South Africa

CAPE TOWN – While the African National Congress (ANC) welcomes Cabinet's decision to release the National Health Insurance (NHI) Green Paper for discussion, the opposition contends it will not achieve its purpose. ANC spokesperson Zweli Mkhize says measures are needed to overcome the huge inequalities characterising the fragmented, inefficient two-tier health care system. There is also a need to fundamentally change the way health care is funded and provided in both the public and private sectors. Given the huge health care resources at the country's command, the question is not whether NHI is affordable but about making quality health care affordable to everyone, he says. This includes funding for health services, such as antiretrovirals on a sustainable basis. "It is possible to establish a publicly funded and publicly administered NHI, which provides comprehensive and quality care to everyone and accessible free (no user-fees for services covered by NHI) at the point of service." A single, integrated health care system strongly founded on the principles of a primary health care approach, the right to health care, social solidarity and universal coverage, and a not-for-profit and publicly administered NHI fund had to be built, Mkhize says. However, Mike Waters of the Democratic Alliance says that, while solutions for health care problems need to be openly debated, the presently mooted, cumbersome NHI plan will not reach the required outcome of achieving quality health care for all.

PRETORIA – The South African government is ready to take action to cushion the economy against the current global economic situation, which poses greater uncertainty for developing nations. “What we mean is that we will assess and manage debt; we will ensure we do enough for infrastructure. We will do things we need to do to refloat the economy,” Finance Minister Pravin Gordhan says. “Our own view is that it’s 60/40 against the double dip and other people are saying it’s 50/50, depending on the decisiveness with which the rest of the world begins to tackle its problems. Let’s wait and see,” says Gordhan. The National Treasury and the Reserve Bank have issued a statement saying the country will monitor the impact of the downgrading of the US and sovereign debt crisis in Europe on South Africa’s economy. Standard & Poor’s downgraded the US credit rating, down from the highest possible rating (AAA) to AA+. Treasury, thereafter, briefed Cabinet on the impact of global developments and what it meant for the economy. What is now happening in the recovery stages (which take five years at least) following the 2008 global financial meltdown is that political constraints, as in the US, are being experienced. South Africa will take a growth-friendly approach including the consolidation of debt.

PRETORIA – Finance Minister Pravin Gordhan says South Africa’s financial system remains strong, despite the global financial turmoil following the downgrade of the US credit rating and the ongoing European debt crisis. Standard & Poor’s (S&P) downgraded the US credit rating by one notch to AA+, removing the world’s largest economy from the triple A club for the first time since 1917, when the US won the top ranking. Gordhan, South African Reserve Bank governor Gill Marcus and members of the country’s financial stability oversight committee have had discussions about the possible impact of the US credit rating downgrade and the ongoing sovereign debt concerns in Europe on South Africa’s financial stability. The parties say, in a joint statement, that South Africa has “deep and liquid financial markets, which continued to function even during this difficult time of global financial turmoil”. In fact, S&P revised South Africa’s rating outlook from negative to stable, affirming the country’s sovereign rating, the statement reads. All rating agencies rate South Africa at an investment grade.

JOHANNESBURG – The African National Congress (ANC) takes an “open-ended” approach to nationalisation of the mines, spokesperson Keith Khoza says. “It is misleading to say the ANC has agreed to nationalisation of the mines . . . it is not a foregone conclusion that there will be nationalisation, but we are not opposed to nationalisation. We are saying it must be looked at as an option and, if it is looked at as an option, we must see what is the best practice.” He says the terms of reference of the task team are clear: to look at applicability and best practice. He was responding to questions over comments made by Cosatu economist Chris Malikane at a debate on the contentious economic policy. Malikane says the task team established by the ANC to examine nationalisation is not looking at the feasibility of the policy, but is exploring the most appropriate model to implement. Last year, the ANC’s national general council directed its national executive committee to form a task team to explore the viability of nationalisation and the State playing a greater role in key sectors of the economy.

