LAGOS (Reuters) &#8211; South Africa’s MTN Group has resolved a dispute with Nigeria’s central bank and made a $53 million payment, the telecoms company said in a message posted on Twitter on Monday.



Nigeria’s central bank had said $8.1 billion in dividends paid by MTN Nigeria to its parent company between 2007 and 2015 and sent back to South Africa were illegal and should be returned.



While the west African country’s regulator had accused MTN of illegally transferring the funds out of the country, MTN denied any wrongdoing.



“MTN resolves Nigeria dividend issue, makes $53m payment, engaging with banks regarding the agreement,” it said on Twitter.



Nigeria is MTN’s biggest market, accounting for a third of its annual core profit, but has proved problematic in recent years.



Around two years ago MTN agreed to pay more than $1 billion to settle a dispute over SIM cards in Nigeria.



In a separate case, MTN faces a $2 billion tax demand from Nigeria’s attorney general.



Reporting by Alexis Akwagyiram; editing by Jason Neely

MTN and Nigeria resolve dispute, here’s what you need to know

JOHANNESBURG (Reuters) &#8211; South Africa’s rand gained early on Monday in low-volume trade ahead of a shortened Christmas holiday week, as political instability in the United States curbed the dollar’s recent surge.



Stocks ended higher in trade led by resource firms.



At 1200 GMT the rand was 0.6 percent firmer at 14.5450 per dollar, compared to a close of 14.6300 on Friday in New York.



The dollar index was down 0.19 percent.



The rand, along with other emerging currencies, was hit by a wave of selling going before the weekend, with investors squaring positions and looking to offload risk holdings.



But by Monday risk demand was revived by developments in Washington, with investors fretting over a government shutdown that could continue into January and a report that President Donald Trump has discussed the possibility of firing the head of the central bank.



“A potential U.S. government shutdown, President Trump threatening to fire the Chairman of the Federal Reserve and U.S. politics in general are adding some pressure to the dollar,” said Bianca Botes of Peregrine Treasury Solutions.



Bonds closed flat, with the yield on the benchmark 2026 paper steady at 9 percent.



On the bourse, the Top-40 index rose 1.43 percent to 46,203 points, while the broader all-share was up 1.27 percent at 52,081.



AngloGold Ashanti led the blue-chip index, up 4.4 percent at 184.40 rand.



Bourse heavyweight Naspers rose 3.9 percent on the day to 2,956.30 rand.



Reporting by Mfuneko Toyana; Editing by Subhranshu Sahu

South Africa’s rand gains as U.S. political instability weighs on dollar

By <a href="https://theconversation.com/profiles/charles-shey-wiysonge-179980">Charles Shey Wiysonge</a>, <a href="http://theconversation.com/institutions/south-african-medical-research-council-1976">South African Medical Research Council</a> 

People are now living longer in sub-Saharan Africa than they did two <a href="https://theconversation.com/lifestyle-diseases-could-scupper-africas-rising-life-expectancy-107220">decades ago</a>. This is an achievement, given that life expectancy in the <a href="https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(18)31891-9/fulltext">region</a> went down the drain from the 1990s to the mid-2000s 
as it choked under the devastating effects of the HIV epidemic.

The question to ask is whether the additional years are spent in good or poor health. This question matters because how long people live affects the population’s state of health and leading causes of disability. Longevity means that these change over time which in turn has implications for policy, planning and provision of services.

We used information from the <a href="https://www.thelancet.com/gbd">Global Burden of Disease</a> study to calculate healthy life expectancy in sub-Saharan Africa. Healthy life expectancy refers to the average number of years that a person at a given age can expect to live in good health, taking into account mortality and loss of functional health.

The data suggest that people are living many years in poor health in the region. And <a href="https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(18)32279-7/fulltext">our paper</a> shows that there are large inequalities in healthy life expectancy and disease burden between – and within countries – in sub-Saharan Africa. 

This points to the fact that much more effort is needed to increase healthy life expectancy in the region. 

<h2>Discrepancies</h2>

We found that the increase in healthy life expectancy in sub-Saharan Africa was smaller than the increase in overall life expectancy. This indicates that many years are lived in poor health in the region. In 2017, life expectancy at birth in sub-Saharan Africa was 63.9 years, but healthy life expectancy was only 55.2 years. This means that 13.6% of years of life in the region is spent in poor health.

Life expectancy in 2017 varied by sub region, ranging from 62.4 years in Central Africa to 65 years in Southern Africa. However, in Central Africa 14.4% and in Southern Africa 13.8% of these years are estimated to be spent in poor health, respectively.

The proportion of years of life spent in poor health varied between countries, ranging from 11.9% in Djibouti to 14.8% in Botswana.

While women live longer than men, many of these extra years are lived in poor health. The life expectancy at birth for women in sub-Saharan Africa in 2017 was 66.2 years, but healthy life expectancy was only 56.8 years. Thus, women spend 14.2% of their years in poor health. For men, life expectancy was 61.7 years and healthy life expectancy was 53.7 years. Thus, men in sub-Saharan African spend 13% of their lives in poor health.

<h2>Healthy life expectancy</h2>

The average healthy life expectancy at birth in sub-Saharan Africa increased by 9.1 years, from 46.1 years in 1990 to 55.2 years in 2017. The increase in health life expectancy at birth varied from 0.9 years in Southern Africa to 12.4 years in Eastern Africa.

Even larger variations in healthy life expectancy than these were observed between countries, ranging from a decrease of 4.9 years in Lesotho (51.9 years in 1990 to 47 years in 2017) to an increase of 23.7 years in Eritrea (30.7 years in 1990 to 54.4 years in 2017).

In most countries, the increase in healthy life expectancy was smaller than the increase in overall life expectancy, indicating more years lived in poor health.

<h2>Causes of premature mortality and disability</h2>

We calculated a measure known as disability-adjusted life-years, which captures both early death and ill health. In 2017, the leading causes of disability-adjusted life-years in sub-Saharan Africa for all ages and both sexes combined were neonatal disorders, pneumonia, HIV/AIDS, malaria, and diarrhoea.

However, we observed various dramatic changes in causes of early death and disability between 1990 and 2017. Measles decreased from a ranking of 5th to 20th, heart attacks increased from 16th to 11th, stroke from 12th to 10th, and diabetes from 27th to 14th. We are thus witnessing gradual shift from communicable to non-communicable causes of disease burden.

There was wide variation between countries in the causes of early death and disability.

In Eritrea, the top causes of early death and disability were neonatal disorders, diarrhoea, tuberculosis, pneumonia, and congenital defects. The most dramatic changes were with conflict and terror (1st in 1990 to 14th in 2017), measles (7th to 74th), tetanus (9th to 82nd), heart attacks (17th to 11th), stroke (12th to 10th), and diabetes (22nd to 15th).

In the Central African Republic, the top causes of early death and disability were diarrhoea, neonatal disorders, pneumonia, HIV/AIDS, and tuberculosis. The main changes were with conflict and terror (164th to 9th), measles (7th to 20th), heart attacks (14th to 11th), and diabetes (21st to 16th).

In South Africa, the top causes of early death and disability were HIV/AIDS, neonatal disorders, pneumonia, interpersonal violence, and diabetes. The most dramatic changes occurred with HIV/AIDS (53rd to first), measles (12th to 55th), diarrhoea (2nd to 8th), and diabetes (from 13th to 5th).

In the Gambia, the top causes of early death and disability were neonatal disorders, pneumonia, HIV/AIDS, diarrhoea, and sickle cell disease. There were substantial changes in rankings for HIV/AIDS (61st in 1990 to 3rd in 2017), malaria (4th to 25th), measles (9th to 70th), heart attacks (13th to 6th), stroke (14th to 9th), and diabetes (28th to 18th).

