Regular audits will rid the country of ghost workers

Opinion and Analysis

A building under construction on Kenyatta Avenue in Nakuru. The number of developers seeking building permits has increased. PHOTO | FILE 

By BUSINESS DAILY

In November last year, more than 12,500 civil servants were struck off the government payroll after they failed to list afresh during a two-month registration exercise that was aimed at weeding out ghost workers.

Investors demand higher interest for Treasury bills

Money Markets

The Central Bank of Kenya headquarters in Nairobi. PHOTO | FILE  The Central Bank of Kenya headquarters in Nairobi. PHOTO | FILE

By CHARLES MWANIKI

In Summary

• The rates on Treasury bills are now at their highest levels since April 2012.
• Analysts have said the investors are looking to the short-term paper, with interest rates likely to go higher should the prevailing macroeconomic conditions prevail.

Investors are demanding higher interest rates for the six-month and one-year government Treasury bills as the market continues with its risk-averse approach to longer-dated fixed-income investment over uncertainties in the interest rate environment.

Africa needs a mix of venture capital and private equity funds

 

PE funds normally invest in a lifespan of five to seven years then exit. PHOTO | FOTOSEARCH 

By MUMBI WAWERU

In Summary

• According to African Private Equity and Venture Capital Association (AVCA), PE funds invested $8.1 billion (Sh810 billion) in African companies in 2014, the second highest total ever after the $8.3 billion in 2007.
• Bow many African businesses can pass the requirements associated with equity funds?

Given the wall of private equity (PE) money coming in to Africa, do we have the type of investment deals that equity funds are looking for? Is the same model used in the Europe and North America sustainable in Africa?

Kenya to launch Sh5.2bn global tourism campaign

Politics and policy

 

Phyllis Kandie, CS for East African Affairs, Commerce and Tourism. PHOTO | FILE | NATION MEDIA GROUP 

By MATHIAS RINGA

In Summary

• The drive, targeting Europe, America, Asia and Africa, is expected include a global advertising drive through global media channels and the hiring of a public relations firm to promote the country’s image.

Kenya is set to launch a Sh5.2 billion tourism marketing promotion to woo global tourists on the back of recent President Barack Obama visit and endorsement from the UN.

Sumac secures $1 million loan as it prepares for cash call

Sumac chairman Kibatha Njoroge. PHOTO | FILE 

By JOHN GACHIRI

In Summary

• The three-year loan is part of the micro-lender’s capital raising strategy that includes getting funds from its shareholders.

Sumac Microfinance Bank has secured a $1 million (Sh100 million) loan from a European investment firm for onward lending to small businesses.

New Portland COO gives Lafarge upper hand in succession

Corporate News

Entrance to the East Africa Portland Cement factory in Athi River. PHOTO | FILE 

By VICTOR JUMA, vjuma@ke.nationmedia.com

In Summary

• His appointment comes as Mr Tande’s second term comes to a close, having first been appointed in November 2010 when he took over from John Nyambok, who had fallen out with the board.
• He has previously worked at Lafarge’s local subsidiary, Bamburi Cement, as the group controller.

East African Portland Cement Company has appointed a Lafarge executive as its chief operations officer, giving the French multi-national (and shareholder) an upper hand in the looming succession of current CEO Kephar Tande, whose term ends in October next year.

Sumac secures $1 million loan as it prepares for cash call

Money Markets

Sumac chairman Kibatha Njoroge. PHOTO | FILE 

By JOHN GACHIRI

In Summary

• The three-year loan is part of the micro-lender’s capital raising strategy that includes getting funds from its shareholders.

Sumac Microfinance Bank has secured a $1 million (Sh100 million) loan from a European investment firm for onward lending to small businesses.

New NSSF scheme offers public servants separate deal

Politics and policy

The NSSF building in Nairobi. NSSF plans to transform from a provident fund to a pension scheme. PHOTO | FILE 

By EDWIN MUTAI, emutai@ke.nationmedia.com

In Summary

• The new NSSF scheme will have two accounts with employees paying Sh360 to Tier I account in the first year of the fund’s operation and a maximum of Sh720 paid to the Tier 11 account.
• Civil servants will start contributing to the scheme this financial year as the government prepares to establish the public workers’ pension fund dubbed the Public Service Superannuation Scheme.

