Thursday The Herald FINANCE December 20, 2012 15 THE LATEST GLOBAL MARKETS THE LATEST MARKET MOVERS JSE 39 164.84 +0.73% RAND/DOLLAR R8.47 +0.35% FTSE 100 5 961.59 +0.43% RAND/EURO R11.22 +0.45% DAX 7 676 +0.3% RAND/POUND R13.78 +0.42% DOW 13 333.53 -0.13% GOLD $1 663.90 -0.59% BRENT CRUDE $110.10 +1.94% B usiness P L AT I N U M $1 591.50 -0.41% IN BRIEF FEATHERS FLY Business activity indicator rises UK set SOUTH ’s leading indicator of business activity rose for the fourth consecutive month in October, supporting forecasts that economic conditions will improve slightly next year. The indicator, which points to to enter East trends in the economy six to 12 months ahead, lifted 0.6% to an index level of 130.1 in October from a revised 129.3 (131.8) in September, figures from the Reserve Bank showed yesterday. Its slow pace of growth is in line with the expected economic Cape m a r ket environment in the coming year. Local sectors have been negatively affected by the economic slowdown in South Fastjet provisionally agrees to buy Africa’s trade partners, while strikes also added pressure. John Harvey and “I am pleased we have man- ourselves as not only a tourist These are the main reasons the Hendrick Mphande aged to reach a provisional agree- destination, but one for sporting domestic economy is expected h a r vey j @ t i m e s m e d i a . c o . z a ment with all parties to buy events for club teams. We have to have grown 2.5% this year. - 1time,” Fastjet chief executive Ed always said we want to make East BDLive Winter said. a chosen destination in ASTERN Cape busi- “Due to protracted negotia- ness and residents , as we believe it is an tions we will not have 1time flying untapped market.” December ATM have welcomed the before Christmas but hope 1time announcement that He said if another budget air- withdrawals rise will be flying again early in the line was to join Kulula, it would UK airline Fastjet plc new year. Flights will initially be has provisionally bring down costs for passengers WITHDRAWALS from ATMs operated by a number of aircraft travelling to the city and thus agreedE to buy the entire issued from the 1time fleet, including across South Africa between assist to drive the growth of the December 11 and 18 rose 6.57% share capital of liquidated South McDonnell Douglas MD-82s‚ African budget airline 1time. local market. year-on-year, Spark ATM Systems MD-83s and MD-87s. In due In a release to the London Although the new airline, said yesterday. course we plan to re-fleet with Stock Exchange’s RNS service which would be rebranded as This indicated consumers had modern Airbus A319 aircraft.” yesterday, Fastjet revealed it had Fastjet, would be a new low bud- not cut back this festive season The Nelson Mandela Bay Busi- assented to an option agreement get competitor, spokes- despite tough economic ness Chamber’s Kevin Hustler from 1time parent company person Hein Kaiser said: “We wel- conditions, managing director said: “The expansion of flights 1time Holdings. come the competition and I be- Marc Sternberg said. between Port Elizabeth and other The announcement comes major centres is good news for lieve it will stimulate demand He said the Spark Cash Index, weeks after another low budget [and] benefit consumers.” which measures activity across business in the Eastern Cape. airline, Mango, began flights from The introduction of competition Eastern Cape residents w e re more than 2 000 ATMs, re f l e c t e d to Nelson Mandela delighted with the news about an average withdrawal of is healthy for the market, as long Bay. Kulula Air will also fly to East as it is sustainable.” Fastjet. “Wow, this is definitely R484.43 between December 11 London from March next year. good news for SA and grateful and 18. This was higher than the Border-Kei Chamber of Com- Fastjet‚ by acquiring the merce chief executive Les Hol- that PE has been included,” Glen- R454.55 measured last year. s h a re s ‚ would gain the right to brook said: “It was sad when da Perumal said on The Herald’s The rise in cash withdrawals operate domestic and regional 1time closed down because it Facebook page. ahead of the Christmas period air services in South Africa‚ the had been the only budget airline Vumile Ndlela said: “Good was no surprise. “The festive HORMONES WORRY: Colonel Sanders – his face featured in this sign in China’s Hubei province yesterday – and his statement said. to serve Buffalo City, but clearly news really but in their routes period is known as the ‘silly Kentucky Fried Chicken franchises are facing problems in the country. It has been alleged by state television that a Its initial routes would be do- there was a gap in the market for they must also include Mthatha. season’ for a reason -- consumers commercial chicken producer has been feeding antiviral drugs and growth hormones to its chickens, which are then mestic routes serving Johannes- other budget to move in. We really do need flights between tend to forget financial difficulties supplied to KFC outlets. McDonalds franchises are also affected. The franchises have said they will cooperate fully in b u rg ‚ Cape Town‚ Durban‚ Por t “When 1time first came to East PE and Mthatha.” – Additional re- and spend cash.” – Sapa investigations Picture: REUTERS Elizabeth and East London. London it enabled us to market porting by BDlive Housing plan on brink of fruition

