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Federal President of Austria Van der Bellen arrives in SA for 4-day visit

Federal President of Austria Van der Bellen arrives in SA for 4-day visit

Eyewitness News18 hours ago
JOHANNESBURG - Federal President of the Republic of Austria, Alexander Van der Bellen, has arrived in South Africa for a four-day working visit.
This is a historic moment as it marks the first time an Austrian head of state visits the country.
Van der Bellen will be welcomed by President Cyril Ramaphosa later on Friday at the Union Buildings in Pretoria, where they will host a joint media briefing.
Trade relations between South Africa and Austria have been described as "mutually beneficial" by both nations.
In 2024, South Africa exported €617 million worth of goods to Austria, while Austria imported €661 million worth of goods from South Africa.
The Presidency said the working visit would focus on improving the bilateral and economic ties between the two countries.
This includes sectors like the arts, agriculture and energy.
The Austrian delegation will be part of a business forum on Friday afternoon with the Minister of Trade, Industry and Competition, Parks Tau.
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Public private partnerships can help close Africa's infrastructure deficit
Public private partnerships can help close Africa's infrastructure deficit

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Public private partnerships can help close Africa's infrastructure deficit

There is a consensus that Africa can increase economic growth by making significant investments in connecting infrastructure. (Photo by EMMANUEL CROSET / AFP) There is a consensus that Africa can increase economic growth by making significant investments in connecting infrastructure — the physical and digital networks that connect towns, cities and countries, enabling seamless trade and data exchange. This includes transport, communication, energy, as well as water and sanitation, which are vital for the free flow of people, goods and services. When this infrastructure operates optimally it facilitates increased trade, communication, commerce and social development — critical pillars in the objectives of the African Continental Free Trade Area (AfCFTA). The Economic Commission for Africa (ECA) in 2023 stated that the Africa infrastructure deficit reduced continental economic growth by 2% annually and reduced productivity by 40%, an alarming state of affairs. To address this infrastructure deficit, the Programme for Infrastructure Development in Africa (Pida), an African Union initiative, produced the Pida Priority Action Plan (2021-2030) with the support of the United Nations. The plan has a critical list of 69 infrastructure projects to be developed in Africa for about $160 billion. Intra-Africa trade is extremely low at only 15%, compared with 68% in Europe and 59% in Asia. According to the ECA, once fully implemented, the AfCFTA aims to increase intra-Africa trade to 35% by 2040. The objective is to not only increase trade volumes but also promote economic diversification away from reliance on commodity exports towards manufacturing and value-added industries. The changes in the global trade architecture, tariff regimes, aid cancellation, shifting political alliances and elevated geopolitical tensions indicate an urgent need for Africans to increasingly rely on other Africans. This means addressing the critical infrastructure deficits and unlocking intra-African trade is the most important task facing Africa today. Financing connecting infrastructure The technical White Paper, titled Missing Connection: Unlocking Sustainable Infrastructure Financing in Africa and co-published by the Africa-Europe Foundation and African Union Development Agency – NEPAD for the Finance in Common Summit held in Cape Town, South Africa in February 2025, noted the continent needs about $150 billion annually in infrastructure investment to address the infrastructure deficit. Current investment is about $80 billion annually, of which only 40% of this financing comes from governments. About 35% of the financing is from donors and other international partners. The balance of current financing is from the private sector, whose role has taken on increased significance considering the changing donor patterns and decline in China-led financing in recent times. 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Western and Central Africa have the highest percentage of economies that have enacted specific PPP laws, with all countries in the region having laws in place, except for Equatorial Guinea and The Gambia. Eastern and Southern Africa have enacted the least specific PPP laws. Among the 12 countries that make up the Southern Africa region, four remain without a specific PPP law: Botswana, eSwatini, Lesotho and South Africa. Annual trends showed that the highest rate of enacted laws was from 2015 to 2017 with 16 laws passed over the three years. The first African country to enact a specific PPP law was Mauritius in 2004, while the most recent is the Republic of Congo in 2022. The restricted tendering method is the most common form of PPP procurement. South Africa had concluded the most public private partnership deals in Africa as of the end of 2024, raising nearly $5 billion, with Nigeria in second place. South Africa appears to have had better success in PPP deal closure because of an advanced financial market, stable economic policy, favourable legal framework and a perceived transparent procurement process according to various studies. The country uses Treasury Regulation 16 under the Public Finance Management Act for national and provincial governments and the Municipal PPP Regulation 309 under the Municipal Finance Management Act for local government. These regulations have been undergoing amendments, with Regulation 16 amendments complete and coming into effect on 1 July 2025 and Regulation 309 amendments still need finalisation. Donor agencies and development finance institutions have directed funding to support the training and institutional building of PPP capabilities in African governments. The Public Private Infrastructure Advisory Facility, a World Bank programme, has successfully implemented institution-building activities to enhance the capacity of government officials around the world. This technical assistance helps to catalyse the adoption of PPP laws, regulations and guidelines in a streamlined manner to facilitate investments. 2025 and beyond Attracting both domestic and global private sector investors to Africa is a critical part of closing the financing gap and making inroads to closing the infrastructure deficit that prevents Africa from growing at a rate fast enough to create meaningful opportunities, especially for its burgeoning youth population. One of the attractive features of PPPs is the transfer back to the state of the asset at the end of the agreement. We have seen many privatisations of state-owned enterprises, usually accompanied by opposition from political parties or civil society because of the more permanent transfers of state assets to the ownership and control of the private sector. Governments have raised debt capital in private markets or by tapping into pension funds to fund infrastructure — another at times controversial route because of perceived risks to pensioners of the funds being mismanaged. Public private partnerships are, however, not a silver bullet to the funding deficit because of the complex nature of the agreements and the real risk of African governments assuming contingent liability exposures inadvertently because of a shortage of skilled bureaucrats. It is incumbent upon our governments to develop the necessary legal frameworks and innovative de-risking mechanisms that will allow the successful conclusion of private sector investments. Dr Mthandazo Ngwenya is a managing director at Bigen Africa Group and has also served as Africa director of Intellecap Advisory Services.