Public servants have been exempted from the new higher National Social Security Fund (NSSF) contribution after MPs amended the law.

Real estate upbeat as City Hall building permits hit Sh18bn

Money Markets

A building under construction on Kenyatta Avenue in Nakuru. The number of developers seeking building permits has increased. PHOTO | FILE 

By GEOFFREY IRUNGU, girungu@ke.nationmedia.com

In Summary

• Latest data from the county government shows the value rose to Sh18.6 billion in May, the highest so far this year. Compared to April, the value was higher by more than Sh1.3 billion.

The construction industry is looking up with the value of buildings approved by the Nairobi City County rising to the highest level in May compared to the previous four months.

Former Kebs boss entangled in Sh300 million fraud claim

Politics and policy

Dr Kioko Mang’eli, the former Kebs managing director. PHOTO | FILE 

By BRIAN WASUNA, bwasuna@ke.nationmedia.com

In Summary

• Former Kebs MD Kioko Mang’eli has been accused of using a shell company to defraud a Dubai-based firm of nearly Sh300 million.
• The UAE firm made the claims in court while responding to a suit filed by the allegedly fraudulently registered Geo Chem Middle East Limited against Kebs and the taxman.
• The firm adds that Dr Mang’eli learnt intimate details of his firm when he was still the Kebs MD, and that he has taken advantage of that to hatch the plot.

Former Kenya Bureau of Standards (Kebs) managing director Kioko Mang’eli has been accused of using a shell company to defraud a Dubai-based firm of nearly Sh300 million.

Airtel in a stalemate with CA over Sh2.1 billion licence fee

Corporate News

From left, Airtel Kenya CEO Adil El Youssefi and CA director-general Francis Wangusi. PHOTOS | FILE 

By OKUTTAH MARK, mokuttah@ke.nationmedia.com

In Summary

• Airtel is operating on a licence acquired along with Essar’s (yuMobile) assets in a deal concluded early this year.
• CA is demanding Sh2 billion for spectrum fees, Sh30.2 million for initial annual operating fees, outstanding frequency fees of Sh24.9 million and a penalty payment of Sh1.5 million to renew Airtel’s licence.
• In 2013, Airtel had requested the regulator to lower the licence renewal fee, which it said was reached without consultation with the concerned stakeholders.
• Safaricom last year paid Sh2.3 billion to renew its licence, meaning that if Airtel pays, the CA would have earned Sh4.4 billion in the past two years.

Airtel Kenya is in a stalemate with regulators over the renewal of its operating licence, with the Communications Authority of Kenya (CA) insisting that the telecommunications operator must pay a fee of Sh2.1 billion to stay in business.

Working out the returns from a housing project

Woman in an apartment. Mike Maingi writes in to say that his investment club (chama) is considering putting some money in a housing project. But the deal sounds too good to him and so he would like me to see if they are missing something. PHOTO | FILE 

In Summary

• First, it is not fair to assume that the rent will remain constant through out the 10 year period of the lease. Let us factor in a moderate escalation of 10 per cent every two years.
• Thus, in year 1 and 2, the total gross rent will be Sh660,000 (that is, before deducting any expenses); in year 3 and 4 it will be Sh726,000; then Sh800,000 in years 5 and 6; and Sh880,000 in year 7 and 8. Finally, the club will collect Sh965,000 in the last two years of their land lease.

By Mungai Kihanya
More by this Author

Mike Maingi writes in to say that his investment club (chama) is considering putting some money in a housing project. But the deal sounds too good to him and so he would like me to see if they are missing something.

What is the dead space in your life?

Employees at the work place. I watched forlornly as it was carted away, leaving behind the empty pot. Strangely though, the next day when I walked into the office, I sensed a brightness in the room. PHOTO| FILE  

In Summary

• I watched forlornly as it was carted away, leaving behind the empty pot. Strangely though, the next day when I walked into the office, I sensed a brightness in the room.
• There was nothing but office furniture and an empty pot but something was going on. I sat in my chair and tried to make sense of it. Then realisation came: “We need to let go of the dead thing in our life.”

