Friday, 28 August - DAILY NEWS SUMMARY
Pretoria News (www.pretorianews.co.za)
Page 6 – Study reveals how severely Covid-19 has affected businesses Page 6 – Freight industry battling to recover
The Star (www.iol.co.za)
Page 1 – Residents clash with police over teenager’s death
Page 6 – SOUTH CHINA SEA COULD AND WILL BE A SEA OF PEACE, FRIENDSHIP AND COOPERATION
Business Day (www.businesslive.co.za)
Page 1 – Aspen raises dividend hopes as it slashes debt and boosts cash flow Page 1 – Massmart boosts ties with Walmart
Citizen (www.citizen.co.za) Page 1 – ‘This time we mean it’
Page 1 – More rate cuts depend on forecast Page 16 – New cases shuts Seoul parly
Mail & Guardian (www.mg.co.za)
Page 1 – Murders and rape cases in Women’s Month Page 9 – Legal battle: labour brokers back in court
연합뉴스 (www.yonhapnews.co.kr)
에스와티니서 30여년 사역 김종양 선교사 부부 코로나19 투병
Study reveals how severely Covid-19 has affected
businesses
Pretoria News
28 Aug 2020
LIAM NGOBENI liam.ngobeni@inl.co.za
A WHOPPING 76% of businesses that responded to a national survey on the impact of the Covid-19 pandemic on their operations have seen their revenue shrinking.
In addition, 23% have had to shut down, temporarily or permanently.
The findings are according to a survey, which revealed that over half of participants across all sectors were currently operating under their normal capacity.
For just 2 in 10, it is business as usual, while only a tiny fraction (2%) has grown its operations.
According to the findings of the new BeyondCOVID Business Survey conducted between June 7 and August 22, 76% of the over 1 800 participating companies have seen their revenues drop since March.
Lings Naidoo from Redflank said sectors most affected were accommodation and food services outlets (93%), construction (89%), arts, entertainment and recreation (87%), service providers such as hairdressers and beauty salons (86%), wholesale and retail (83%), and travel support services companies such as car hire ventures and travel agencies (81%).
“Besides that, 56% of survey participants are currently operating under reduced capacity, and 23% have reported having to shut down.
“Reassuringly, 83% of businesses that have closed expect to open up again at some point.
Only 4% of all companies we received feedback from will remain closed. Most of these companies operate in the beauty, hospitality, food and agriculture sector.”
“When it comes to Covid-19 fuelled retrenchments, accommodation and food services companies top the list.
“About 68% of respondents in these sectors have had to let all, most, or some of the employees go, followed by water, hair and beauty salons (62%), construction firms (61%) and entertainment, arts and recreation players (57%),” Naidoo explains.
Naidoo said a key finding was that employees’ value to their organisation no longer depends on them working from an office: over half (51%) of companies said they were dealing with the pandemic by having 20% or more of their staff working from home.
This particularly concerns the financial and professional services industries, real estate, and the media, information, communications, and technology sectors.
“Interestingly, 44% of these companies say this could become a permanent set-up.”
Naidoo said not all industries had that luxury, such as agriculture, construction, travel, and tourism.
“Only 30% of respondents falling into these categories said they had more than 20% of their staff working from home. They also suffered most retrenchments, revenue losses, and cash flow declines.”
He said to move beyond Covid-19, 36% of organisations were reworking their business strategies to overcome the implications of the pandemic.
“Others are working on enhancing their internal skills set.
“The assets organisations view as most critical to help recovery include enhanced customer services (64%), as well as improved financial (56%), marketing and sales (46%), people management (45%), and planning (44%),” said Naidoo.
Freight industry battling to recover
Pretoria News
28 Aug 2020
EDWARD WEST
THE SOUTH Africa freight and transport industry was still far from recovery from the negative impact of the Covid-19 pandemic, Ctrack SA managing director Hein Jordt said yesterday.
Freight and transport activity increased by the most in a month in June compared with May but activity declined by 1.7% again last month as some sectors in the transport industry continued to experience big declines as a result of the impact of the Covid-19 pandemic.
Jordt said in a statement that generally, a small monthly decline, as recorded by the Ctrack Freight & Transport Index last month, was not a concern for the transport industry, however, some sub-sectors within the industry were seeing “massive drops in activity”.
“The data clearly shows we are far from being out of the woods,” he said, despite “a definite uptick in business activities.”
Road and rail freight volumes were still increasing on a monthly basis.
Yet pipeline volumes declined 33.6% primarily due to reduced traffic in South Africa’s major cities.
Another concerning trend was the decline in international trade, with both air and sea freight volumes falling again after a brief recovery.
Storage and handling volume declines were expected.
“So, while the land transport sector is picking up, albeit slower than desired, the other transport modes have slipped up,” said Jordt.
Ongoing global supply chain disruptions and lockdown rules were having the effect of increasing the barriers to international trade.
Current warehousing and storage volumes were similar to where they were two months ago, while rail and pipeline volumes show deeper declines.
