TUESDAY, 1.00PM:
THE United States government is dropping hints that it may be interested in entering a free trade agreement with South Africa, Business Day reports.
With the threat of losing export market share to European exporters of explicit concern, a report to Congress and the White House warns: “Should the current negotiations between South Africa and the European Union result in a preferential trade arrangement providing European manufacturers duty-free access to the SA market, US exporters would face a 5% to 35% tarifff wall not inhibiting their European competitors”.
The report suggests a bilateral trade pact with SA as a measure to level the playing fields for US firms. It states that the Clinton administration will consider bilateral trade pacts with African countries that have sucessfully implemented reforms to integrate themselves into the international trading system. SA, being the only country mentioned that meets this criterion, may be considered.
BUSINESS BRIEFS
NEW YEAR EURORAND BOND
THE Eurobond market got off to a rapid start on Monday with the European Investment Bank’s R300-million five-year bond issue, lead managed by Hambros Bank. The bond holds a 13,5% coupon, a pick-up on European interest rates, and is expected to show institutional and retail demand with Italian, Swiss and Benelux investors.
DUAL LISTINGS FOR SADC
THE Southern African Development Community is considering a proposal to allow dual listings of companies on its stock exchanges. The proposal recommends finding common flotation rules and exploring other methods of facilitating share trading, which is currently limited by existing exchange controls.
R1bn CABLE CONTRACT
ABERDARE Cables, a subsidary of Powertech, has been awarded a contract to supply the majority of the cabling for Telkom’s R800-million installation initiative. The initiative hopes to deliver 2,8-million new lines to under-serviced areas within five years. The contract will could be worth R1-billion to Aberdare if it extends to three years.
MOZ OKs FOREST PROJECT
MOZAMBIQUE has approved a $86,4 -million Mondi forest project to plant 60 000 acres of trees in the devastated rural areas of the Sofala province. The project will embark on an initial four-year feasability study and environmental impact assessment to determine whether the plan is viable.
NEW NUM LEADER
GWEDE MANTASHE was on Saturday elected to act as general secretary of the National Union of Minewerkers until the union’s national congress in March, the union said on Monday. Mantashe’s election by the NUM’s national executive committee follows the move of Kgalema Motlanthe to the position of secretary general of the African National Congress at its congress in December.
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