<h2>Extraordinary progress, but . .</h2>

Since 1990, we have seen exceptional progress in sub-Saharan Africa in reducing the burden of communicable diseases, especially measles, tetanus and other vaccine-preventable diseases. However, early death and disability due to these causes remain unnecessarily high in many countries. Immunisation efforts have been helpful, but progress in coverage has slowed in the past decade. Close to 20 million children worldwide, most of them in sub-Saharan Africa, didn’t receive vaccines against these deadly diseases in 2017. Conflict, inadequate investment in national immunisation programmes, and vaccine stock outs were among the reasons for the stalled progress in immunisation coverage.

Our report shows that there is an unfinished agenda of controlling communicable diseases – compounded by an increase in non-communicable diseases – in sub-Saharan Africa. The continued burden of disabling conditions has serious implications for health systems and health-related expenditures in the region.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/108691/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" />

<a href="https://theconversation.com/profiles/charles-shey-wiysonge-179980">Charles Shey Wiysonge</a>, Director, Cochrane South Africa, <a href="http://theconversation.com/institutions/south-african-medical-research-council-1976">South African Medical Research Council</a>

This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/people-in-africa-live-longer-but-their-health-is-poor-in-those-extra-years-108691">original article</a>.

Here’s why people in Africa live longer, are the additional years spent in good or poor health?

JOHANNESBURG (Reuters) &#8211; South Africa’s Competition Commission on Thursday recommended Shoprite’s retail unit, which houses the country’s biggest supermarket chain, be fined 10 percent of its turnover for anti-competitive behaviour.



Shoprite shares fell more than 4 percent after the commission referred it to the country’s Competition Tribunal, which will ultimately decide if the commission’s charges and proposed fine should stand.



The retailer said it would oppose the decision to charge it with anti-competitive behaviour.



The retailer does not disclose turnover for its individual units in its financial statements, but Shoprite Checkers, which includes all of Shoprite’s supermarket brands as well as its liquor, furniture, meat and money businesses, is its biggest money maker.



Overall, Shoprite’s businesses brought in 145.3 billion rand ($10.22 billion) in revenue in 2018.



The case centres on Shoprite Checkers’ event ticket selling subsidiary, Computicket, which was also charged and fined 10 percent of turnover.



The Competition Commission said in a statement Computicket had signed agreements with inventory providers in the entertainment industry that enabled it to discriminate on prices between different-sized customers and served to exclude its competitors.



In a statement, Shoprite said it disagreed with the basis for the referral to the Tribunal.



“Opposing affidavits will be filed by the respondent companies within the required time frames,” Shoprite said referring to the 20 business days within which they can oppose the decision.



Its shares had recovered somewhat to 180.61 rand, a decline of 3.12 percent, by 1354 GMT.



The case marks the second time the commission has referred Computicket to the Competition Tribunal, with a decision on similar charges spanning the period 1999 to December 2012 still pending.



This is the first time that Shoprite has been added as a respondent to the charges, however, with the current case covering the period from January 2013 to present.



($1 = 14.2191 rand)



Editing by James Macharia and Alexandra Hudson

Here’s why South Africa’s Shoprite is facing a hefty fine

LUSAKA (Reuters) &#8211; Zambia is pricing itself out of the global mining market with proposed increases in mining taxes, the head of the local mining body said on Thursday.



Some mines would become loss-making as a result of the Zambian government’s plans to impose new mining duties and increase royalties to bring down mounting debt, Zambia Chamber of Mines President Goodwell Mateyo told a news conference.



Reporting by Chris Mfula; Writing by Alexander Winning; Editing by Susan Fenton

Why Zambia is pricing itself out of the global mining market

By <a href="https://www.landrysigne.com">Professor Landry Signé</a>, David M. Rubenstein Fellow in the <a rel="noreferrer noopener" href="https://www.brookings.edu/experts/landry-signe/" target="_blank">Global Economy and Development Program and Africa Growth Initiative at the Brookings Institution</a>, distinguished fellow at <a rel="noreferrer noopener" href="https://africanstudies.stanford.edu/people/landry-sign" target="_blank">Stanford University’s Center for African Studies</a>, <a rel="noreferrer noopener" href="https://www.weforum.org/people/landry-signe" target="_blank">World Economic Forum Young Global Leader</a>, Chairman of the Global Network for Africa’s Prosperity, and author of Cambridge University Press books “Innovating Development Strategies in Africa:The Role of International, Regional and National Actors” and “<a href="https://www.amazon.com/African-Development-Transformation-Institutions-Strategy/dp/1108456200">African Development, African Transformation: How Institution Shape Development Strategy</a>.” 



Howto unlock Africa’s tourism potential? In order to answer this question and help bridge the gap and offer business and policy leaders with Africa’s biggest opportunities and perspectives in the sector, the Brookings’s Africa Growth Initiative has just released a report entitled “<a href="https://www.brookings.edu/wp-content/uploads/2018/12/Africas-tourism-potential_LandrySigne1.pdf">Africa’s tourism potential: Trends, drivers, opportunities, and strategies</a>.”



In fact, the tourism industry is playing an increasingly important role in the global economy, contributing 5 percent of gross domestic product (GDP), 30 percent of service exports, and 235 million jobs. Indeed, each year,approximately 1 billion people travel internationally. By 2030, consumer spending on tourism, hospitality, and recreation in Africa is projected to reach about $261.77 billion, $137.87 billion more than in 2015. From 1998 to 2015, service exports, including of “industries without smokestacks” such as tourism, have grown about six times faster than merchandise exports in Africa.



Given these trends, the travel and tourism industry has significant potential in Africa, notably due to the continent’s richness in natural resources and its potential to further develop cultural heritage, e.g., music. However, except in a few countries,such as Mauritius and Seychelles, where the tourism sector’s share of the economy is particularly large, tourism in Africa is still at an early stage of development and strongly connected with more general and long standing development challenges, including infrastructure and security.



Aware of the potential for tourism, most countries in the region have already drafted strategic plans to develop the sector as an economic opportunity and development catalyst. For example, Gambia, Kenya, South Africa, and Tanzania are all putting significant efforts into advancing travel and tourism development. Botswana, Mauritius,Rwanda, and South Africa are working particularly hard to improve their business environment for tourism investment.



The African Union and sub-regional communities have also put tourism at the top of their agendas. For example, the African Union has endorsed the continent’s Tourism Action Plan(TAP) developed by the New Partnership for Africa’s Development (NEPAD),renamed African Union Development Agency (AUDA). The TAP recognizes tourism development among priority sector strategies of AUDA across Africa and aims to make Africa the destination of the 21st century. The 15 members of the Economic Community of West African States (ECOWAS) have introduced a visa policy that enables free movement of people across member states, offering a larger market to international travelers.



While improvements have been achieved in various areas, especially at the local level, much more needs to be done by both the public and the private sectors to fully tap Africa’s potential in the tourism industry. This <a href="https://www.brookings.edu/wp-content/uploads/2018/12/Africas-tourism-potential_LandrySigne1.pdf">report</a> starts with an overview of tourism development in Africa and explores some of the key constraints that have prevented this sector from maturing. It identifies important stakeholders and potential opportunities for its future development. It also provides illustrative examples of countries representative of different trajectories of tourism development. Finally, with attention to current major policy reforms, the <a href="https://www.brookings.edu/wp-content/uploads/2018/12/Africas-tourism-potential_LandrySigne1.pdf">report</a> draws conclusions about the future of the tourism sector in Africa.



The <a href="https://www.brookings.edu/wp-content/uploads/2018/12/Africas-tourism-potential_LandrySigne1.pdf">report</a> aims to offer business leaders an overview of Africa’s biggest opportunities and risks in the tourism sector,discussing trends, drivers, perspectives, and strategies for effective investment. It also provides policymakers with some solutions related to the areas that need to be improved to attract private investors, accelerate tourism development, and contribute to growth and poverty alleviation, facilitating the fulfillment of the Sustainable Development Goals and the African Union’s Agenda 2063.



