http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.11Change: -0.21
R/$ = 13.43Change: -0.15
Au 1138.18 $/ozChange: -2.87
Pt 1008.00 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 05, 2010

Patel’s development plan ‘workable’ – economist

Back
Africa|Environment|Projects|Sustainable|Waste|Africa|Waste
Africa|Environment|Projects|Sustainable|Waste|Africa|Waste
africa-company|environment|projects|sustainable|waste-company|africa|waste
© Reuse this



Investec economist Annabel Bishop has described Economic Development Minister Ebrahim Patel's proposal to use pension funds to promote development as "workable".

This comes as Patel revealed that he was exploring ways of investing private and public retirement funds in development projects by issuing development bonds.

Patel's strategic plan is aimed at meeting the needs of a developmental economy and as such aims at improving the level of equity, reducing income inequalities, providing decent work and achieving balanced, broad-based industrialisation.

"Indications are that the funding needed for Minister Patel's macro-economic strategic plan will come from the issuance of development bonds to access the wealth held in the public and private retirement funds industry," Bishop said in an opinion piece.

She commented in that if Patel received access to such bonds, it was expected to be issued in the long-end of the maturity spectrum, which would be a "favourable outcome" as it would normalise the yield curve in this period, which has always been "very thin and relatively illiquid".

It would also create pricing for State-owned entities to issue at this maturity.

"It is unlikely that the reintroduction of prescribed assets for retirement funds will occur, unless there is insufficient take up of the development bonds," Bishop noted.

She added that the social responsibility of investing in bonds specifically aimed at fostering an enabling environment at the macro level for the reduction of poverty and inequality through job creation and sustainable economic growth was likely attractive enough on its own, along with the shortage of supply in the long-end of the yield curve, to make absorption of these bonds likely.

However, Bishop warned that South Africa did not have a "bottomless pit of financing."

She said that if the funds were not well and efficiently spent, it would tarnish the moral attraction of the issuance, while the waste from any resulting corruption would be difficult to make up in later years.

In 2003, business, government and labour leaders agreed that pension funds should play a greater role in developing the country, but the proposals were never implemented.

Patel reportedly said that he would need about 5% of private retirement savings and a share of the R700-billion government pension fund's assets

 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 7 minutes ago The South African Municipal Workers’ Union (SAMWU) has signed a salary agreement with employer body, the South African Local Government Association (SALGA), the union said on Wednesday. ”The signing comes after rigorous mandate taking process to members which...
Updated 19 minutes ago South African Airlines is close to finalising the cancellation of a contract to supply ten Airbus A320 aircraft as part of plans to get the national carrier back to profitability, its CFO said on Wednesday. "We need to get the final approval from the board who can...
Updated 1 hour 45 minutes ago The Barclays Purchasing Managers’ Index (PMI), which declined by almost 5% month-on-month in August, highlights “renewed pessimism” in the economy, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) said on Wednesday. Seifsa chief economist...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96