May 28, 2008
Real Economy ReportBack
Johannesburg|CBI|Education|Eskom|Explosives|International Finance Corporation|Reunert|Telkom|Africa|France|Peru|South Africa|Electrical Engineering Subsidiary|Energy|Explosives|Fixed-line Operator|Steel|Steel Reinforced Cable|Technology Group|Telecommunications|Telecommunications Industry|Department Of Science And Technology|French Government|Chanel Pringle|Christy Van Der Merwe|Daniel Adams|Denis Pietton|Gerrit Pretorius|Gold Fields|Rachel Kyte|Shannon O'Donnell|Cellular Telephone|Fibre Optic
© Reuse this From Creamer Media in Johannesburg, this is the Real Economy Report. Our top stories this week: technology group Reunert expects future demand for fibre optic cables to increase, the IFC's aim to boost private sector investment into infrastructure in Africa, and the Department of Science and Technology and the French government pair up to create awareness on nanotechnology.
Pretorius says that Altron's Aberdare Cables business and Reunert's ATC business, were both losing money before the merge, as a result of fixed-line operator Telkom, buying less copper cable.
While Pretorius expects some future demand for copper cable from Telkom, he explains that there will be greater demand for fibre cable from cell phone operators.
Reunert CEO Gerrit Pretorius
Christy van der Merwe:
Establishment of a successful public-private-partnerships is a daunting task - which is why the IFC's business advisory services division believes it can play a key role in advising stakeholders on how to structure solid, successful partnerships.
IFC, Vice President: Business Advisory Services, Rachel Kyte:
"If the government is very clear at the very beginning on how to structure this to meet the ultimate demands of consumers and the ultimate demands of investors, then I think the process moves much more smoothly and our role has been important."
There are lots of questions around the actual bidding process and how you attract private sector bids that would be to the higher standards of corporate governance and transparency so that there are no questions asked later, once a firm of a consortium has won a bid and is now seeking financing.
There is awhole question of how to structure the partnership so that the risks are managed well, so that the public sector's risk is appropriate, so that the private sectors risk is appropriate, and the private financiers who will finance the project, that their risk is appropriate as well. So working out how to use guarantees how to structure these deals is something that we can help with.
And then I think in addition to all of this we are very interested in helping link infrastructure development to SME development - how do you help small and medium sized enterprises get their products and services to market? And really thinking of that in the design of infrastructure.
Christy van der Merwe:
DST emerging research areas and infrastructure, MD Daniel Adams
French Ambassador to South Africa, Denis Pietton
Read about how opening up baseload electricity power generation opportunities to private utilities is seen as an important step by analysts
We report that the R69-million facelift of the Dobsonville stadium, in Soweto, is ahead of schedule and should be completed before the end of next month
And, we detail how the global aviation industry is tackling environmental challenges
And in Mining Weekly this week:
Read about how two-year-old Sylvania Resources is cash flush as it recovers platinum from chrome tailings
We report that South African gold major Gold Fields has teamed up with Peru's largest publicly traded precious metals mining company
And, we investigate how new technology is making inroads into the global explosives market
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines
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