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IOL News
3 days ago
- Business
- IOL News
Ithuba Lottery considers legal options as temporary licence decision looms
Outgoing national lottery operator Ithuba Lottery is considering the legal implications of Minister of Trade, Industry, and Competition Parks Tau's decision to award the operating licence to Sizakhaya Holdings. Image: Supplied Outgoing national lottery operator Ithuba Lottery is considering the legal implications of Minister of Trade, Industry, and Competition Parks Tau's decision to award the operating licence to Sizakhaya Holdings. Ithuba stated that this decision disregards the progress made in building a truly home-grown lottery ecosystem that empowers small businesses, drives local job creation, and maximizes revenue for good causes. In response to the decision announced on Wednesday, Ithuba expressed deep disappointment, stating that it undermines the principles of localisation and inclusive economic growth outlined in the Request for Proposal. As a fully South African-owned and black-empowered operator, Ithuba has invested significantly in developing the first African Central Lottery System, owned and developed for Africa by South Africans. 'Ithuba Lottery has the necessary infrastructure, financial resources, and distribution systems to deliver a seamless, secure, and uninterrupted National Lottery. Our game portfolio is locally developed, our operational model prioritizes economic inclusion, and our reach extends across urban and rural communities - ensuring accessibility for all South Africans from day one,' said Ithuba's head of marketing and corporate affairs, Michelle van Trotsenburg. This comes as the Gauteng High Court is expected to rule on Friday on its previous order compelling the National Lotteries Commission (NLC) to grant a temporary licence to run the national lottery for only five months, as the current licence expires on May 31. NLC spokesperson and Head of Stakeholder Management and Communication, Rudzani Tshigemane, said the commission awaits the court's decision, which will determine the awarding of the temporary licence and its duration. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'We expect the court's decision by around 1 pm on Friday, after which we will announce which operator will be awarded the temporary licence, effective from Sunday, June 1, for the duration determined by the court. The operators have indicated that a five-month operating licence is not feasible, so we approached the court to extend the temporary period to 12 months,' Tshigemane said. In its application to the court, the NLC argued that unless the Gauteng High Court amends its recent order limiting the temporary licence to five months, the temporary licence, set to begin on June 1, is widely expected to be awarded to Ithuba Lottery, a subsidiary of Ithuba Holdings. Ithuba Lottery has stated that a five-month licence is not financially viable. Meanwhile, Sizakhaya Holdings, announced as the successful bidder to take over from Ithuba after the temporary licence expires, requires at least nine months to prepare, according to an affidavit by NLC chairperson Barney Pityana. The licence has been the subject of extensive litigation in the Gauteng High Court, initiated by one of the bidders, Wina Njalo. Wina Njalo claimed that Minister Tau favored Ithuba by delaying the announcement and deciding to issue a temporary licence, arguing that only Ithuba has the infrastructure in place to qualify for it. BUSINESS REPORT Visit:
IOL News
19-05-2025
- Business
- IOL News
What can President Ramaphosa offer the White House in high-stakes US trade talks?
