Nigeria&#8217;s President Muhammadu Buhari met the country&#8217;s senate head in London on Sunday evening, the presidency&#8217;s official Twitter account said, amid concern over the leader&#8217;s month-long absence for undisclosed medical reasons.
Word of Buhari&#8217;s meeting with Senate President Bukola Saraki in London, their second in less than a week according to the presidency, may help alleviate worries that the leader&#8217;s health is worse than officials publicly admit.
&#8220;This evening President @MBuhari met with Senate President @bukolasaraki, at Abuja House,&#8221; the official @NGRPresident Twitter account wrote.
But many Nigerians are sceptical of such announcements even when accompanied by photos.
The presidency publishes almost daily pictures of 74-year-old Buhari receiving visitors in his London drawing room. He took a phone call from U.S. President Donald Trump on Monday, both administrations say.
Officials refuse to disclose what is ailing Buhari, saying only that he has been having tests and is not in a serious condition.
 
(Writing by Paul Carsten; editing by Susan Thomas)﻿

Nigeria's president meets head of senate as sick leave continues

Many people in Africa believe that “development” is essentially about embracing a European or North American way of reading and interpreting the world. More recently many have taken an equally unhelpful path of glorifying Asian models. This is often referred to as the <a style="font-family: Roboto, Arial, sans-serif; font-size: 15px; font-weight: 400;" href="https://muse.jhu.edu/article/214035">“Look East Policy”</a>.
From these perspectives “development” is seen in purely economic terms. It’s measured on the basis of GDP, gross national product and similar <a href="http://www.tandfonline.com/doi/pdf/10.1080/17447143.2016.1277733?needAccess=true">indices</a>.
But not everything about development in every society <a href="https://theconversation.com/to-counter-populist-policies-the-world-needs-to-ditch-its-obsession-with-gdp-72746">is economic</a>. Instead, the measures of development must be seen as having multiple dimensions – among them cultural, social, linguistic and religious ones.
The late Ugandan professor <a href="http://link.library.deakin.edu.au/portal/Afrikology-philosophy-and-wholeness--an/-8msxpH2P6E/">Dani Wadada Nabudere</a> reminded us that Euro-North American scientific knowledge and theorisation is unable, on its own, to explain everything. This was because of a
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great deal of uncertainty in the way we understand the world, as well as in the way human beings understand each other in different environments and cultural contexts.
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Following on Nabudere, I propose that one of the ways by which Africa can overcome problems of underdevelopment is by using its abundant linguistic and cultural resources. This requires breaking away from perceiving development as being connected to the use of ex-colonial languages such as English, French and Portuguese.
The point is that creativity and innovation are guaranteed when they are communicated in languages that are best understood and widely used by the majority of local populations. In particular, Africa’s diverse linguistic and cultural resources hold enormous potential for creativity and innovation. There are between 2,500 and 3,000 languages spoken on the <a href="http://www.njas.helsinki.fi/pdf-files/vol17num2/ndhlovu.pdf">continent</a>. These are massive resources. They can and should be the key drivers of sustainable development and social progress.
<h2>What’s missing from development paradigms</h2>
What’s missing from popular conceptions of development is an appreciation of culturally-specific concepts on how to live life and live it well. African people can use the power of their imagination to innovate and to contribute to their own social progress. They can do this by leveraging their diverse linguistic capabilities and centuries old cultural and experiential resources.
Innovation and creativity stem from people expressing their deepest values and thoughts through language, culture and local knowledge systems. It is through language that they form new realities and destroy old ones. This is also known as social progress.
It’s, indeed, through language that people inform identities and transmit senses of being in ways that open up opportunities for them to read and interpret the world on their own terms. They do so using those cultural and communication resources that they understand best.
Development is not only economic and political. It’s also cultural and linguistic. Wherever there’s development it has to show immediately in aspects of people’s every day social and cultural life. This finds expression through their every day lingo, both spoken and unspoken. This is because meaning – like values – is open-ended. It changes. It’s full of complexity and bound up with the historically and <a href="http://www.tandfonline.com/doi/pdf/10.1080/17447143.2016.1277733?needAccess=true">culturally embedded</a>.
This complex and dynamic nature of culture is the one that forms the basis for creativity and innovation.
For the African people, the cultural embeddedness of development can be seen in the achievements of numerous African states and communities that thrived before disruptions by Euro-North American patterns of thought and biases.
<h2>Africa before the white man</h2>
Several anthropologists, archaeologists and historians of Africa (including European ones) have documented indisputable evidence which indicates that African people had produced hydrologists, prospectors and geologists through their understanding of the material environment. All this happened <a href="https://www.amazon.com/Africa-History-Basil-Davidson/dp/0684826674">prior to European arrival</a>.
On the mining side in particular, Africans – for example, those in the <a href="https://www.amazon.com/Africa-History-Basil-Davidson/dp/0684826674">Zimbabwe plateau</a> –- had experts who had a clear idea of where to look for gold and copper in the subsoil. Its craftsmen worked the gold into ornaments with tremendous skill and <a href="http://abahlali.org/files/3295358-walter-rodney.pdf">lightness of touch</a>.
Also as early as the 11th century, the people of the Zimbabwe plateau were already involved in large-scale external trade with Arab and Indian traders at the Mozambican <a href="http://dx.doi.org/10.1080/17447143.2016.1277733">channel of Sofala</a>. There were several other similar pre-15th century civilisations across the African continent. These were in places such as Egypt, Ethiopia, Nubia, the Maghreb, the Western Sudan, and the <a href="http://abahlali.org/files/3295358-walter-rodney.pdf">Inter-lacustrine Zone</a>.
At the turn of the 15th century, their levels of development were comparable to those of <a href="http://abahlali.org/files/3295358-walter-rodney.pdf">many parts of Europe at the time</a>.
These early African societies achieved their high levels of development by leveraging the diversity of local languages, cultures, traditions and philosophies of life.
<h2>Discarding borrowed robes</h2>
No society has ever made significant and meaningful advances in development through the use of borrowed robes. There is no doubt that Africa has much to learn from Northern and Eastern models of development. But the continent stands a better chance of making major progress by not relying solely on imported models.
Rather the solution lies in a smart integration of these with homegrown, Africa-centred philosophies that are rooted in endogenous linguistic and material cultures. This will enhance the unlocking of local creative capabilities and potentials for innovation.
African local knowledge systems should become the growth engine that promotes a new dynamic evolution instead of simply imitating Western or Eastern models of development and social progress.
This article is a significantly condensed version of the author’s recent paper <a href="http://www.tandfonline.com/doi/pdf/10.1080/17447143.2016.1277733?needAccess=true">Southern Development Discourse for Southern Africa: Linguistic and Cultural Imperatives</a> published in the Journal of Multicultural Discourses.
<img loading="lazy" decoding="async" src="https://counter.theconversation.edu.au/content/72752/count.gif?distributor=republish-lightbox-basic" width="1" height="1" alt="The Conversation"/>
<a href="https://theconversation.com/profiles/finex-ndhlovu-336162">Finex Ndhlovu</a>, Associate Professor of Language in Society, <a href="http://theconversation.com/institutions/university-of-new-england-919">University of New England</a>
This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/why-africa-must-discard-borrowed-robes-and-embrace-its-rich-cultural-resources-72752">original article</a>.