Brian Hayward road in Motherwell owned by the compa- town planning consultants, Metroplan, ny, borders the Coega industrial develop- showing the extent to which the environ- PLANS for one of South Africa’s largest low- ment zone (IDZ). mentally sensitive areas would impact on cost holistic lifestyle estates, Coega Ridge “The discussion [with officials] was the number of houses,” Gardiner said. on the outskirts of Nelson Mandela Bay, open and frank, and an opportunity for “The conclusion is that the original moved a step closer to fruition this week. DEAET to ask clarifying questions,” Rob number of housing units can still be The company behind the “city within a Gardiner, a partner at SRK Port Elizabeth, achieved by densification by including city” project, Nu-Way Housing, has submit- the environmental consultants for Coega more walk-ups [double-storey blocks] in ted the final answers regarding the Ridge, said. the site development plan, to protect the Regional department director Leon Els specifics of the R6-billion development, sensitive areas.” said the additional information requested wrapping up its environmental impact as- Coega Ridge project head Jordan Mann included clarity on the availability of bulk sessment (EIA) submission to the provin- welcomed the final submission, saying he services such as water and a sewerage was confident the development was cial Economic Development, Environmen- system and a revised plan taking into aligned to the department’s requirements. tal Affairs and Tourism Department account sensitive vegetation. (DEAET). Els has previously said that once his de- “Not only will this development take Nu-Way submitted its original EIA last partment had all the relevant information, cognisance of the sensitive environment, December and, following a site visit by de- it would take three months before award- but crucially it will make a major dent in partment officials in July, has now submit- ing a yes or no for the project, called a the metro’s 92 000 housing backlog,” ted final answers to residual questions. record of decision (RoD). Mann said. It plans to develop Coega Ridge – a mix Gardiner said water could be supplied Earlier this year, violent protests of predominantly low-cost and subsidy to the first phase of the development – brought large parts of the city to a stand- housing for the poor which, once com- 3 300 units – from existing reservoirs, al- still when residents decried the municipal- plete, will boast 39 000 housing units – in though future phases would require addi- ity’s slow progress in housing delivery. three phases over seven years. tional infrastructure. “The development will also be a major Schools, clinics or a hospital and a shop- “The response includes recommenda- job creator and we will endeavour to use ping mall will also be built. tions from socio-economic expert March- local suppliers and contractors wherever The site, 3 200ha of land along the Addo elle Terblanche and comment from the possible,” Mann said. Ramaphosa bid to avoid trade conflict NEWLY elected ANC deputy president implication of my election to this post,” range of interests. In the financial sector, Cyril Ramaphosa has initiated a review Ramaphosa said. these include holdings of 1.2% in Stan- of his business interests to remove any “This will include a review of existing dard Bank, where Ramaphosa is also a possibility of a conflict of interest, he positions, responsibilities and obliga- director, 7.8% in Alexander Forbes and said yesterday. tions. It is intended that this will result in 1.5% in the Liberty Group. Ramaphosa, who was elected on Tues- an arrangement that removes any con- Shanduka also owns 0.54% of industri- day, is acting voluntarily as there are no flict of interest.” al holding company Bidvest, with varied legal or internal party rules that bind him The past year has seen a dramatic interests including vehicle dealerships. to disclose his interests or withdraw escalation of Ramaphosa’s wealth. From In telecoms, Shanduka has interests in from business. last year to this year, his worth rose 39% both South Africa and Nigeria, the However, there are proposals on the to R3.1-billion. This is according to the fastest-growing mobile communications table at the party’s Mangaung national Sunday Times Rich List, which measures market. These include 0.45% of MTN conference that would require ANC of- wealth on the basis of an individual’s South Africa and about 5% of MTN Nige- ficials to disclose their interests. holdings in listed companies. ria. It also has a 32.7% interest in Helios “In consultation with the ANC officials A glance at the holdings of Shanduka, Towers, a cellphone tower-building out- I am undertaking a process of engage- in which the Ramaphosa Family Trust fit in Nigeria, and 12.5% in Seacom, which ment with several stakeholders on the owns 30%, reveals a large and diverse constructs undersea cables. – BDlive IFC plans to pump billions into Africa THE International Finance Corporation to Africa which was growing on average at mitted or when financing was needed for (IFC), which is the World Bank’s private 5% to 6% a year. It was also eager to de- projects. That would avoid the need to sector arm, plans to issue local currency velop transport and power infrastructure seek approval each time it wanted to issue bonds in 10 African markets from next year. but financing had been hard to come by local currency debt, Hua said. The aim is to build capital in one of the for these capital-intensive projects. Despite a swathe of financial reforms world’s fastest-growing regions. Triple-A rated IFC will offer proceeds over the past decade, Africa’s local bond Corporation vice-president Jingdong from the bond sales to companies seeking markets mostly remain underdeveloped Hua said the group was looking at South financing in the countries, Hua said. and too thinly traded for most foreign in- Africa, Nigeria, , Zambia, Rwanda, “We will have something coming up in vestors or to meet growing funding needs Namibia, Botswana, Uganda, and the market soon but it’s too premature to of small- and medium-sized companies. the West Africa bloc. disclose which country,” he said. Hua is confident of the plan, saying that The bonds would be priced in the likes While the IFC had been involved in local up to $30-trillion in pension money is avail- of South African rand, Botswana pula, bond markets in West Africa, it was now able internationally. Nigerian naira or Ugandan shilling rather pursuing multi-year agreements with gov- “Just imagine you switch 1% of that from than the US dollar or euro. ernments that would allow it to issue developed markets to developing markets Hua said the project could prove a boon bonds whenever market conditions per- – that’s $300-billion,” Hua said. – Reuters