The change in work habits of ordinary people would likely keep the pipeline industry in a prolonged period of decline, said Jordt.
The rail freight industry may also report declines in general cargo volumes as it struggles to compete with road freight for convenience.
The bulk export of commodities such as iron ore and coal were keeping the sector afloat.
Air freight volumes were still largely in a lockdown state, with international passenger traffic likely to remain closed for a month or three longer.
“Even if opened now, passenger volumes will probably be slow to recover. Without passengers on some planes, air freight is not economically viable,” said Jordt.
Some unscheduled air freight had however returned.
“Some airlines can only fly into South Africa from March next year, so this transport sub- sector is still a long way from being fixed,” Jordt added.
It would take years to get back to “normal”, he said, and supply chain constraints could linger longer than initially thought.
Residents clash with police over teenager’s death
The Star Early Edition
28 Aug 2020
GIFT TLOU gift.tlou@inl.co.za
THE shooting death of a 16-year-old Down syndrome teenager sparked fierce running battles between police and residents in Eldorado Park yesterday.
Angry community members yesterday accused police of shooting Nathaniel Julies to death.
Taking to the streets to vent their frustrations, they threw stones and petrol bombs at SAPS and JMPD officers.
The horrific scenes unfolded throughout the day, where the family of the slain teenager mourned.
Nathaniel was allegedly shot by an officer who later dumped him at Chris Hani Baragwanath Academic Hospital, where he died.
His grieving mother Bridgette tearfully narrated the saga of her son’s death.
“I went to identify him and to find him in that condition. It was so devastating. It was like they were killing a dog.
“On his chest it looked muddy with blood and I was told that he was bubbling blood through his mouth and nose.
“My sweet loving boy is gone. Police should be protecting us and we must trust them but when such things happen it cuts deep.”
Nathaniel’s sister Pertunia Julies blamed the police for his death.
“My brother was out on the street and he then came back home and settled in before police arrived and started flashing lights outside.
“My brother is disabled and he went outside, not understanding what was going on. He was then shot once by the police and when they realised he was unconscious they threw him inside the van. I don’t really know what led to them shooting because my brother could not communicate properly,” she said.
However, police spokesperson Mathapelo Peters indicated that police are not sure who pulled the trigger.
“Anyone who may have information of this shooting is urged to come forward with information that could assist in the investigation.”
The angry residents vandalised a building at Eldorado police station as they demanded answers and blockaded streets with stones.
For a short while police refrained from firing at the residents, but the residents came back stronger with some carrying petrol bombs, and in retaliation police unleashed rubber bullets.
The clash led to the injury of two officers and one JMPD member, while a number of residents were caught up in the crossfire.
Fagmida Brown said a stray rubber bullet landed on her chest while walking to the police station.
“I was not part of the protest but I was shot just for walking to the police station to see my nephew, who was locked up for filming the protest with his phone.”
Peters said four suspects have been arrested for public violence.
“Police are calling for calm and restraint as this matter has now been reported to the Ipid for investigations.”
The SA Human Rights Commission was also called to try and restore calm as the battle worsened.
SAHRC commissioner Chris Nissen said: “We understand that residents are angry and a family lost its son. But we do not condone such actions and we will try to gather all facts by engaging with police and community leaders.”
SOUTH CHINA SEA COULD AND WILL BE A SEA OF
PEACE, FRIENDSHIP AND COOPERATION
The Star Early Edition
28 Aug 2020
Embassy of the People’s Republic of China in South Africa
NOT LONG AGO, Foreign Editor of Independent Media Shannon Ebrahim wrote an article explaining the crux of the South China Sea issue, i.e., the United States, in order to maintain its hegemony, has been strengthening its military presence in the South China Sea,
challenging China’s territorial sovereignty, and threatening international and regional peace and stability. We would like to take this opportunity to give some further explanations to help you better understand the historical facts of the South China Sea issue, and enhance your understanding and support for China and countries in the region to maintain peace and stability in the South China Sea.
First, what is the root cause of the South China Sea issue?
China’s sovereignty, rights and interests over the Nanhai Zhudao (South China Sea islands) in the South China Sea have been established over the long course of history, and are solidly grounded in history and law, consistent with relevant international law and practice, and widely acknowledged by the international community.
China’s sovereignty over the Nanhai Zhudao had never been challenged by other countries before 1970s. After World War II, in accordance with such international legal documents as the Cairo Declaration and the Potsdam Proclamation and using warships dispatched by the United States, China reclaimed and resumed the exercise of sovereignty over its territories including
Taiwan and the Penghu Islands, the Xisha Islands (Paracel Islands) and the Nansha Islands (Spratly Islands) which were illegally occupied by Japan. announced the dotted line in the South China Sea, which had not been questioned by any country for a long time. After World War II, many maps of the United States, the Soviet Union, Japan, and neighboring countries in the South China Sea like Vietnam, and the Philippines, showed the dotted line in the South China Sea and clearly marked the Nansha Islands as Chinese territory.