Why Africa must discard borrowed robes and embrace its rich cultural resources

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JOHANNESBURG (Reuters) &#8211; South Africa&#8217;s Steinhoff and grocery retailer Shoprite have called off a deal to create an African retail giant, they said on Monday, following opposition from some shareholders.
The estimated 180 billion rand ($14 billion) deal was the idea of retail magnate Christo Wiese, who owns 16 percent of Shoprite and 23 percent of Steinhoff, the owner of UK&#8217;s Poundland and U.S.-based Mattress Firm.
It had however raised concerns among minority shareholders at Shoprite who feared they were getting a raw deal.
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In a joint statement, the two firms said &#8220;the fact that the relevant parties could not reach an agreement in respect of the share exchange resulted in the negotiations being terminated.&#8221;
Steinhoff&#8217;s shares in Johannesburg rose more than 7 percent, hitting their highest in four weeks, while Shoprite&#8217;s stock jumped to a two-month high, up more than 6 percent.
&#8220;For a lot of Steinhoff shareholders today they will be smiling because at least they keep their positions in the same way they found them, that&#8217;s a positive for them,&#8221; said trader at Global Trader Paul Chakaduka.
&#8220;For Shoprite there has been this major overhang around this acquisition for a very long time and I think it will free up any uncertainties.&#8221;
The deal would have given Steinhoff, dubbed Africa&#8217;s IKEA and which vies with the Swedish firm for global market share, a major interest in Shoprite, a 110 billion rand company operating in countries including South Africa, Nigeria and Angola.
It would have allowed Steinhoff to hive off its struggling African assets &#8212; made up mainly of clothing, shoe and textile company Pepkor &#8212; into a new, separately listed merged entity called Retail Africa and possibly prompt a higher investor rating for its fast-growing European businesses.
At the heart of Shoprite investors&#8217; complaints were a lack of obvious cost savings from overlaps between Pepkor&#8217;s operations and grocery retailer Shoprite, and exchanging a stock with bigger potential for what they called inferior businesses. ($1 = 13.1392 rand)
(Reporting by Nqobile Dludla and TJ Strydom; Writing by James Macharia; Editing by Keith Weir)
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© Thomson Reuters 2017 All rights reserved﻿

Steinhoff, Shoprite drop talks to give birth to an African retail giant

Content presented by <a href="https://www.discovery.co.za/portal/">Discovery Invest ﻿</a><a href="https://www.discovery.co.za/portal/">﻿﻿</a>
With government needing to raise an extra R28 billion in taxes, it is a foregone conclusion that taxes will go up. The only questions are, which taxes will go up, and by how much?
Estate Duty
The budget is expected to discuss the 2nd Davis Committee report. That report recommended the scrapping of the paragraph 4q deduction, which is the deduction for any bequests made to a surviving spouse. It also recommended the scrapping of roll overs between spouses for Capital Gains Tax and donations tax. Finally, it recommended raising the estate duty rate up to 25% on all estates with a value above R30 million. The quid pro-quo was that it further recommended raising the primary abatement from R3.5 million to R15 million, which would take the middle class out of the estate duty net entirely. It is doubtful that government will accept all of this, as together it won’t raise much extra revenue and could cause much hardship. It is more likely that government will adopt some piecemeal suggestions, like that of raising the rate of duty on estates with a value above R30 million to 25%.
Capital Gains Tax
Investors are nervously watching this one. The inclusion rates were already raised in last year’s budget, resulting in the effective rate for individuals increasing to 16.4%, to 22.4% for companies and to 32.8% for trusts. Surely, it can’t go any higher now? Any increase for companies and trusts would push their rates ever closer to their incomes tax rates. It would be hard to justify, given that there is no inflation indexing in our capital gains tax system.
 Marginal rates and dividends tax are the most likely increases
The most likely increase will be to marginal rates. Last year all the marginal rates, bar the lowest one, were increased by one percent. There was minimal relief for fiscal drag, apart from the lower three bands. It is expected that there will be similar measures adopted this year, which would take the top marginal rate to 42%.
The second tax likely to be increased is dividends tax. The rate has not been increased since dividends tax was implemented in April 2012. Raising the rate from 15% to 20% will reportedly raise R7 billion in taxes. This seems like a relatively soft target, which is unlikely to raise too many objections.
Conclusion
The Minister of Finance has little choice but to raise taxes. It is hoped that there will not be any radical changes, like the scrapping of spousal relief. In addition, it is hoped that there will be an update on the progression in talks on forced annuitisation of provident funds on retirement, planned to be introduced in 2018. That is now only a year away, and time is short to tackle all the legislative amendments that will need to happen in this area.﻿
CNBC Africa in partnership with Discovery Invest will break from regular broadcasting to bring you live coverage and analysis of South Africa’s Budget on Wednesday, February 22nd 2017.﻿ 
Tune into CNBC Africa, DStv channel 410 from 13h30 CAT on 22 February. Alternatively, livestream via CNBC Africa’s YouTube channel <a href="https://www.youtube.com/watch?v=ThndtDo7WFA">https://www.youtube.com/watch?v=ThndtDo7WFA</a> or website <a href="/tv/cnbc-africa-live/">/tv/cnbc-africa-live/﻿</a>

Budget 2017: These South African taxes are likely to go up

Content presented by <a href="http://www.ggda.co.za/">Gauteng Growth and Development Agency﻿</a>﻿
The Gauteng Growth and Development Agency (GGDA) is looking for opportunities in East and West Africa in a bid to encourage business growth and economic prosperity in these respective regions. This is according to Saki Zamxaka, the Chief Executive Officer of the GGDA. 
READ: <a href="/news/special-report/2016/12/13/gauteng-open-for-business/">Africa’s richest province Gauteng is working hard to attract businesses﻿</a>
Speaking at a panel discussion in Ghana, organised by CNBC Africa, on how the agency could improve business relations between Gauteng and West Africa he said: “Some of the companies here [in South Africa] have grown to the point that the South African market is not enough for them. They need to look at markets outside.” 
He also stressed the need to attract expertise from West Africa into Gauteng, to improve growth prospects. 
“We’re open for business and we’re open to learn from what other people are doing.” The chief executive added. 
Gauteng generates a third of South Africa’s gross domestic product. Zamxaka boasts that the province is the factory of Southern Africa. 
His position is one that South African High Commissioner to Ghana, Lulu Xingwana agrees with. Using Ghana as an example she pointed out industrial similarities and comparative advantages that both countries could leverage on for mutual development. 
She said: “We have a lot in common with Ghana. Both of us are mining countries. Both of us are agricultural countries and both of us have great opportunities in agriculture.”
“You have some of the most brilliant engineers and technicians, scientists. We need your skills your experiences and expertise. So we’re inviting you to come and invest in South Africa.” She later added. 
The invitation for partnership was well received by some captains of industry including Alhassan Andani, the Chief Executive and Executive Director of Stanbic, Ghana. However, he said that the Ghanaian government had some work to do in improving the business environment especially where policy is concerned. 
“Actions speak louder than words. Policy is words, words, words. Private enterprises getting on to the ground and doing things is action and that’s where policy is tested out.” 
He emphasised that that there could be improvements in the length of time it takes to get through the bureaucratic red tape. 
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“It takes a long time to get services that MNCs need. Delays need to be dealt with.” He said.
Carl Nelson, the Chief Operating Officer of the Ghana Investment Promotion Centre pointed to a new law passed in parliament that could help improve the ease of conducting business in Ghana.
He said: “In our new law we have a technical committee that reviews the economic climate from time to time and advises on the kind of policies or incentives that need to be put in place to make sure that investors are interested and to make the economy attractive.” 
He asserted that the policy infrastructure could not remain static if Ghana hopes to continue to attract foreign direct investment. “Things change and as things change the policies must change to reflect the current situation.” He said. 
Ghana’s efforts in improving the business environment were acknowledged by Eric Asubonteng, the Managing Director of the AngloGold Ashanti Obuasi Mine, the product of the merger between a South African mining company and a Ghanaian one in 2004. He said, “The fundamental attraction in Ghana that brought us in hasn’t changed. If anything at all it has improved and that has a lot to do with the fact that Ghana is a stable democracy and has been so for a long time.”﻿ ﻿