By Carole Mandi
More by this Author

The potted indoor palm had once flourished, first in the home of a colleague where it “greeted” guests in the foyer, and after he left the country, in my office after I bought it from of him.

Three vital signs that you must end a relationship

If you have any doubts at all, go and see an experienced counsellor. They will recognise the signs in minutes and will guide you appropriately. ILLUSTRATION| IGAH 

In Summary

• The first’s abuse — especially physical abuse. Is that happening to you? Leave. Right. Now. Even if your partner’s remorseful, and offers to get help.
• At the very least, you should leave until you’re convinced there’s been real change.

By CHRIS HART
More by this Author

Relationships start with such optimism, don’t they? And then maybe things go wrong. Should you stick in there, hoping things will improve? Or leave? It can be hard to decide. Either way, you worry that you’re making a mistake, and will be full of regret later.

Lonely in retirement: Life after the big office

FROM LEFT: Former Kenyan President Daniel Arap Moi, former Nigerian President Goodluck Jonathan, former PS Thuita Mwangi and former PS Bitange Ndemo. PHOTOS| FILE 

In Summary

• Leaving the office after a long service to the public ought not be anything to dread; after all, isn’t one supposed to live the rest of his life surrounded by lovely grandchildren?
• The reality, however, is totally different for many.

By ELVIS ONDIEKI
More by this Author

Former President Daniel Moi understands what idleness and desertion can do to a retiree.

Thirteen years after leaving State House, Mr Moi still worries about what is going on in his farms, wracks his brain about the various institutions in which he is patron and minds the duties bestowed on him as the Chancellor of Kabarak University.

Scheme hatched to give some muscle to Senate

 

Mombasa Senator Hassan Omar at a past event. He blames MPs for the persistent differences between the two Houses. FILE PHOTO | KEVIN ODIT | NATION MEDIA GROUP 

In Summary

• The chairman of the Senate select committee to look into amending the Constitution, Mr Kipchumba Murkomen (Elgeyo-Marakwet, URP), said a report would be tabled in the Senate.
• But some senators, particularly those affiliated to the ruling coalition, called for caution, lest their intentions be viewed as support for the opposition’s Okoa Kenya referendum calls.
• Some argue that it does not make sense for an MP elected in a constituency to exercise excessive powers compared with a senator who traverses a whole county to win votes.

Advertisement

By DENNIS ODUNGA
More by this Author

Fears over renewed plans to convince Kenyans to do away with the Senate have prompted senators to jointly push for a more powerful House, their party positions notwithstanding.

Bishop Wanjiru, Maina Kamanda lock horns in city TNA fight ahead of 2017 elections

Former Starehe MP Margaret Wanjiru being received by TNA Secretary General Onyango Oloo at TNA headquarters after she defected from ODM in December 2014. Supremacy battles to control TNA in Nairobi pitting Wanjiru and Starehe MP Maina Kamanda are gaining momentum. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• Ms Wanjiru, who is a former Starehe MP, has declared her intention to vie for the Nairobi gubernatorial seat on TNA.
• Mr Kamanda has rallied other TNA-affiliated MPs in the city to front for Dagoretti South MP Dennis Waweru.
• A tough talking Kamanda accused Ms Wanjiru of attempting to buy off the current TNA Nairobi County officials.
• The stakes are high in the city as Governor Evans Kidero is expected to defend his seat.

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By SAMUEL KARANJA
More by this Author

Supremacy battles to control The National Alliance (TNA) party in Nairobi in readiness for the 2017 General Election are gaining momentum.

How Uganda overtook Kenya in sugar cane production

Sugar cane is harvested at the Lugazi Estate in Mukono, Uganda. PHOTO | MORGAN MBABAZI | NATION MEDIA GROUP 

In Summary

• Nanji Kalindas Mehta had arrived in East Africa in 1905 and had opened his first shop in Kamuli, some 64km north of Jinja town, purchasing African produce and ivory.
• It was Mehta’s son, Mahendra Kumar, who started developing the Miwani estates and factory where they were also manufacturing Sukari Gur from their jaggeries.
• By the time he died in 1958, aged 64, Muljibhai had established the Kakira industrial complex, and operated a sweets factory (known by the brand name Madhvan), a ghee factory, a glass mill, and a jaggery plant.