Please download the
report here:&nbsp;<a href="https://www.brookings.edu/wp-content/uploads/2018/12/Africas-tourism-potential_LandrySigne1.pdf">https://www.brookings.edu/wp-content/uploads/2018/12/Africas-tourism-potential_LandrySigne1.pdf</a> 



This report was produced in collaboration with Chelsea Johnson,
Fellow at the London School of Economics and Political Science.

This is how Africa can unlock its tourism potential

By <a href="https://theconversation.com/profiles/camaren-peter-605380">Camaren Peter</a>, <a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a>


In 1967 one gigabyte of hard drive storage space <a href="https://www.computerworld.com/article/3182207/data-storage/cw50-data-storage-goes-from-1m-to-2-cents-per-gigabyte.html">cost US$ 1m</a>. Today it’s around two US cents. Computer processing power has also increased exponentially: it <a href="https://www.offgridweb.com/preparation/infographic-the-growth-of-computer-processing-power/">doubles</a> every two years. This is just the tip of the iceberg when it comes to technological progress in the 21st century.

There have also been tremendous advances in communication technology; robotics; nanotechnology; genetics and artificial intelligence, among other things. This merging of digital, physical and biological worlds has come to be known as the “<a href="https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/">fourth industrial revolution</a>”.

So far, relatively little attention has been paid to the overwhelming potential of the fourth industrial revolution to catalyse much needed transitions to a more sustainable society – particularly in the developing world.

This is slowly starting to shift. The World Economic Forum recently published a <a href="https://www.weforum.org/projects/fourth-industrial-revolution-and-environment-the-stanford-dialogues">set of briefs</a> as part of its “Shaping the Future of Environment and Natural Resource Security System Initiative”. These documents have begun to address some key questions around the potential role of the fourth industrial revolution in supporting a sustainable development agenda.

There are many compelling reasons for combining the offerings of the fourth industrial revolution with new green technologies, infrastructures and systems to tackle the developing world’s challenges. Multiple benefits can be realised through introducing these offerings in new, <a href="https://www.businesslive.co.za/bd/opinion/2017-11-20-changing-the-system-for-sustainable-development/">innovative ways that are customised for local contexts</a>.

These green technologies <a href="https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/publication/wcms_098484.pdf">can generate employment</a>, <a href="https://unhabitat.org/books/state-of-african-cities-2014-re-imagining-sustainable-urban-transitions/">ease pressure</a> on infrastructure in rapidly growing cities and <a href="https://unhabitat.org/books/state-of-african-cities-2014-re-imagining-sustainable-urban-transitions/">lower energy costs</a>, especially for poorer households.

<h2>Chance for change</h2>

Unplanned slums and informal settlements present <a href="https://unhabitat.org/books/state-of-african-cities-2014-re-imagining-sustainable-urban-transitions/">systemic problems</a> in most developing world cities. This is particularly the case in both large, established and smaller, emerging African cities. Municipalities are under strain. They simply don’t have enough bulk infrastructure – water, sanitation, electricity and waste management facilities – to cater for growing populations.

The value of green technologies and systems is that they are largely decentralised or semi-decentralised. Examples include solar panels, energy saving devices, and small-scale wind and hydro energy technologies. These don’t require major infrastructure investment. And their decentralised nature enables them to keep up with cities as they change. 

The introduction of green technology solutions and systems can also <a href="https://unhabitat.org/books/state-of-african-cities-2014-re-imagining-sustainable-urban-transitions/">bring down household costs</a>. Between 50 and 70% of poor African households’ budgets are spent on <a href="http://r-santaeulalia.net/pdfs/CrossSecSSA.pdf">food, water, energy</a> and <a href="http://documents.worldbank.org/curated/en/967821470756082684/pdf/WPS7789.pdf">transport</a>. This makes them vulnerable to external shocks such as sharp rises in the costs of electricity, oil and petroleum, food and water. 

These factors are also interlinked: for example, if oil prices rise, so do the costs of transport and food. That places extra pressure on already struggling households.

Green technologies can buffer poor households from these shocks by decoupling them from their dependence on local grids and provincial, national or global supply systems.

That’s at a household level. Then there’s the bigger picture. Absorbing green and sustainable technologies can help seed small to medium enterprises on <a href="https://ec.europa.eu/environment/ecoap/news/world-bank-smes-have-16tr-clean-tech-opportunity_en">a large scale</a> and <a href="http://www.g20-insights.org/wp-content/uploads/2017/04/05_Climate_Innovative-green-technology....pdf">increase their investment appeal</a>.

This, in turn, can drive economic growth and get cash circulating at the levels where it’s most needed.

Introducing new technologies to a city is a great job creator. People are needed to install solar panels, solar water heaters, biogas digesters, energy savings devices; or to set up urban agriculture and permaculture operations. There are already <a href="https://unhabitat.org/books/state-of-african-cities-2014-re-imagining-sustainable-urban-transitions/">examples of this</a> in several African cities.

<h2>Unlocking opportunities</h2>

And, perhaps the biggest boon of them all: the fourth industrial revolution presents a massive opportunity to leapfrog African countries’ productive economies into a wholly new space.

Economic diversification and development on the continent could benefit considerably from harnessing the opportunities emerging in the green technology and fourth industrial revolution spaces. This will shift them onto a significantly new economic growth and developmental trajectory. It will also go a long way towards ensuring that as emerging economies develop, they will do so in a manner that doesn’t exacerbate climate change and environmental degradation. 

A number of African countries are already positioning themselves to harness this opportunity. Both <a href="http://gggi.org/is-rwanda-heading-towards-green-growth-pathway/">Rwanda</a> and <a href="http://www.greengrowthknowledge.org/national-documents/ethiopia%E2%80%99s-climate-resilient-green-economy-green-economy-strategy">Ethiopia</a>, for example, have placed green economic development and sustainability at the heart of their national economic development strategies and plans. More recently, Kenya <a href="https://www.nation.co.ke/news/Kenya-to-move-to-green-energy-by-2020--says-President/1056-4848856-pc34xi/index.html">has committed</a> to actualising a 100% transition to green energy by 2020.

Other African countries would do well to follow these nations’ examples. The fourth industrial revolution is here. Combining it with green technology is a way for the continent to benefit at all levels.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/107722/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" />

<a href="https://theconversation.com/profiles/camaren-peter-605380">Camaren Peter</a>, Associate Professor, Allan Gray Centre for Values-Based Leadership, GSB, UCT; Executive Head,Centre for Analytics and Behavioural Change, <a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a>

This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-african-cities-can-harness-green-technologies-for-growth-and-jobs-107722">original article</a>.

Green technologies can generate growth and employment, here’s how African cities can utilize them

JOHANNESBURG (Reuters) &#8211; South Africa has issued an arrest warrant for Zimbabwe’s former first lady Grace Mugabe over an alleged assault in an upmarket district of Johannesburg last year, police spokesman Vishnu Naidoo said on Wednesday.



“I can confirm that a warrant for the arrest of Grace Mugabe was issued last Thursday,” Naidoo said, adding South African police were seeking Interpol’s help to enforce the warrant.



There was no immediate comment from Mrs Mugabe or from authorities in Harare.



Reporting by Alexander Winning; Editing by James Macharia

Why South Africa’s NPA issued an arrest warrant for Zimbabwe’s Grace Mugabe

<figure>
 <img decoding="async" src="https://images.theconversation.com/files/251149/original/file-20181218-27767-1uekb8y.jpg?ixlib=rb-1.1.0&#038;rect=39%2C26%2C8635%2C5748&#038;q=45&#038;auto=format&#038;w=754&#038;fit=clip" alt="File 20181218 27767 1uekb8y.jpg?ixlib=rb 1.1" />
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 <a class="source" href="https://www.shutterstock.com/image-photo/closeup-woman-shopping-bags-front-on-357891446">Shutterstock.</a>
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By <a href="https://theconversation.com/profiles/brian-harman-648072">Brian Harman</a>, <a href="http://theconversation.com/institutions/de-montfort-university-1254">De Montfort University</a> and <a href="https://theconversation.com/profiles/janine-bosak-400922">Janine Bosak</a>, <a href="http://theconversation.com/institutions/dublin-city-university-1528">Dublin City University</a>

Between <a href="https://ideas.repec.org/a/eee/joreco/v21y2014i2p86-97.html">40% and 80%</a> of purchases are impulse buys. Marketers often get blamed for this, but while marketing tactics may be <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1744-6570.2010.01187_2.x">cynical, manipulative, and even deceptive</a>, shoppers are generally wise to their ways. 