Why Africa's richest province Gauteng is looking to drive investment into West Africa

A tropical storm – named <a style="font-family: Roboto, Arial, sans-serif; font-size: 15px; font-weight: 400;" href="http://citizen.co.za/news/news-national/1427761/severe-tropical-storm-heading-to-sa-warns-weather-service/">Dineo</a>– has swept in from the Indian Ocean, causing extensive flooding as it hit landfall in Mozambique. More damage is threatened as it swings south and west.
Tropical storms are classified once clouds have reached an organised cyclonic formation and wind speeds <a href="http://www.hko.gov.hk/informtc/class.htm">have exceeded 60km/h</a>. The storm can be upgraded to tropical cyclone status if these exceed 120km/h. Tropical cyclones are classified on the basis of strength and are measured according to the <a href="http://www.nhc.noaa.gov/aboutsshws.php">Saffir Simpson scale</a>. This was <a href="http://novalynx.com/store/pc/Saffir-Interview-d51.htm">developed in 1965</a> by civil engineer Herbert Saffir and climatologist Robert Simpson to classify tropical cyclone damage.
Regions bordering the East, West and South Pacific are influenced by considerably more tropical cyclones each year <a href="http://onlinelibrary.wiley.com/doi/10.1002/joc.3932/epdf">than southern Africa</a>. An average of between five and 15 tropical cyclones make landfall on islands and continents in those regions each year. The southern African sub-continent, meanwhile, experiences one every few years. This is partly because most of the South Indian Ocean tropical cyclones make landfall on Madagascar and never reach <a href="http://onlinelibrary.wiley.com/doi/10.1002/joc.4204/full">the main continent</a>.
Studies over the past half century in southern Africa show that there’s been a southward shift in tropical cyclones in the region, and in particular the location of their landfall. <a href="http://onlinelibrary.wiley.com/doi/10.1002/joc.3932/epdf">One study looked</a> at the records of tropical cyclones in South East Africa going back 66 years. Another investigated 19th century <a href="http://onlinelibrary.wiley.com/doi/10.1002/joc.4204/full">tropical cyclone landfalls in Madagascar</a>.
Tropical storm Dineo provides another piece of evidence of this trend. The question is: what’s behind the shift?
The shift southwards, the position of the storm’s formation, and the later landfall are all because of increasing sea surface temperatures associated with <a href="http://onlinelibrary.wiley.com/doi/10.1002/joc.3932/epdf">global scale warming</a>. Tropical storms require sustained sea surface temperatures that are <a href="http://www.aoml.noaa.gov/hrd/tcfaq/A16.html">higher than 26.5°C</a>. The Indian Ocean’s sea surface temperatures have increased by <a href="http://onlinelibrary.wiley.com/doi/10.1029/2012GL052975/full">0.3°C since 1960</a>, taking them over the tipping point of 26.5°C level sea surface temperatures. This has led to storms forming where it was previously too cold for this to happen.
<h2>Naming conventions</h2>
Why has the storm been called Dineo? A storm of this nature is given a name once it becomes classified as a tropical storm. Tropical storms are named alphabetically for each ocean basin from the beginning of each year from a list of names pre-decided at meetings of the <a href="https://public.wmo.int/en/About-us/FAQs/faqs-tropical-cyclones/tropical-cyclone-naming">World Meteorological Organization</a> with submissions from countries in the region. The names are common first names of people from the region in question. Initially these submissions could only include female names. Male names have also been allowed since 1978.
The name Dineo was submitted by Botswana. Other names on the alphabetical list were selected from countries including Lesotho and Tanzania. Fourth in the alphabet, Dineo was the fourth storm in the South Indian Ocean that reached tropical storm status. If the list of names is exhausted, Greek letters are used <a href="http://www.nhc.noaa.gov/aboutnames_history.shtml">for subsequent storms</a>. Many named tropical storms and tropical cyclones do not reach the coastlines of islands or continents, and so one doesn’t hear about them in the news.
In 2005, the North Atlantic basin experienced so many tropical storms that experts worried they might have to start with <a href="http://www.livescience.com/9351-hurricane-center-run-names.html">the Greek alphabet</a>.
<h2>Damage, and damage limitation</h2>
Dineo may not reach tropical cyclone status but its effects are still likely to be disastrous. The last tropical storm to make landfall this far south on the continent was <a href="http://link.springer.com/article/10.1007/s11069-015-1691-0">tropical cylone Dando in 2012</a>. Dando caused widespread, prolonged flooding in Mozambique. It also destroyed homes and national infrastructure. Five people were killed and thousands displaced.
The effects were worst along the coastlines, where the storm conditions were paired <a href="http://link.springer.com/article/10.1007/s11069-015-1691-0">with storm surges</a> which resulted in extreme waves crashing onto the shoreline.
In South Africa, the storm resulted in severe flooding in <a href="http://www.tandfonline.com/doi/abs/10.1080/0035919X.2016.1167788">the Limpopo province</a>. Roads and bridges were destroyed, interrupting water and electricity supply, and leaving months of rehabilitation work to be done.
The tourism sector was severely affected, as were many of <a href="http://www.tandfonline.com/doi/abs/10.1080/0035919X.2016.1167788">the region’s</a> other economic centres.
<a href="https://cdn.theconversation.com/files/157093/area14mp/image-20170216-12946-2rzb18.jpg"><img decoding="async" src="https://cdn.theconversation.com/files/157093/width754/image-20170216-12946-2rzb18.jpg"/></a>Tropical cyclone tracks.International Journal of Climatology
Tropical storm Dineo has already calmed down. It lost a lot of energy as it made landfall on Mozambique’s coastline, and will continue to weaken as it moves further east. Tropical cyclones and tropical storms gain energy through the evaporation of water over the sea. Without this energy source they quickly downgrade to tropical depression status.
The development of such storms and the destruction they cause shows the need for proactive strategies to mitigate their effect. These should be in place to manage the damage done by extreme winds and flooding.
Strategies to deal with this problem include improved sea barriers to limit the impact of storm surges, improvement of road and bridge infrastructure to withstand storm conditions, and evacuation plans to prevent the loss of human life. But there aren’t many examples of countries taking effective steps to deal with tropical storms.
<img loading="lazy" decoding="async" src="https://counter.theconversation.edu.au/content/73139/count.gif?distributor=republish-lightbox-basic" width="1" height="1" alt="The Conversation"/>
<a href="https://theconversation.com/profiles/jennifer-fitchett-317966">Jennifer Fitchett</a>, Lecturer in Physical Geography, <a href="http://theconversation.com/institutions/university-of-the-witwatersrand-894">University of the Witwatersrand</a>
This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/rising-sea-temperatures-are-shaping-tropical-storms-in-southern-africa-73139">original article</a>.

