Current Edition >> Archives Section >> Spot Coverage >> January 2008
2010 said to open 80 000 jobs in tourism: According to a skills audit by the Department of Environmental Affairs and Tourism (DEAT), the three years ahead of the 2010 FIFA World Cup would open up about 80 000 job opportunities in the SA tourism and hospitality sector. The audit indicates that over the next three years, the industry will require about 24 100 cooks and chefs, 23 500 waiters and waitresses, 15 000 cleaners, 7 800 cashiers and 8 000 managerial staff.
Red lights on quality of drinking water in Free State: According to a report obtained by the Democratic Alliance from the Dept. of Local Government & Housing 64% of 48 towns and cities tested in the period August 2006 to July 2007 obtained red status as to the quality of their municipal drinking water. Of these 24 towns and cities obtained at least six times red status on different testings. The main culprits are the following municipalities: Metsimaholo (including Deneysville), Ngwathe (including Heilbron), Moqhaka (including Kroonstad), Phumelela (including Warden), Maluti a Phofung (including Bethlehem), Matjhabeng (including Welkom), Mohokare (including Zastron) and Kopanong (including Jagersfontein). The problem seems to lie mainly with sewerage plants not properly serviced.
Voorspoed Diamond Mine boosting Kroonstad: It is reported that the R1,2 billion Voorspoed Diamond Mine north of Kroonstad on the Vredefort road is already boosting property prices at Kroonstad. The mine, expected to reach full production only in the second quarter of 2009, is planned to create a total of some 1 100 jobs. It's also expected that the mine is to produce in a lifespan of 12-16 years an estimated 10 million carats of diamonds. Average house prices are reportedly up from around R200 000 in 2003 to the current R650 000.
Chinafication of Africa: According to an article in Mining Weekly, China is going business-wise big time for Africa with an estimated 800 Chinese stake-owned enterprises currently active in every country on the continent. Chinese imports from Africa totalled $28,8 billion in 2006, a 37% increase over 2005, while Chinese exports to Africa in 2006 were worth $26,7 billion, up 43% on 2005. China is Africa's third largest trading partner after the US and the UK. In 2005 oil accounted for 70% of all African exports to China. One of the biggest latest transactions is a $4 billion loan by China Eximbank to Angola. Since 2000, Chinese companies have built eight large power stations and more than 6 000 km or road in Africa. The latest is the purchase of 20 % shareholding of Standard Bank by the Industrial and Commercial Bank of China (ICBC).
Housing project of 600 units for Brandwag, Bloemfontein: It is also reported that the Mangaung Local Municipality is planning a social housing project in Brandwag to supplement the existing Witwoonstelle by a further 600 new flats available for people with income between R1 500 and R7 500 per month. The Witwoonstelle already consists of 351 units. Planning for the project has been completed and construction is to begin shortly.
Ramblers Sports Club to be renovated: It has been announced that the historic Ramblers Sports Club in Bloemfontein, originally established in 1896, is to be renovated over the next two years by the Mangaung Local Municipality to the tune of some R12 million. Both the building and the premises are to be extensively upgraded. It has also been recommended that the property be declared a national heritage site.
Waterlandgoed vir Klerksdorp: Die nuwe Ambegeto Water Estate by die Johan Neserdam is die eerste leefstylontwikkeling en die grootste residensiële ontwikkeling nóg vir Klerksdorp. Gelee op 71 ha en 3,8 km buite Klerksdorp word dit onwikkel deur die Sand Group, waarby die voormalige rugby Springbokke mnre. Karel en Michael du Plessis betrokke is. In die eerste fase is 367 erwe met 'n gemiddelde grootte van 850 m² en pryse wat wissel tussen R300 000 en R750 000.
Skills Training Centre planned at Gariep Dam for three provinces: A Skills Training Centre for the Free State, Eastern and Northern Cape at Gariep Dam is in an advanced stage of planning, in collaboration with the Dept. of Labour. The premises earmarked for the Centre are those of the Dept. of Nature Conservation southwest of Gariep Dam on the banks of the Orange River, which are to be vacated by the latter for new customised premises. The surrounding area with an employment rate of more than 60% is in dire need of skills training and the development of entrepreneurship. For the implementation phase corporate social investments from the private sector are required. For more info, contact Mr. Leon Crous at tel. (051) 754 0024 or fax (051) 754 0495.