Diplomatic tensions between Pretoria and Washington could take a positive turn. President Cyril Ramaphosa is expected to meet US President Donald Trump this week to discuss bilateral relations. Image: SihleMlambo/IOL By Thabile Nkunjana On May 14, 2025, the Presidency office declared that President Ramaphosa would be travelling to the US for a working visit from May 19 to May 22. He is joined by John Steenhuisen, Minister of Agriculture; Parks Tau, Minister of Trade, Industry, and Competition; Ronald Lamola, Minister of International Relations and Cooperation; and Khumbudzo Ntshavheni, Minister at the Presidency. This comes after a string of topics that President Trump and his administration have brought up, including the conflict between Russia and Ukraine, the case against Israel in the International Court of Justice, and most recently, the allegations of "persecution" of white farmers that resulted in the migration of 49 Afrikaners to the United States. To mend the misinformation about South Africa that has caused misconceptions and to re-establish diplomatic relations between Pretoria and the White House, President Ramaphosa recently called Trump, and he is now heading to the US. What message about agricultural trade should the president convey at the White House now that he is travelling to the US? Based on trade data, South Africa is more economically dependent on the US than the US is on South Africa. For instance, in 2024, South Africa's total exports to the world were worth R2 trillion, with the U.S. accounting for R150.0 billion or 7%, the second-largest market after China. However, according to trade map data, South Africa only contributed 0.3% or R106.5bn of the R37.8trln in US exports to the world. Regarding the agricultural industry, South Africa exported R9.8bn worth of agricultural products to the US in 2024, a marginal increase from R9.1bn in2023. This amounts to 4% of the country's overall agricultural exports in 2024. This increase complements South Africa's agribusiness endeavours to broaden its global reach, including the US market, and create jobs, thereby supporting the country's job profile in the sector, transforming the economy, and contributing to the overall NDP 2030 strategy. Targeting the US market, the agriculture sector has spent billions of rand on infrastructure, research and others. Many South African farmers would have severe financial setbacks and employment losses, and export revenue would be seriously threatened in the medium-to short-term operations, if trade relations between the two countries deteriorate further. With many young and emerging orchards aimed at the US market, Western Cape farmers have contributed to a discernible increase in the amount of land under citrus cultivation in the province over the years. These investments go beyond trade, which is the focus of most of the analyses done to estimate the possible effects on South Africa of losing AGOA. In terms of commodities, exports, and job creation, the Western Cape will be severely impacted at the provincial level if AGOA is terminated or if tariffs are raised by almost 30% after July 10. For example, the Western Cape was responsible for 55% of agricultural exports to the US in 2022, with Mpumalanga (15%), Gauteng (10%), Eastern Cape (7%), and KZN (6%), following closely behind. As of 2024, the Western Cape is once again by far the greatest employer in the agricultural sector and the largest AGOA beneficiary from the agricultural sector in South Africa. With KwaZulu Natal, Mpumalanga, the Eastern Cape, the Northen Cape, and Limpopo all having many rural areas that would be affected negatively by any changes in trade with the US should things go south, the Western Cape comfortably accounts for roughly 20% of jobs within the agricultural sector in the country. A select few products dominated the US market, despite South Africa exporting hundreds of agricultural products to the rest of the world. Oranges, Mandarins, macadamia nuts, wine, ice cream, sugar, dried grapes, apple juice, peaches, and grapefruit juice were among them. The reality is that President Ramaphosa and his delegation are not travelling to the US on a clean slate. But from a political perspective, he has the expertise and experience to do so, and he has clearly stated the country's neutrality on several international geopolitical developments that are probably going to come up in the discussions. He is likely to have to deal with this before discussing trade and economic matters. South Africa might need to make a proposal after Qatar, the United Arab Emirates, and the United Kingdom made some significant promises to the US about trade and investment in recent days. Trump has stated unequivocally that he wants trade with countries that trade with the US to be reciprocal. As a result, the delegation to the US ought to get ready to compromise on trade. The US will probably demand that some of its agricultural products be imported into South Africa, as the agricultural sector has benefited noticeable from AGOA. This will be challenging due to phytosanitary regulations that have been a problem, particularly for livestock or animal products. If all regulatory requirements are fulfilled, compromises can be made for certain products, particularly those that are counter seasonal. Additionally, South African farmers do not receive the same level of support as American farmers, which has ramifications for the entire sector. Tariffs are likely the lower hanging fruit. Depending on the product, US farmers currently face tariffs in South Africa ranging from 0% to 17%. The President might perhaps be able to accommodate Trump's trade demands by lowering these tariffs to about 10%. Mr Thabile Nkunjana is a senior economist under the Trade Research Unit at the National Agricultural Marketing Council Image: LinkedIn * Thabile Nkunjana is a senior economist under the Trade Research Unit at the National Agricultural Marketing Council. ** He writes on his personal capacity, and does not, necessarily express views of IOL or Independent Media. Visit:
Daily Maverick
15-05-2025
- Politics
- Daily Maverick
Forget the lie of ‘white genocide' – the real crisis is a broken economy