What you need to know about tropical storm Dineo

Since 2009, National Treasury has embarked on fiscal expansion to enhance the public sector’s infrastructure programme and support future economic capacity in South Africa. However, anaemic global economic growth over the last nine years has left the Treasury’s countercyclical expenditure programme unable to lift the GDP growth above 2% per annum.
Consequently, a combination of slow growth and lower tax buoyancy have reduced the in-year 2016/17 revenue estimate by R23 billion. Without policy adjustments, gross tax revenue will – this financial year – fall short of Budget 2016 estimates by R36 billion for 2017/18 and R52 billion for 2018/19. These budget deficits are leaving South Africa’s sovereign rating on the brink of being downgraded to non-investment grade.
 In order to mitigate against this revenue shortfall, Minister of Finance, Pravin Gordhan, announced in his 2016 Medium-term Budget Policy Statement (MTBPS) that an additional R13 billion for 2017/18 and an additional R43 billion over the Medium Term Expenditure Framework (MTEF) will have to be sourced through various tax increases.
In this article, we explore the Minister’s possible tax options to raise the required tax revenue and close the revenue shortfall.
Personal Income Tax (PIT)
Revenue potential: R7.5 billion &#8211; R10.0 billion
PIT accounts for at least 35% of tax revenue. It is largest source of tax revenue and the most buoyant since 2010. This is due to higher-than-inflation wage increases, tax increases and reduced tax relief. South Africa has a progressive tax system, which means higher income individuals pay a higher proportion of tax. Consequentially, this means if Minister Gordhan were to generate significantly higher revenue, he would have to increase taxes for higher income earners. ﻿
<img loading="lazy" decoding="async" src="/media/19332555/graphic_1_598x336.jpg" width="598" height="336" alt="Graphic 1"/>﻿
One option to raise additional revenue is to introduce a 45% marginal tax rate for individuals earning above R1.5 million per annum. Based on preliminary calculations, Treasury can realise between R7.5 billion and R10.0 billion using this option. However, high income individuals are often skilled and mobile. A punitive tax rate might encourage aggressive tax planning or incentivise them to relocate to countries with lower tax rates.﻿
Corporate Income Tax (CIT)
Revenue potential: R0.0 billion
In the current weak macro-economic environment, Treasury is unlikely to increase CIT, as this could result in base erosion, capital flight and hence generate little revenue. Furthermore, increasing the CIT rate will be uncompetitive. South Africa’s current statutory tax rate is already higher than most tax jurisdictions. (See below). However, there is room for Treasury to lower the tax rate to attract investment and send a business friendly signal.﻿
<img loading="lazy" decoding="async" src="/media/19332562/graphic_2_597x336.jpg" width="597" height="336" alt="Graphic 2"/>﻿
Value-added Tax (VAT)
Revenue potential: R0.0 &#8211; R15.0 billion
South Africa’s VAT rate is relatively low compared to most tax jurisdictions and there is less risk of tax avoidance and tax planning associated with this tax (see below).﻿
<img loading="lazy" decoding="async" src="/media/19332569/graphic_3_597x336.jpg" width="597" height="336" alt="Graphic 3"/>﻿
Preliminary calculations by KPMG suggest that a 1 percentage point increase in VAT could yield approximately R15 billion in additional revenue. However, the Davies Tax Commission First Interim report on VAT<a href="#_ftn1" title="">[1]</a>highlighted that an increase in VAT will have a negative impact on inequality, real GDP growth and inflation. Furthermore, VAT increases will be disliked by labour unions. Despite a high revenue yield these factors make a VAT increase
<div>Specific Excise Tax
Revenue potential: R5.0 billion &#8211; R7.0 billion
Treasury is likely to realise additional revenue through higher-than-inflation adjustments in sin taxes, particularly in luxury products like cigars, spirits and wines. In Budget 2016, this raised an additional R2.3 billion. However, disproportionate increases in specific excise taxes might encourage black market consumption. ﻿
<div><img loading="lazy" decoding="async" src="/media/19332576/graphic_4_597x336.jpg" width="597" height="336" alt="Graphic 4"/>﻿</div>
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Furthermore, a new specific excise duty on sugar-sweetened beverages (SSBs) was announced in 2016 and could generate approximately R2.5 billion to R4.0 billion. However, this tax will be introduced at a higher effective tax rate than most other countries that have a comparable tax and is set at higher rates than most wines and spirits in South Africa. Furthermore, any job losses and impact on industry growth will have negative second round effects for the PIT and CIT tax bases.﻿
Fuel levy
Revenue Potential: R5.0 billion &#8211; R7.0 billion 
Treasury is also likely to increase the fuel levy. However, with higher crude oil prices the Minister will not have the same space to increase fuel levy compared to the last two budget periods, where he raised R6.6 billion and R6.8 billion, respectively.﻿
Other adjustments
Additionally, the Minister has the option of progressively providing reduced tax relief to raise short-term revenue. In Budget 2016, Treasury raised R7.6 billion through this option. However, failure to give tax relief over a sustained period is regressive, as lower income groups are disproportionately hurt by an increased tax burden. We also expect the Minister to announce other progressive adjustments to wealth-related taxes, similar to last year’s changes to property taxes. ﻿
Conclusion
While it is impossible to predict the exact adjustments the Minister will announce, above we outline several possible tax adjustments to raise the required revenue. We expect a combination of these tax measures to raise at least R13 billion in the 2017/18 fiscal year.﻿
  
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<hr />
<div>
<a href="#_ftnref1" title="">[1]</a> Davis Tax Committee: Value-Added Tax &#8211; First interim report, 2015﻿
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Tax predictions for S.A's Budget 2017

