Latest news with #R3.2
The South African
4 days ago
- Health
- The South African
Future of SASSA grant for pregnant women hangs in the balance
Did you know that a SASSA grant for pregnant women has been on the table for some time now? First tabled in 2012, it's known as the Maternal Support Grant (MSG), and it's a shame it has been in limbo for more than a decade. At its heart, a SASSA grant for pregnant women hopes to address the fact that nearly one-third of children born in South Africa are stunted. This is due to poor nourishment of the mother. In fact, 2.5 million people live in nutritionally insecure households, according to the South African Medical Research Council. Even though it will cost billions annually, the savings a maternity grant will bring are said to be ten-fold. Image: File As such, mothers who are malnourished during pregnancy have much higher odds of poor birth outcomes. This includes low birthweight, poor neurodevelopment, and increased risk of chronic disease later in life. This is why the proposed SASSA grant for pregnant women came about. And many in civil society say the South African Social Security Agency should combine it as an extension of the existing R570 Child Support Grant. However, despite the draft policy being 13-years old, the Department of Social Development (DSD) says it still hasn't reached Cabinet. Last year, in November 2024, the policy was submitted to the Social Protection, Community and Human Development (SPCHD) Cabinet Committee. But it was sent back for 'further work,' saying poverty, unemployment and inequality need to be addressed jointly. In more than a decade, the DSD has not even presented the draft policy to Cabinet. Image: File Some worry a SASSA grant for pregnant women would 'incentivise child birth and create a dependency syndrome.' However, civil society says it has been more than a decade since the DSD commissioned research on the benefits of a SASSA grant for pregnant women. And in that time the body of evidence in its favour has only grown stronger. Therefore, the absence of income support for pregnant women is a big gap in the country's social security framework. According to advocacy groups, a SASSA grant for pregnant women would require in the region of R1.9 billion to R3.2 billion annually. However, the potential saving to public health would exceed R13 billion. It is therefore a critical investment into the future of the nation. But what do you think …? Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
7 days ago
- Politics
- The Citizen
2026 election: Retief Odendaal to stand as DA's mayoral candidate for NMB metro
The DA's Retief Odendaal will be in the running for the mayoral chain in Nelson Mandela Bay's local elections in 2026. Retief Odendaal is the DA's mayoral candidate for the Nelson Mandela Bay metro. Picture: X/ @DAEasternCape The Democratic Alliance (DA) has announced former Nelson Mandela Bay Metro (NMBM) mayor Retief Odendaal as the party's mayoral candidate in the 2026 local government elections. According to Eastern Cape provincial leader, Andrew Whitfield, the announcement in effect 'declares our unequivocal intention to challenge for the governance of Nelson Mandela Bay in next year's election'. According to Whitfield, the DA's coalition partners started to turn the metro around during Odendaal's tenure as mayor between September 2022 and May 2023. Retief Odendaal's previous tenure as Bay metro mayor 'Under his leadership, we improved service delivery and cracked down on corruption. Nelson Mandela Bay also achieved its first unqualified audit in 12 years, under Odendaal. 'All this hard work was undone when the ANC, with the assistance of smaller proxy parties, such as the PA [Patriotic Alliance] and NA [Northern Alliance], returned to govern the metro in 2023,' Whitfield said. 'Like the back of his hand' – DA's Retief Odendaal He noted that Odendaal, who is a qualified attorney, currently serves as the DA's Shadow MEC for Cooperative Governance and Traditional Affairs (Cogta) in the Eastern Cape legislature. 'Retief knows the administration of the metro like the back of his hand, and has a critical understanding of the problems facing Nelson Mandela Bay.' ALSO READ: Tensions boil in Nelson Mandela Bay metro ahead of council meeting Internal process Whitfield said the decision was the culmination of a competitive, thorough and exhaustive DA internal process of applications and interviews to select the best person for the job. 'The DA charges Retief Odendaal to lead a campaign that connects with the hearts of every person in Nelson Mandela Bay, that reaches every community, and tackles the serious issues facing this metro,' he added. Nelson Mandela Bay Metro: Years of extensive issues and challenges Since 2001, the municipality has been led by various mayors, including Eugene Johnson, Odendaal and Gary van Niekerk. The current executive mayor is the ANC's Babalwa Lobishe. In March this year, Lobishe unsuccessfully tried to get the council to write off R3.2 billion in fruitless and wasteful expenditure. Nelson Mandela Bay has the highest amount of fruitless and wasteful expenditure in South Africa, which recently increased by R2 billion to stand at R24 billion. READ NOW: Infighting in Nelson Mandela Bay metro detracts from delivery
