South Africans, hard-pressed by the effects of recession and staring at over a R1-trillion debt bill, were rethinking their exposure to credit. - According to the country’s National Credit Regulator (NCR) there are 17-million people, or almost a third of the population, in South Africa who are exposed to some kind of debt. CEO of the NCR Gabriel Davel estimates that of these there are about “a million to 1.2-million people that have got some form of debt stress”. Currently the NCR has 140 000 applications for debt counseling and this is expected to increase to 150 000 by the end of the year. The biggest culprit besides bonds is store cards, credit cards and overdraft…

South Africa's ruling party African National Congress has said that a recent call to nationalize the country's Reserve Bank was simply to test the water and that no plans have been put in place to do so. - ANC spokesman Jackson Mthembu said that the “status quo” would not change. Currently the South African Reserve Bank is owned by private shareholders in an effort to keep the bank independent. Over the last week, debate has raged between the ANC left-leaning alliance partners and business as to whether the State should buy out the Reserve Bank. The South African Communist Party (SACP) wants more power to manipulate the mandate of the reserve bank away from pric…

- Two South African banks have publicly disclosed their interest to purchase banks rescued by Nigeria’s central bank last year. Standard Bank South Africa and FirstRand, along with Nigeria’s First Bank, Skye Bank and Fidelity Bank, have shown interest in buying rescued banks after Nigeria’s regulator said the banks would need to find private investors to recapitalise them or, preferably, purchase them outright. Nigeria’s central bank injected about 600-billion naira (€2.8-billion) into nine troubled banks since August after it found that they were too weakly capitalised to sustain operations because of a pile of bad debt. The regulator has indicated that bad l…

- South Africa’s banking profits were again down in quarter four of 2009 on the back of weak credit demand and lower transaction volumes, a survey has revealed. Ernst & Young’s lead banking and capital markets director Emilio Pera confirmed that credit demand, which has been declining since the start of 2008, has hurt banks. “Credit demand actually declined year-on-year for the first time in September, and this is undoubtedly affecting banks’ revenue growth,” said Pera Pera believes that even though Africa’s biggest economy is technically out of recession that banks won’t feel the benefits just yet: “A lower interest rate envir…

South Africa's banks would not recover as quickly from the global economic crisis as US banks, with analysts expecting bad debt charges would weigh down profits. - Earnings for the country’s four biggest banks would be down a combined 37 percent for 2009, said head of Sanlam Investment Management Global Kokkie Kooyman. Kooyman said that Absa, Standard Bank, FirstRand and Nedbank would suffer under the burden of heavy bad debt charges. In contrast to US banking houses, which have seen earnings rise over the last quarter, earnings in Africa’s biggest economy were expected to fall 33 percent over the last two quarters of 2009. “US banks have come to the end of t…

South Africa will follow the UK's banking system in investigating whether cheques should be phased out. The UK's Payment Council, citing a dramatic drop in usage, has announced that cheques would stop circulating in 2018, but that this decision would be reviewed in 2016. - South Africa, like the UK, has experienced a dramatic drop in cheque usage as banking clients increasingly make use of electronic services. Nedbank, one of South Africa’s largest banks, has seen cheque volumes decline annually by 24 percent, according to the bank’s head of retail payment, Carmen Whateley. The Payments Association of South Africa (Pasa) is currently investigating whether Africa&…

- One of South Africa’s major banks says that during 2009 mobile banking outperformed PC-based banking for the first time. FNB, one of South Africa’s “big four” banks, recorded 56-million transactions worth R7,2-billion (€708-million) during the 12-month period. “Cellphone Banking has truly come of age in South Africa and is now more widely used than PC-based banking,” said CEO of FNB mCommerce, Len Pienaar. Cellphone banking, which was launched in South Africa in 2001, was initially not very successful. However, the launch of an account notification service called InContact by FNB saw interest grow in using mobile phones for financial services.…

- South Africa’s Banking Ombudsman’s office has said that the country’s banks were charging more than they should be by using complicated fee structures to make it difficult to compare products between banks. “Banks charge you for just about every single interaction,” said Banking Ombudsman’s complaints investigations manager Johan Simpson. The advocate added that the ombudsman receives complaints daily from consumers regarding high banking fees. “I do not think we will ever stop getting complaints about high banking charges,” said Simpson who was not convinced that banks had done enough to improve the situation since the Competitio…