Due to the high incidence of ATM Card Fraud, the South African Banking Risk Information Centre (SABRIC) would like to alert bank customers to an existing modus operandi, which has become prevalent again, to ensure that they are empowered to protect themselves and to prevent them from falling victim to criminals.
SABRIC CEO, Kalyani Pillay has emphasised the importance of being extremely vigilant when transacting at ATM’s. “Transacting at ATM’s is quick and convenient, but unfortunately criminals exploit this facility for their own fraudulent purposes. Criminals use various ways to manipulate and distract ATM users in order to gain access to their bankcards and PIN’s, and of course, ultimately, steal their money.”
Criminals use various modus operandi to commit this kind of fraud, so it is imperative that bank customers be aware and take the necessary protective measures:
Card Swopping:
While using an ATM, an unknown person will approach the victim and try to “assist” them. Their card will be taken out of the ATM by the criminal who presses the cancel button for the card to eject. It is then swopped without the bank customer even realising it. The card swop usually happens before the victim inserts their PIN to transact, which prevents the transaction from taking place due to the swopped card being in the ATM. During this process of “assisting”, the fraudster is close enough to view the PIN. The victim will then leave the ATM after the unsuccessful transaction, either with someone else’s card, which they don’t realise at that point or without their card which was apparently swallowed by the ATM. At the same time the criminal walks away with the victim’s card and PIN, which will be utilised almost immediately at another nearby ATM. By the time the victim realises what has happened, and arranges to cancel the card, their money has already been withdrawn.
Criminals attempt to confuse bank customers, making them more inclined to accept assistance at ATM’s by:
<ul>
<li>Changing the language on ATM screen so that it looks unfamiliar to a customer, creating confusion;</li>
<li>Activating the “cardless function” to change the way the display usually looks to disorientate a customer;</li>
<li>Jamming the card slot or the pin pad of the ATM to lure a customer to a more remote ATM, around a corner, or short distance away.</li>
</ul>
To protect yourself from criminals utilising these modus operandi, adhere to the following:
<ul>
<li>If you think the ATM is faulty, cancel the transaction IMMEDIATELY, report the fault to your Bank and transact at another ATM.</li>
<li>Avoid ATMs that are dimly lit or surrounded by loiterers, and never allow your children to draw money using your card, since they&#8217;re the most vulnerable to perpetrators.</li>
<li>Have your card ready in your hand before you approach the ATM to avoid opening your purse, bag or wallet while in the queue.</li>
<li>Be cautious of strangers offering to help as they could be trying to distract you in order to get your card or PIN.</li>
<li>Follow the instructions on the ATM screen carefully.</li>
<li>ONLY punch in your PIN once prompted by the ATM.</li>
<li>Report suspicious items or people around ATMs to the Bank.</li>
<li>Choose familiar and well-lit ATMs where you are visible and safe.</li>
<li>Report any concerns regarding the ATM to the Bank. Toll free numbers are displayed on all ATMs.</li>
<li>Be alert to your surroundings. Do not use the ATM if there are loiterers or suspicious people in the vicinity. Also, take note that fraudsters are often well-dressed, well-spoken and respectable looking individuals.</li>
<li>If you are disturbed or interfered with, whilst transacting at the ATM, your card may be skimmed, by being removed and replaced back into the ATM without your knowledge. Cancel the transaction immediately and report the incident using your Bank&#8217;s Stop Card Toll free number that is displayed on all ATMs, as well as on the back of your bank card.</li>
<li>Should you have been disturbed whilst transacting, immediately change your PIN or stop the card, to protect yourself from any unauthorised transactions occurring on your account.</li>
<li>Know what your ATM looks like so that you are able to identify any foreign objects attached to it.</li>
<li>Do not ask anyone to assist you at the ATM, not even the security personnel guarding the ATM or a bank official. Rather go inside the bank for help.</li>
<li>Never force your card into the slot as it might have been tampered with.</li>
<li>Do not insert your card if the screen layout is not familiar to you and looks like the machine has been tampered with.</li>
<li>Don’t use ATMs where the card slot, keypad or screen has been tampered with. It could be an attempt to compromise your card.</li>
<li>Your PIN is your personal key to secure banking and it is crucial to keep it confidential.</li>
<li>Memorise your PIN, never write it down or share it with anyone, not even with your family member or a Bank official.</li>
<li>Choose a PIN that will not be easily guessed. Do not use your date of birth as a PIN.</li>
<li>Key it in your in such a way that no one else can see it e.g. cover your PIN when punching in the numbers even when alone at the ATM as some criminals may place secret cameras to observe your PIN.</li>
<li>Don&#8217;t let anyone stand too close to you in order to keep both your card and PIN safe.</li>
<li>Some fraudsters wait until you’ve drawn your cash to take advantage. Be wary of people loitering around the ATM and ensure that you are not followed.</li>
<li>Take your time to complete your transaction and secure your card and your cash in your wallet, handbag or pocket before leaving the ATM.</li>
<li>Set a daily withdrawal limit that suits your needs (the default amount is set at R1000.00), to protect yourself in an event that your card and PIN are compromised.</li>
<li>Check your balance regularly and report discrepancies to your Bank IMMEDIATELY.</li>
<li>Avoid withdrawing cash to pay for goods/services as your Debit Card can be used for these transactions. You are able to use your Debit Card wherever the Maestro/Visa Electron logo is displayed.</li>
<li>After you have completed your transaction successfully, leave the ATM area immediately. Be cautious of strangers requesting you to return to the ATM to finalise/close the transaction because they are unable to transact. Skimming or card swopping may occur during this request.</li>
<li>Make sure that prior to transacting at the ATM, you understand the screen before entering a PIN, as it could be in “cardless transaction” mode.</li>
</ul>
For more information go to <a href="http://www.sabric.co.za">www.sabric.co.za﻿</a>
﻿

Protect yourself from ATM fraud

The upcoming Budget will be a critical one given there is no more room for the upward revision of deficit targets as seen over the last few years. As a result of the current slow growth environment, the tax increases and expenditure cuts set in October’s Medium-term Budget have to be adhered to if Treasury is to deliver a positive Budget. However, given that the current fiscal year is running about R5 billion short of target, Treasury will have to go beyond the tax and expenditure targets set in October requiring an even tighter Budget.
The Medium-term Budget last year set out targets of R20 billion for expenditure cuts and R28 billion for tax increases in order to achieve the R48 billion contraction target needed for the Budget. With the current fiscal year running R5 billion short, due to slower tax growth and slight over-spending, they will need to go bigger on tax increases and expenditure cuts this year to make this up.
Whether or not they actually do take these necessary steps remains to be seen, but it will be a very big positive if they do as it will be a departure from the historical trend.
The rating agencies will be watching this very closely. Treasury sticking to the 3.1% Budget deficit target they set in October in the Medium-term Expenditure Framework is one of the crucial issues they will be considering in the decision on SA’s sovereign rating.
They will also be keeping an eye on the actual mix of tax increases introduced by the Budget. For example, if they decide to increase VAT, this would be viewed as a significant step in the right direction. While most economists are skeptical about the prospects of an actual VAT hike, there is increasing talk of a 0.5% VAT hike, which would contribute R10 billion to the Budget, although I still think the probability of this falls below 50%, despite the market and currency strength that such a move would bring. 
A VAT increase is a notoriously unpopular political move among lower income groups, particularly during an election cycle. Nonetheless, the chances of a VAT hike are still better than this time last year given the increased pressure that Treasury is under. If they were to raise the VAT rate, they can still sell such a move politically by, for example, raising the top marginal rate by more, by increasing social grants, zero rate more food stuffs or even introducing a much higher VAT rate on luxury goods. While a varied VAT rate structure is not favoured by Government, it can still be done.
The fact that growth is picking up marginally, the improvement of the global economic environment, and stabilising employment numbers are all positive factors for the tax take or growth. The risk of tax increases in this year’s Budget is that, while we know that hikes will happen across the board, we don’t want Treasury to become too reliant on tax increases over the prioritising of expenditure cuts. We need them to focus on both, but expenditure cuts are more challenging given that public sector wages, social grants and interest payments make up 60% of the total expenditure budget. So where do they cut if they cannot easily cut these components?
The risk of rising taxes hurting the economy through downward pressure on SA’s currently improving growth can be avoided through a suitable mix of taxes. “If the tax increases come in at the top level, as we expect they will, then the impact on the man in the street won’t be as severe.
So yes, while a 2% VAT hike would be painful, a 0.5% increase could be manageable in terms of impact on the consumer. And if, as we expect, the mix means hiking the top marginal tax rate, which includes the wealth or rich taxes such as capital gains tax and dividend taxes, then we don’t expect the economy and consumer to be put under increased pressure. Of course there will be tax hikes such as fuel levy and excise increases, but these will be the normal increases we see every year.
In order to meet the Ministry’s tax target of R28 billion, other tax options, in addition to those already mentioned, include an increase in estate duties, securities and sugar taxes. I do not expect the much-talked about Wealth tax to be implemented in the short term.
A tighter Budget is key when it comes to SA’s policy mix as it could give the SA Reserve Bank the room that they need to be able to cut interest rates as we still expect them to in the second half of this year. At least some of the tax pain expected from this Budget will be negated by lower inflation and interest rates &#8211; but the bulk of the tax pain will be at the top end.