‘Still room for engagement' says Parks Tau as Trump's tariff deadline looms
‘Still room for engagement' says Parks Tau as Trump's tariff deadline looms

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The US's plan to introduce a new trade template with countries in sub-Saharan Africa emerged in engagements between Deputy Minister of Trade and Industry, Zuko Godlimpi, and the Assistant US Trade Representative for Africa, Connie Hamilton, on the sidelines of the US-Africa Summit in Luanda, Angola, in June. 'Very good' engagement According to Tau, Godlimpi had a 'very good' engagement with Hamilton, where there was an 'indication that there is still room for engagement'. He told Daily Maverick on Friday that he believed discussions with the US will continue beyond 9 July. 'We submitted a draft Framework Agreement and they [the US] have not responded. They indicated that they are not in a position to finalise that right now, so it is their intention that discussions would go on beyond the 9th. So at this point we are awaiting an announcement from them,' Tau said. 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'I don't think we should dismiss the efforts of the Government of National Unity… I think they've done their best,' he said. 'The tricky part is that Trump has refined the art of raising the bar; raising so many issues that you come kneeling before him, you come to the negotiations on the back foot.' He said that while countries such as the UK and Vietnam have both reached trade agreements with the US in recent weeks, South Africa was bound to struggle because 'it's being targeted on other fronts, which are political [and] diplomatic'. Nevertheless, Wekesa said it would be 'disastrous' for SA if Trump's tariffs were to come into effect again. 'It would mean that South African goods and services are impacted – almost a cessation of trade – particularly in critical areas like agricultural products, and specifically the citrus market, in areas of manufacturing, particularly in motor vehicles, and of course, related fields,' he said. He added that it would be a 'big hit' for SA's economy. This will have an 'immediate impact' on the budgets and resources that the government can use for service delivery, according to Wekesa. 'This will of course be on top of the cessation of funding that was coming through USAID [United States Agency for International Development],' he said. Wekesa noted that South Africa is 'not the only country' that has certain critical minerals, like platinum and hydroxide. Next week, Trump will host leaders from five African nations in Washington to discuss 'commercial opportunities', according to a Reuters report. 'These countries also have critical minerals. So the idea that [the] US will lose out on the export of those minerals [from SA], I don't think, is a very strong one… The leaders of Senegal, Guinea-Bissau, Gabon, Mauritania, and Liberia are heading to the US. 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Ramaphosa says DA showing 'hypocrisy' by pulling out of National Dialogue
Ramaphosa says DA showing 'hypocrisy' by pulling out of National Dialogue

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Ramaphosa says DA showing 'hypocrisy' by pulling out of National Dialogue

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