- South Africa’s International Marketing Council has used the World Cup as an opportunity to showcase the country abroad, spending over R59-million (€7.7-million) on advertising during the past financial year The IMC, which is tasked with promoting a favourable brand of South Africa, spent almost half the money on international campaigns. According to the Presidency, the IMC spent R28.6-million on international advertising campaigns and R30.6-million on local media. International advertising was focussed on the United States, Europe, India, China and Hong Kong. The Government Communication and Information System (GCIS) said that the IMC has made use of television, print, onl…

- South Africa recently offered Kenya an opportunity to gain a greater slice of the media attention during next year’s World Cup by putting an offer to co-sponsor on the table. The offer, which would cost east Africa’s largest economy €35-million, was presented by South Africa’s Local Organising Committee. A committee concerned with the marketing of Kenya’s stadia during 2010 is currently studying the proposal. Mike Macharia, a member of the committee designed to promote Kenya as a training venue for countries before they move on to South Africa, believes the offer could yield significant benefits. “This is a big opportunity that could see the country…

- A lodge located just north of South African 2010 host city Polokwane has been included in a European government programme to promote tourism. Mashovhela Lodge in the Soutpansberg Mountains has been included in the Netherlands’ Export Coaching Programme. The government programme, run through the CBI, aims to help developing countries build sustainable export contacts to the European market. Mashovhela has already positioned itself, given its proximity to the Peter Mokaba Stadium in Polokwane and major nearby attractions like the Kruger National Park and the Tuli Game Reserve, to attract football fans during 2010. The inclusion in the CBI programme would lead to further access…

- Adidas, the world’s second largest sportswear manufacturer behind Nike, was hoping the 2010 FIFA World Cup in South Africa would be a major boost for sales. The company, which like Nike, recorded a slump in sales and profits in 2009, believes its sponsorship of the World Cup would help lift numbers as it did in 2006. In Germany, the World Cup helped Adidas, the official supplier of balls, sell 15-million balls. The company says that the recently released ‘2010 ball’ has, in presales, already exceeded available volume. According to Adidas' director of soccer Antonio Zeas, the company has struggled during 2009, but that 2010 would offer significant opportunity.…

Companies hoping to use FIFA 2010 World Cup corporate hospitality tickets as a marketing opportunity may not have the money to do so as a result of the global financial crisis. - According to FIFA and MATCH - FIFA’s official hospitality company - fewer corporate tickets have been sold than expected, which could result in thousands of tickets being released back into general allocation. Horst Schmidt, one of driving forces behind the success of Germany’s 2006 World Cup, and currently consulting for 2010, says that South Africa is not performing as well as Germany in terms of corporate hospitality package offerings. "We have to consider the development in the financial…

South Africa's President Jacob Zuma is climbing the popularity polls according to a marketing and social insights firm. - TNS Research Surveys, one of the most well-known research companies in South Africa, said that Zuma’s 100-day approval rating was currently sitting at 58% for November 2009. This is up from an average of 38% for 2008. Zuma’s rating was still below the high reached by former president Thabo Mbeki of 66% in both 2004 and 2005. However, Mbeki’s end of term rating of 34% when the ruling African National Congress decided to recall him as president, is lower than Zuma’s poorest rating. The survey showed that ‘black’ South Africans…

Fifa has denied several local and international media organisations access to the Fifa World Cup Draw, to be held on Friday in Cape Town. - The draw, which will be held at the Cape Town International Convention Centre, is expected to be broadcast to an audience of over 200-million people across 200 counties, up from the 134.5-million recorded in Germany in December 2005. The World Cup media rights are worth billions, and Fifa is expected to earn over €2billion for rights to broadcast the World Cup finals according to Fifa TV director Niclas Ericson. Given this, it is not surprising the local and international organisations are keen to have access to the draw. However, Primedia, which i…

Moving goods on Africa's roads would cost you significantly more than in other region because of a combination of low transport quality and high transport prices, according to a World Bank economist. - World Bank transport economist Juan Gaviria said that road freight charges in some African countries were over 200 percent more expensive than countries from other continents. Gaviria added that South Africa was 40 percent more expensive, and that spending on regional integration was key to reducing costs. According to the economist, the Southern African Development Community (SADC) would need to invest $1.2-billion (€792-million) every year for the next decade to better integrate …

