South Africa

JOHANNESBURG – South African consulting engineers have expressed deep concern about the quality of capital-project planning within the public sector, and warn that the problem of budget overruns and poor service delivery could grow unless departments take active steps to recruit and retain a better cadre of technical professionals. Addressing the media, Consulting Engineers South Africa (Cesa) President Zulch Lötter says that the governing party’s policy of “deployment” is undermining the career development of technical professionals within departments and at municipalities, and is also leading to poor project planning and delivery. “We believe that at the crux of South Africa’s service delivery dilemma is the shortage of technical leadership in the public sector,” Lötter says, noting that the number of technical professionals has fallen from 5 500 to around 1 500 people over the past few years. Cesa, which represents more than 460 consulting engineering practices, which collectively employ 21 200 people and report yearly fee income of around R17-billion, was particularly concerned with the quality of capital expenditure (capex) planning within the public sector. The organisation says that the authorities could no longer abdicate their responsibility for proper infrastructure and capex planning, and say that it hopes that the National Planning Commission, headed by Minister Trevor Manuel, will help ensure that a framework is put in place to deal with the problem.

JOHANNESBURG – South Africa recorded a trade surplus of R10,3-billion in December, as exports stood at R53,9-billion, while imports of R43,6-billion were reported, official data show. This compares with a trade surplus of R8,4-billion in November 2010, indicating a month-on-month improvement of R1,9-billion. The South African Revenue Service (Sars) says that the surplus was buoyed by higher commodity exports, specifically iron-ore, precious metals and base metals. Overall trade activity was down in December, as exports decreased by R6,3-billion, or 10,4%, and imports fell by R8,2-billion, or 15,9%. Sars also highlights that South Africa reported an overall yearly surplus for the first time since 2003, when a yearly surplus of R12-billion was recorded. The overall surplus for 2010 was R5-billion compared with a deficit of R27,3-billion in 2009, an improvement of R32,3-billion, or 118,3%. Sars adds that the November to December change in exports of goods reflects decreases largely in prepared foodstuffs, beverages and tobacco, which decreased by R459-million – a drop of 25%. Vehicle, aircraft and vessel exports decreased by R807-million, or 15%. Mineral exports decreased by R908-million, representing a decrease of 6%. Precious and semiprecious stones and metals decreased by R1,6-billion – down 10%. Base metals and articles thereof decreased by R1,6-billion – down 18%. The November to December change in imports of goods – an overall 15,9% drop – was due largely to fewer imports of metals and minerals.

PRETORIA – The Public Works Department has invested R32-million in the development of essential skills for young people, particularly in the built environment sector. A hundred learners from the Northern Cape attended their first day of the Northern Cape Artisan Development Programme at the Nuclear Energy Corporation of South Africa (Necsa) last week. More youths from other provinces will be recruited in future intakes. Public Works Deputy Minister Hendrietta Bogopane-Zulu says that the 18-month Artisan Development Programme will provide learners with an opportunity to earn an income while acquiring technical skills that will improve their chances of employment, entrepreneurship and overall development. The programme will focus on the training of boilermakers, fitters and turners, mechanics, electricians and welders. The learners will undergo six months of theoretical training and then proceed to experiential learning for a minimum of 12 months.

Africa & the world

WASHINGTON – The world faces a broader trend of increasing food and commodity prices and more countries should wake up to the need to curb price volatility, World Bank President Robert Zoellick says. Zoellick calls on Group of 20 global leaders to "put food first" to tackle the surge in prices and increased volatility threatening the poor and driving up inflation in developing countries, mainly in Asia. "We are going to be facing a broader trend of increasing commodity prices, including food commodity prices," Zoellick says. "This can put pressure but also create opportunities," he adds, noting that developing nations could boost revenues by increasing food production to meet rising global demand. He says that increased consumer demand, especially for sugar and meat, in fast-growing emerging economies is a major factor pushing prices higher compared with the 2007/2008 crisis. A mix of high oil and fuel prices, growing use of biofuels, bad weather and soaring futures markets pushed prices to record levels in 2007 and 2008, sparking violent protests in Africa. Zoellick says that the Food Price Index of the United Nations Food and Agriculture Organization, or FAO, which measures monthly prices changes for a food basket of cereals, oilseeds, dairy, meat and sugar, showed food prices surging to above 2007/08 levels. Higher food prices are set to push the index to a record high in January for a second straight month.

ABUJA – Nigerian President Goodluck Jonathan says that he expects wide-ranging reforms to the mainstay oil and gas industry to be passed into law before the end of the current parliament in May. Speaking during a visit to Turkey, Jonathan says the move will "give fresh impetus to the federal government's efforts to further liberalise Nigeria's oil sector and attract greater foreign investment", according to a statement from his office. The Petroleum Industry Bill (PIB), long delayed by constant revisions, will rewrite Nigeria's decades-old relationship with foreign oil partners, including firms such as Royal Dutch Shell, Exxon Mobil and Chevron. The proposed legislation will alter everything from the fiscal framework for offshore oil projects to the involvement of indigenous firms in the sector. Uncertainty over the plans – which could significantly increase the cost of operating in Africa's biggest oil exporter – have put billions of dollars of potential investment on hold, according to industry executives. The bill has been before Parliament for months and, with April Presidential, Parliamentary and State governorship elections fast approaching and political minds elsewhere, many observers expect it not to pass under the current administration.

KHARTOUM – Sudan’s Vice-President says that he accepts the oil-producing south’s split after the first official results showed a 99% vote for independence in a referendum hoping to end a bitter cycle of civil war. The January 9 vote was the culmination of a 2005 north-south peace deal aimed at putting an end to the conflict that claimed two-million lives and destabilised much of East Africa. The south will likely celebrate independence on July 9. “We announce our agreement and our acceptance of the result of the referendum announced yesterday,” Vice-President Ali Osman Mohamed Taha said in the north’s first reaction since the results. “We wish our brothers in the south good luck and a fruitful future in organising the issues surrounding the new country.” The comments end speculation that hard-line elements in the Khartoum government will delay recognition of the referendum to garner leverage ahead of talks on how to divide the country’s assets and liabilities. Taha negotiated the 2005 accord with southern rebel leader John Garang, who died three weeks after taking office in the coalition government formed under the deal.

BRUSSELS – The European Union (EU) has agreed to freeze the assets of Tunisia’s former President Zine-al Abidine Ben Ali and his wife, while holding out the prospect of better trade ties with a postelection government. EU officials say that the sanctions could be extended in future to other people considered to have misappropriated State funds. Ben Ali and his family built up interests in many Tunisian companies and industries during his two decades in power, including hotels, banks, tuna exports, construction, newspapers and pharmaceuticals. He was driven out by a popular revolt on January 14 and sought refuge in Saudi Arabia.