By John Kamau
More by this Author

Before Kenya decided to nationalise the sugar sector after independence, it was almost at par with Uganda in terms of production. Two Indian families — the Mehtas and the Madhvanis — dominated the scene in both countries.

Tourism boom for Coast as more international holidaymakers expected

Tourists arriving at Moi International Airport, Mombasa. The Coast region is expected to receive increased numbers of international tourists between October to December 2015. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• Baobab Beach Resort general manager Sylvester Mbandi Sunday said the hotel expects occupancy by international guests to increase to 40 per cent in October.
• The guests, he added, will mainly come from the Germany and the United Kingdom.
• Severin Sea Lodge director Severin Schulte said the hotel will receive guests from Germany and Scandinavian countries.

By MATHIAS RINGA
More by this Author

Tourism players in the Coast are expecting international tourist arrivals to increase from October to December this year.

First Lady Margaret Kenyatta takes Beyond Zero campaign to Japan

First Lady Margaret Kenyatta (right) trains with her team in Tokyo, Japan before a 5km race. She also launched the official banner to launch the FLHM 2016 marathon. PHOTO | COURTESY | PSCU 

In Summary

• The launch also marked the third time that the First lady was taking her Beyond Zero fundraising abroad.
• The marathons are aimed at creating awareness and mobilising resources to fund Beyond Zero activities.
• After the race, the First Lady unveiled the official banner to launch the FLHM 2016 marathon at a colourful ceremony at the Hibiya Park.
• She said there were compelling reasons why she unveiled the FLHM 2016 in Japan.

By PSCU
More by this Author

Tokyo, Japan

The Beyond Zero campaign entered a new dawn Sunday when First Lady Margaret Kenyatta extended her training to Tokyo, Japan where she also launched the 3rd edition of the First Lady’s Half Marathon 2016.

Shouting matches as DP Ruto and Bomet governor engage in public war of words

In Summary

• Governor Ruto at one point threatened to bring the meeting to an end by leading a walk out after the DPs supporters shouted him down.
• Senator Wilfred Lessan was also booed by the public who demanded to know why he deserted them after the election.
• The governor also criticised the government over the resettlement of Mau evictees.
• Bomet DC Benard Leparmarai and the police had a hard time restraining the public from moving to the dais.

By GEOFFREY RONO
More by this Author

Deputy President William Ruto and Bomet Governor Isaac Ruto engaged in a public war of words at fundraising in aid of women groups Saturday with their supporters engaging in shouting matches.

Constitutional reforms have helped improve service delivery, says PSC boss

PSC boss Margaret Kobia presents the Meru Central Deputy County Commissioner Samuel Kimiti with his award at the sub county headquarters on August 29, 2015 for his exemplary service. Looking on is Lapsset Chairman Francis Muthaura (Left) and Meru County Secretary Julius Kimathi. Prof Kobia said the reforms brought about by the Constitution have improved service delivery in the government. PHOTO | DAVID MUCHUI | NATION MEDIA GROUP 

In Summary

• She said that PSC has come up with guidelines for evaluating how public servants are maintaining the values set out in the Constitution.
• Mr Kimiti won the award for introducing baseball in Meru through which he has been spearheading conservation and youth empowerment.
• She said there is clarity of roles in the public service adding that the Constitution provides for continuous transformation of the public sector.
• The PSC boss said the sector has been facing challenges of human resource management and lack of capacity during the transition period.

By DAVID MUCHUI
More by this Author

Reforms brought about by the Constitution have improved service delivery in the government, Public Service Commission chairman Margaret Kobia has said.

Kenya tops table after historic World Championships

Elijah Manangoi (left) congratulates Asbel Kiprop after he won the men's 1500m at the 2015 IAAF World Championships in Beijing on August 30, 2015. PHOTO | OLIVIER MORIN |  AFP

In Summary

• Kenya tops standings with 16 medals in total; seven gold, six silver and three bronze.
• Heavyweights Jamaica finish second with 7-2-3, the United States third with 5-6-6.