Of greater concern, is the fact that up to <a href="https://academic.oup.com/joc/article-abstract/64/5/915/4086043?redirectedFrom=fulltext">95% of our daily decisions</a> are potentially determined by <a href="https://www.sciencedirect.com/science/article/abs/pii/S105774080570108X">impulsive, unconscious processes</a>. All too often, consumers are ignorant of the <a href="http://psycnet.apa.org/record/1992-98649-000">social influences</a> and <a href="https://www.researchgate.net/publication/288902202_Social_psychology_and_consumer_psychology_An_unexplored_interface">psychological states</a> that make them vulnerable shoppers. In fact, most people entertain a costly <a href="http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.552.7516&amp;rep=rep1&amp;type=pdf">illusion of invulnerability</a> and consider themselves especially shrewd shoppers. 

You can avoid spending too much by becoming more mindful of the factors that influence your shopping behaviours. Here are six factors which could cause you to overspend, along with some tips about how to counteract them. 

<h2>1. Social pressure</h2>

Human beings are very susceptible to social pressures. The cooperative and competitive behaviours, which have ensured our survival as a species, also nudge us <a href="https://youtu.be/_qHYmx7qPes">to spend more than we need</a>.

For example, the social norm of reciprocity obligates us to exchange gifts and good deeds at Christmas.

<figure>
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Competition also fuels consumption: sales reinforce a sense of scarcity, and use time constraints to provoke a fear of missing out among shoppers – even when they’re buying online. Flash sales – such as Black Friday – create a herd mentality, which can provoke panic buying, hysteria <a href="http://blackfridaydeathcount.com/">or worse</a>. Being aware of these pressures will minimise their effects and allow you to maintain a sense of perspective. 

<h2>2. More abstract money</h2>

The concept of money is a shared myth, powered by the human imagination. Our <a href="https://www.harpercollins.com/9780062316097/sapiens/">imagination has been instrumental</a> in the rapid development of the species, allowing people to swap pieces of paper and bits of metal for things they want. From notes and coins, to debit and credit cards, and most recently phones and <a href="https://www.fitbit.com/uk/fitbit-pay">Fitbits</a>, the human imagination accommodates increasingly abstract forms of money. This is dangerous.

<figure class="align-right ">
 <img decoding="async" alt="" src="https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" srcset="https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=603&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=603&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=603&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=758&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=758&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=758&amp;fit=crop&amp;dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
 <figcaption>
 Quick and painless – until you check your balance.
 <a class="source" href="https://www.shutterstock.com/image-photo/mobile-payment-online-shopping-concept-742212562?src=aytA6RYMiN3S00bdAacMzA-1-2">Shutterstock.</a>
 </figcaption>
 </figure>

These new forms of money ease the “<a href="https://youtu.be/PCujWv7Mc8o">pain of paying</a>”, reducing the level of guilt we feel when parting with money. It temporarily hides the financial repercussions of our purchases (the lower bank balance or lighter wallet). This leads people to splurge without keeping track of the true financial costs of their decisions. Using cash when shopping will increase the pain of paying and make you more sensitive to how much you’re spending. This, in turn, will ensure that you only spend money on the items you really want. 

<h2>3. Decision fatigue</h2>

Research <a href="https://www.guilford.com/books/Handbook-of-Self-Regulation/Vohs-Baumeister/9781462533824">suggests that</a> people have limited reserves of willpower. As we make decisions throughout the day, this reserve becomes exhausted, resulting in “resource depletion”. <a href="https://www.jstor.org/stable/10.1086/510228">Resource depletion</a> causes people to act impulsively. Doing shopping early in the day, and avoiding other sources of stress, such as big crowds, will minimise the risk of resource depletion. 

<h2>4. Mindsets</h2>

Psychological states known as “<a href="https://www.sciencedirect.com/science/article/abs/pii/S1057740810000215">mindsets</a>”, which influence perceptions and decision making, can also make people more likely to spend. They occur outside of our conscious awareness, when the thought processes we use in one situation are carried over and used to process information in the next. 

Thinking positively in one situation can predispose a person to think positively in an unrelated situation – for example, generating supportive thoughts about giving to charity might prime a person to have positive thoughts about the bottle of detergent they see in an ad break a few minutes later. The makes them more likely to buy it. 

Mindsets also influence shopping goals. People with a “deliberative mindset” are open minded and likely to review all their options, while people with an “implemental mindset” are more close-minded and goal-focused. An implemental mindset reduces procrastination and focuses people to pursue their buying goals. These goals could be explicitly stated in a shopping list or even activated unconsciously. 

<figure class="align-center ">
 <img decoding="async" alt="" src="https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=399&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=399&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=399&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=502&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=502&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=502&amp;fit=crop&amp;dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
 <figcaption>
 Getting more than you bargained for.
 <a class="source" href="https://www.shutterstock.com/image-photo/kuala-lumpur-may-12-suria-klcc-141949681?src=9Z1LTHtioTLUw4TLfb-M2g-1-3">Joyfull/Shutterstock.</a>
 </figcaption>
 </figure>

The implemental mindset can be dangerous, because it creates <a href="http://journals.ama.org/doi/10.1509/jmkr.44.3.370">shopping momentum</a>. This is when buying one thing makes you more likely to buy another since your goal-focused mindset remains active even after you bought what you intended. This is one of the reasons why people emerge from shopping centres burdened down with several bags, having gone in to buy one item. 

Unfortunately, <a href="https://www.sciencedirect.com/science/article/pii/S074959781000110X">switching between different mindsets</a> can deplete your mental resources and cause you to spend more. Making rules to guide your decisions before you go shopping can counteract the effects of these mindsets and reduce the risk of shopping momentum. For example, telling yourself that if a product is below a certain price, you will buy it, but if it costs more, you will not. Making a list and setting a budget will help you remember the old adage, “it is not a bargain unless you need it”. 

<h2>5. Making comparisons</h2>

Shopping is essentially a three step process. First you ask yourself, “do I want to buy something?”; then, “which product is the best?”; and finally, “how will I buy the product?”. But when people consider two possible purchases, it induces a “<a href="https://academic.oup.com/jcr/article-abstract/34/4/556/1820298?redirectedFrom=fulltext">which-to-buy</a>” mindset, which primes them to skip the first question, and makes them more likely to buy something. 

<h2>6. The halo effect</h2>

Using mental shortcuts help us navigate everyday life more efficiently. Yet these shortcuts <a href="https://www.penguin.com.au/books/thinking-fast-and-slow-9780141033570">can also lead to</a> incorrect assumptions and costly mistakes. In the context of shopping, not all assumptions are bad. Indeed, some assumptions are central to marketing. For example, branding works because we assume that products under the one brand have a similar level of quality. 

<figure class="align-center ">
 <img decoding="async" alt="" src="https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
 <figcaption>
 Don’t be fooled.
 <a class="source" href="https://www.shutterstock.com/image-photo/closeup-woman-shopping-bags-front-on-357891446">Shutterstock.</a>
 </figcaption>
 </figure>

But other assumptions are less reliable. The “halo effect” occurs when we make incorrect assumptions, which lead us to think positively about something. So, the eye catching deals we see in the front window often make us assume that the other in-store deals are equally valid and generous. 