Op-Ed: S.A. Budget must go bigger on tax & spending cuts

Publius Cornelius Tacitus, who lived during the first century AD, gave this warning: “The more corrupt the state, the more numerous the laws”. It was an equation – of an unusual kind – based upon no mathematical or scientific model, it was based on an observation of social behaviour; what later academic studies have described as behavioural science, a science known for its inexactitude. Tacitus’ wisdom has, however, withstood the test of the millennia.
Like Lord Acton’s aphorism about the insidiously corrosive effects upon the human psyche of an intoxication with power, Tacitus’ observation is based upon certain immutable and timeless human characteristics. Both observations are universally verifiable, irrespective of the era or the place.
In the United States there is a bi-annual migration of sorts; a migration of lobbyists, numbering several thousand from around the country, who descend upon the nation’s capital, each obeying an emphatic command to do the bidding of the corporate imperative.
Because money is the advantage that is sought by all, and because exemptions from the federal tax regime represents a singular advantage that can be measured by the measure that counts, these lobbyists are singularly responsible for the most intricate, the most incomprehensible tax code ever devised.
The Federal Tax Code comprises no fewer than 75,000 pages when last counted, in 2014. The uncompleted task, which relied as much upon calculation as on actual counting, was then abandoned and has not since been resurrected. Many of these pages deal with the special interests pleaded for by the lobbyists, which are stipulated in innumerable exemptions; provided only that there had been a bribe sufficiently attractive to seduce the requisite number of lawmakers. 
How can this possibly be better than a vastly simplified flat rate of taxation with no exemptions and no special interests? It is a system that has been proven, in practice, to raise even more revenue than the present graduated method, which does not properly serve either the purpose of revenue collection, or of equity; the latter being the principal reason that is constantly advanced for the stubborn endurance of a failed system.
In the United States the billionaires: the multi-national corporations, the moguls of the financial system and the speculators of Wall Street, all of whom have access to their Capitol Hill influence-peddlers, pay less tax, as a percentage of income, than the average working man – some pay no tax at all. Where is the equity in that? The simplified system will moreover largely eliminate the employment of the lobbyists, and with it, the opportunity for large scale corruption.
What Tacitus foresaw, and what the passage of time has proven, is that corrupt people armed with political power will willingly trade privilege in exchange for reward. What Lord Acton understood when he proclaimed, centuries later, that power tends to corrupt, and that absolute power corrupts absolutely, is that the corrupt are drawn towards power. From this collective wisdom may be derived a most salutary lesson: those armed with the power to make laws should be restrained to make only those that pass the test of necessity. These would be only those laws that advance a legitimate common interest and do not needlessly impede individual liberty.
It has been said that there is good law. This idea profoundly misconceives the nature of law: it is a restraint upon individual liberty. Some restraints are necessary; the liberal philosophers, John Locke and John Stuart Mill understood this necessity, but much of it is unnecessary and even pernicious.
There is no good law; there is only necessary law, which is the law that serves a social utility. And then there is the law that undermines, distorts, enervates and destroys the stuff of human endeavour and with it, as in the extreme cases of Soviet Russia and North Korea, the human spirit. The essential feature of this law, is corruption. 
Statutory law does not emerge from wisdom, compassion or goodwill; it is the product of a temporary authority. Thomas Hobbs, another liberal philosopher, expressed the matter in this way: “It is not wisdom but authority that makes a law.” 
If, when the ANC had come to power, they had set about to expunge the statute book of all the laws that offended against individual liberty; if they had set an objective of increasing the freedom of the individual instead of increasing the burden of restitution; if they had made only necessary laws, South Africa would likely have become, within 22 years, an educated, prosperous and harmonious society. Instead, while largely ignoring the pernicious legislation of the previous dispensation, they set about to enact a raft of new national legislation (over 1200 at the last counting) all of which was driven by the singular objective of control.
The result of all these interventions is that there are labour laws that destroy jobs, mining laws that have practically destroyed the once prosperous mining industry, legislation designed to control the medical profession and medical services that systematically undermines these essential services, Twin Peaks legislation that will surely create another massive bureaucracy while destroying much of the financial services industry. And now, the Hate Speech Bill, that will destroy the right to the freedom of expression. In each of these instances, and there are very many more, the opportunity for corruption and the pleading of a special interest is increased and individual liberty, surrendered. 
When President Jacob Zuma invited the well-heeled to attend the ANC jamboree with the observation that the return upon the extravagant cost of the event would be handsomely rewarded by the business opportunities on offer, he was openly soliciting those seeking the benefit of a corrupt patronage to participate in a bounteous feast. There were, no doubt, very many takers. The astonishing thing is that there was so little outrage expressed at this brazenly corrupt proposal.
Against such formidable abuse of authority there is only the sanctuary of the rule of law. As with the Nkandla scandal, Zuma and his innumerable puppets must be taught that they are all accountable to the law. If the National Prosecuting Authority will not fulfil its constitutionally mandated task and do so on behalf of the public, then the public, through representative organisations and NGOs, must do so in its stead.  
The ANC government will, in its relentless pursuit of self-interest, surely ignore the wisdom of Tacitus, but that wisdom will certainly outlast the ignorant prediction, made by Jacob Zuma, of the “1,000 year reign”. 
 
Rex van Schalkwyk is a former judge of the Supreme Court of South Africa and is the chairman of the FMF’s Rule of Law Board of Advisers. He is the author of three books and numerous published articles. This article may be republished without prior consent but with acknowledgement to the author. The views expressed in the article are the author’s and are not necessarily shared by the members of the Free Market Foundation.﻿