This week, three seemingly unrelated events unfolded within 24 hours that, when viewed together and holistically, paint a sobering picture of the state of our nation. On Monday, 12 May 2025, 59 white Afrikaners boarded a chartered flight to the United States under the guise of seeking refuge from a so-called 'white genocide' in South Africa. It's a false concept that has been peddled by well-funded right-wing disinformation networks, a dangerous narrative designed to distort the truth of our country for political currency. At its core is a grievance about race-based laws and an apparent inability to remain in South Africa due to exclusion from economic opportunity. The following morning, I sat as a member of the Department of Trade, Industry, and Competition (dtic) portfolio committee as the department presented to Parliament its latest report on B-BBEE. What was meant to be a tool of redress, of economic justice, and of meaningful participation has instead become deeply flawed. Ownership is still not transformed. Most Charter Councils aren't even operational. Reporting is dismal. Only 35% of JSE-listed companies submitted reports in 2022. Black ownership in the formal economy has stagnated. And the poorest remain the poorest. Also on Tuesday, Stats SA released the latest Quarterly Labour Force Survey for the first quarter of 2025. Data is by its nature straightforward and devoid of bias or emotion. And the data showed the following: since 2014, unemployment among black South Africans has increased by 6.7%. Among white South Africans, it has declined by 1%. At the same time, the average monthly income of a white-headed household is R24,646. For a black-headed household, it is five times smaller at R5,297. When the myth of 'white marginalisation' is fed to the world, we must confront it not just as false, but as an inversion of the truth. Still, it would be dishonest to pretend that things are going well for anyone. They aren't – and this is the tragedy. Everyone is suffering. There is no group that is thriving in this stagnant, failing economy. We are, quite frankly, in a lose-lose scenario, in a race to the bottom. When there's no growth, we are forced to fight over scarcity. Like animals circling a drying watering hole, we begin to turn on one another instead of challenging the real cause of our hunger: a government that has failed to deliver growth, failed to transform and failed to govern. In Tuesday's dtic committee, I made the point that transformation must become truly broad-based. Empowerment without ownership is tokenism. And it is showing in these numbers. We must stop fighting for crumbs in the old economy and start building new economies, these being township economies, rural value chains and digital frontiers. That's how we create ownership from the ground up. But even this alone is not enough. South Africa's crisis is not just a crisis of stagnation, which breeds inequality. For over a decade, we've grown at an average of just 1% per year. That is slow collapse. And until we get serious about expanding the economy, we will remain trapped in this cycle – fighting each other, instead of fighting for a better country. Build One South Africa has proposed a Growth Charter, which we consider a serious roadmap to 5% GDP growth in three years. It includes: Investing in SMMEs, which already contribute 40% to GDP, but receive only 6% of bank loans; Modernising infrastructure, particularly through public-private partnerships to unlock water, transport and energy solutions; Reforming the labour market to make hiring easier and promote youth employment; Securing energy and ending load shedding by diversifying generation and decentralising the grid; and Expanding trade and industrial policy to open new markets and back value-added manufacturing. South Africa needs not just transformation, but a growth-driven economy. We need both equity and expansion. We need both ownership and opportunity. We need to build. So yes, let's confront the lies. Let's reject the myths of 'white genocide'. But let's also reject the false comfort of symbolic policies that fail to deliver real change. And let us remember that when the economy grows, hope grows. When people work, dignity returns. And when a country believes again, it can begin again. Let's stop managing decline and start building growth. DM
The Star
05-05-2025
- Business
- The Star
South Africa plans new fund to drive inclusive growth
JOHANNESBURG, May 5 (Xinhua) -- The South African government is planning to launch a new fund to boost equitable economic growth as the country faces intensified inequality, said officials on Monday. The Transformation Fund is a 100-billion-rand (about 5.47 billion U.S. dollars) project to support black-owned businesses and small, medium, and micro enterprises. It is designed to tackle South Africa's current economic challenges, modernize critical infrastructure, and scale up renewable energy solutions, according to the Department of Trade, Industry and Competition. Speaking at a multi-sector engagement in Pretoria, the administrative capital of South Africa, Minister of Trade, Industry, and Competition Parks Tau said the fund would prioritize high-impact projects that address urgent economic challenges. Tau said the fund would be a public-private partnership, describing it as a "covenant for the future." The department is still discussing with stakeholders across sectors of the economy, and as discussions continue on the fund, the public has until May 28 to offer their opinions. "We are going to make sure that the Transformation Fund is at the center of government, specifically the presidency. We will work with the minister of trade, industry and competition as well as the key economic cluster ministers to ensure that we meet the set targets, especially in the procurement of goods and services," Deputy President Paul Mashatile said at the event. Mashatile said the government's plans to transform the economy and other sectors were enshrined in the constitution. He cited legislation such as the Broad-Based Black Economic Empowerment Act (B-BBEE), which aims to promote black economic empowerment. "The B-BBEE remains a vital part of our economic landscape. It is a critical tool for addressing past injustices and improving economic participation. However, additional efforts are required to further improve these opportunities," he added.
