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South Africa’s ‘second miracle’ coalition fights to endure

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Paul Mashatile

Cyril Ramaphosa, South Africa’s president, used his speech at the UN General Assembly last month to brand the Government of National Unity his country’s “second miracle”, marking a growing bullishness that the unlikely coalition will hold.

It was quite a claim to make for a grand political bargain in which the African National Congress is sharing power with its ideological foe, the pro-market Democratic Alliance, and eight other parties after the ANC’s share of the vote fell to 40 per cent in May’s election.

The “first miracle”, the party’s largely peaceful ascent to power in 1994 after the hated apartheid system collapsed, is the stuff of legend for the ANC faithful. As the GNU moves past its first 100 days in office this week, ministers and investors are confident the coalition will also have an enduring significance, overriding political divisions to boost the economy over its five-year term.

“Even within our ranks there were people who thought you cannot work with the enemy,” Paul Mashatile, the deputy president, told the Financial Times, saying some ANC rank-and-file members still considered the DA, traditionally the party of white and other minority voters, to be anti-worker.

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“There is excitement that the situation is stable,” Mashatile said. “The GNU is not quarrelling, we are focused and we are ensuring that we run a tight ship.”

Investors, he said, had picked up on the new atmosphere in South Africa. Since the GNU was announced, the stock market has risen nearly 20 per cent in dollar terms and the rand has strengthened 6 per cent against the dollar. Ramaphosa has forecast economic output can nearly triple to more than 3 per cent next year.

Paul Mashatile
Paul Mashatile, South Africa’s deputy president: ‘The GNU is not quarrelling, we are focused and we are ensuring that we run a tight ship’ © Anna Gordon/FT

Many in the ANC baulked at the idea of working with a party they considered antagonistic to its agenda of income redistribution and government intervention. Some had openly called for a deal with Julius Malema’s Economic Freedom Fighters or former president Jacob Zuma’s uMkhonto weSizwe (MK) party, both radical ANC splinter groups.

On the DA’s side, some officials worried that by joining the coalition their party risked providing a figleaf for the ANC’s pervasive corruption, mismanagement and failed policies that stalled economic growth for 15 years. They worried that in accepting a taste of power, the DA would lose its electoral identity.

Tony Leon, a former DA leader, said the party made huge compromises in coalition negotiations, getting only six seats in the cabinet when its voting share merited nine. The DA also complains that the ANC reneged on giving it the powerful trade and industry portfolio.

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But business had been spooked, urging the DA not to pull out of talks and instead conclude a deal to stop the ANC allying with the EFF or MK, Leon said.

“We were a trump card short in negotiations,” he said.

Signs of friction have already surfaced including over a controversial amendment to the education law, which would give the government, rather than schools, the power to determine language policy in classrooms— disadvantaging Afrikaans-only schools. 

The DA insists it is unconstitutional in part because it threatens schools’ right to educate children in their home language.

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Initially, DA leader John Steenhuisen said the law would “endanger the future of the government of national unity”. Ramaphosa signed the bill but held out an olive branch by delaying the implementation of clauses on language and school admission policies.

Patricia Delille talks to Siviwe Gwarube
Siviwe Gwarube, education minister, left, speaks with Patricia de Lille, tourism minister. Gwarube said, ‘Given the history of the DA and ANC, we cannot expect that within three months we’re going to agree on everything.’ © Rodger Bosch/AFP/Getty Images

Siviwe Gwarube, the education minister and the only female Black DA cabinet member, told the FT that the ANC would be playing a dangerous game if it consistently overrode the DA’s concerns over the legislative agenda.

“If that happens, and the DA withdraws, the ANC would have to account to South Africans for why they ruined the country’s best chance of salvaging our economy,” she said.

“They could try to put together the government without the DA — and we’d be happy to take our seats in the opposition benches — but ultimately, there is a strong sentiment from all parties to make it work.”

Gwarube defied convention by skipping the signing of the law in what was considered by some as a snub to the president’s authority. But like Mashatile, she said the coalition could weather the storm.

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“Given the history of the DA and ANC, we cannot expect that within three months we’re going to agree on everything. But what we do need are cool heads,” she said. “Political differences within grand coalitions of this nature are not fatal — they are somewhat to be expected.”