By AYUMBA AYODI
More by this Author

It was a marvelous seven-star performance for Kenya as the country claimed its maiden overall title at the World Championships in Athletics on Sunday in Beijing, China.

Shocking statistics on the state of sugar in Kenya

Mumias Sugar Company. As state-backed firms are on the wane, their place is being taken by private millers whose market share has grown in the same period. FILE PHOTO | NATION MEDIA GROUP  

In Summary

• South Nyanza (Sony) Sugar Company has also seen its share fall by five per cent, while Nzoia’s stake has declined by one per cent.
• As state-backed firms are on the wane, their place is being taken by private millers whose market share has grown in the same period.
• The report says Kenya imported 113,495 tonnes of sugar in 2008 while, as per July this year, it had imported 60,027 tonnes.
• Last year, Kenya imported 62,708 tonnes of sugar, with Inland Africa Logistics Ltd bringing in 9,550 tonnes — translating to 15 per cent of the total imports.

By SAMWEL BORN MAINA
More by this Author

A government report has revealed shocking statistics on the state of sugar since 2005.

The most disturbing is that Mumias Sugar has lost half of its market share in the past four years.

South Nyanza (Sony) Sugar Company has also seen its share fall by five per cent, while Nzoia’s stake has declined by one per cent.

Parents spend a fortune on toys

(Left) A Zoomer worth Sh25,000 on display at the Nakumatt Kids & Co. store at the Westgate Mall in Nairobi. PHOTO | SALATON NJAU 

By DOREEN WAINAINAH

In Summary

• From a miniature electric Mercedes to a 5-ft stuffed Minnie Mouse, today, it’s all about brand names when it comes to kids’ playthings.

‘Sit Zoomer’ or better yet ‘bed piny’, ‘ikara thi’, ‘ikhala’ or ‘dance Zoomer’, ‘Miel’, ‘Khina’, ‘ina’ and the little robot dog will do as commanded, even when this is done in vernacular.

The Sh24,995 robot toy is barely a foot long and a foot high and on its first week on the shelves, it sold out. Parents and their children were falling over themselves to see the little robot dog dance, walk and even sit on command.

Global slowdown opportunity for Kenya to put house in order

Opinion and Analysis

The sharp fall in both the local and the global markets this week is nothing but smart money trying to lock in its profits before it evaporates. BD GRAPHIC | NATION MEDIA GROUP 

By Mohamed Wehliye

In Summary

• Investors should sit tight given that whenever a turmoil of this nature has happened, this has been a great boon for investors who have medium and long term perspective. There are always opportunities in every threat.

It has been a very bad week for the world stock and currency markets. The tumble was triggered by troubles brewing in the Chinese economy and crash in commodity price, raising concerns about a prolonged global slowdown.

Five new county police bosses named in mini reshuffle

Politics and policy

Inspector General (IG) of Police Joseph Boinnet (centre) addresses the media alongside Deputy Police IG Grace Kaindi on July 22, 2015. Five new county police commanders have been named in a mini reshuffle. PHOTO | FILE |  NATION MEDIA GROUP

By ZADOCK ANGIRA

The police commission has named five new county police commanders in a mini reshuffle.

Three of the commanders were recently reinstated after being vetted afresh by the National Police Service Commission (NPSC).

Delivering public value

Prasa looks to get public transport back on track

As a wholly-owned government public entity reporting to the minister of transport, the main responsibility of the Passenger Rail Agency of South Africa (Prasa) is to deliver commuter rail services in the metropolitan areas, long-distance (inter-city) rail and bus services within, to and from the borders of the Republic of South Africa. This mandate is implemented in consultation with and under the guidance of the minister of transport.

