Thursday, July 1, 2010

From Creamer Media in Johannesburg, I'm Amy Witherden.

Making headlines:

South African power utility Eskom says that it cannot afford demands sought by unions, adding to fears of a strike that could disrupt power supply during the 2010 FIFA World Cup.
National Union of Mineworkers (NUM) spokesperson Lesiba Seshoka said yesterday that the union, which represents one-half of the firm's 32 000 employees, has issued Eskom with a notice of its planned strike. National Union of Metalworkers of South Africa spokesperson Castro Ngobese said that its members had also rejected Eskom's latest offer and would join the NUM in the planned strike. Eskom's third trade union Solidarity said that its members had also rejected an improved offer from the firm, but it wanted the utility to revise its offer by Monday, before it takes a decision on whether to join any strike.
Eskom CEO Brian Dames says that the company's offer of an 8,5% pay rise and a R1 000 a month housing allowance was "fair and reasonable." He added that a strike could disrupt supply if it lasts for more than a few days, and that Eskom would take disciplinary measures against any workers that participate in strikes that are considered illegal.

Africa has $1,7-trillion of potential wealth and production in areas such as agriculture, tourism and water, a study shows, pointing to new investment areas that stretch beyond commodities. The study by investment research firms Africa Investor and The Africa Group says that the potential represents an additional market size of $762,4-billion.
Gross domestic product in Africa has been boosted by its vast natural resources wealth in recent years and new partnerships in other sectors could also lift growth.
A McKinsey Global Institute study says that Africa's strong growth will continue at a rapid pace and that investors and businesses cannot afford to ignore the continent's potential, which goes far beyond commodities.
The study also estimates stocks of extractable oil, gas, coal and uranium to be worth between $13-trillion and $14,5-trillion.

The joint mining declaration over which Mineral Resources Minister Susan Shabangu presided on Wednesday is "a very important first step in the right direction", says regulatory lawyer Peter Leon.
Leon, who has an intimate knowledge of what it takes for a country to be competitive in mining and who coheads law firm Webber Wentzel's mining practice group, said that the important aspect of the historic 13-point declaration was that it was a government, labour and business joint venture.
Leon's comments came after Shabangu, National Union of Mineworkers president Senzeni Zokwana, Chamber of Mines president Sipho Nkosi, Solidarity president Steve Scott, United Association of South Africa COO Leon Grobler and South African Mining Development Association chairperson Nchakha Moloi agreed to grow and transform the industry that mines a natural endowment valued at R18-trillion by Citibank. Shabangu's economic adviser Dr Iraj Abedian says that the transformation of the mining industry cannot take place without mining industry growth and that South Africa has the capability to regain its global competitiveness.

Also making headlines:

Confederation of Zimbabwe Industries president Joseph Kanyekanye says that the country's economic recovery is threatened by poor electricity supply and a lack of capital as political risk continues to hold back investment.
Public Servants Association deputy GM Manie de Clercq says that public servants could strike next week after the Public Service Coordinating Bargaining Council failed to resolve a wage dispute.
Côte d'Ivoire legislators propose an inquiry into corruption in the cocoa export sector and continued diamond smuggling.
And, Guinea's Supreme Court gives election authorities a further 48 hours to publish the provisional results of Sunday's Presidential election, citing logistical problems.

That's a roundup of news making headlines today.