The Citizen
08-05-2025
- Business
- The Citizen
Johannesburg Metro Centre to be demolished? Contentious plans in pipeline
A section 79 committee was on Tuesday briefed on approved plans to provide city officials with a workable metro centre. The Johannesburg Metro Centre in Braamfontein is empty after being deemed unsafe for occupation. Picture: Michel Bega Wrangling over the future of Johannesburg's municipal head office is continuing along its pricey path. The 50-year-old Metro Centre has been vacant since 2023, and city leaders and the opposition are at odds over its future. A section 79 committee on Development Planning met on Tuesday to discuss the refurbishment efforts and associated timelines. Plan to rebuild Figures ranging from R800 million to R3.2 billion have been quoted to restore the building, but word from inside the committee suggests the building could be demolished. A new proposal would have the building rebuilt as a state-of-the-art facility by a private investor at the cost of R2.2 billion. The motivation for a rebuild is based on a report suggesting the building was structurally unsound. Committee member, Democratic Alliance councillor Daniel Schay relayed his belief that the building was 'not terminally ill' and could still be salvaged. The new Metro Centre is set to have a hotel and shopping centre as part of the larger complex, but Schay questions whether this is a financially prudent decision. The lavish proposal has been approved by the council, but the project is yet to go to tender, where Schay and the DA will attempt to prove it is irrational or even appeal to the national treasury to reconsider. 'It is just a vanity project and an opportunity for corruption. We will keep looking for any opportunity to prevent this unnecessary expenditure,' Schay told The Citizen. Private investor ownership The justification for the project is that the city requires more office space, with JPC confirming they need to accommodate roughly 3 000 staff. Since moving city employees out of the building, JPC has been renting office space at three privately owned buildings at a cost of at least R95 per square meter. Schay said these leases have been signed for nine years and eleven months, with the municipality aiming to have a new metro centre built within three years. Schay deemed this timeline unrealistic but insists, considering the city's financial problems, that JPC buildings within the CBD should have been considered before a full rebuild was approved. Crucially, the plan to build a new metro centre involves a private investor building the building, who will retain ownership while the government rents the space from said investor in a rent-to-own deal. Only after 27 years will the building become the property of Johannesburg and its people, Schay explained. 'The truth is simple: repairs are possible, cheaper, and faster — but they've decided to go the long, expensive, wasteful route,' stated Schay. Demolition denial The Johannesburg Property Company (JPC) are the custodian of the building, and they deny wanting to tear down the existing property. 'It is not true that the Metro Centre building will be demolished,' JPC spokesperson Lucky Sindane told The Citizen on Thursday. However, Sindane confirmed the private-public collaboration with the National Treasury and insisted there were greater plans in the pipeline. 'The engagement forms part of the broader Office Space Optimisation (OSO) Programme and has been facilitated through the Government Technical Advisory Centre (GTAC), which is conducting procurement for a Transaction Advisor to do a feasibility study for the project,' Sindane added. 'The response from Treasury on the work to be undertaken will be formalised upon completion of the study, which will inform the most viable funding model,' he explained. Sindane said the metro centre project is progressing as the feasibility study and funding processes are required, explaining that the scale of refurbishing the property and funding approvals were large challenges. 'The city is actively working with GTAC and other stakeholders to fast-track necessary processes. 'This initiative aims to transition the city away from renting office accommodation in the private sector, allowing us to utilise refurbished offices that are fit for purpose.' NOW READ: R3.2bn to be spent on refurbishing fire-damaged Metro Centre building, says Joburg mayor