To counteract the halo effect, you need to come prepared. Knowing the recommended retail price (RRP) of products will ensure that you are not influenced by high anchor prices that give the impression of deep discounts. Remaining sceptical and calm will improve your decision making and reduce the risks of cognitive bias. This will likely be good for society, the environment and your pocket.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/108680/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" />

<a href="https://theconversation.com/profiles/brian-harman-648072">Brian Harman</a>, Lecturer in Marketing, <a href="http://theconversation.com/institutions/de-montfort-university-1254">De Montfort University</a> and <a href="https://theconversation.com/profiles/janine-bosak-400922">Janine Bosak</a>, Associate Professor in Organisational Psychology, <a href="http://theconversation.com/institutions/dublin-city-university-1528">Dublin City University</a>

This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-to-avoid-overspending-uncover-the-psychology-behind-why-people-buy-108680">original article</a>.

These six factors could cause you to overspend during the holidays, here are some tips on how to avoid them…

JOHANNESBURG (Reuters) &#8211; South African Airways (SAA) said on Tuesday that it had signed a partnership deal with Emirates airline which would see the two firms expand an existing codeshare agreement and work on other areas of cooperation.



South African President Cyril Ramaphosa has been at pains to stabilise struggling state-run firms like SAA, which has not generated a profit since 2011.



Reporting by Alexander Winning; Editing by Adrian Croft

SAA and Emirates sign partnership deal, what you need to know

<figure>
 <img decoding="async" src="https://images.theconversation.com/files/248540/original/file-20181203-194928-140sr3m.jpg?ixlib=rb-1.1.0&#038;q=45&#038;auto=format&#038;w=754&#038;fit=clip" alt="File 20181203 194928 140sr3m.jpg?ixlib=rb 1.1" />
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 Medium-scale African farmers are relatively wealthy and influential.
 BOULENGER Xavier/Shutterstock
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By <a href="https://theconversation.com/profiles/thomas-jayne-297893">Thomas Jayne</a>, <a href="http://theconversation.com/institutions/michigan-state-university-1349">Michigan State University</a> and <a href="https://theconversation.com/profiles/milu-muyanga-630942">Milu Muyanga</a>, <a href="http://theconversation.com/institutions/michigan-state-university-1349">Michigan State University</a>

Driven by population growth and growing land scarcity, most African farm households <a href="https://www.sciencedirect.com/science/article/pii/S0306919203000460">are witnessing</a> the gradual sub-division of their land. Over time farms are getting smaller and smaller. Today, over 80% of farms in relatively densely populated countries – like Kenya, Ethiopia, Malawi and Rwanda are smaller than one hectare. Because they’re so small, few can generate enough income to keep farmers above the poverty line and most of them increasingly rely on off-farm incomes.

But, from about ten years ago, we have started to see <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/agec.12308">evidence</a> of a major rise in the number of medium-scale, African-owned farms. 

Along with many colleagues, we <a href="https://www.researchgate.net/publication/305827375_Africa's_changing_farm_size_distribution_patterns_the_rise_of_medium-scale_farms">set out</a> to understand who these people are. We randomly selected farms operating between five to 50 hectares, and interviewed the farmers. We found that the rapid rise of these medium-scale farms was being driven by a diverse group of people including urban-based professionals, influential rural people, and successful smallholder farmers who acquired more land and grew their operations.

Within the past decade, the amount of agricultural produce that these farms contribute to countries’ national output has risen rapidly. In some countries, like Tanzania and Zambia, medium-sized farms now account for <a href="https://www.researchgate.net/publication/305827375_Africa's_changing_farm_size_distribution_patterns_the_rise_of_medium-scale_farms">roughly</a> 40% of the country’s marketed agricultural produce. 

This isn’t uniformly true across Africa. In land-constrained, densely populated areas like Kenya and Rwanda, small-scale farms still account for most of the agricultural output. Medium-scale farms are on the rise mainly where there is substantial, undeveloped land.

While much remains unknown and the story is still unfolding, we believe that medium-scale farms are an important driver of rural transformation in much of Africa – with mostly positive results. 

<h2>Influential Africans</h2>

For about ten years there’s been a prolonged surge in global food prices. This ushered in major, and <a href="https://www.un.org/africarenewal/magazine/special-edition-agriculture-2014/africa%E2%80%99s-land-grabs">much publicised</a>, investment in African farmland by foreign investors. What happened largely under the radar were huge farmland investments by African professionals, entrepreneurs and civil servants. 

The amount of land acquired by these medium-scale African farmers since 2000 far <a href="https://www.researchgate.net/publication/268803247_Is_the_Scramble_for_Land_in_Africa_Foreclosing_a_Smallholder_Agricultural_Expansion_Strategy">exceeds</a> the amount acquired by foreign investors. 

They are relatively wealthy and influential, often professionals, entrepreneurs or retired civil servants. Many accumulated wealth from non-farm jobs, invested in land and became either part-time or full time farmers. 

Many are based in rural areas and have political or social influence with local traditional authorities. Others are urban “telephone farmers” who retain jobs in the cities, hire managers to attend to their farms and occasionally visit on weekends. 

In some countries, we also find that many current medium-scale farmers started out as small-scale farmers who successfully expanded their operations. 

Medium-scale farmers bring new sources of capital and know-how to African agriculture. They have in some countries become a politically <a href="https://www.mdpi.com/2073-445X/4/3/869/htm">powerful</a> group that are well represented in farm lobbies and national agricultural strategies. They have solidified African governments’ commitments to support agriculture. 

They get their land from traditional chiefs or by purchasing land from others, including small-scale farm households. Displaced smallholders, especially young people, tend to move off farm in search of other sources of employment.

We identified three reasons for the recent growth of African medium-scale farms. 

First, rapid population growth, urbanisation and rising incomes have contributed to <a href="https://link.springer.com/article/10.1007%2Fs12571-016-0597-3">massive growth</a> in demand for food in African countries. Africans with the resources to respond to this demand are doing so. 

Second, many Africans with money and resources found farming to be a lucrative investment opportunity – especially during this sustained period of high global food prices <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/agec.12308">since</a> the mid-2000s. 

Third, policy reforms in the 1990s removed major barriers to private trade and improved the conditions for private investment in African agri-food systems. One example of this was the removal of restrictions on private movement of food commodities across district borders. The effects of these reforms exploded after world food prices suddenly skyrocketed. They <a href="https://www.sciencedirect.com/science/article/abs/pii/S0305750X13001770">enabled</a> thousands of small, medium and large-scale private firms to rapidly respond to profitable incentives.

<h2>Smallholder farmers</h2>

With the rise of the medium-scale farms, we expected to find that smallholders were being marginalised. But we’ve changed our views on this in light of various pieces of evidence.

First, medium-scale farms are providing access to markets and services for nearby smallholder farms. For example, many medium-scale farms have attracted tractor rental providers, who now provide mechanisation services to smallholders. This allows them to farm their land with much less labour input, freeing up opportunities to work in off-farm pursuits.

Second, large trading firms <a href="https://www.tandfonline.com/doi/full/10.1080/00220388.2018.1430773">are setting</a> up buying depots in areas where there’s a high concentration of medium-scale farms. This improves market access for smallholders too.

We also found that the medium-scale farms are good for the local economy. They inject cash into the local economy through their expenditures, stimulating off-farm employment opportunities for many rural people who were formerly dependent on subsistence farming. 

Medium-scale farms have also contributed to sub-Saharan Africa’s <a href="https://www.tandfonline.com/doi/full/10.1080/00220388.2018.1430774">4.6% annual rate</a> of agricultural production growth between 2000 and 2015. This is the highest of any region in the world over this period. 

While there are a lot of positives, these changes are uprooting the traditional social fabric and creating new power structures. The rise of land markets is creating a new class of landless workers who are dependent on the local non-farm economy for their livelihoods. Policy makers will need guidance on how to minimise these hardships –- protecting those who are most vulnerable as the processes of economic transformation gradually raise living standards for the majority of the population.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/107629/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" />

<a href="https://theconversation.com/profiles/thomas-jayne-297893">Thomas Jayne</a>, MSU Foundation Professor, Agricultural, Food and Resource Economics, <a href="http://theconversation.com/institutions/michigan-state-university-1349">Michigan State University</a> and <a href="https://theconversation.com/profiles/milu-muyanga-630942">Milu Muyanga</a>, Assistant Professor, <a href="http://theconversation.com/institutions/michigan-state-university-1349">Michigan State University</a>

This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/medium-scale-farms-are-on-the-rise-in-africa-why-this-is-good-news-107629">original article</a>.