Op-Ed: The wisdom of Tacitus on corrupt states withstood the test of time

Ask the average person to name three diseases that are prevalent in Africa and they would most likely respond by saying “HIV/AIDS, Malaria and Ebola” based on what gets the most attention. But neglected tropical diseases (NTDs) are among the most devastating groups of communicable diseases. More than 40% of the over 1.5 billion people affected by these debilitating diseases are in Sub-Saharan Africa.
Until last September, I didn’t even know NTDs existed, let alone understand the disadvantage they wage on our continent’s societies and economies.
READ: <a href="/news/special-report/2016/12/14/eradicating-neglected-tropical-diseases/">Why this Nigerian multi-millionaire is working hard to eradicate neglected tropical diseases in Africa﻿</a>
NTDs are a group of parasitic and bacterial infectious diseases; the most prevalent of which are intestinal worms, schistosomiasis, lymphatic filariasis, (sometimes referred to as elephantiasis) blinding trachoma, and river blindness. These diseases can lead to malnutrition, stunted growth, disfigurement, and blindness &#8211; keeping children out of school and adults out of work and trapping people in a cycle of poverty. In fact, sub-Saharan Africa could gain <a href="http://www.end.org/docs/default-source/default-document-library/erasmus-ntd-data-set_may-2016.pdf?sfvrsn=2">$52 billion in economic productivity</a> by 2030 if the World Health Organization’s 2020 control and elimination targets are met for the five most common NTDs.
As a <a href="https://www.globalshapers.org/">Global Shaper</a> and entrepreneur, I feel a responsibility to support my continent’s development. The Global Shapers community—an initiative of the World Economic Forum&#8211;gives me a platform to shine a light on issues hindering economic prosperity and empowerment, in my country and community. As founder and director of an investment and advisory firm focused on start-ups and early-stage companies in Zimbabwe, I am passionate about supporting my country’s growth potential. Furthermore, as a millennial, I feel my “digital native” generation is naturally pre-disposed to share information and raise awareness for issues like NTDs, creating a movement toward positive change. For these reasons, I have become a fervent supporter of the efforts to control these stealth causes of poverty in my own backyard.
My introduction to NTDs came just last September, when I met <a href="http://www.end.org/docs/default-source/default-document-library/erasmus-ntd-data-set_may-2016.pdf?sfvrsn=2">the END Fund</a>, a private philanthropic initiative putting capital to work in pursuit of the bold ambition to end the most prevalent NTDs by 2020.  At a breakfast meeting in Harare, where I was invited as part of the Global Shapers Harare Hub, the END Fund opened my eyes to the economic implications of these diseases and the scalability of control efforts. Treatment typically costs just $0.50 per person per year, so it immediately became clear to me that the return on investment on this issue is unparalleled. I was taken aback by the obvious improvements that could be made to our economy by ending suffering caused by NTDs, and how many of us are simply unaware of the scale of these diseases.
Just 72 hours later, I was on the road with the END Fund, along with partners from Higherlife Foundation and the Ministry of Health and Child Welfare, to witness a mass drug administration (MDA) in rural Zimbabwe. It was staggering how simple and effective the treatment programme is. The drugs they distribute are readily available through the largest-ever drug donation programme from pharmaceutical companies (worth over $4 billion annually, providing over 5.5 billion tablets since 2012). Seeing the END Fund and their partners in action, mobilising resources and facilitating existing solutions, opened my eyes to the practicalities of NTD control. This effort just needs our priority.
Recently, I was honoured to be asked by the END Fund to take part in their side-event during WEF Davos, a closed roundtable discussion which gathered philanthropic and industry leaders, from the highest ranks of business, government, and faith, to discuss how the progress of public private partnerships can end NTDs. I was proud to represent my generation at a table of influential world leaders, including Rwandan Minister of Natural Resources and the Archbishop of Canterbury, and the heads of several pharmaceutical companies, discussing how we can work together to end these scourges. This experience (more <a href="/video/?bctid=5299956790001">here</a> on CNBC Africa live) solidified my commitment to put NTD control on my generation’s agenda.
As millennials, we can bring our society to a higher standard of wellness by harnessing our enthusiasm to make a difference, and capitalising on our creativity through social media. My parent’s generation led the efforts against life threatening diseases like malaria. Now the torch has been passed to us to help fellow Africans to lead healthier, happier lives. For this reason, I encourage all young people to ask themselves, as I did, “How can I help?”  It is not always about the capital that we can put towards the cause, but rather the momentum we can build by utilising our networks to raise awareness and bring an end to preventable NTDs in sub-Saharan Africa as a matter of real urgency.﻿

Africa's neglected disease

Tropical storm Dineo has killed seven people in Mozambique since it hit the eastern coast on Wednesday, the government disaster centre said on Thursday.
Mozambique&#8217;s emergency operational centre said in a statement about 130,000 people living in the Inhambane province, 500 km north of the capital Maputo, had been affected by the storm. About 20,000 homes were destroyed by heavy rains and fierce winds.
The government said the situation was less severe in Gaza, which borders South Africa, but that there were fears of flooding in the area.
 
(Reporting by Manuel Mucari; Editng by Angus MacSwan; Writing by Mfuneko Toyana)﻿
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Storm Dineo kills at least seven people in Mozambique

Countries in the West African Economic and Monetary Union (WAEMU) are on track to see medium-term economic growth of about 6 percent after recording 6.5 percent growth last year, the International Monetary Fund (IMF) said on Thursday.
However, the eight-nation currency zone is &#8220;subject to significant downside risks&#8221;, including global uncertainties, sluggish structural reforms and falling cocoa prices, it said in a statement.
Member countries using the West African CFA franc &#8211; a currency pegged to the euro &#8211; include Ivory Coast, Senegal, Guinea-Bissau, Mali, Burkina Faso, Niger, Togo and Benin.
&#8220;Economic activity has remained strong but vulnerabilities have increased,&#8221; the IMF&#8217;s Boileau Loko said following a mission to regional economic hubs Abidjan, Ivory Coast and Dakar, Senegal.
Growth has been bolstered by robust domestic demand while inflation has remained subdued due to continued solid agricultural production and low oil prices.
But Ivory Coast, the zone&#8217;s dominant economy making up about 40 percent of its GDP, is in the midst of a crisis in its world-leading cocoa sector, a key source of export revenues.
Cocoa has piled up at Ivorian ports for weeks and has been left to rot on trees as exporters, having wrongly speculated that prices would extend years-long gains, declined to purchase beans to fill unprofitable contracts and defaulted.
New York cocoa futures fell to their lowest level in nearly 8-1/2 years this week and London cocoa touched a 3-1/2-year low before rallying on Wednesday.
Across the zone, an overall fiscal deficit of 4.5 percent of GDP in 2016 was higher than planned. The IMF encouraged WAEMU members to stick to pledges to reduce budget deficits to 3 percent of GDP by 2019.
&#8220;Public debt is on the rise and reserve coverage has declined to 3.7 months of imports, reflecting a continued expansion in public infrastructure and lower-than-expected external financing,&#8221; Loko said.
The IMF meanwhile said the regional central bank&#8217;s decision to increase its credit facility rate by 100 basis points would encourage banks to reconsider their risk policy and strengthen their capital.
 
