February 28, 2013.

From Creamer Media in Johannesburg, I’m Motshabi Hoaeane.

Making headlines:

Finance Minister Pravin Gordhan adds flesh to the vision of the National Development Plan and invests R827-billion into infrastructure plans.

The South African Chamber of Commerce and Industry and the Manufacturing Circle welcome the tax incentives for South Africa’s Special Economic Zones.

And, Somali rebels threaten a 'long' war with Kenya before its elections.

 

Finance Minister Pravin Gordhan used his 2013 Budget address to lawmakers as a platform to add financial meat to the bare bones of the much-vaunted National Development Plan 2030. The NDP aims to forge a “social compact to reduce poverty and inequality, and raise employment and investment”.

Besides stressing the importance on the multibillion-rand infrastructure programme, on which a further R827-billion would be invested in the coming three years, the Minister emphasised the role of the private sector, which had shown investment reticence since the 2009 recession.

Gordhan elaborated on a range of private-sector-led investment plans in sectors as diverse as hospitality and telecommunications to transport and retail, which he argued signalled “growing confidence in the business outlook, despite difficult conditions”.

He said that government wished to encourage businesses to keep investing in the South African economy, and seize the opportunities therein, noting that various business-supporting initiatives were under way or being developed. He stressed that ‘future growth is also dependent on private-sector investment in the economy’’.

 

Meanwhile, the South African Chamber of Commerce and Industry (or Sacci) welcomed government’s promise in the 2013 Budget to negotiate tax incentives for businesses in certain Special Economic Zones (or SEZs). The National Treasury proposed a 15% corporate income tax rate for these SEZs.

The Budget documents indicated that Finance Minister Pravin Gordhan would authorise tax incentives in the SEZs after consultation with Trade and Industry Minister Rob Davies.

The incentives included a tax deduction for employing workers earning less than R60 000/y, as well as an accelerated depreciation allowance for buildings in these areas, which would be based on the existing regime for urban development zones. The tax incentives are meant to encourage investment in industrial premises.

The Manufacturing Circle also welcomed the R5.3-billion allocated in the 2013 Budget for industrial incentives, the renewed momentum behind the employment incentives for youth and SEZs, and tax relief for small businesses.

 

Somali militants linked to al Qaeda warned Kenya on Wednesday that it faced a "long, gruesome" war, five days before Kenyans vote for a new president and legislature.

The al Shabaab rebel group, which is battling Kenyan troops deployed in southern Somalia under an African peacekeeping mandate, said Kenya was at a crossroads to decide whether it wanted further violence, or peace.

Under pressure from an African Union-led military offensive, al Shabaab has steadily lost territory and influence in Somalia over the past 18 months, but remains the biggest threat to regional stability. It has, however, failed to deliver on threats to carry out a spectacular attack in Kenya.

There was no immediate response from the Nairobi government.

 

Also making headlines:

 

The South African Government says that carbon tax will be phased in from January 1, 2015 as new biofuels incentives are unveiled.

Chad's President Idriss Deby calls on ECOWAS for urgent troop deployment to help fight Islamists in Mali.

A plan is floated at the UN to lift Somalia’s arms embargo for a year.

And, Finance Minister Pravin Gordhan's 2013/14 Budget finds broad favour among political parties and business.

 

That’s a roundup of news making headlines today.