Wednesday, November 17, 2010

From Creamer Media in Johannesburg, I'm Dimakatso Motau.

Making headlines:

The South African Treasury on Tuesday made it clear that the new R20-billion lifeline to help Eskom keep its build programme on track, still has to be approved as part of the budget process. Treasury spokesperson Jabulani Sikhakhane reacted after a statement by Energy Minister Dipuo Peters added to confusion about the nature and source of the additional funding.
Peters told the National Assembly that it was not, as announced last week, an equity injection, but part of the government's extended guarantee framework for the cash-strapped power utility. Peters was responding to a member statement by Democratic Alliance Parliamentary leader Athol Trollip, who told Members of Parliament that the proposed lifeline was unwise, and that the manner in which it was approved, suspect.
Sikhakhane said that he was "not sure" what Peters was talking about. He reiterated that "the proposed equity injection still has to go through the normal budgetary process, including the submission of the funding request to the Minister's committee on the budget that makes recommendations to the Cabinet". The final word on the matter would only come in late February when Finance Minister Pravin Gordhan delivers his budget address.

It is unlikely that the upcoming 16th conference of parties, or COP16, to be held in Cancun, Mexico, later this month, will deliver a global agreement on climate change, Department of Environmental Affairs deputy director-general, and South Africa's lead negotiator at the conference, Alf Wills said on Tuesday.
Since the 15th COP last year, there has been a distinct loss in the momentum of climate change negotiations, while the deep division between developed and developing nations has persisted, Wills told a South African Institute of International Affairs gathering.
The US has been unable to pass climate legislation, making it unwilling to sign any legally binding emission reduction targets, resulting in other developed nations not being prepared to agree to internationally legally binding commitments beyond the Kyoto Protocol. The current stalemate would likely result in a possible gap between the end of the Kyoto Protocol in 2012 and the start of a second commitment period, said Wills, adding that an inability to reach a global consensus in future would hit Africa the hardest.
Mexican ambassador to South Africa Luis Cabrera commented that greater flexibility by all parties involved in the COP16 negotiations is needed at this crucial stage of negotiations.

Chinese Vice-President Xi Jinping began a trip to minerals-rich South Africa on Tuesday, aimed at securing resources for the Asian economic power and looking to extend its influence on the African continent.
Beijing sees global mining power and regional financial services leader South Africa as a vital source of commodities to fuel its rapidly expanding economy and industries and as a stepping stone to access other African States.
The Chinese delegation and the South African government are expected to sign a bilateral memorandum of understanding for cooperation in geology and mining, and a letter of intent related to South Africa's energy sector, among others.

Also making headlines:

Absa CEO Maria Ramos says that Africa has the potential and advantages to become the next big success story and emulate the successes of Asia, but it still has to address some major problems.
Opposition to a European Union fisheries accord with Morocco has increased, following violent repression of Western Saharan independence protesters.
The South African Parliament's portfolio committee on transport says that it is fully behind the implementation of the Administrative Adjudication of Road Traffic Offences, or Aarto.
And, Standard Bank senior executive Andrew King says at a Chinese mining conference that the construction of transportation and power infrastructure across Africa could provide the next big opportunity for Chinese firms aiming to invest in the continent.

That's a roundup of news making headlines today.