Yet some within the DA have concluded that the ANC’s apparent determination to push ahead with the education amendment, and another controversial law on national health insurance, showed that Ramaphosa’s party intended to ride roughshod over the DA.

Dean Macpherson, the DA’s public works and infrastructure minister, said that while the ANC played nice in public, its proxies were still attacking the DA behind the scenes and at the local government level.

“The foghorns that exist within the ANC need to turn down the volume,” he said. “No party can say it’s my way or the highway.”

Still, he said, while Ramaphosa remained ANC president — a position he will hold until 2027 — there was enough common ground and mutual self-interest to keep the coalition together.

“If the ANC didn’t want us to succeed, they’d be land-mining their own electoral prospects,” he said. “If we don’t succeed, the government doesn’t succeed.”

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Nigeria’s economic transformation must succeed

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The writer is chief economist and senior vice-president for development economics at the World Bank

You may scoff at the idea that Nigeria just might be on the cusp of turning its economic fortunes around. Since the 1980s, when oil prices collapsed, the country has been mired in one crisis after another. But now the largest economy in sub-Saharan Africa is at a turning point.

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Over the past year or so, the Nigerian government has implemented major, politically difficult reforms. No large-scale reform process is ever perfect, but this one must be allowed to succeed — Africa’s future hinges on its success. An economic turnaround in a country with more people in poverty than almost any other would be a game-changer for market-orientated reforms across the continent.

Consider the scale of the reforms implemented so far. Nigeria now has a market-determined exchange rate, having unified official and parallel exchange rates. Previously, the government had been losing the equivalent of 38 cents for every $1 of government oil export proceeds. This benefited some local elites, who acquired dollars cheaply at the government’s expense. The unification also got rid of a hefty implicit tax on agricultural and manufactured exports.

Costly and regressive petrol subsidies are also being cut. This will help to strengthen Nigeria’s historically shaky public finances and restore the naira as a credible currency.

Implementing such far-reaching change is impossible without political commitment from the top. The price of petrol in Nigeria has quintupled since the subsidy cuts, imposing terrible hardship across society. To boost confidence in the naira and anchor inflation expectations, the central bank has had to raise its policy rate by 850 basis points in the last nine months. Central-bank financing of fiscal deficits has finally ended.

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Yet the hard part has only just begun. Nigeria will need to stay the course if it is to become an engine of growth in Sub-Saharan Africa. Although the historical record isn’t encouraging — previous reforms have been rolled back by the elite — policymakers will need to focus on three critical areas in particular.

First, they should prioritise non-oil growth. This requires a competitive exchange rate, which Nigeria now has. To protect the poor and maintain competitiveness, the central bank must maintain its focus on inflation. It should resist the lure of volatile short-term capital inflows that might push up the naira’s value too quickly and stifle non-oil growth in the process. And it should rebuild foreign-exchange reserves as a cushion against oil-price and exchange-rate volatility. 

Second, Nigeria must help vulnerable households cope with inflation, which is still high. The government is rolling out a large-scale targeted, temporary cash transfer programme. It should also establish a cost-effective safety net to protect the most vulnerable.

The third and final priority is to establish a climate in which private businesses can flourish. Nigeria’s need for jobs is immense. Today, less than 14 per cent of working Nigerians enjoy a predictable, fixed wage. In the next 10 years, the number of Nigerians entering the workforce is set to increase by more than 12mn. Generating the requisite number of good jobs will depend on sparking large-scale domestic and foreign private investment in the non-oil sector.

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Nigeria’s government deserves the world’s support in this endeavour. Failure in Nigeria would set back the cause of reform across Africa, besides ruining the prospects of yet another generation of young Nigerians. The country’s elites must forge a political consensus in support of these reforms, because their long-term interests lie in a broadly prosperous and stable society. For its part, the international community should do everything in its power to help the government succeed.

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Money Marketing Interactive London 2024 Gallery

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Money Marketing Interactive London 2024 Gallery


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Last week you joined us in London for Money Marketing Interactive London and what a day it was!

A huge thank you to all our incredible delegates. Your energy and participation made this year’s conference unforgettable. We’re excited to see how you’ll take the knowledge shared and continue shaping the future of financial advice.