The Citizen
08-05-2025
- Business
- The Citizen
Tariff lifeline for ArcelorMittal means higher prices for customers
'Safeguard' duties of 13% were imposed at the start of May to shield Amsa's hot-rolled steel products from international competition. Itac and the IDC both fall under the dtic. In setting steel tariffs, Itac is accused of cossetting its own portfolio. Picture: Supplied The International Trade Administration Commission of SA (Itac) has announced temporary 'safeguard' duties on some hot-rolled steel products produced by ArcelorMittal SA (Amsa). The 13% safeguard duties kicked off on 2 May for a year, reducing to 11% and 9% over the subsequent two years, and then to zero. The safeguard duty is on top of the 10% customs duty already in place, bringing the import protection to 23% in the first year. The total duties on hot-rolled products fall to 21% from May 2026 and 19% from May 2027. The safeguard duties were gazetted last week and are seen as a lifeline for embattled steel producer Amsa, which has been undercut by low-cost imports from China. 'There's nothing worse than a temporary tariff,' comments Neels van Niekerk, executive chair of International Steel Fabricators. Hot-rolled steel is used in construction, manufacturing, and engineering and is a key input in mining equipment, water tanks, gas cylinders, and truck trailers. ALSO READ: IDC saves ArcelorMittal days before furnaces switched off 'Necessary, not punitive' – Itac 'Safeguard measures are designed to address unforeseen surges in imports that threaten or cause serious injury to a domestic industry,' says Itac. 'While these measures are not punitive, they are necessary to ensure fair trade conditions and protect local industries from being overwhelmed by excessive foreign competition.' Imports now account for about a third of local steel consumption, with Amsa's net realised prices falling to levels last seen in 2015. This, and Amsa's galloping transport and electricity bill – up 14% to R3.2 billion in 2024 – contributed to its decision to wind down its long steel mills in Newcastle and Vereeniging. ALSO READ: Government still talking to ArcelorMittal while Seifsa identifies challenges Perspective 'Effectively, what this means is that customers can expect to pay 13% more for hot-rolled steel products,' says Gerhard Papenfus, CEO of the National Employers Association of SA (Neasa). 'Amsa asked for additional protection and they got it. What South Africa needs right now is steel of the best possible quality, wherever we can get it. 'If we have to import, then so be it. We cannot continue to support industries that cannot compete without more and more protection.' The Industrial Development Corporation (IDC) provided R1 billion in short-term lending to Amsa, alongside another R380 million loan and an additional R1.68 billion shareholders loan in the hopes of extending the life of its longs business. However, that may not be enough to rescue Amsa. 'For Amsa Newcastle to survive, it will require a lot more than money,' says Donald MacKay, CEO of XA Global Trade Advisors. 'If the problems they identified are not addressed, they will burn through the money from the IDC and we will be back here [for more money].' ALSO READ: Concern about SA steel industry: Trump's tariffs and ArcelorMittal closure looming Market distortion The steel market is further distorted by the IDC's R14 billion exposure to mini-mills, which use scrap metal as feedstock and compete with Amsa in certain products. These mills enjoy a substantial pricing advantage through the Preferential Pricing System (PPS), which allows them to secure scrap at 30-50% discounts to market prices. This means scrap can only be exported after being offered to local mills at a 30% discount. This is in effect a ban on scrap exports and a R8.5 billion annual subsidy to mini mills – resulting in an estimated 50 000 scrap collectors in SA being forced out of business. Scrap dealers tell Moneyweb that removing the PPS would allow the 300 000 scrap collectors in SA to earn a decent living rather than transferring this benefit to the mills. This benefit comes on top of a 20% export duty on scrap. Mark Fine, head of the Scrap Recycling Coalition, an informal grouping of 48 scrap metal dealers, says these mills produce billets, which are little more than scrap 2.0 and a way to circumvent export restrictions on scrap. ALSO READ: Did government policy kill SA's steel industry? Mini-mills say even with the PPS in place, there remains a shortage of scrap in SA, though Fine says this is disproven by the fact that these mills exported more than 400 000 tons of recycled scrap in billet form in the first few months of 2025. Itac's steel tariff policy has been criticised as self-serving, given the IDC's massive exposure to these mini-mills, some of which are in business rescue. Itac and the IDC both fall under the Department of Trade, Industry and Competition (dtic). In setting steel tariffs, Itac is accused of cossetting its own portfolio. 