The rapid rise of medium-scale farms are good for the African continent, here’s why…

HARARE (Reuters) &#8211; Zimbabwe’s inflation soared to a fresh 10-year high of 31.01 percent year-on-year in November from 20.85 percent in October after prices of basic goods spiked, amid an acute shortage of dollars that has made imports expensive.



On a monthly basis, prices increased by 9.2 percent in November compared to 16.44 percent in October.



Zimbabwe adopted the U.S. dollar in 2009 after its own currency was made worthless by hyperinflation.



But Zimbabweans have watched as the dollars in their bank accounts, known as ‘Zollars’, have lost value against cash U.S. dollars. That is because there are more Zollars in banks than actual U.S. cash dollars available, analysts say.



Central bank data shows that some $10 billion were being held as electronic dollars in bank accounts but less than $250 million in cash dollars.



On the black market, one needs $3.50 to purchase $1 in cash, a situation which has seen some businesses charging multiple prices for their goods.



Zimstats said prices of food, including bread, of beverages and clothes, had pushed the consumer price index higher.



The finance minister said in a budget statement last month that inflation would end the year at 25 percent before falling to single digits in 2019.



Reporting by MacDonald Dzirutwe; Editing by Joe Brock and Gareth Jones

Zimbabwe inflation hits 10-year high, what you need to know…

By &nbsp;AFRICA BUSINESS NEWS



The Intra-Africa Trade Fair held in Cairo this week opens opportunities for African countries and businesses to make connections and establish trade ties. The Provincial Government of KwaZulu-Natal is there to promote investment opportunities in the province. 



CAIRO, DECEMBER 14, 2018: Investment opportunities in the province of KwaZulu-Natal (KZN) were placed firmly on the table at high-level panel discussion hosted in Cairo, Egypt, on Thursday morning.



Speaking at the event, Ina Cronje, Chairperson of the Board of Trade and Investment KZN said: “We’re on the eastern seaboard on the Indian Ocean. Our coastline is close on 600 kilometres long, with two major harbours, or seaports. We also have a state of the art international airport, which is very good for cargo. Then we also have two strategic economic zones &#8211; one is placed at the Dube Trade Port and the one at the Richards Bay Harbour. And there are great incentive, tax breaks, for investors who are interested in going there.”



Bringing together South African and International business people alongside the Intra-Africa Trade Fair held in Cairo, the breakfast aimed to highlight the variety of investment and tourism opportunities in KwaZulu-Natal.



CNBC Africa anchor Godfrey Mutizwa moderated the discussion with panellists Treasure T. Maphanga, Director of the Department of Trade and Industry for the African Union Commission; Humphrey Nwugo, the Regional Chief Operating Officer Southern Africa for Afreximbank; Vusi Mavimbela, the South African Ambassador to Egypt; Zanele Sanni, Chief Director of Trade Invest Africa; and Ina Cronje, Chairperson of the Board of Trade and Investment KZN.



Investment opportunities in KZN can be found in the following sectors: Tourism and Property Development. Logistics Services, Medical and Pharmaceutical Production and Distribution, Electronics Manufacturing and Assembly, Aerospace and Aviation-linked manufacturing and related services,Agriculture and agro-processing, Aluminium conversion and fabricated products,Automotive Parts and Components, Film, Media and Entertainment, and Metals Beneficiation.



The province also boasts a large labour pool, diverse cultures, the
ideal position to be the trade gateway to Africa, highly competitive land and
building costs, world-class transport and tele-communications infrastructure,
advocacy and lobbying for investor incentives; and an idyllic climate and
lifestyle.



There is also the vibrant ICT sector with techno parks and innovation
hubs, and opportunities in manufacturing, renewable and clean energy, medical
tourism and healthcare. 



Placing KwaZulu-Natal within the framework of the South Africa economic landscape, Zanele Sanni, Chief Director of Trade Invest Africa, commented: “Along the side-line of the Intra-Africa Trade Fair, what we would do as national government is to provide support to would-be investors from Egypt who would be interested in coming to KZN.”



“We have incentives along the competitive cluster that would help investors to locate there, but additionally when the investor is then located in South Africa, where we have, on the continent, the largest number of multi-national corporations, we also have a mandate of helping South African and African traders to then broaden their goods into the rest of the continent. For instance, under the SADC Protocol we would then facilitate specific missions to go out into the specific regions and back the specific incentives that we provide,” added Sanni.



According to Treasure T. Maphanga, Director of the Department of Trade and Industry for the African Union Commission, the opportunities for linking the continent are greater now than ever before. “The journey has been long, but now we are at a very exciting point. From where we sit at the African Union,our leaders have committed and recommitted themselves to integrating the continent and I think the missing link is that we were doing so working primarily with the governments. The Agenda 2063 comes with the very fresh impetus that says this framework, this vision, is really a vision that has been taken up by everybody on the continent,” added Maphanga. “I’m very excited being here talking about KZN &#8211; the opportunities are there for the provincial levels, for the cities to connect, for the national governments to connect. But I think the locomotives who are going to do this is going to be the privatesector.”



The fact that Egyptian South African Trade is at relatively low levels is “an indictment to all of us. But there are real issues to overcome,” said Vusi Mavimbela, the South African Ambassador to Egypt. “One of them is the distance. Another is that for a longest of time the Egyptian investment has been concentrated in the Middle East. So the outlook of Egyptian business was to look more for investment from that side because it is easier, the language is the same, the culture is the same &#8211; there is also not a lot of investment coming from the rest of Africa into Egypt. So to overcome this, South African business must look at investing in Egypt and to encourage Egyptians to invesin South Africa.”



Long-standing traditional ties have been developed between South Africa– including KwaZulu-Natal – and its top trading partners and other important focus markets. South Africa is growing increasingly as a trading partner for the European Union, and is a full member of the World Trade Organisation. 



As a member of the Southern African Development Community (SADC), it offers trade opportunities within Southern Africa.



“Trade between African countries doesn’t amount to 15% of total African trade. In Europe it’s up to about 60%. In the Americas it is about 40% or 50%,”commented Humphrey Nwugo, the Regional Chief Operating Officer Southern Africa for Afreximbank, adding that this imbalance had to be rectified. “Between Cote d’Ivoire, Ghana and Nigeria, we export 70% of the global cocoa output. But then our contribution to the value chain is less than 2% globally. So what we’redoing in effect is we export jobs, we export opportunities to other countries.So why can’t we begin to process some of this within Africa and then develop value here?”



FOR INVESTMENT OPPORTUNITIES IN KWAZULU NATAL PLEASE VISIT <a href="http://www.tikzn.co.za/">http://www.tikzn.co.za/</a> 



ABOUT TRADE &amp; INVESTMENT KWAZULU-NATAL (TIKZN)



TIKZN is a South African trade and inward investment promotion agency,established to promote the province of KwaZulu-Natal as an investment destination and to facilitate trade by assisting local companies’ access international markets.



The organisation came into being following the national government’s decision to divest investment promotion to the provinces, rather than retaining it as a national function as had previously been the case. Internationally, the Department of Trade &amp;Investment promotes the country as an investment destination, whereas Trade&amp; Investment KwaZulu-Natal presents a seamless trade and inward investment promotion for, specifically, KwaZulu-Natal. 



The agency is equipped with the professional expertise and experience as well as national and international networks geared to maintaining and growing KwaZulu-Natal’s competitive advantage as a premier investment destination and leader in export trade.

KZN promotes investment opportunities during IATF in Cairo

PwC Strategy &amp; analysis



Mixed signals during Black Friday                          



While more South Africans participated in the Black Friday shopping event in 2018 compared to the preceding year, the average spend per consumer dropped noticeably. The decline in per-customer spending was also visible in the United States (US), where the concept of Black Friday originated. 