After another bus crash on the Moloto Road linking Pretoria and Mpumalanga Province, the South African government has again suggested extending the country's rail network. - Last week a Putco bus, allegedly overtaking on a solid white line, and a truck collided on the Moloto Road, killing 10 and injuring 36. Accidents on the road, often involving Putco busses and other forms of public transport, have been regular on the route. Now government plans to build a rail line between Pretoria and the former KwaNdebele region in an effort to increase passenger safety. KwaNdebele was a former homeland north-east of Pretoria. South Africa’s rail company, PRASA, said planning had alre…

The World Bank has given a $186 million (€123 million) loan to Botswana to improve its transportation sector that would link the landlocked country to its neighbours. - The Botswana government has pledged to provide an additional $159 million (€105 million) to boost the project. The OPEC fund for international development has also pledged $40 million (€26 million). The funding would go towards improving transport networks between Botswana and neighbouring Namibia, South Africa, Zambia. Zambia is also landlocked, but Namibia offers links to Walvis Bay port via the Trans Kalahari Highway and South Africa links to both Maputo and Durban. Durban is Africa’s busiest container port. W…

South Africa's port city, Durban, is upping its luxury cruise offerings ahead of next year's FIFA World Cup. - According to Allan Foggitt, director of Starlight Cruising, the MSC Sinfonia will be docking in Durban, bringing an additional 2100 passengers and crew to South Africa. “The arrival of the new generation MSC Sinfonia in South Africa ushers the region into a new era of world-class cruising. This is definitely the biggest single development in the local cruise industry since we first pioneered leisure cruising off this coast,” said Foggitt. The MSC Sinfonia, which started seasonal operations out of Durban on Friday, is thought to be the largest modern crui…

South Africa's most ambitious rail project, the R25.4-billion (€2.3-billion) Gautrain rapid-rail link, may be able to offer services in time for the 2010 Fifa World Cup, according to the company responsible for the project. - Earlier, the Bombela Concession Company said they are willing to accelerate the project by three weeks at a cost of R1.3-billion (€117-million). The Gauteng government turned down the offer and even suggested that the consortium was profiteering above the national interest. Bombela has since offered government a cheaper alternative that may see the Guatrain running in time for the World Cup. “The modified scope for phase one represents an alternative an…

South Africa's largest road transportation project, the Gauteng Freeway Improvement Project (GFIP), may see new freeways being added to the network as soon as 2013. - Currently the GFIP is in its first phase, which is over 33% complete. This R15.1-billion (€1.4-billion) phase will see upgrades, including lane widening, better interchanges and improved lighting, to 185km of the Gauteng freeway network by 2011. These upgrades alone are not enough to support Gauteng’s expected growth according to the South African National Roads Agency (SANRAL). The agency has planned further phases which include 223km of upgrades and 158km of new roads. According to SANRAL senior project mana…

- South Africa has cancelled a deal to buy eight Airbus A400 military transport aircraft after Airbus failed to meet deadlines and costs ballooned. Government spokesman Themba Maseko admitted that government had cancelled the order for the aircraft. “The termination is due to extensive cost escalation and the supplier’s failure to deliver the aircraft within the stipulated timeframe,” said Maseko. In December 2004, when the South African government announced that it wanted to procure the planes, it was expected that the aircraft would cost €837-million (or R6.4-billion at the time). However, by the time the contract was signed in 2005 this figure had escalat…

Gauteng, South Africa's economic province, would not showcase its high-speed train during the Fifa 2010 World Cup. - The R26-billion (€2.3-billion) project would see Johannesburg’s international airport connected by rail to Sandton, downtown Johannesburg and Pretoria. It was hoped that the Bombela Consortium, who are building the project, would be willing to accelerate the completion of the first leg between the airport and Sandton by a few weeks. Little over a year ago, according to Gautrain project leader Jack van der Merwe, the Gauteng government made R150-million available to bring the original deadline for the completion of the first phase forward from June 27, 2010. The …