The root cause for the dispute in the South China Sea is that some countries in the region illegally occupied some of China’s Nansha Islands since 1970s. Since then, with the promulgation and entry into force of the United Nations Convention on the Law of the Sea (UNCLOS), disputes over maritime rights and interests such as exclusive economic zones and continental shelves have also occurred between China and those countries.
Second, is the South China Sea issue subject to the regulation of UNCLOS?
The issue of territorial sovereignty is not a matter regulated by UNCLOS. Obviously the ownership of the South China Sea Islands is not subject to UNCLOS. In 2006, in accordance with Article 298 of the UNCLOS, China made a declaration excluding such disputes as involving maritime delimitation from the UNCLOS compulsory dispute settlement
procedures. About 30 countries, including China, have made similar declarations, which constitute an integral part of the UNCLOS.
It has been the consensus between China and relevant countries to settle their disputes through negotiations. However, in disregard of the consensus, certain country initiated the South China Sea arbitration unilaterally, though territorial disputes are not subject to UNCLOS and that maritime delimitation disputes have been excluded from the UNCLOS compulsory dispute settlement procedures by China’s 2006 declaration. In violation of the principle of international law of “state consent”, the Arbitral
Tribunal overstepped its authority and made of law. Many countries have already raised doubts over it. The so-called award is illegal and invalid, which China did not accept or recognize at the very beginning.
Third, what is the real reason behind the tension over the South China Sea issue?
As is known to all, the United States is the external force behind the tensions in the South China Sea. In fact, the South China Sea is currently one of the safest and freest sea passages in the world. 50% of the world’s merchant ships and 1/3 of the maritime trade voyage through this area, and more than 100,000 merchant ships pass through the area every year.
Nearly 60% of China’s maritime trade and more than 85% of energy imports go through the South China Sea, including trade with African countries.
The United States does not have a single inch of land in the South China Sea, but uses the socalled “freedom of navigation” as an excuse to send military forces to the South China Sea.
In aircraft to the South China Sea more than 2,000 times. In July this year, US military aircraft have conducted nearly 70 reconnaissance missions in the South China Sea. Recently it also sent two aircraft carriers to these waters and called on its allies and partners to send warships to this area. While strengthening military presence in the region itself, the US labeled China’s legitimate and reasonable self-defense construction on its own islands and reefs as “militarization”. As Shannon Ebrahim pointed out sharply, “the US views China as a threat to its global hegemony, and so its strategy in the South China Sea is not to resolve disputes peacefully, but to limit China’s
The United States is not a contracting party to UNCLOS. Nor is it directly involved in the relevant disputes in the South China Sea. However, it claims to be the so-called “arbitrator”
of the South China Sea issue and stoked tensions between China and countries in the region.
Recently, the US even went so far as to say that many of China’s claims in the South China Sea have no basis in international law and that the award of the arbitration case is legally binding on both China and the Philippines. It is a brazen violation of the US government’s commitment on not taking sides regarding the issue of sovereignty in the South China Sea.
Such an act seriously violates and distorts international law, and is
As a matter of fact, the United States is always selective about the application of international law. It preaches international law to others but sticks to “American Exceptionalism”, putting itself above the international law. The US once expanded the Johnston Island (if it can be considered an island) from a mere 0.18 square kilometers to 2.4 square kilometers and claimed a 200-mile exclusive economic zone and continental shelf accordingly.
Fourth, how can the South China Sea issue be resolved?
The South China Sea is the shared home for the countries in the region. It should not be a wrestling ground for international politics. Thanks to years of hard work, countries in the region have found effective ways to properly address their differences over territory and jurisdiction issues in the South China Sea. On November 4, 2002, China and ASEAN countries signed the Declaration on the Conduct of Parties in the South China Sea (DOC) in Phnom Penh, Cambodia. China and regional countries on the South China Sea issue. This milestone document embodies the political will of all countries to promote mutual trust and
cooperation and jointly maintain peace and stability in the South China Sea, and has played an important role in maintaining peace and stability in the South China Sea and the region.
At present, China is working with ASEAN countries to fully and effectively implement the DOC and vigorously promote cooperation research, search and rescue, etc. They are stepping up negotiations on concluding the Code of Conduct in the South China Sea (COC), an
upgraded version of the DOC, on the basis of complying with international law and properly taking care of the legitimate rights and interests of countries outside the South China Sea, so as to jointly maintain peace and stability and freedom of navigation in the South China Sea.
Related consultations have made positive progress.
Facts have proved that it is the right way for China and ASEAN countries to implement the DOC and press ahead with COC negotiations to properly manage their disputes, deepen cooperation and maintain peace and stability in the South China Sea. Countries in the region have a shared responsibility to keep the South China Sea peaceful and stable, and no external interference should be allowed to disrupt their common efforts. China is prepared to
strengthen maritime cooperation with other littoral countries, joint development, so as to make the South China Sea a sea of peace, friendship and cooperation.
chineseembassysa@gmail.com Chinese Embassy in South Africa
@ChineseEmbSA
Aspen raises dividend hopes as it slashes debt and boosts cash flow
Business Day
28 Aug 2020
Odwa Mjo Markets Writer mjoo@businesslive.co.za
Eugene CoetzeeLooking better: The Port Elizabeth premises of Aspen Pharmacare, which improved cash flow and reduced debt. /
Aspen Pharmacare slashed its debt mountain and delivered stronger cash flow in financial 2020, reaping the benefits of the stockpiling of everyday essentials by locked-down consumers and raising hopes that it could reopen its dividend taps in coming years.
