Wednesday, 27 April 2016

MORE TO FIKILE MBALULA THAN HIS BAFFOONERY




 In the past I have expressed annoyance with Minister of  Sports and Recreation,  Fikile Mbalula, for his buffoonery.  Today, I enthusiastically, but conditionally praise him for banning sports federations from hosting or bidding for international tournaments to facilitate increased representation of black players.  Only conditional praise for the Minister?  Yes, he has yet to step up to the plate.
Mbalula's wielding of a big stick is overdue, but nevertheless a significant step in accelerating diversity in sport. The federations, and we know who they are, have essentially paid lip service to transformation - at best cosmetic window dressing.   They now have their work cut out for them in transforming the sporting landscape.  Besides the role required of federations, Mbalula's department must play an equally vital role in the transformation process.  Inasmuch as Mbalula looks to the federations for remedial action, he and his predecessors have habitually "dropped the ball" in the performance of their mandate.    In other words, they have failed miserably to develop the necessary infrastructure for sports in the country.
 Consider the following premise:  the failure to transform is inextricably linked to crushing  poverty among the less fortunate in the country.  The vast majority of poor young blacks in the townships live in squalor, and sporting facilities that do exist reflect equally squalid conditions.  Perhaps the Minister can accompany me on a visit to the townships around Cape Town.  There he will find sports facilities woefully inadequate, in disrepair and vandalised.  Conditions on fields are invitations for serious injuries. Amenities, such as change rooms are the exception rather than the rule.   The landscapes are treeless and arid - inhospitable and unwelcoming.

In a recent interview the Minister opaquely touched on the lack of development, and blamed his department's limited budget.  A puerile excuse - he and his predecessors have had more than two decades to develop the necessary infrastructure to facilitate transformation.   Also, when it comes to the department's budgets, it is unlikely they were historically and currently reduced.  After all the Minister is no shrinking violet when departmental interests are at stake.

The solution to meaningful transformation is not an esoteric one.  It requires a two pronged approach:  Firstly, an unwavering commitment from federations to expeditiously bring about diversity in sport.  Secondly, for the minister to direct resources to construct new sporting facilities, and improve appallingly decrepit sporting facilities that currently exist for disadvantaged black youth in the townships.

Tuesday, 26 April 2016

SA POULTRY ASSOCIATION NO LONGER RULES THE ROOST


According to a recent media report there is no love lost between the South African Poultry Association (Sapa) and the USA Poultry and Egg Export Council USAPEEC).  

Under the renewed US Growth & Opportunity Act (Agoa), the import of 6500 metric tons of duty free US poultry will enter the South African market.  In return South Africa's agricultural and manufacturing sectors greatly benefit through duty free export of a host of products to the US market.

Agoa is an export bonanza for South Africa's products.  No so, for the local poultry industry, according to Sapa.  The association vigorously opposed the duty free import of US poultry, and as a sore loser, continues to do so.  It myopically refuses to acknowledge that the Agoa benefits to the agricultural and other sectors far outweigh the insular interests of the poultry industry.

In a letter to Sapa's chief executive I pointed out that his "repetitious haranguing against US export of poultry to South Africa, has run its course and served no useful purpose".  Agoa was a done deal, and no amount of whining would change the paradigm.

I also pointed out that "the South African consumer is not interested in the source of its poultry. All that matters is price and product safety.  There is a perception that local producers have had a monopolistic lock on the market for too long.  If anything US exports will create much needed competition, especially with ever- increasing food costs".

The lesson for Sapa is clear:  competition is liberating inasmuch as the local poultry industry can successfully compete with US poultry exports. To do so, it must shed its complacency through decades of non-competition, and focus on local consumer needs and expectations.  In doing so, locally produced poultry will fly off supermarket shelves. Isn't that the answer rather than wallowing in self-righteous indignation?







Monday, 25 April 2016

GOVERNMENT PANDERS TO GUPTAS CRY FOR HELP


It happens everyday - banks unilaterally close customer accounts.  They do so for a myriad of reasons all predicated on exposure to one or more actual or perceived risks.  
In South Africa's highly regulated banking industry, banks are required to operate within narrowly defined parameters.  But, there is no legal obligation requiring banks to maintain customer relationships in perpetuity.  All that is required is reasonable notice of termination.  
Why then the cabinet's decision to "constructively engage" the banks on terminating of their banking relationship with the Guptas?  According to the Minister in the Presidency Jeff Radebe, the decision was taken to "deter future investors who may want to do business with South Africa".   The opposite is true:  foreign investors will not want to do business with South Africa knowing the government's proclivity to intrude and orchestrate banking relationships.  
The cabinet's decision to "constructively engage" on behalf of the Guptas sets a dangerous precedent.   It is time to stop pandering to them.  
Government interference with banker/client contractual relationships will not engender confidence in South Africa's otherwise reputable banking regime.  

