IN BRIEF BEER SPAT MAY COST NAM
NAMIBIA might have to wait for its 1997 pay-out from the Southern African Customs Union revenue pool after a dispute over a new duty strucuture on beer, pending a meeting of union officials in Pretoria on Wednesday. Namibia’s decision to grant 1997/98 duty rebates to small brewers — despite amendments ruling that excise duty on alcohol would be determined by alcohol content rather than quantity — caused an R11-million shortfall in the union pool. Namibia is fighting to retain the rebate, but union partners South Africa, Botswana, Lesotho and Swaziland have secured an agreement that the total Namibian pay-out of R1,8-billion for 1997/98 will only be released once the shortfall has been made up. 30% of Namibia’s 1995/96 revenue came from the customs revenue pool.
GOVT CUTS JOBS
PUBLIC sector employment has declined steadily since September 1996, with a total of 41 000 fewer employees that month than the previous September, according to figures released by the Central Statistical Service this week. Economists reacting to the figures say the decline reflects positively on government’s efforts to control expenditure. According to CSS figures, central government cut staff by almost 9 800 — with 2 405 leaving in the fourth quarter. Incomplete data from provincial authorities suggests a similar trend, while local authorities broke the trend of swelling staff numbers in the last quarter to cut back on 4 600 jobs.
BUSINESS BRIEFS
GENBEL GETS BANK LICENCE
INVESTMENT group Genbel Securities has been awarded a banking licence, it announced on Wednesday. The bank will concentrate on financial market derivatives, structured finance and securitisation, and hopes to expand its underwriting activities to the corporate debt market. The group has already posted an application to become a primary dealer in government bonds.
GOLD FIELDS MERGER APPROVED
THE South African high court on Tuesday gave the green light to the proposed merger of Kloof Mining Company, Beatrix Mines and Oryx Gold Holdings, through which each company will become a wholly owned subsidiary of Gold Fields. Gold Fields, which comprises the gold interests of GFSA and Gencor, will be listed on the Johannesburg Stock Exchange on February 2.
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The National Union of Mine Workers and Gold Fields concluded two more mine-level productivity-linked wage agreements this week. The introduction of full-calendar operations at East and West Driefontein mines give effect to the deal, which could raise Gold Fields’ production by 46 tons. Talks between Kloof gold mine and the union will continue this week.
MILK DUTIES DECISION SLATED
THE removal of milk import duties will create a “one-way free market” for European dairy producers and exporters, the South African Milk Federation said on Tuesday. Reacting to a move by the Board on Tariffs and Trade to drop a 60c per litre import duty on milk earlier this month, the federation — which represents manufacturers of dairy products — called the action “indefensible” and said it will place South Africa’s neighbouring countries, which still impose duties on South African products, at an advantage.
IMF SPEAKS ON ZIM
THE International Monetary Fund finally broke its silence on Zimbabwe following its mission to the country last week, announcing that it will go ahead with its $176-million support programme, following reassurances that the controversial farm land redistribution programme will be kept within budget.
SAA BLOCKS COMPETITION
SOUTH African Airways will oppose an application by Transavia Airlines, owne by Dutch national carrier KLM, to launch a charter service between Amsterdam and Durban in March on the grounds that it will operate outside parameters specified in bilateral agreements between the two countries.
WORLD BANK 4TH EURORAND
THE World Bank launched its fourth eurorand bond this year with a R2-billion, 28-year zero-coupon global issue on Tuesday. The issue is expected to appeal to European retail investors and offshore US institutional investors, according to lead manager JP Morgan.
VOLVOS FOR AFRICA
SWEDISH car manufacturer Volvo will begin assembling two of its models, the S40 and V40, at Hyundai’s plant in Gaborone, Botswana in early 1999. The Botswana plant, which will run under the auspices of Wheels of Africa, is near completion and has the capacity to produce 40 000 cars a year — 10 000 of which will be Volvos.
AVGOLD CUTS BACK
AVGOLD, the gold mining arm of Anglovaal Minerals, announced the closure of its Lorraine gold mine and the scaling down of operations at the Hartebeesfontein mine in a statement on Tuesday. The strategy, a bid to maintain acceptable profit margins at the current gold price, will include retrenching 7 500 workers at a cost of R70-million. Despite a 3% increase in gold sales and a 15% reduction in cash costs during the last quarter of 1997, Avgold still failed to meet its required targets as a result of the falling gold price, forcing the company to resort to drastic measures to reduce costs, said MD Jurie Geldenhuys.
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