Aspen, which also operates in several African countries, Australia and Latin America, has been among the winners at a time when the worldwide focus on fighting the Covid-19 pandemic saw a reduction in demand for treatment of other communicable diseases.
In a trading statement, Aspen said net borrowings fell 7% to just more than R35bn, probably putting its leverage ratio (a key measure used by lenders that shows how well a company’s earnings can cover its debt) at least 2.8 times below the agreed ratio of 3.5 times and within the company ’ s target range.
The Durban-based company also said that it delivered strong operational cash flow, resulting in an operating cash flow to headline earning conversion ratio of more than 130%, up from 107%.
The ratio refers to a company ’ s ability to turn profits into available cash.
Aspen ’ s improving financial health comes a year after it was thrown into turmoil when investors dumped its shares on worries that it might not be able to shoulder its R54bn debt load, racked up in a series of acquisitions to diversify its portfolio from being mainly generics to specialist therapies including blood-clot and anaesthetics medicines.
The lopsided capital structure forced Aspen to scrap dividends for the first time in almost a decade in the 2019 financial year. CEO Stephen Saad told Business Day in March the group would reconsider its decision to suspend dividends when it reports annual results in
September. But analysts said Aspen might put off the decision in the wake of a corporate scramble for cash to navigate challenges posed by Covid-19.
“At the moment, given the uncertainties in this economy, most companies are going to be defensive and hold back on a dividend, and I would expect Aspen to do the same,” said Sasfin analyst Alec Abraham.
“The reality is that you don’t know how things will change in this environment. We don’t know if additional lockdown measures will be put in place so you’ve got to remain liquid.”
The company also embarked on an asset-disposal programme including unloading its Japanese business and portfolio of prescription and overthe-counter medicines in Australia, helping to cut debt by more than a third since 2018.
“Borrowings have declined and the cash generation has been generally good, but then the leverage ratio is expected to be 2.5 times, so it’s so close to the covenant that it is unlikely that they will declare a dividend soon. Perhaps in the coming years they will be able to,” said Asief Mohammed, fund manager at Aeon Asset Management.
Aspen also flagged an increase of 11% in headline earnings per share from continuing operations, the company’s primary measure of underlying performance adjusted for nontrading items.
Revenue is likely to rise by 8%-10%, thanks to stockpiling and strong demand for its bloodclot drug, Heparin.
Aspen ’ s share price was 1.47% lower at R140.84 at close of trade on Thursday. / With Tiisetso Motsoeneng and Karl Gernetzky
IMPAIRMENTS ARE EXPECTED TO BE R1.5BN FOR THE YEAR, COMPARED TO R3.8BN PREVIOUSLY
BORROWINGS HAVE DECLINED AND THE CASH GENERATION HAS BEEN GENERALLY GOOD
Massmart boosts ties with Walmart
Business Day
28 Aug 2020
Katharine Child Retail Writer childk@businesslive.co.za
Sowetan/Antonio MuchaveTough times: Makro ’ s Midrand branch in more profitable days. Total sales of Massmart, owner of Game, Makro and Builders Warehouse, fell 9.7% in the 26 weeks to June 28 2020. /
Massmart, which was hit by a R1.2bn first-half loss, is strengthening its relationship with parent Walmart in a bid to turn around the business and leverage off the world’s largest retailer’s expertise. Walmart-owned Massmart, owner of Game, Makro and Builders Warehouse, saw a 9.7% decline in total sales for the 26 weeks ended June 28 2020, after losing R4.6bn in income in the first nine weeks of lockdown.
Massmart, which was hammered by a R1.2bn first-half loss, is strengthening its relationship with parent Walmart in a bid to turn around the business and leverage off the world’s largest retailer ’ s expertise.
Walmart-owned Massmart, owner of Game, Makro and Builders Warehouse, experienced a 9.7% fall in total sales for the 26 weeks ended June 28 2020 after losing R4.6bn in income in the first nine weeks of the Covid-19 lockdown.
But it believes its continuing work with Walmart, one of the world ’ s most valuable companies with a global market cap of more than $350bn will help it become more profitable.
Walmart insider Mitchell Slape took over as CEO of Massmart in September, and took the management team last year to the Walmart offices in Bentonville in the US, and said on Thursday that the global retailer had shown “unflinching ” support for Massmart.
Walmart paid more than $2.5bn for a 51% stake in Massmart in 2010, but the company has lost more than 80% in value and faces a tough future in SA’s weakening economy.
