Tag Archives: South Africa

China and South Africa in $6.5bn worth of deals

China and South Africa have signed deals and loans valued at $6.5bn (£4.3bn), with the focus on building infrastructure in the African giant.

The deals were announced during a four-day visit by Chinese President Xi Jinping to increase trade and investment between the two countries.

About 26 deals were signed on Wednesday, with $2.5bn going to South Africa’s state-owned rail operator.

China has given a series of loans to African countries for development.

Read more » BBC
See more » http://www.bbc.com/news/business-34991846

Putin ratifies BRICS $100bn currency pool deal

Russian President Vladimir Putin has ratified a deal to establish a $100 billion foreign currency reserve pool for the BRICS group. The pool’s purpose is to protect national currencies from volatility in global markets.

The document was “to ratify the treaty on the establishment of a pool of foreign exchange reserves of the BRICS.”

On Wednesday the deal was ratified by Russia’s upper house of Parliament, the Federation Council. According to the deputy head of the Federal Council Committee for Budget and Financial Markets, Sergey Ivanov, the currency pool will primarily support the balance of payments of the BRICS member states.

“Realization of the agreement will also contribute to the effective protection of the national currencies against the volatility in the world currency markets,” Ivanov said.

The goal of the pool is so that BRICS member states can urgently replenish their liquidity from it in different proportions to resolve problems with their balance of payments.

China will make the biggest contribution to the pool – $41 billion. Russia, Brazil and India will donate $18 billion each, while South Africa’s investment will be $5 billion.

The fund is expected to be maintained by a managing council, a permanent committee and a coordinator who will be from the country of the current president.

In July Russia, Brazil, India, China and South Africa signed the document to a reserve currency pool worth over $100bn as well as $100bn BRICS Development Bank

BRICS represents 42 percent of the world’s population and roughly 20 percent of the world’s economy based on GDP, and 30 percent of the world’s GDP based on PPP, a more accurate reading of the real economy. Total trade between the countries is $6.14 trillion, or nearly 17 percent of the world’s total.

News courtesy: http://rt.com/business/255141-putin-brics-pool-currency/

Deaths in South Africa as mobs target foreigners

At least five killed in Durban since last week in violence that has left hundreds stranded, unable to return home.

Violence against immigrants in South Africa has killed at least five people since last week in one of the worst outbreak of violence against foreigners in years.

Hundreds of migrants mostly from other African countries had been forced out of their homes, authorities told the Associated Press news agency on Tuesday.

Khadija Patel, a South African journalist, told Al Jazeera there have been previous instances of violence against foreigners.

“Hundreds of foreign nationals were displaced in Isipingo [20km south of Durban] late last month, when a group of South Africans attacked foreigners living and working in the area. The victims of that continue to reside in a makeshift camp at a sports ground in Isipingo,” Patel said.

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Russia ratifies $100bn BRICS New Development Bank

The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.

The bank’s board of directors will hold its first meeting in Ufa in Russia in April. Russian Finance Minister Anton Siluanov is likely to become the bank’s first Chairman of the Board of Governors, according to Deputy Finance Minister Sergei Storchak talking on the Russia 24 TV channel.

The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion.

The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.

Read more » RT
See more » http://rt.com/business/234027-russia-ratifies-brics-bank/

Brics nations to create $100bn development bank

The leaders of the five Brics countries have signed a deal to create a new $100bn (£58.3bn) development bank and emergency reserve fund.

The Brics group is made up of Brazil, Russia, India, China and South Africa.

The capital for the bank will be split equally among the five participating countries.

The bank will have a headquarters in Shanghai, China and the first president for the bank will come from India.

Brazil’s President, Dilma Rousseff, announced the creation of the bank at a Brics summit meeting in Fortaleza, Brazil on Tuesday.

A new player

At first, the bank will start off with $50bn in initial capital.

The emergency reserve fund – which was announced as a “Contingency Reserve Arrangement” – will also have $100bn, and will help developing nations avoid “short-term liquidity pressures, promote further Brics cooperation, strengthen the global financial safety net and complement existing international arrangements”.

The creation of the Brics bank will almost surely create competition for both the World Bank and other similar regional funds.

Brics nations have criticised the World Bank and the International Monetary Fund for not giving developing nations enough voting rights.

One of the goals for the bank – whose creation has been discussed for some time – would be to increase the amount of money loaned to developing countries to help with infrastructure projects.

Courtesy: BBC
http://www.bbc.com/news/business-28317555

World Mourns

South Africa’s Nelson Mandela dies in Johannesburg

South Africa’s first black president and anti-apartheid icon Nelson Mandela has died, South Africa’s president says.

Mr Mandela, 95, led South Africa’s transition from white-minority rule in the 1990s, after 27 years in prison.

He had been receiving intense home-based medical care for a lung infection after three months in hospital.

In a statement on South African national TV, Jacob Zuma said Mr Mandela had “departed” and was at peace.

“Our nation has lost its greatest son,” Mr Zuma said.

He said Mr Mandela would receive a full state funeral, and flags would be flown at half-mast.

Read more » BBC
http://www.bbc.co.uk/news/world-africa-25249520

I AM A SINDHI — wrote Gandhiji way back in 1929

…when I first visited Sindh in 1916, it attracted me in a special way and a bond was established between the Sindhis and me that has proved capable of bearing severe strains. “I have been able to deliver to the Sindhis bitter truths without being misunderstood” — wrote Gandhiji way back in 1929.

Actually Gandhiji delivered to Sindh more sweet truths than bitter truths. And, in any case, all these truths indeed established a very warm relationship between Gandhiji and the Sindhis. He visited Sindh seven times — in 1916, 1917, 1920, 1921, 1929, 1931, and 1934. It was “a Sindhi friend” who had helped Gandhi shift from an expensive hotel to economical lodgings when he arrived in London for his law studies. In 1893, C.L. Lachiram, a Sindhi merchant, helped him organize the Natal Indian Congress. In 1899, Barrister Gandhi successfully fought for seven Sindhi traders who were being denied entry into South Africa. He supported the case of K. Hundamal, a silk merchant of Durban, in his articles in the Indian Opinion.

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