'If government demand increases, it will be met by product from the mini mills, because the subsidies give them an ability to keep their prices low. Amsa on the other hand, has to pay back the IDC loan, which will be burnt through even quicker this time, given the steep discount they are providing on long products to simply stay in the game. ALSO READ: Steel producers slam ArcelorMittal's call to end scrap export tax PPS 'a massive scam' Fine says the PPS is a legacy of former trade and industry minister Ebrahim Patel and has been fatal for the industry. 'These mini-mills are mostly foreign-owned and they add very little value in the steel chain. Yet they receive this massive transfer of wealth each year, claiming that without the PPS South Africa would face a shortage of scrap. 'That's an absolute lie. These mini mills produce what I call scrap 2.0 which they can then export and make nice profits for themselves because the export restrictions don't apply. This is a massive scam.' Nampak is reckoned to be losing R115 million a year due to its inability to earn fair market value on its ferrous scrap. ALSO READ: Cheap IDC funding 'placing the complete steel market at risk' And Transnet – the country's largest generator of scrap – is reckoned to lose R40-R50 million a month due to the PPS. That does not count scrap from automotive producers such as VW and Toyota. Tami Didiza, manager for stakeholder management and communications at Amsa, says a number of these companies have been unable to operate successfully and could have closed had the current dtic policies of scrap intervention through the PPS, Scrap Export Tax and an export ban (which lapsed in 2023) not saved them over the last five years. 'The government intervention to allow a deferral of the wind down of the Amsa longs business provides an opportunity for the fundamental structural issues facing the steel industry to be addressed, and to place it on a sustainable path by removing the market distortions that have been created,' says Didiza. This article was republished from Moneyweb. Read the original here.
Eyewitness News
22-04-2025
- Business
- Eyewitness News
Auditor General says SABC should be collecting 6 times what it is from TV licence fees
CAPE TOWN - As the public broadcaster continues to teeter on the brink of financial collapse, the Auditor General (AG) says the SABC should be collecting at least six times what it currently is in licence fees. While it may not be enough to completely sustain its operations, the AG says the public broadcaster could rake in more than four billion rand if all law-abiding citizens paid up. The office has on Tuesday told Parliament that despite a R3.2 billion bailout in 2019, it's not seen any significant progress in improving the SABC's financial position. Despite going from a disclaimer audit opinion to unqualified with findings over the past two financial years, the AG says it's still concerning that the SABC continues to repeat its bad financial habits, including irregular, fruitless and wasteful expenditure. Consequence management is also not being fully implemented. ALSO READ: Poor state of governance, lack of accountability at SITA were laid bare in parliament Auditor Nathan Lawnet has told Parliament's Standing Committee on Public Accounts (SCOPA) the broadcaster's going concern status is still questionable. "We do take note that creditors' balance is significantly more than the cash that they have in their bank account - R1.6 billion vs the R400 million that they have." Lawnet says the broadcaster urgently needs to rethink its licence fee collecting plan. "The R700 million is about what they are recovering and what is being paid by the public. So, from that point of view, it seems reasonable. But obviously it's nowhere near enough to sustain what they actually need in order to do what's required of them." A bill to address the broadcaster's revenue shortcomings has been in limbo since last year. The Communications Minister, Solly Malatsi, is still in a battle with Parliament to withdraw the legislation, saying he doesn't believe it will address the issues.