Free State group in new Kimberley property development: It has been announced that a Free State development consortium, Ya Rona Developments in partnership with Group One, is the driving force behind the new Northgate Property Project at Kimberley at a total cost of R1,6 billion. It comprises 6 000 residential units as well as shopping centres, schools, churches and a sporting complex over the next seven years in the Roodepan area. A focus point of the development will be the Kamfer Dam, which is to be preserved as a environmentally protected site. The residential units will cater for the price range R215 000 to R550 000.
America is ill – and the whole world suffers. That seems to be the consensus between economists locally as well as internationally. To come down to basics – the USA has massively overspent in the Iraqi War and now its domestic economy is taking such a hammering that it results in amongst others the huge credit problems the American and British property markets are experiencing. At present the American economy is in a recession, threatening to get worse. Two other symptoms are the unprecedented high oil and gold prices, while stock exchanges around the world, including the JSE, are in a tumble as not seen for many years. For the past four years, until the first quarter of 2007, before the current tumble started, the global economy has grown at a 5.2% annual rate – a full 2 percentage points higher than in the '80s and '90s – thanks largely to booming emerging markets. While the United States and many parts of Europe are lagging, most of the rest of the planet is soaring. Consider that between 1980 and 2000, the number of countries growing at 5 % or more hovered around 50. In 2006, 104 nations grew at that rate. The magazine Newsweek reports that, when asked to think of a few countries besides China and India that have shown strong growth, World Bank economist Andrew Burns replied: “It's hard to think of somebody who hasn't”. In fact, this year the economies of only three countries – Fiji, Tonga and Zimbabwe – are contracting. The first two are highly isolated archipelagos, while Zimbabwe is, in the words of Newsweek, 'a hugely dysfunctional dictatorship”. In this unprecedented boom, SA – and the Free State – has shared at full speed, but currently the bubble is bursting and it is slump time, with the Free State again in tow. So all indications are now that also in the Free State the economy is freezing up – with the political unstableness of the ruling party, the national top cop in the dock and the countrywide electricity disruptions not making it any better. How the average small business owner and the family living on the cutting edge of the cost of living, is going to plot his/her way forward, is a call to be answered.
The Revenue Laws Amendment Bill, currently before Parliament, proposes major changes to the taxation of dividends, in two respects. First, the definition of what is a dividend is being broadened, and, secondly, the STC provisions are to be modified, preparatory to being replaced in the future with a dividend withholding tax. These amendments are intended to come into effect at different times, and we set out the changes that are intended according to date of implementation. Effective 1 October 2007: • The rate of STC is 10%. • If a dividend distributed to a company in the same group of companies is not accounted for as part of the receiving company's profit, it is not a dividend for tax purposes, and is taxed in the recipient's hands under the capital gains tax provisions as a part disposal of shares. • The repayment of share capital or premium will be treated as a dividend to the extent that it exceeds the share premium and share capital attributable to the class of shares concerned. • Where shares are redeemed or capital is reduced, the amount that constitutes a dividend is equal to the profit distributed. • “Profit” includes both realised and unrealised profit. • The definition of “group of companies” for STC group relief now excludes foreign incorporated companies, cooperative companies, collective investment schemes, section 21companies, companies whose income is exempt from tax and companies that are public benefit organisations or recreation clubs. • Group relief will apply only if the company declaring the dividend is a “controlled” group company (under the new definition) –meaning that the group relief can no longer apply to distributions from the ultimate holding company. • Furthermore, the dividend only qualifies for the STC group relief if the shareholder includes the dividend in its “profits” (for accounting purposes). Note however that, in many cases, such a distribution might in any event not be a dividend in the first place. For deemed dividends, where the event has reduced the profits of the declaring company (e.g. expense incurred by a subsidiary on behalf of its parent), the group relief will only apply to the extent that there has also been a corresponding increase in the recipient shareholder's profits. For more information, please contact: Hesna Rheeder, 051-503 4100, hesna.rheeder@za.pwc.com or Gert Nel, 051-503 4100, gert.nel@za.pwc.com die situasie verder gaan ontplooi en wat deur wie daaromtrent gedoen word, word deur die Vrystaat Sake Bulletin gemonitor en word beoog om in volgende uitgawes daaroor te berig.
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