Thursday, 21 April 2016

PRAVIN GORDHAN - THE MAN IN THE HOT SEAT

Most of us by now must be aware of a probable downgrading of South Africa's sovereign credit rating to junk status by one or more of the rating agencies. The country is looking to one man, Pravin Gordhan, to prevent a downgrade to junk status. The country has embraced him in the mistaken belief that he is a miracle worker. A worker of extraordinary ability indeed, but helpless in preventing the devastating consequences of a downgrade. Minister Gordhan is a true patriot. Men and women with comparable ability and understanding of the plight of South Africa's economy would rather face an Arctic winter, dressed in shorts, than the hot seat of finance minister. South Africa's economy will suffer enormously when hit with junk bond status, but it can improve, provided the government allows Gordhan to do his job without interference. In this regard, the minister must have unfettered authority to reorganize poorly performing parastatals. No state-owned sacred cow must be exempt from Treasury's long-arm of command and control. In addition, anti-business legislation must be dismembered, including so-called indigenous legislation which is a profound disincentive to foreign investment. The remedial list is a long and daunting one, but can be addressed provided cabinet ministers whose portfolios impact on the economy pay particular attention to the idiom directed at fools who rush in where wise men fear to tread. Good luck Minister Gordhan - you are going to need it!

LIES, DAMN LIES & STATISTICS

Jeff Radebe, Minister to the Presidency, recently participated in a parliamentary budget debate on performance management and evaluation. His address was a classic illustration in the art of cherry-picking with the aid of rose coloured glasses in support of the government's contention that people's lives were getting better. In citing outdated statistics he asserted, for example, that head count poverty had been reduced between 2001 and 2011. He likewise relied on outdated statistical data to demonstrate an increase in 2014 post-school enrollment. Statistical data he provided to demonstrate an improvement in the overall standard of living was likewise outdated, devoid of data in relation to present day living standards. Radebe's rosy view of South Africa flies in the face of a recent damning report by statistician-general, Pali Lehohla regarding South Africa's marginalised society, particularly its youth, who are without education and sustainable employment. According to Lehohla only 38%of young people have matric, and 1% have a university degree. He believes South Africa's youth face "a cocktail of disaster". Statistics are pliable, easily manipulated, misleading, and ordinarily only tell a fraction of the story. Compare the stories of both Lehohla and Radebe as to who fails to tell the whole story - it is not a brain-teaser.

Wednesday, 20 April 2016

ALL IS NOT MILK & HONEY IN THE ANC's HIVE

The launch of the ANC's election platform last weekend, underscored by the conspicuous absence of thousands of people, was a humdrum event. More than two decades ago, I would have unquestionably attended an election platform launch, ready and willing to sing songs of liberation, interspersed with enthusiastic shouts of 'Amandla'. Today I feel a sense of loss - something that was important in one's life is gone. The loss of a noble and principled political movement that transformed into predatory corrupt self-interest to enrich the few at the expense of the many. The ANC's political structure is embedded in group collectivism. Individuality is an anathema to the functioning of the collective. The collective comprises a hive-minded group mentality with a loss of individual identity. Watch a group of bees as they coalesce to move as a committed unit to prevent splitting up the hive and losing the queen. Is it any different from the ANC executive coalescing around Zuma in their bee-striped shirts? History has shown time and again that individuality triumphs, despite efforts to suppress it. So it will be with the ANC where fissures of resistance to unconditional collectivism are now evident due to emerging political awareness. Adding to the awareness is the realization by rank and file members that the party is no longer the party of Mandela - instead a corrupt, inept organization incapable of contributing to a better future for the country. In time, the ANC will implode due to its anachronistic communist command ideology. In its place a new political party will rise up embedded in the principles of good governance and free market policies. Alexander Pope's idiom was never more relevant: "hope springs eternal in the human breast".

Monday, 18 April 2016

MALEMA'S iDIOTIC BABY BREEDING PROGRAM

Julius Malema, in a throwback reminiscent of Japan's wartime era militaristic ambitions, called on women to have more babies. He exhorted black women this past week to reproduce because white people want to reduce black numbers to take over politically. Malema regards women's primary role as one of reproduction. Black women are, as far as Malema is concerned, simply birth-giving machines whose societal function is nothing more than a "revolutionary duty . . . to make children". Malema, like other demagogues, shoot from the hip without regard to accuracy or consequences. In this respect, Malema proffers that white people " do not want us to give birth because they know we are more than them . . . and the day they are more than us they will take over our land". Statistically the number of white people will not exceed black people in Malema's lifetime and beyond. In fact, according to a report by the South African Institute of Race Relations the country's white population may be extinct by the year 2061. One should not judge Malema too harshly for his ignorance of demographic statistical characteristics - his less than academically challenging BA degree did nothing for him in this regard. Unfortunately there are revolutionary followers of Malema who blindly accept his hyperbolic babble, and will answer the breeding call. In doing so, they will add to the millions of poverty stricken helpless children who lack the basics in healthcare, education and nutrition. They will be trapped in a cycle of poverty for which there is likely no escape - a new generation to be cast aside by the reckless actions of a firebrand more interested in political power than breaking the cycle of poverty for millions of people. There is a saying: wise men speak because they have something to say; fools because they have to say something. Clearly something to think about for the man in the red beret.