Eco development boosts uMhlathuze’s economy

New business park to drive development

The John Ross Eco Junction, an eco-friendly industrial park in the city of uMhlathuze in northern KwaZulu-Natal, provides a convenient gateway to Richards Bay and Empangeni. The 195 000m² mixed- use commercial property development is expected to boost economic growth and create jobs in the greater uMhlathuze area, which has been identified as a high potential development node.
This is STANLIB and the Liberty Property Portfolio’s first foray into industrial property with the official groundbreaking in July last year. “It is our vision to create a dynamic and sustainable industrial development with strong links to the greater and central business districts of Empangeni and Richards Bay,” says Amelia Beattie, Head of STANLIB Direct Property Investments. The Liberty Property Portfolio is placing great emphasis on developing John Ross Eco Junction in an environmentally sustainable manner.
“We are looking at a broad spectrum of environmentally friendly building techniques such as rainwater capture, permeable paving, renewable energy sources and the conservation of indigenous plant life,” says Alex Phakathi, Fund Manager for the Liberty Property Portfolio in the STANLIB Direct Property Investments Franchise.
uMhlathuze is set to benefit from Transnet’s R33–billion spend on infrastructure, which is likely to attract further investment, leading to increased demand for real estate and job creation.
“Creating local jobs is a key part of this project. Although the development has been designed and will be managed by STANLIB, we have appointed a locally based contractor to carry out building work for the Tangawizi Motors development,” says Phakathi.
This will help ensure that John Ross Eco Junction is entrenched within the local community, he says. The development, situated at the intersection of the N2 Highway (linking Durban and Pongola) and the John Ross Parkway (connecting Richards Bay and Empangeni), is ideally positioned to provide easy access to railway, seaport and airport facilities.
A number of tenants have already signed up, including Tangawizi Motors (which represents Hyundai, Daihatsu, Renault and Honda) and black–owned private hospital group Melomed Richard’s Bay Proprietary Limited

City of Durban on the rise

Durban aims to be the full package

Traditionally, Durban’s striking coastline of soft sandy beaches and its subtropical climate made the city a natural holiday paradise, centered around one of Africa’s busiest ports and conveniently positioned to service the continent’s eastern seaboard. Durban has also always had a strong history and performance in manufacturing and agribusiness for nearly 150 years.
However, Durban Tourism and the Durban Investment Promotion team have worked aggressively with business partners to not only reposition Durban as a premier lifestyle and events destination, but also as an award-winning investment location, which is now home to Samsung Electronics, Toyota, Unilever and many others. The city launched an ambitious seven-year plan geared at boosting international visitors, called the Durban Visitor Strategy. If all goes to plan, this will attract five million tourists by 2020, inject R10- billion into the economy and support 74000 jobs.
To assist in the development of commerce between KwaZulu-Natal, Lusaka and Harare, SA Express’s direct flights into Africa are the perfect springboard. These flights provide a wide range of new possibilities for the province by linking Durban directly with a number of Southern African countries.
Tourism remains a main focus of the city’s six main business sectors. A major catalyst for the hotel industry — and a forceful show of increased investor confidence in the city — was the billion rand upgrade of the Beachfront Promenade, from Ushaka Marine World to Blue Lagoon.
Durban is not without its praise singers among the world’s media. The city has launched its new Smart Cities Campaign, a documentary that forms part of the National Geographic Campaign in Washington. The World’s Smart Cities Programme will feature up to 18 of the world’s most liveable cities, capable of providing the best places to live, visit, study and do business in. CNN voted Durban as one of the world’s top 10 most underrated cities. The recently published Master Card Global Destination City Index has predicted that Durban will be this year’s fastest growing city in Africa, and will be the second-fastest growing tourism city of 132 cities surveyed worldwide.
Durban has won the Vuna award and favourable investment grade credit ratings as a result of its financially strong local government, and has invested in a number of business enablers. These include a huge, expanding fibre optic system, and vigorous participation in Brics (Brazil, Russia, India, China and South Africa) initiatives, often the start of partnerships for industrialisation and development. Indian foreign direct investment into Durban alone has topped R3-billion over the last four years.
The city’s economic growth outstrip average growth rates in South Africa, and are also higher than those of many other major centres. Durban is aiming at a growth rate of more than 5% — not an unachievable number.
Durban has the continent’s leading infrastructure base, including virtual infrastructure like globalised financial services. Durban has the most award-winning electricity distribution on the continent, a vast road network, and new opportunities for a partnership-accelerated water treatment and supply base.
There are large amounts of vacant land available at realistic prices across the 2300km² city. Durban leads the sub-continent in terms of port infrastructure, with Sub-Saharan Africa’s busiest harbour, plus the expanded King Shaka International Airport and Dube Trade Port Aerotropolis.
Durban is presently South Africa’s sole bid city for the 2022 Commonwealth Games, and possibly the 2024 Olympics.
Over 65% of the province’s economy is generated in Durban, and the Durban Chamber of Commerce is the country’s oldest and largest metro chamber.
Having the second-largest business and industrial base in South Africa provides many options for suppliers, support services and customers. The Durban Investment Dashboard for the City of Durban catalogues over 65 active “flagship projects”, with a cumulative value in excess of R620-billion. These have the potential to produce over 600 000 permanent jobs, and over R8-billion in new rates revenue for the municipality.
Durban has embedded manufacturing capacities and some of the country’s largest businesses. KwaZulu-Natal has the largest share of the most productive agricultural land in South Africa. This is providing much-needed rural and peri-urban employment across the whole province, along with further product beneficiation and renewable energy opportunities.
The region’s tourism sector stats continue to reflect growth in excess of 13%, and new trends are emerging such as a large rise in tourists from the United States.
The call-centre and business process outsourcing industries in Durban continue to grow and are expanding local job opportunities. The film and media sectors have a bright horizon, with new local production facilities in the pipeline.
KwaZulu-Natal has the inherent potential to become a massive power generation and waste recycling region.
The eThekwini municipality has done some good work on its own energy efficiency front, and on the green economy partnership platform known as the KZN Sustainable Energy Forum.