The Citizen
05-05-2025
- Business
- The Citizen
SA will host 'successful G20' whether US attends or not
The G20 summit is scheduled to kick off in Johannesburg on November 22. Deputy President Paul Mashatile says South Africa will host a 'successful G20' meeting, whether the United States decides to attend. Mashatile addressed a business breakfast hosted by Trade, Industry, and Competition Minister Parks Tau in Pretoria on Monday. The G20 summit is scheduled to kick off in Johannesburg on November 22. South Africa assumed the Presidency of the G20 in December last year, taking over from Brazil. US boycotting G20 In February, US Secretary of State Marco Rubio, in a social media post on X, said he 'will not' attend a summit of the grouping to protest the South African government's controversial land seizure bill. 'I will not attend the G20 summit in Johannesburg. South Africa is doing very bad things. Expropriating private property. Using G20 to promote 'solidarity, equality, & sustainability.' In other words: DEI and climate change. 'My job is to advance America's national interests, not waste taxpayer money or coddle anti-Americanism.'. WATCH: Paul Mashatile speaking about SA hosting a successful G20 meeting Deputy President Paul Mashatile said South Africa will host a 'successful G20' meeting whether the United States decides to attend or not. #G20 #PaulMashatile #US @TheCitizen_News — 𝙵𝚊𝚒𝚣𝚎𝚕 𝙿𝚊𝚝𝚎𝚕 ⚡️ (@FaizelPatel143) May 5, 2025 ALSO READ: US secretary Marco Rubio will not attend G20 summit because SA 'is doing very bad things' G20 without US Mashatile told the gathering that G20 meetings are taking place as the country prepares for the main event in November. 'I know that a number of meetings are already taking place. Ministers of Finance have met, Ministers of Foreign Affairs and Trade, and some of the business meetings have also taken place, with the meeting for heads of state taking place in November this year. 'We are looking forward to a very successful G20 meeting this year, even though the United States said they may not come, but we are proceeding, and we are going to make sure that it's a success,' Mashatile said to applause. ALSO READ: SA to prioritise food security, economic growth in G20 presidency, says Ramaphosa Transformation fund Mashatile also spoke about measures to prevent corruption from collapsing the Transformation Fund. The legislative rationale for the transformation fund is anchored in the Broad-Based Black Economic Empowerment (B-BBEE) Act, which mandates that the government increase the effective participation of black-owned and managed enterprises in the economy and enhance their access to both financial and non-financial support. According to Tau, the transformation fund will be capitalised at R20 billion per year over a five-year period and disbursed through a combination of grants, loans and equity support, complemented by technical assistance, pre- and post-investment support and market access facilitation. Some opposition parties like the DA do not support the fund in its current form and see a better shot at economic growth through providing resources purely based on merit and the prospective beneficiary's business viability and growth potential. Corruption Mashatile said the country will not achieve an inclusive economy as long as corruption persists, both in the public and private sectors. 'Corruption hinders the growth of Small and Medium-sized Enterprises (SMEs) by increasing costs, reducing profits, and creating uncertainty. 'To promote an inclusive economy, we must commit to addressing corruption by strengthening our institutions, fostering transparency and accountability, and promoting citizen engagement. This includes developing and implementing robust anti-corruption frameworks, strengthening our criminal justice system, and encouraging public participation and oversight,' Mashatile said. Mashatile added that the government is committed to fighting corruption, focusing on accountability, transparency, and the dismantling of corrupt networks. This effort, he said, includes establishing specialised 'investigative units and strengthening legislation to combat money laundering and fraud'. ALSO READ: WATCH: 'I would be ashamed', Mashatile slams DA ministers over budget