US online sales showed continued popularity with a 24% increase in transaction numbers, according to Adobe Analytics[1].Furthermore, this year’s Cyber Monday was the single largest shopping day in US history with reports of an estimated $7.9 billion spent &#8211; an increase of 19.7%from 2017[1].



Two in three South Africans participated in Black Friday in 2018; an increase from a 54% participation rate in 2017. From an online perspective, BankservAfrica counted over 400,000 sales transactions -a 55% increase compared to last year. Similarly, Cyber Monday sales transactions increased by 36% this year to 176 595.<a href="#_ftn1">[1]</a> In parallel, transactions per minute increased considerably on both days,according to Black Friday Global Analysis.<a href="#_ftn2">[2]</a> 



In contrast, electronic funds transfer (EFT)transaction values decreased by 19%.<a href="#_ftn3">[3]</a> Retail management platform Vend reported that in-store retail spending in South Africa over the 2018 Black Friday shopping period decreased by 10% compared to last year, while volumes also saw a decrease of 2%.<a href="#_ftn4">[4]</a> 



Nonetheless, spending results were encouraging in certain product segments. Clothes, electronics and shoes were the most bought items.<a href="#_ftn5">[5]</a> Small business funder Retail Capital<a href="#_ftn6">[6]</a>reported the following increases on credit card usage based on product category during the Black Friday weekend:



Winners during Black Friday weekend



(Source: Retail Capital)



<figure class="wp-block-image"><img decoding="async" src="http://cnbc.africa/wp-content/uploads/2018/12/black-friday-winners.png" alt="" class="wp-image-324549"/></figure>



 




Why did Black November sales disappoint? 



Not only did South Africans spend less per person, the sentiment on social media around the sales event was sceptical. Results from a PwC survey posted on Twitter concurred with the results of a Twitter survey<a href="#_ftn7">[7]</a>by News24. Both saw the majority of respondents expressing they would avoid the Black Friday shopping event.



<figure class="wp-block-image"><img decoding="async" src="http://cnbc.africa/wp-content/uploads/2018/12/BF-sales-disappoint1.png" alt="" class="wp-image-324551"/></figure>



 



Based on PwC analytics, trending words for Black Friday on November 23 included “ heavy discount”, “specials”, “deals” and“savings”, as retailers aimed to entice shopper. However, consumers’ feed back showed that sales were not in line with the traditional massive 50% to 85% price slashes seen in the US.



PwC analysis shows that, on Black Friday, 27% of related Twitter commentary in South Africa was negative. This was notably higher than just 6% seen a few days earlier. The negative feed back on social media reflected what consumers viewed as disappointing price discounts and underwhelming offerings. 



<figure class="wp-block-image"><img decoding="async" src="http://cnbc.africa/wp-content/uploads/2018/12/social-sentiment.png" alt="" class="wp-image-324552"/></figure>



Following disappointing sales discounts on Cyber Monday, some 53% of recorded social sentiment was negative on Tuesday,27 November. In the days thereafter, negative sentiment was driven by customers reacting to mobile communication deals – especially cellular contracts &#8211; that did not come to fruition as expected. 



Social media posts following Cyber Monday highlighted the frustrations experienced by consumers, with complaints about “order” delays and “delivery” challenges



Excessive expectation build-up backfired



The local hype and build-up towards Black Friday was rampant. Being bombarded with several emails a day, seeing headlines on lampposts and talking about it with everyone around us &#8211; Black Friday seemed to be one of the hottest topics in November. 



However, the build-up towards the day turned out to be larger than life. With discounts averaging 20% in stores and online, many consumers were left disappointed.<a href="#_ftn8">[8]</a> 



The framing and expectation build-up surrounding Black Friday were disproportional to the sales discounts actually on offer on the day. Consumers were primed by the promise of massive discounts: in the US, discounts of 80% are common place on the day. In reality, South Africans were left frustrated, holding off on further shopping after realising the promise of significant sales discounts was exaggerated.



Missing out on scarcity and urgency in sales promotions



Rather than only concentrating on Black Friday sales, many stores aimed to stimulate spending during the entire month of November – resulting in what is now known as Black November. Discounts were on offer during the entire month, thereby diminishing the once-off special and never-before-seen appeal of Black Friday. Consumers tend to react to the idea of scarcity and urgency: When an item is in short supply, we tend to view it as more valuable. 



In this case, however, South African consumers were becoming familiar with the idea of seeing sales in stores;diminishing the rush and urgency of buying a specific product before the sale concludes. The familiarity associated with discounting in stores and online meant consumers would not buy a product unless its price dropped even further.Various online stores offer discounts throughout the year, meaning they would have had to run extreme price promotions before experiencing a larger spike in sales. 



Priming in favour of responsible shopping



There were also several warnings from consumer groups, financial regulators and news publications in the lead-up to Black Friday to warn against excessive spending and overindulging. This may very well have primed consumers to spend less and more consciously, tempering excessive spending. With the lead-up to Christmas holidays and the expenses that go with it, the warnings likely hit home, making it top of mind that consumers should be more cautious when spending money, even in the face of widespread sales. 



Implications of Black Friday performance for Christmas sales



Stats SA announced on 4 December that South Africa’s economy had exited the technical recession in the third quarter following a GDP growth increase of 2.2% quarter-on-quarter(q-o-q).<a href="#_ftn9">[9]</a> Household final consumption expenditure also increased in the third quarter, rising by 1,6%q-o-q. The main contributors were food and non-alcoholic beverages,furnishings, household equipment and maintenance, clothing and alcoholic beverages and tobacco<a href="#_ftn10">[10]</a>. 



However, it remains to be seen whether the recovery in household spending is sustained and will boost Christmas shopping sales. Alternatively, will festive sales this year see the same mixed outcome as Black Friday? For now, retailers are faced with a South African consumer that remains under pressure. Unsurprisingly, business confidence amongst retailers remained in net negative territory during the fourth quarter of 2018, according to a survey by the Bureau for Economic Research (BER).<a href="#_ftn11">[11]</a> 



According to the FNB/BER Consumer Confidence Index (CCI) released on 28 November, overall consumer sentiment decreased by 15 points between the second and third quarter.Furthermore, the household financial outlook dropped from 31 in the second quarter to 13 in third quarter. In parallel, inflation increased in October to 5.1% year-on-year (y-o-y) from 4.9% y-o-y in September,<a href="#_ftn12">[12]</a> adding further strain to consumers’purchasing power. Consumers have felt the pinch from continued petrol price hikes during 2018 leading to a record high price of R17.08/litre in November. 



Income levels and access to credit must be considered as primary influencers of sale participation.<a href="#_ftn13">[13]</a>If Black Friday sales showed a decrease in popularity and spend, Christmas sales are likely to see a similar outcomes unless stores (physical and online)display considerably higher price discounts. 



Overall, the signals sent by disappointing Black Friday numbers and other related data suggest a mediocre outlook for Christmas retail sales. 



Article by LulluKrugel, Christie Viljoen, Maura Feddersen &amp; Genevieve Frydman, PwC Strategy &amp; Economists

Disappointing #BlackFriday suggests uncertain outlook for Christmas season shopping

JOHANNESBURG (Reuters) &#8211; Sibanye-Stillwater said on Thursday it had extended a wage agreement to cover all of its South African gold workforce, and urged striking workers who make up 43 percent of its employees to return to work.



The firm’s shares rose 5 percent after the diversified miner said the strike called by the Association of Mineworkers and Construction Union (AMCU) in November was no longer protected and all employees should report for work on Saturday Dec. 15.



Reporting by Emma Rumney; Editing by James Macharia

What you need to know about Sibanye-Stillwater’s wage agreement with striking gold workers

By CNBC Africa and IATA&nbsp;



Africa is expected to retain its position as the weakest airline region in the world in 2019, as it has been over the past four years. These forecasts were made by the International Air Transport Association (IATA).



