May 22, 2015
For Creamer Media in Johannesburg, I’m Sane Dhlamini.
Making headlines:

Trade and Industry Minister Rob Davies says the value of Agoa is diminishing.

Uganda rules out sending its troops to Burundi.

And,  the revised e-toll  tariffs get mixed reaction.

The US Act that creates economic growth opportunities for Africa was diminishing in value for South Africa, according to Trade and Industry Minister Dr Rob Davies.

Davies was speaking ahead of his Budget Vote speech in Parliament, on Thursday, where he said that the costs of the African Growth and Opportunity Act (or Agoa) were going up. He said it offered South Africa the status quo and that the tariff quotas versus tonnages exported were far apart.

He said the value of Agoa would diminish over time as the US was moving away from nonreciprocal concessions to reciprocal agreements.

He was referring to the issue around poultry imports, which he said “was just but one demand”, adding that the US was seeking trade concessions for poultry, pork and beef.

Meanwhile, US senators Johnny Isakson and Chris Coons, who represent chicken-producing states in their country, threatened to block South Africa from Agoa if it did not lift the import duties on poultry products.

Uganda, which has sent its troops to address regional instability in South Sudan and Somalia, is not considering putting any of its soldiers on the ground in Burundi where political unrest spurred an attempted coup on May 13.

Ugandan Prime Minister Ruhakana Rugunda said there were not plans for military intervention in Burundi.

Burundian President Pierre Nkurunziza's bid to run for a third term triggered street protests with opponents saying such a move was unconstitutional and undermined a peace deal that ended civil war in 2005.

Rugunda said nations in the five-nation East African Community, which condemned the attempted coup in one of its member States, remained concerned about events on the ground in Burundi.

He said the region was not taking over the responsibility but was working with Burundi.

The revised e-toll tariffs, announced by Deputy President Cyril Ramaphosa on Wednesday, solicited mixed reactions from businesses, the public and unions in South Africa.

Although still generally rejected by the broader public, Business Leadership South Africa said it was pleased with a hybrid funding model that cements the user-pays-principle while incorporating a contribution from the fiscus, which would alleviate the strain on middle and working class South Africans during tough economic conditions.

Road users in Gauteng would pay up to 50% less a month‚ while those with outstanding amounts owed to the South African National Roads Agency Limited would be offered a 60% discount to settle their bills. Ramaphosa also said that drivers of light motor vehicles would now pay a maximum of R225 a month‚ half what was currently charged.

Minibus taxis and commuter buses remained exempt from paying e-tolls.

Meanwhile, the Federation of Unions of South Africa general secretary Dennis George added that the system was expensive to administer and government had failed to consult with the National Economic Development and Labour Council social partners about a more effective and efficient system, based on the fuel levy system, which was easier to administer.

Also Making headlines:

Africa’s Tripartite Free Trade Area which embraces 26 countries will be officially launched in Egypt on June 10.

The World Health Organisation says the health care systems in West Africa that collapsed during the Ebola epidemic must be rebuilt urgently to provide basic services and confront other killer diseases.

And, South Africa's Reserve Bank left interest rates unchanged, as expected, but warned the deteriorating inflation outlook meant the stance could not be "maintained indefinitely".

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That’s a roundup of news making headlines today