(Reporting by Joe Bavier; Editing by Angus MacSwan)﻿

West African CFA franc zone to see strong growth – IMF

Angolan Vice President Manuel Vicente had been charged in Portugal with corruption and money laundering, the Prosecutor General&#8217;s office in Lisbon said on Thursday.
Vicente, seen as a possible successor to President Jose Eduardo dos Santos who has been in power since 1979 and intends to retire next year, is accused of bribing a magistrate when he was chief executive of state oil company Sonangol.
A former prosecutor, Orlando Figueira, who was arrested a year ago, has been charged with receiving a bribe of 760,000 euros ($810,000) to shelve an investigation into Vicente&#8217;s dealings in Portugal before he became vice president.
The Angolan vice president&#8217;s office had no immediate comment. Angola has branded previous attempts by Portugal to investigate Vicente as &#8220;revenge by the former colonial master&#8221; and &#8220;neo-colonialism&#8221;.
The prosecutor&#8217;s office will notify Angola about the charges and ask for its cooperation, it said.
Two of Vicente&#8217;s legal and finiancial representatives, Paulo Blanco and Armindo Pires, both Portuguese, were also charged with corruption and money laundering for allegedly paying the bribe jointly with Vicente and arranging a job in a bank as a favour for Figueira.
Reuters was unable to reach them for comment.
&#8220;In exchange, the former prosecutor ruled in favour of the chief executive of the Angolan company in two investigations, both of which were ultimately shelved by the prosecutor,&#8221; the office said.
According to local media, the probe that was shelved in January 2012 focused on the origin of funds with which Vicente had bought a luxury apartment in Lisbon.
($1 = 0.9383 euros)
 
(Reporting By Andrei Khalip, additional reporting by Herculano Coroado; Editing by Robin Pomeroy)﻿

Angolan VP charged with corruption in Portugal

CNBC Africa, first in business worldwide, today announced it will launch a brand new, state-of-the-art television studio and lounge in the Kigali Convention Centre.
This comes as the pan-African business and finance channel marks its one year anniversary in Rwanda. The new studio in the heart of one of Africa’s leading Convention Centre’s brings CNBC Africa and its viewers, one step closer to some of the major gatherings scheduled to be held at the venue over the next few years.
Since launching an initial presence in Rwanda in February 2016, CNBC Africa has covered such major events as the World Economic Forum on Africa, held in Kigali last year, along with coverage of the African Union Summit and East African leg of the All Africa Business Leaders Awards, the continents leading business award.
Roberta Naicker, Managing Director of the ABN Group said: “This television studio in the Kigali Convention Centre marks yet another step towards our ongoing commitment to not only Rwanda, but East Africa, and in telling the African economic story from all corners of the continent. As the channel celebrates its 10th Anniversary on June 1, we are excited to be able to add this important presence on the front line of one of the most high-tech convention center’s to our content offering.”
The new studio will prove to be of immense value during key events at the convention centre as CNBC Africa will be able to tap into some of the high profile delegates and speakers, first and live. The adjacent CNBC Africa lounge will be a first-class space for guests to wait and relax ahead of their television appearance.  
Rwandan Minister of Finance, Claver Gatete, will be cutting the ribbon to open the second CNBC Africa television studio in Rwanda. 
Stay abreast with the day’s activities with the hashtag: #KCCTvLaunch﻿

CNBC Africa opens new studio at The Kigali Convention Centre

Nigeria&#8217;s &#8220;bad bank&#8221; said on Thursday it had taken over the day-to-day running of Arik Air in an attempt to rescue the country&#8217;s largest airline, which it placed in receivership last week after it was unable to pay workers or creditors.
Michael Arumemi-Ikhide, the founder of Arik Air, has said the government seized the airline to meet a political goal of creating a &#8220;national carrier&#8221; and told Reuters he would challenge the move in court.
Arik Air, which controls around 55 percent of the domestic market and is West Africa&#8217;s biggest airline by passenger numbers, has been hard hit by Nigeria&#8217;s currency crisis as its customers has to pay for fuel in dollars not naira.
Arik owes AMCON, Nigeria&#8217;s bad bank, around 147 billion naira and another 165 billion naira to four commercial lenders, AMCON&#8217;s chief executive, Ahmed Kuru said in a presentation to lawmakers on Wednesday following the takeover.
Its founder Michael Arumemi-Ikhide owed AMCON 263.7 billion naira from other businesses and Arik Air, the bad bank said. Arumemi-Ikhide was not available for comment on Thursday, while Arik Air declined to comment.
&#8220;We have deployed people there (at Arik) to manage it, pending when we can stabilise it and then bring in investors to take (it) over,&#8221; Kuru said, adding that AMCON would review the next steps after managing the airline &#8220;for about six months&#8221;.
Arik had wanted to expand internationally both to bring in more hard currency, as well as to cushion the impact of the economic slowdown at home, and was looking for new investors to help it grow rather than using debt.
However, AMCON said the state of the airline had turned off prospective investors, with only about 10 planes flying out of a fleet of 30 and total assets of less than 40 billion naira.
&#8220;Converting the airline to a national carrier is not on the table. Government does not have plans to do that. The interest of government is that we must continue to fly,&#8221; Kuru said.
Arik generates around 7 billion naira monthly but would need around 10 billion naira to stabilise it, Kuru said, adding he expected the airline to be able repay the intervention monies within the next three months.
AMCON was thinking of suspending Arik&#8217;s international flights to save cost and focus on domestic routes, Kuru said.
 
(Writing by Chijioke Ohuocha; Editing by Alexander Smith)﻿

Nigeria takes controls of Arik Air to stabilise it ahead of sale

South African banks accused of rigging rand currency dealing should be punished if a report by the competition watchdog is true, the National Treasury said on Thursday.
&#8220;We view this matter in a very serious light and welcome any steps taken against wrong-doing by any financial institutions,&#8221; the treasury said in a statement.
The Competition Commission said on Wednesday it had found the banks, including U.S., European, Japanese and Australian lenders, had colluded to coordinate their trading activities when dealing in the South African and U.S. currencies.
 
(Reporting by Mfuneko Toyana)﻿

CNBC Africa

Nigeria's president meets head of senate as sick leave continues

Why Africa must discard borrowed robes and embrace its rich cultural resources

Steinhoff, Shoprite drop talks to give birth to an African retail giant

Budget 2017: These South African taxes are likely to go up

Why Africa's richest province Gauteng is looking to drive investment into West Africa

What you need to know about tropical storm Dineo

Tax predictions for S.A's Budget 2017

Protect yourself from ATM fraud

Op-Ed: S.A. Budget must go bigger on tax & spending cuts

Op-Ed: The wisdom of Tacitus on corrupt states withstood the test of time

Africa's neglected disease

Storm Dineo kills at least seven people in Mozambique

West African CFA franc zone to see strong growth – IMF

Angolan VP charged with corruption in Portugal

CNBC Africa opens new studio at The Kigali Convention Centre

Nigeria takes controls of Arik Air to stabilise it ahead of sale

S.Africa Treasury says banks should be punished if currency rigging is true

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CNBC Africa

Nigeria's president meets head of senate as sick leave continues

Why Africa must discard borrowed robes and embrace its rich cultural resources

Steinhoff, Shoprite drop talks to give birth to an African retail giant

Budget 2017: These South African taxes are likely to go up

Why Africa's richest province Gauteng is looking to drive investment into West Africa

What you need to know about tropical storm Dineo

Tax predictions for S.A's Budget 2017

Protect yourself from ATM fraud

Op-Ed: S.A. Budget must go bigger on tax & spending cuts

Op-Ed: The wisdom of Tacitus on corrupt states withstood the test of time

Africa's neglected disease

Storm Dineo kills at least seven people in Mozambique

West African CFA franc zone to see strong growth – IMF

Angolan VP charged with corruption in Portugal

CNBC Africa opens new studio at The Kigali Convention Centre

Nigeria takes controls of Arik Air to stabilise it ahead of sale

S.Africa Treasury says banks should be punished if currency rigging is true

News Tips

Advertise With Us

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