TUESDAY, 1.00PM:
IN an index of 27 countries compiled by the Economist Intelligence Unit, South Africa is the least expensive in which to do business, beating countries like Malaysia, Indonesia, India, Russia and Brazil.
High basic wages put Germany at the top of the list. The index was compiled using data covering the costs of wages, expatriate staff, air travel, subsistence, corporate tax, corruption, rents and transport. In developed countries, costs other than wages were frequently comparable to those in less-developed countries.
Local sceptics say the results probably point to the fact that South Africa is not a top destination for businessmen.
The index was compiled before the recent crisis in the Asian economies, which will have brought down the relative costs of business in Malaysia, Singapore, Thailand and Indonesia.
BUSINESS BRIEFS
BOTSWANA DIAMOND OUTPUT UP
DIAMOND production in Botswana increased by about 13% last year over the 17,7-million carats produced in 1996, mineral resources permanent secretary Blackie Marole said on Monday. He said Botswana’s diamond output exceeded 20-million carats last year for the first time in its history. Diamonds are Botswana’s main export, accounting for well over 50% of export revenue.
CAPE TOWN IS TOPS
CAPE Town rates second in the world as the city that gives tourists the most value for money, according to the latest report by upmarket US magazine, Travel and Leisure. Coming a close second to Sydney, Cape Town was judged on a combination of criteria voted on by 9 000 of the magazine’s well-heeled readers. Mala Mala Game Reserve came second in the category “hotels for value” after being named the “world’s finest hotel” in the 1997 issue. Four of the magazine’s global top 10 hotels are in Africa, with the other three Zimbabwe’s Victoria Falls Hotel, the Governor’s Camp in Kenya and the Mount Kenya Safari Club.
SA IN TOP THREE MACADAMIA PRODUCERS
SOUTH Africa produced a total of 4 850 tons of macadamia nuts in 1997, making it the third largest producer in the world, tipped only by Australia and Hawaii. SA Macadamia Association secretary Julie Marjoram said that most of the nuts are exported, but with the growth and success in the industry, the local market could very well expand substantially. The SA macadamia industry is concentrated around Tzaneen and Levubu in the Northern Province, with parts of Northern Mpumalanga and KwaZulu-Natal also producing.
GOLD FIELDS SHARES DROP ON FIRST DAY
WHILE most equities on the JSE soared on Monday as the indices rose to new heights, the newly listed Gold Fields Limited dropped 170c from its opening value of R34,70.
INTERNET MONOPOLY HEARING CONTINUES
TELKOM’S fight with the South African Telecommunications Regulatory Authority (Satra) for a monopoly on the Internet in South Africa arrived in the Pretoria High Court on Tuesday. Telkom claims Satra’s October ruling on the Internet is not binding, as the authority did not follow proper promulgating procedures.
NORWICH REJECTS AFLIFE OFFER
ASSET management and assurance management company Norwich said on Monday that its board has rejected a conditional, partial share offer made to shareholders by African Life Assurance (Aflife).
R605 000 FOR GAUTENG GAMING CHIEF
THE new chief executive officer of the Gauteng Gambling and Betting Board will be eligible for a salary of up to R605 00 a year, the highest salary in the Gauteng government, though board members say that, as a quasi-statutory body, board salaries should be compared to the private sector.
EUROBANK ISSUES NEW BOND
THE European Bank for Reconstruction and Development has drawn on the eurorand bond market for the second time this year, issuing a R2-billion zero coupon bond, with a maturity date in December 2029.
PRIVATE BANKS TO DEAL IN GOVT BONDS
THE finance department is expected to announce the private banks that will qualify as primary dealers in government stock on Tuesday. Twelve banks have applied to be appointed as dealers, and the Reserve Bank has indicated that most will be accepted. The Reserve Bank has aimed for a balance between domestic and international banks. The new system starts in April and will increase transparency, bringing SA into line with international practice.
PO FIRES 276 THIEVES
THE Post Office has fired 276 workers for criminal activities since last April. MD Frank Touwen says all security policies and procedures are under review, and an ethical code, to be signed by all employees, is on the way.
SMALL BUSINESS BUREAU CUTS BACK
LACK of funds is forcing the Small Business Advisory Bureau to cut back on certain projects. Bureau chairman David Moshapalo has appealed to the state and corporate sectors for funds to assist small business. The bureau helped between 7 000 and 9 000 businesses last year.
NAMIBIA MUST PAY R11,3m
NAMIBIA has collected R11,3-million less beer excise than its revenue share in the Southern African Customs Union demands. Namibia has been collecting incorrect duties on beer brewed and sold in Namibia, but its fellow Sacu members are demanding it pays up.
DBSA LOOKS AT EURORAND BONDS
THE Development Bank of Southern Africa plans to take advantage of European demand for rand investments by raising between R500-million and R1-billion on the Eurobond market. The bank is considering issuing a 20 to 30 year, government-guaranteed bond, possibly to be priced 10-15 basis points over government’s 18-year R157 bond.