Slape said on Thursday that Massmart had switched its IT SAP software system support to a centre in India that employed 3,000 people and helped Walmart branches around the world with their computer SAP systems. The Indian centre offered “better service and lower cost”
than local support.
“We have been trying to leverage the Walmart world back into Massmart,” said Slape.
One of the major moves to fix unprofitable Game, which bled R416.3m in the six months to June 28, was to introduce new SAP software this year as its existing IT system was 40 years old, resulting in poor inventory and stock management
The company is also bringing in another Walmart veteran, Martin Halle, who has worked for Walmart for more than 20 years in Latin America and the US, to head up its supply chain unit.
Massmart plans to integrate its four businesses’ ordering systems as Makro, Builders Warehouse, Game and Masscash sometimes individually order the same products. Under Halle’s leadership it wants to place orders as one unit so that it
can negotiate better discounts and reduce costs.
Despite the six-month loss, the company says that its having increased its gross profit margin from 19.%2 to 20.1%, despite the pandemic ’ s challenges and kept expense growth at only 1.9%, provide evidence that the new management and the turnaround strategy announced in January are working.
Slape said of his plans to fix the business: “It is a multiyear turnaround journey. This is a milestone in progress. We are encouraged by progress and starting to see our interventions are yielding results.”
In the reporting period, it also spent just more than R46m on severance packages for
Masscash and Dion Wired employees after the 23 tech stores were shut. It is now finalising the sale of eight of its 11 unprofitable Masscash stores.
Massmart had changed its target of R1.5bn cost savings over three years to R1.9bn as it negotiated rentals lower than planned. Slape would not give figures, but said the rental reductions and reduced annual escalations at store and warehouses were “sizeable”. Game was the biggest beneficiary of rental cuts.
Asked in a virtual results presentation when it would return Game and Masscash — owner of Jumbo and Cambridge food wholesalers, which lost R314.5m
to profitability, Slape said he could not give a time frame but he was “impatient ”. He also said he understood the company could not cost-cut its way to profitability.
Massmart ’ s online sales have traditionally been weak, but they increased from 0.8% of all group sales to about 2% in the reporting period, with 100% growth at Game and 160% at Builders Warehouse.
Slape said that if the company could use its large countrywide store footprint, as stores as well as online distribution centres, it could grow the online business. This would help it to compete with Naspers-owned Takealot, which sells many of the same goods online.
‘This time we mean it’
Analysts are sceptical, but this time a minister says government
‘really mean’ to deal with corruption.
The Citizen (Gauteng)
28 Aug 2020
Brian Sokutu – brians@citizen.co.za
Yet another body, the “fusion centre”, has been set up to tackle corruption ... but this time, vows Minister in the Presidency Jackson Mthembu, “we mean it”.
“The president means it. Cabinet means it. All those bringing government to disrepute should be dealt with.”
This new law enforcement coordination centre, working “somewhere in Johannesburg”, would “restore public trust and reputation by arresting anyone behind corruption”, Mthembu said yesterday in response to a question from The Citizen after this week’s Cabinet meeting,
“The only way we can erode public distrust is by acting swiftly and arresting those that are involved in corruption,” he said.
The unit is composed of the Financial Intelligence Centre, the Independent Police Investigative Directorate, the National Prosecuting Authority (NPA), the Directorate for Priority Crime Investigation (Hawks), the Special Investigating Unit (SIU), the State Security Agency and the South African Revenue Service.
Professor Dirk Kotze of the University of South Africa department of political studies said government’s pledge to restore public trust would depend on how it dealt with corruption and the “fusion centre” delivering on the mandate given to them by President Cyril Ramaphosa to clean things up.
Describing the centre’s coordination function as playing “a vital role in dealing with corruption”, Kotze said cooperation among competing arms of state law enforcement agencies was crucial. “In the past a weakness has been the inability to make headway in arresting and successfully prosecuting individuals behind graft,” he said.
The centre, said Mthembu, would present its first six-weekly report to Ramaphosa by next month.
“There are so many wonderful public servants out there and so many good leaders in government.
“But there are a few messing up our name. And it then appears that the entire government is rotten to the core.
“The scourge of corruption, which manifests itself in the blatant theft and looting of state resources, is the biggest societal cancer that has the potential to erode public trust in government’s concerted efforts to improve the lives of the people.”
Mthembu said the SIU “has indicated how many corrupt activities are on their books, something that is encouraging”.
“I have already heard that some people have started appearing in court.
“When we say we must fight corruption, we must show that we are fighting it, having brought these corruption-busters to work together.
“To us it does not matter whether you are in government or in the private sector. When you are corrupt, you must be arrested and brought to book.”
But Corruption Watch executive director David Lewis was sceptical, describing the new body as “a duplication”.
“I don’t know what value it adds to the armory of law enforcement,” said Lewis.
“They better just get on with doing something for people to take them seriously.”
Lewis said government had a dismal track record in fighting corruption due to factional battles within the ANC.
“In the first year of Ramaphosa’s administration, much was done to lay the foundation in fighting corruption,” he said.