South Africa's Transport Minister, Sibusiso Ndebele, has stated that more needed to be done to ensure safety on the world's roads. "Africa has the most dangerous roads in the world," said Ndebele. - Ndebele admitted that road deaths may claim more lives than HIV/Aids and malaria by 2020. Addressing an international audience, Ndebele added: “We are here to be part of a march which addresses road deaths in a manner which has never been seen before.” According to the Global Status Report on Road Safety in Africa, 1.3-million people die annually on the world’s roads. The top ten countries, of which South Africa is part, account for 62% of all road deaths.…

The South African National Road Agency Limited (SANRAL), who are responsible for the upgrades under the R22 billion (€1.8 billion) Gauteng Freeway Improvement Project, have confirmed that construction of this critical project would stop during the World Cup 2010 tournament. - “Come May 2010, there will be no more construction, no more road closures and we will stop with blasting,” said SANRAL’s CEO Nazir Alli. Gauteng, as the country’s smallest province, punches above it weight, producing 33% of South Africa’s gross domestic product, resulting in significant pressure on the roads in and around Johannesburg. “The region accounts for 40% of the count…

Broadband services in South Africa are very poor as compared to other countries around the world, a new study by the University of Oviedo's Department of Applied Economics and the University of Oxford revealed. - The Broadband Quality Study said globally the world average download throughput had increased to 4.75 Megabits per second (Mbps), while upload throughput was 1.3Mbps. The study was based on the Speedtest.net statistics. Currently, South Africa’s fastest fixed line offering is only 4Mbps. While South Africa’s average download throughput of 1.71Mbps was the second fastest in Africa, slightly behind Morocco’s 1.81Mbps. An average upload speed of 0.4Mbps pl…

4.6 billion mobile connections are expected worldwide by close of 2009 but Africa, the continent with the most potential for growth, lags horribly behind, according to the International Telecommunication Union (ITU). - The International Telecommunication Union (ITU) compiled the research, saying that 600-million mobile connections would be added this year. The ITU also emphasized the growing importance of mobile communications after subscriptions surpassed fixed connections during 2008. Mobile growth has ballooned in developing nations. Operators in developing nations, countries which generally have poor fixed line connectivity and a general lack of infrastructure to support telecoms, ha…

South Africa's internet population would double from 4.6 million last year to 9 million in 2014. This is the outcome of a survey by World Wide Worx that was published its report 'Internet Access in South Africa 2008'. The ICT think-tank believes the growth rate of 12.5 percent during 2008 would be sustained over the next five years. - South Africa was the first African nation to connect to the World Wide Web, but growth, hamstrung by inefficient government policy and a general lack of competition in the market, has been dismal. Last year’s double digit growth is the first time since 2001 that growth has been above eight percent. According to Arthur Goldstuck, managing…

Mozambique's only dairy factory capable of producing cheese is set to revolutionise the dairy sector by providing a platform to drastically increase the amount of milk produced locally. - In May 2007, the president opened the county’s only cheese factory in Chimoio, near the border with Zimbabwe. Funds to construct the factory were made available by the Dutch government through the Private Sector Investment programme (PSI), which forms part of the Netherlands’ development cooperation budget. PSI was formerly known as PSOM. Bredan Evans, who runs the Gouda Gold Mozambique factory, said that the grant by PSI created the market for milk to be produced locally. Currently Moz…

Zimbabweans should not expect quick economic relief now in spite of a power-sharing deal reached this week, according to Harare-based economist, John Robertson. He forecasts that the South African country's economy would continue to struggle for years to come. - The historic deal has been seen by many as an opportunity for Zimbabwe to rebuild itself and reclaim the wealth it once had. The once bread-basket of southern Africa is little short of a basket case after more than a decade of poor rule by Mugabe’s ZANU-PF party saw the country’s economy shrink by at least 65 percent. Inflation reached 11.2 million percent in June. “Despite the deal, this year’s econom…

World leaders are risking global peace and security, South Africa's Finance Minister, Trevor Manuel, has bemoaned. He said if world leaders continued their inward-looking views on how to deal with peace and security they were inviting war. - He was speaking at the United Nation’s summit designed to review progress on promises world leaders made in 2002 in Monterrey, Mexico. He blamed world leaders for the current global food, fuel and financial crises. He noted that the situation would not have been like this if rich nations remain committed to their promises of providing resources to the poor. He said aid flows dropped by 4.7 percent in 2006 and a further 8.4 percent in 20…