we are looking at a range of options,” she said without elaborating.

 

Some countries, such as South Korea, the world's fifth-largest oil importer, have warned they will find it difficult to replace Iranian supplies, and for South Africa too, there seems no easy option.

 

“Time is against South Africa, which is essentially being forced into a situation that might not be in its best macro-economic interests,” said Johan Muller, senior energy analyst at Frost and Sullivan.

 

“There are few alternatives available at this stage, the obvious one being to increase imports of fuel from Angola, Nigeria and Saudi Arabia, but this would require significant re-engineering at certain refineries to accept new supplies.

 

“In the short term this would likely mean higher fuel prices for consumers and the industry, although this will stabilise in the longer run as alternate sources are found.

 

“At this point, pursuing a waiver might be the better option, but given the variables and geopolitical negotiations, it is difficult to predict exactly how this will play out.”

 

Peters said the government would decide its response to proposed sanctions by the end of May.

(BusinessReport)

Johannesburg - There was "no need for alarm" regarding former crime intelligence boss Lieutenant General Richard Mdluli, President Jacob Zuma said in Bloemfontein on Thursday.

 

There was "concern" over recent negative publicity related to crime intelligence, despite the "sterling" work police continued to perform, he said at a business briefing.

 

Zuma did not mention Mdluli by name, but referred to "the matter affecting the police crime intelligence unit".

 

"Our country has enough instruments to ensure that there is no abuse of power or resources to further any objectives, especially by our intelligence and security services."

 

Inspector general of intelligence

 

Police Minister Nathi Mthethwa had established a task team to look into the matter, and a report was expected within a month.

 

"In addition, the inspector general of intelligence has the legal mandate of oversight with regard to the financial management of crime intelligence."

 

The inspector general, Faith Radebe, was also empowered to look into any other matters that could be brought to light by the investigation, Zuma said.

 

Last week, the presidency said reports that Zuma interfered in Mdluli's investigation, and that he attended a party to celebrate Mdluli's acquittal, were "complete fabrications".

 

"We wish to urge the media to be cautious and stick to the facts when reporting such matters," it said.

 

Last Wednesday, Mthethwa announced Mdluli would be move from head of crime intelligence to another position within the police.

 

Freedom Under Law

 

Non-profit organisation Freedom Under Law applied for an urgent interdict on Tuesday preventing Mdluli from serving in the police. It also wanted to interdict Mthethwa from moving Mdluli to a new position before a review of his reinstatement.

 

Last year, Mdluli faced fraud and corruption charges relating to the alleged misuse of a crime intelligence fund, the purchase of luxury vehicles and the hiring of family members. He also faced a murder charge following the murder of a former lover's boyfriend, Oupa Ramogibe.

 

Both sets of charges were withdrawn and Mdluli was reinstated as head of crime intelligence. The murder investigation became an inquest.

(News24)

Government remains committed to e-tolling and will appeal the High Court in Pretoria's interim order halting the implementation of the system in Gauteng, spokesman Jimmy Manyi said on Thursday.

 

"Cabinet has taken a decision to appeal the interim order to stop the e-tolling," Manyi told a fortnightly post-Cabinet briefing.

 

He said the government only received a written copy of Judge Bill Prinsloo's April 28 judgment late on Wednesday.

 

"As we are sitting here, our lawyers are studying the judgment and will advise the executive in due course."

 

He added: "Cabinet reiterated its commitment to the user pays principle and its decision on e-tolling as an efficient mechanism of collection."

 

Manyi said Cabinet also made plain it would not allow the embattled SA National Roads Agency Ltd to default on the debt it incurred to complete the Gauteng Freeway Improvement Project (GFIP).

 

"As a country we need to demonstrate unequivocal commitment to meet all our contractual obligations, including repaying the debt incurred in the construction of GFIP. Defaulting on our debt is simply not an option." - Sapa

Land Reform and Rural Development Minister Gugile Nkwinti is considering asking the cabinet to consider extending the 1913 land claim cut-off date in certain circumstances.

Land belonging to the descendants of Khoi and San in Eastern Cape and Western Cape was forcibly taken from them long before 1913, he said.

Nkwinti, in his department's budget speech in parliament, said the call by descendants of the San and Khoi for the consideration of claims for the return of land taken before the 1913 Land Act came into effect was "fair and just".

"Their land in what is now Western Cape and Eastern Cape was forcefully taken from them way before the 1913 act . and whatever land is returned to them is non-productive, urban, land.

"We are persuaded to consider asking the cabinet to, while retaining the current cut-off date, consider exceptions to the law."

The department had consulted more than 3000 people between August 2010 and March 2011 after the cabinet established an inter-ministerial committee to study a proposal that exceptions to the cut-off date be allowed.

A preliminary report had been submitted to the cabinet, Nkwinti said.

"Our people complain that the period [in which to lodge] land claims was too short, with the result that research and verification were very poor; and that the 1913 cut-off date is too close," he said.

People wanted the government to consider reopening the lodging period and extending the cut-off date.

"This call may appear to be radical but if one considers the social consequences . it is a fair and just call," Nkwinti said.

Descendants of the Khoi and San had asked: "What is in this for us, the original people of this land?" he said.

The ANC had been "magnanimous and generous in victory, almost to a fault" with its land redistribution policy.

The ANC was committed to redistributing 30% of agricultural land by 2014, he said.
(TimesLive)

New Holland Agriculture this week presented one of its two newly developed hydrogen tractors to the farming community visiting the Nampo agricultural show, outside Bothaville, in the Free State.

The NH2 is the first hydrogen-powered tractor ready to go into service on a farm.

It uses fuel cell technology to generate power to run the tractor and to operate the implements attached to it.

It delivers the performance expected of a conventional diesel tractor of the same size, but with zero harmful emissions – only heat and water vapour, said New Holland South Africa area manager Dirk Lotter.

“Using hydrogen, it has no gearbox or transmission.”

The first NH2 working unit is expected to begin operating this summer in Italy, at La Bellotta, the first so-called energy independent farm.

In this new approach, the farm generates its own energy from renewable sources.

Wind systems, solar panels or biomass and biogas processing plants are used to generate hydrogen, which is then used to run the farm and its equipment.

Lotter said New Holland Agriculture has indicated that hydrogen tractors can become commercially available in roughly 2020.

New Holland Agriculture started out as a US company, but now belongs to Italy’s Fiat group.

New Holland South Africa is part of Invicta Holdings and distributes and supports New Holland Agriculture’s products in South Africa, Botswana and Namibia through its network of 102 dealer outlets and two branches.
(Irma Venter-Engineering News)