“We saw new heads of law enforcement agencies and an NPA national director being appointed, along with the revamping state-owned enterprises.
“But suddenly it all ground to a halt, because of internal factions withing the ANC, where there is a strong faction that genuinely wants to fight corruption, with another equally strong faction not wanting to do so.
“This has led to nothing happening after such a good start by Ramaphosa, which is very disappointing.”
They better just get on with doing something
More rate cuts depend on forecast
GDP: SECOND QUARTER NUMBER IS CRITICAL
The Citizen (Gauteng)
28 Aug 2020
Picture: MoneywebROOM TO RESPOND. The SA Reserve Bank has reduced the benchmark interest rate by 300 basis points this year.
Economists expect an 8% contraction in gross domestic product this year.
Economists expect an 8% contraction in gross domestic product this year.
Further interest rate cuts in South Africa may now depend on how deep the central bank sees the economy contracting. Since the monetary policy committee’s (MPC’s) July meeting, where it used an estimate of a 40.1% annualised contraction in GDP for the second quarter, subsequent key economic data suggests a deep slump in the period as a nationwide lockdown aimed at curbing the spread of the virus limited output.
At 3.2% in July, the inflation rate jumped more than expected and moved back into the central bank’s target range.
Rate of price growth
While that confirmed the MPC’s expectation that the drop below 3% would be temporary, Reserve Bank Governor Lesetja Kganyago said last week that the rate of price growth is not a concern for the MPC for the next 12 to 18 months – and that gives room to respond if the nature of the shock caused by the pandemic turns out to be worse than forecast.
“What is critical for the next move will be [the] outcome of the second-quarter GDP number,” said independent economist Elize Kruger.
She said a big quarterly decline in output that would lead the central bank to cut its estimate for a 7.3% contraction in 2020 and revise down its forecasts through 2022 would open up a
“small window” for further easing.
The median estimate of 10 economists in a Bloomberg survey is for a second-quarter contraction of 42.1%. That would be the deepest quarterly decline since at least 1990.
The statistics office is scheduled to publish GDP data on 8 September, a week before the MPC sits down for its deliberations.
Median estimates by economists
The median estimate of 29 economists in a separate Bloomberg survey is for an 8%
contraction in GDP this year.
Even if the central bank lowers its estimates, that doesn’t guarantee a cut in the key rate, said Gina Schoeman, an economist at Citibank South Africa.
The MPC could opt to treat it as hindsight data and if the second-quarter GDP print is worse than the bank expects, its model would point to a greater quarterly recovery for the three months through September, said Schoeman.
“They are reluctant rate cutters. They were fine to cut during the crisis but if they’re going to cut again, they’re going to be compelled to do so by the data, and the data so far doesn’t suggest that is happening soon,” she said.
The central bank has reduced the benchmark interest rate by 300 basis points this year, taking it to the lowest level since it was introduced in 1998.
If they’re to cut, they’ll be compelled by data Unchanged stance
At the July meeting, where the MPC cut by 25 basis points, two of the five panel members favoured an unchanged stance, which was the first time in 2020 that some policymakers preferred to hold.
“A further downward revision in the Sarb’s [SA Reserve Bank] growth and inflation outlook should create room for a 25 basis-point cut, though the Sarb could hold and wait for more data before acting at the November meeting,” said Boingotlo Gasealahwe, Africa Economist.
New cases shuts Seoul parly
The Citizen (Gauteng)
28 Aug 2020
– South Korea’s parliament was shut down yesterday and a group of lawmakers were in self- quarantine as the country recorded more than 400 new coronavirus infections.
The country endured one of the worst early outbreaks of Covid-19 outside mainland China before bringing it broadly under control with extensive tracing and testing.
But it is now battling several clusters, mostly linked to Protestant churches.
–
Murders and rape cases in Women’s Month
Mail & Guardian
28 Aug 2020
Hlengiwe Msimango was shot and killed in her Ekurhuleni home on August 3 by her fiancé, Mosa Ntsibande, who claimed he thought Msimango was an intruder. Her family reportedly believes it was an intentional act of violence.
Shenice Jonathan was found murdered on the morning of August 7 in an open bushy area in Schauderville, Port Elizabeth. Jonathan reportedly suffered multiple stab wounds. The next week, hundreds of people attended a protest in support of her family.
Zama Chiliza’s body was found on August 12 at Mthwalume, in south Kwazulu-natal. The 38-yearold’s body was the fifth found in the area since March. Chiliza, Neliswe Dube,
Nosipho Gumede, Akhone Gumede and another unidentified woman are all suspected to have been victims of a serial killer.
Moipone Khoele’s body was found on August 13 in Bultfontein in the Free State. The 10- year-old’s hands and legs were tied with wire. Her mother, Motekoa Mailane, told The Daily Sun that when she last saw her daughter she was arguing with her (Mailane’s) boyfriend.
Jane “Nurse” Rathokana was admitted to Tembisa Hospital after her boyfriend allegedly doused her with paraffin and set her alight. She died on August 16. According to Voice of Tembisa
FM, the suspect was arrested and charged with murder.