According to IATA, “African carriers&nbsp;are expected to report a $300 million net loss in 2019 (slightly improved from the$400 million net loss in 2018). The expected net loss per passenger is $3.51(-2.1% net margin). “Performance is improving, but only slowly. Losses are expected to be cut in 2019 as fuel prices decrease. The region benefits from higher-than-average yields and lower operating costs in some categories. However, few airlines int he region are able to achieve adequate load factors to generate profits.”



One exception to this story has been Ethiopian Airlines, the state owned carrier. Its net profit in the 2017/18 financial year rose almost 2 per cent to $233 million.



All regions (see break down below), except Africa, are expected to report profits in 2018 and 2019. Carriers in North America continue to lead on financial performance, accounting for nearly half of the industry’s total profits. Financial performance is expected to improve compared to 2018 in all regions except for Europe, where improvement has been delayed by the high degree of fuel hedging.



North American carriers&nbsp;are expected to deliver the strongest financial performance in 2019 with a $16.6 billion net profit (up from $14.7 billion in 2018). That is a 6.0% net margin and represents a net profit of $16.77 per passenger, which is a marked improvement from just six years earlier. Net margin is up from 2018 (5.7%) as low levels of fuel hedging allows lower prices to impact immediately. Profits are further buffered by high load factors and ancillary revenues.



European carriers&nbsp;are expected to report a $7.4 billion net profit in 2019(down slightly from $7.5 billion in 2018). The expected net profit per passenger of $6.40 (3.4% net margin) is roughly a third the net profit per passenger expected to be generated by North American carriers. Intense competition is keeping yields low and regulatory costs are high. The region has recovered from the terrorist attacks of 2016. But in 2018 it suffered additional costs of $2 billion due to a 61% increase in delay minutes caused by air traffic control deficiencies. Looking to 2019, high levels of hedging in the region will mean that the positive impact of lower oil prices will be delayed.



Asia-Pacific carriers&nbsp;are expected to report a $10.4 billion net profit in 2019 (up from $9.6 billion in 2018). The expected net profit per passenger is expected to be $6.15 (3.8% net margin). This is a region of diverse markets, some of which are seeing strong growth from new LCC entrants while others are very dependent on outbound cargo from key manufacturing centers. Cargo revenue growth has slowed from the strong performance of 2017 but remains positive for airlines in the region. Lower fuel costs, low levels of fuel hedging and strong regional economic growth are supporting profitability in 2019 in this region.&nbsp;



Middle Eastern carriers&nbsp;are expected to report an $800 million net profit in 2019 (up from a weaker $600 million in 2018). The expected net profit per passenger is $3.33 (1.2% net margin). The region has been challenged by the earlier impact of low oil revenues, conflict, competition from other‘super-connectors’ and setbacks to particular business models, leading to a sharp slowdown in capacity growth (after more than a decade of double-digit growth, passenger capacity growth was halved to 6.7% in 2017). The region reported 4.7% capacity growth in 2018 and is expected to slow to 4.1% in 2019,which together with restructuring is helping to generate a recovery.



Latin American carriers&nbsp;are expected to report a $700 million net profit in 2019 (up from $400 million in 2018). The expected net profit per passenger is$2.14 (1.6% net margin). Economic conditions in local markets are only recovering slowly, as Brazil’s economy emerges from recession, but Argentina faces renewed difficulties. The strength of the US dollar has added to airlines’ challenges in the region by raising the local currency cost of key US$-denominated inputs such as oil and aircraft, but significant restructuring and joint ventures are improving performance.&nbsp;



READ: <a href="http://cnbc.africa/insights/world-economic-forum/wef-davos-2018/2018/02/16/africas-aviation-industry-problem-future/">Africa’saviation industry has a problem, but this could be the future</a> 



Passenger Demand by Region



<table class="wp-block-table is-style-regular"><tbody><tr><td>
 Demand
 </td><td>
 Capacity
 </td></tr><tr><td>
 2018E
 </td><td>
 2019F
 </td><td>
 2018E
 </td><td>
 2019F
 </td></tr><tr><td>
 Global
 </td><td>
 6.5
 </td><td>
 6.0
 </td><td>
 6.0
 </td><td>
 5.8
 </td></tr><tr><td>
 North
 America
 </td><td>
 5.0
 </td><td>
 4.5
 </td><td>
 4.8
 </td><td>
 4.3
 </td></tr><tr><td>
 Europe
 </td><td>
 6.4
 </td><td>
 5.5
 </td><td>
 5.7
 </td><td>
 6.1
 </td></tr><tr><td>
 Asia
 Pacific
 </td><td>
 8.5
 </td><td>
 7.5
 </td><td>
 7.6
 </td><td>
 7.1
 </td></tr><tr><td>
 Middle
 East
 </td><td>
 4.6
 </td><td>
 5.5
 </td><td>
 4.7
 </td><td>
 4.1
 </td></tr><tr><td>
 Latin
 America
 </td><td>
 6.0
 </td><td>
 6.0
 </td><td>
 6.5
 </td><td>
 5.9
 </td></tr><tr><td>
 Africa
 </td><td>
 3.6
 </td><td>
 5.0
 </td><td>
 1.4
 </td><td>
 4.9
 </td></tr></tbody></table>

﻿Africa’s airline industry is the weakest in the world, this is how bad it is

PSince 2014, a Cape Town father, Henri Terblanche has been campaigning formore parental leave for fathers. Fathers were only entitled to 3 days familyresponsibility leave as stated in the Basic Conditions of Employment Act.



Mr. Terblanche’s campaign was based on research done in Norway and Sweden
and emphasised the benefits it would have for our society. The African
Christian Democratic Party (ACDP) then tabled a private member’s bill, relying
principally on Mr. Terblanche’s campaign, to help push the process.



What the Bill entails 
The Bill provides for 10 days paid parental leave for fathers, as well as 10
weeks consecutive leave for mothers.



The Bill was seen as a major breakthrough for same-sex couples, especially
men, who were never entitled to the time needed to introduce a child into their
family and bond with it.



The Bill also provides for parents of adopted children under the age of 2
years. An employee is entitled to at least 10 consecutive weeks of adoption
leave, which starts on the day the adoption order is granted.



For a surrogate motherhood agreement, a commissioning parent is also allowed
at least 10 consecutive weeks of leave, which begins on the date of
childbirth.Only one parent may take adoption or commissioning parental leave
(both 10 weeks). The other must take parental leave (10 days).



In November 2017 the Labour Law Amendment Bill was passed by Parliament.



A big victory for parents 
On 23 November 2018 President Cyril Ramaphosa signed the Labour Relations and
Labour Amendment Acts into law.



This is a major step forward for parents in South Africa. “For fathers to be
able to claim their parental leave from UIF is a much bigger victory than it
may seem” says Christelle Helling from the South African Payroll Association
(SAPA).



What this means for companies 
“Companies will have to revise their policies and procedures to accommodate the
changes to the Basic Conditions of Employment Act” notes Helling.



These changes will have to be implemented fast because the Act comes into
effect from January 2019.



How South Africa compares to the rest of the world 
Around the world fathers’ rights to paid paternity leave varies greatly. When
compared to the rest of Africa, our new law of 10 days paid parental leave is
very progressive, as the norm is between three and five days.



We also compare favourably to countries such as Italy (one day, paid), New
Zealand (two weeks, unpaid) and the United States of America (12 weeks,
unpaid).



We do however still fall behind countries like India (three weeks, paid),
Iran (three weeks for the first and second child, paid), Spain (15 days, paid),
Finland (54 days, paid) and Iceland (3 months, paid).



However slow the progress might have been, at least we are catching up.



Provided by the South African Payroll Association

Southern Africa

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MTN and Nigeria resolve dispute, here’s what you need to know

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Here’s why South Africa’s Shoprite is facing a hefty fine

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﻿Africa’s airline industry is the weakest in the world, this is how bad it is

Has South Africa caught up with the world when it comes to parental leave?

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Africa’s airline industry is the weakest in the world, this is how bad it is