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KZN set to become a major tourist magnet

Fatima Asmal

Tourism still forms the heart of the beach culture in SA

By 2020, the department of economic development, tourism and economic affairs (EDTEA) in KwaZulu-Natal wants the tourism sector in the province to directly employ over 180 000 people, generate over R70-billion, achieve a 3.5% increase in business tourism, and bid for and secure one large international event on the scale of the Fifa World Cup or the Commonwealth Games.

Job-cuts backlash pits mining CEOs against Zuma

Andre Janse van Vuuren & Mike Cohen

Mining companies are "tired of political comment instead of concrete actions".

Relations between South Africa’s government and the mining industry are unravelling as a commodity-price rout derails plans by President Jacob Zuma’s administration to create millions of jobs and pare a 25% jobless rate.

Anglo Gold Ashanti announces big losses

Lisa Steyn

The bottom end of the commodities cycle continues to inflict pain on mining companies and Anglo Gold Ashanti announced even greater losses on Monday.

The world’s third largest gold miner, Anglo Gold Ashanti, on Monday reported a loss of $127-million in the three months ending June, compared with a loss of $89-million over the same period last year. The low metal price has been a significant burden for South Africa’s “sunset” industry. The price of gold slid 12.5% compared with last year fetching a cash cost of $718 per ounce in the second quarter of 2015, as opposed to $833 per ounce in the second quarter of 2015.

Scramble to avoid jobs bloodbath

Lynley Donnelly, Lisa Steyn

The jury is still out on whether the moves to save the mining sector are too little too late.

In the face of one of the worst commodity downturns in years, the Chamber of Mines, trade unions and the department of mineral resources have held emergency talks to staunch some of the blood-letting facing the sector.

A tale of the little bank that could

Lisa Steyn

Capitec is winning market share with its attractive offerings, and shaking up the sector.

Capitec Bank found itself in a tough neighbourhood when it entered the banking sector about 14 years ago. But with a combination of ultra-low banking fees and deposit rates dwarfing bigger competitors, it’s punched above its weight and today boasts almost 20% share of retail banking clients.
The neighbourhood – unsecured lending – has been so rough, its major opponent, African Bank, fell over a year ago and is in curatorship as authorities seek to refinance it.

Rand's spiral offers no real silver lining

Lisa Steyn

Exports are cheaper and the fuel price is lower, but analysts worry that there's a risk of a recession.

Amid poor economic data, most notably poor gross domestic product (GDP) numbers and a weakening currency, the low oil price is a reminder that things could be worse.

Let the live streaming games begin

Lynley Donnelly

Content and cost will determine the success of video-on-demand, which is coming of age in SA.

Local media and technology behemoth Naspers launched its video-on-demand service this week, pre-empting the arrival in South Africa of the international streaming service Netflix.