Mudzunga Muvhulawa (90) and her daughter, Caroline Muvhulawa (54), were both found dead in their home in Lunungwi Village, outside Thohoyandou in Limpopo, on August 16.
The Daily Sun reported that the pair were found lying in a pool of blood with multiple stab wounds. The motive for their murders is unknown.
Asithandile “Kwasa” Zozo was allegedly stabbed to death by her ex-boyfriend on August 17 in Dutywa in the Eastern Cape. The man, Viwe Rulumeni, was arrested and charged. He was allegedly seen chasing Zozo before she was killed. Zozo reportedly organised protests in Dutywa in response to the murder of University of Cape Town student Uyinene Mrwetyana last year.
Nomvuso Atoli’s body was found at a dumping site in Siyanyanzela informal settlement in Philippi on August 20. She sustained injuries to her head. No arrests have been made. Atoli’s sister, Landiswa, told EWN that the 22-year-old was saving up money to study at the
University of Cape Town.
Luis Simone was stabbed to death, allegedly by her daughter’s former boyfriend. The daughter of the 55-year-old, Nkateko, told The Daily Sun that her ex was abusive and, when she left him, he blamed her mother. He allegedly stabbed Simone to death on August 20. The suspect reportedly handed himself over to the police.
An unidentified woman was shot at a school in Mthatha in the Eastern Cape, where she worked as a cleaner. The man who allegedly shot her on Monday is believed to have been in a relationship with the woman. The suspect was arrested on Tuesday.
Tshilidzi Masase was allegedly raped and beaten to death after she attended a party in Ivory Park on Monday. Community members reportedly beat a man suspected of the crime.
Matsie Dhladhla and her two children were found murdered in her home in Protea Glen, Soweto, on Monday. She was found with stab wounds to her stomach and neck, The Daily Sun reported. Her two children’s throats were cut.
Ayanda Mnyaka was also found dead on Monday. Her body was found in her bed in her home in Marikana, Port Elizabeth. According to The Daily Sun, Mnyaka’s boyfriend woke her mother in the early hours of the morning and confessed to the murder. Police confirmed that a suspect was arrested on murder charges.
Two unidentified women, a 21-year-old woman and her 43-year-old mother, were allegedly shot and killed by a man identified as the younger woman’s boyfriend. The pair were killed in their home in Vosloorus on Tuesday. — Athandiwe Saba and Sarah Smit
Legal battle: labour brokers back in court
Some believed a 2018 Constitutional Court ruling would spell the end of labour broking — it didn’t
Mail & Guardian
28 Aug 2020
Sarah Smit
Photo: Luis Enrique Ascui/bloomberg/ Getty
ImagesLogistical challenge: Workers at pallet hire company Chep South Africa will appear
in the labour appeal court next week, seeking to overturn an order that they not be made permanent.
Two years after a landmark Constitutional Court ruling, workers are still struggling against South Africa’s supposedly stifled labour-broking regime. An upcoming court case is the latest skirmish in this ongoing battle. Next week, 201 workers at pallet-hire company Chep South Africa will be in the labour appeal court, asking it to overturn an order saying they should not be made permanent under section 198 of the Labour Relations Act (LRA).
Section 198 limits labour-broking contracts to three months. After three months, the law considers a worker a permanent employee of the client company that contracted the worker through a labour-broking company. The section was introduced to address exploitative labour practices by these companies.
In 2009, Chep appointed C-force to provide it with workers to repair pallets. On its website, C-force describes itself as a staffing-solutions company.
A year later, the workers referred a dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA), in which they asked that section 198 of the Labour Relations Act be applied and they be made permanent employees of Chep.
Section 198 came into effect in January 2015. Labour broker Assign Services fought a three- year court battle to challenge the interpretation of the law, which deems labour broker workers permanent after three months. In 2018, Assign Services lost its case in the
Constitutional Court. Some people believed the ruling was the nail in the coffin for labour brokers in South Africa.
During the 2015 CCMA case, Chep argued that C-force was not a labour broker, but a service provider. The latter company provided it with repaired pallets and not the workers to repair them, Chep said.
The commissioner in the case disagreed, concluding that the workers were an integral part of Chep’s business and that the company exercised control over how they worked. When workers fell behind on production, for example, Chep supervisors would discipline them, which they would not be allowed to do if C-force were an independent service provider.
The commissioner also concluded that a service provider may also still be a labour broker.
In 2018 Chep challenged the CCMA ruling at the labour court and won.
The labour court set aside the CCMA ruling and concluded that, based on the contracts between the two companies, C-force did not provide workers to CHEP to perform work for Chep and, therefore, was not a labour broker. In the court’s estimation, a labour broker merely delivers workers to a client company and provides no other service.
At the appellate court, counsel for the workers will argue that the labour court made a too narrow and literal interpretation of a labour broker, as defined by the Labour Relations Act.
In her heads of argument, advocate Kathleen Hardy contends that the labour court’s definition of a labour broker “stems from an incorrect, archetypal” idea of this type of company as selling only labour.