Africa & the world

CAIRO – Egypt begins procedures to end the country's three-decade-old state of emergency, the government says, a key demand of the protesters who toppled President Hosni Mubarak in February. The cabinet says it will abide by a pledge to end the emergency law, which gave Mubarak's hated police force sweeping powers to stifle dissent against his rule, before parliamentary elections expected in November. "The government has decided to start the procedures needed to end the state of emergency, in coordination with the military council," cabinet spokesperson Mohamed Hegazy says. Rights’ campaigners say the continued emergency powers are an anachronism in post-Mubarak Egypt that saps the credibility of the interim government as a force for democratic change. Days of street protests broke out in July, fuelled partly by perceptions that the security forces had not been brought to account for the brutal treatment of protesters during the 18-day uprising against Mubarak and that abuses were continuing. "The government confirms that, since it has taken up its responsibilities, it has not taken any of the exceptional measures allowed under the state of emergency . . . and has abided by normal legal procedures," a cabinet statement says. Some Egyptians say that the police are trying to change their high-handed ways and have at least become more polite to the public. Others say that, inside police stations, intimidation, bullying and disregard for citizens' rights are as common as ever.

BUJUMBURA – South Africa and Burundi have signed several cooperation deals in defence, education and agriculture during President Jacob Zuma's visit to the Central African country. Zuma arrived on Wednesday for a State visit to promote trade and investment in Burundi, where he also mediated peace deals in the early 2000s to end a long-running ethnic conflict that erupted in 1993. In his address to the Burundian Parliament on Thursday, Zuma commended the people for what he says was putting their country first, where they embraced peace and democratic rule after nearly 15 years of civil war. He described the successful resolution of the Burundian conflict as a testament to Africa being able to solve its own problems. "The story of Burundi is a victory not only for Burundi but also for the African continent because we proved that, as Africans, we can achieve peace," Zuma says. He says South Africa stands ready to help during their period of reconstruction and strengthening democracy. "We are not here to discuss the peace process. We are here to discuss postconflict reconstruction and development and to work with the Burundian people towards a future of peace and prosperity." Pretoria is keen to partner with Burundi in agriculture, Zuma says, as it employs 80% of that country's economically active people. Other areas include infrastructure development, agroprocessing, higher education, defence, mining, tourism and private sector development. Support for higher education will include technical cooperation in building capacity to manage higher education, teacher education and higher education planning.

MOGADISHU – The drought-hit Horn of Africa urgently needs an additional $103-million to rebuild agriculture and fight famine, the United Nations’ (UN’s) food agency says, calling for a high-level meeting to help overcome the crisis. At risk of starvation are about 3.6-million people in Somalia and 12-million people across the Horn of Africa, including Ethiopia and Kenya, the UN says. The UN’s Food and Agriculture Organisation (FAO) says it has asked for $161-million to save the lives and livelihoods of millions of farmers across the Horn of Africa and has received or has commitments for around $57-million. “The FAO’s current funding gap stands at around $103-million to provide immediate support to crisis-affected populations,” the Rome-based FAO says. Of the funds being sought, $70-million is earmarked for Somalia for distribution of seeds and other inputs, provision of animal feed, livestock vaccination and treatment, cash-for-work schemes and infrastructure improvement, the agency says. The FAO has invited agriculture Ministers from its 191 member countries for a meeting on August 18 to decide on urgent measures to fight the worsening crisis. “When you see the sheer numbers of animal dead bodies along the road, you know that this means that people have less capacity to buy their food today and tomorrow,” Cristina Amaral, chief of operations in the FAO’s Emergency Operations and Rehabilitation Division, says.

HARARE – President Robert Mugabe says Zimbabwe will punish firms from Western States that have slapped sanctions on senior officials in his Zanu-PF party, warning that global miners, including Rio Tinto, could be hit. “We can’t continue to receive the battering of sanctions without hitting back. We have to hit back,” Mugabe told thousands of people attending a ceremony to commemorate heroes of Zimbabwe’s 1970s independence war. Mugabe, 87, and Zanu-PF members have had trouble tapping into international finance owing to the sanctions imposed by Western countries for suspected human rights abuses and electoral fraud under the political veteran’s watch.