She further argues that the lower court failed to consider how workers’ rights are infringed on when the labour-broking relationship is allowed to persist.
The court’s “failure to interpret the section purposively perpetuates the harm the [Labour Relations] Act and section 198 aim to protect against”, Hardy argues. “These rights are aimed at protecting more vulnerable, lower paid workers, employed by a TES [temporary
employment service, or labour broker] to situations of genuine and relevant temporary work, and to introduce further measures to protect workers employed in this way.”
The labour court’s interpretation of section 198 empowers companies like Chep to exercise control over the workers’ employment conditions while evading labour regulations, Hardy adds.
Chep’s counsel, Linda Erasmus, notes that the workers did not present evidence to indicate that the company and C-force have “defeated the purposes of the LRA or any other
employment law”.
In her heads of argument, Erasmus contends it is common cause that the 201 workers are employees of C-force and enjoy the right to fair labour practices through the company.
According to Erasmus, the workers are subject to the control and supervision of C-force.
And, as per its contracts with Chep, the company pays them “for services rendered to C- force, irrespective of whether C-force gets paid by Chep”.
But Hardy argues that the labour court ignored evidence that workers are contractually controlled by Chep because they were under its supervision. “The right to supervision and control is one of the most important indications that a contract is in all probability an employment contract.”
Hardy contends that the contract alone is not enough to show the true employment
relationship between the workers and Chep. If the court is blocked from looking outside the contract, “there would be a serious danger that it could be precluded from determining the true position or true relationship”, she says.
에스와티니서 30여년 사역 김종양 선교사 부부 코로나 19 투병
송고시간 2020-08-27 21:06
2007년 에스와티니 국왕(가운데)과 함께 한 김종양(앞 오른쪽에서 두번째) 선교사
[연합뉴스 자료사진]
(요하네스버그=연합뉴스) 김성진 특파원 = 남부 아프리카 에스와티니의 김종양(74) 선교사 부부가 신종 코로나바이러스 감염증(코로나 19)으로 현지 병원에서 열흘 넘게 투병 중이다.
27 일(현지시간) 남아프리카공화국의 한국 선교사 등에 따르면 김종양 선교사와 사모 박상원(70) 선교사는 지난 16 일 코로나 19 확진 판정을 받고 자택 격리를 하다가 집 근처 작은 병원에 입원했다.
그러나 선교사 부부가 고령인 데다 병원 내 음식도 잘 맞지 않는 등 거동과 식사에 매우 힘들어 하는 상황인 것으로 알려졌다.
최근 선교사 아들(목사)이 전화를 했는데 "어머니께서 힘이 너무 없어서 오래 통화도 못하고 끊었다"고 한다고 다른 선교사가 전했다.
실제로 김 선교사는 이날 연합뉴스와 카톡 연결에서 "지금 많이 힘들다"고 짧게 밝혔다.
김 선교사는 아프리카 유일의 왕정국가인 에스와티니에서 1988 년부터 사역해왔다.
그는 자신의 아프리카 대륙선교회(ACM)를 통해 에스와티니의 첫 의과대학인 '에스와티니 기독 의과대학(EMCU)'을 설립해 올해 9 월 개강을 목표로 했지만, 코로나 19 로 인한 전국 봉쇄령 때문에 아직 정부 승인을 기다리고 있다.
하지만 이 대학 보건과학분야는 2013 년부터 개강해 이미 졸업생을 3 회 배출했으며 현재 7 개학과 1 천여명의 재학생이 있다고 윤춘경(건국대 교수) EMCU 총장이 밝혔다.
에스와티니는 인구 110 만명의 소국으로 이 가운데 40%가량이 에이즈 바이러스 감염자로 보도되고 있다. 26 일 기준 코로나 19 누적 감염자는 4 천 387 명이고 사망자는 88 명이다.
에스와티니 현지 교민은 약 80 명으로 이 가운데 16 명이 귀국하고 오는 31 일도 7 명이 귀국할 예정이다.
에스와티니 기독 의과대학 본관
[윤춘경 EMCU 총장 제공, 재판매 및 DB 금지]
김 선교사는 2009 년 에스와티니(구 스와질란드)에서 의료선교, 고아원 운영 등 다양한 선교활동을 한 공로로 제 9 회 연세대 언더우드 선교상을 수상했다.
남아공 현지 한국 선교사는 "한국 내에도 확진 환자가 많이 발생해 어려운 마음이지만 아프리카의 열악한 보건 상황 가운데 있는 김종양 선교사님과 사모님의 쾌차를 위해 지속적으로 기도를 부탁드린다"고 말했다.
앞서 남아공에선 요하네스버그 한글학교 교감으로 약 20 년간 봉사했던 칠순 가까운 교민이 병원에서 코로나 19 로 투병하던 중 25 일 숨졌다. 고인은 남아공 봉쇄령 때문에 한국에 있는 부인이 장례조차 올 수도 없어 교민사회에
안타까움을 더했다.
sungjin@yna.co.kr