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More than 100 killed in Nigeria fuel tanker explosion

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Map of Nigeria showing the regions of Jigawa, Kano and Yobe, the town of Majia, and the capital Abuja

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More than 100 people have been killed in Nigeria after they rushed to scoop up petrol from a tanker that overturned and then caught fire, police said on Wednesday, as the country’s citizens struggle with a surge in fuel prices.

The incident was the latest fatal tanker explosion in Nigeria, where petrol and other fuels are transported in lorries over long distances and often on poorly maintained roads.

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The accident took place late on Tuesday in the town of Majia in northern Jigawa state, nearly 600km from the capital Abuja. Lawal Shiisu Adam, the state’s police spokesperson, said the tanker had been ferrying fuel from Kano, the economic capital of northern Nigeria, to Yobe state via Jigawa when the driver “lost control” of the tanker.

Adam said police had cordoned off the area after the crash but were soon overwhelmed by a crowd who rushed to collect spilled fuel. Videos posted on social media showed a fiery inferno, which also left scores of people injured.

Map of Nigeria showing the regions of Jigawa, Kano and Yobe, the town of Majia, and the capital Abuja

Fuel prices have increased nearly fivefold over the past year following the government’s decision to cut fuel subsidies and a slide in the naira currency, which has lost about 70 per cent of its value against the dollar since June.

Nigeria’s state-owned oil company last week increased petrol prices by more than 15 per cent, marking the second rise in less than a month and the formal end of a costly subsidy programme.

In the absence of an efficient rail network to move goods across the vast nation, fuel is usually transported in tankers over long distances by road. The country has an under-developed road network that is patchy in many areas and traffic rules are not strictly followed or enforced.

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Accidents involving fuel transportation in Africa’s most populous nation are frequent, with Nigerians often rushing to accident scenes to salvage fuel in buckets and other containers from the tankers.

Last month, almost 60 people died after a collision between a fuel tanker and a truck containing passengers and cattle in north-central Niger state. Nigeria’s road safety agency reported that more than 5,000 people were killed in road crashes last year, but the World Health Organization estimated the number at closer to 40,000, arguing that many accidents are not reported to authorities.

Africa accounts for 19 per cent of road traffic deaths despite having 15 per cent of the global population and only 3 per cent of the world’s vehicle fleet, according to WHO data.

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Sani Umar, a resident who escaped the fire, was quoted by the local Channels TV that the episode was “terrifying”.

Umar added: “People were running in all directions, screaming for help. The fire spread so quickly that many couldn’t escape.”

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The best plants that fight mould and condensation and prices start at £4 each

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The best plants that fight mould and condensation and prices start at £4 each

AS temperatures drop, many homeowners will be starting to notice condensation gathering on window sills and surfaces around their homes.

Condensation can lead to stubborn mould growing in your home, which is an expensive problem to get rid of if left untreated and is also bad for your health.

Some houseplants are great natural dehumidifiers and fight condensation for you

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Some houseplants are great natural dehumidifiers and fight condensation for you

But some houseplants can act as natural dehumidifiers by absorbing this moisture – and even better, they are cheap to buy and have no running cost.

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Plants that are great at tackling humid environments include Snake Plants, Peace Lilies, Orchids, English Ivy and Bamboo Palms.

These plants absorb water from their surroundings through their leaves and release the moisture back out through transpiration.

They also improve the quality and smell of the air in your home by removing airborne mould spores.

An English ivy plant costs just £3.99 from Gardening Express.

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Comparatively, it costs £120 at Dunelm for a 12L electrical dehumidifier which plugs into the wall, and these typically cost about 4p an hour to run.

While that may not sound much, if you were running this for just two hours a day, you would spend almost £2.50 a month.

Remember to compare prices by visiting local hardware stores and garden centres and asking a member of staff what’s on offer.

You can also do this online by browsing different retailers and viewing their “cheapest items first” using the “sort by” tool.

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And when you have one plant you can make multiple cuttings from it and grow more in separate pots for free.

Everyone can see the houseplants – but you have a high IQ & 20/20 vision if you spot the cactus in less than 12 seconds

You could even ask a friend if you could take a cutting of their plant so you don’t need to spend anything at all.

The more plants, the better, as this means more moisture will be soaked up and the air will be fresher, so there is less chance of mould developing.

However, keep in mind that not all plants thrive in a humid atmosphere, so you should double check the

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Here are some low-cost plants which will make your home beautiful and fix your condensation problem.

English Ivy

English ivy is one of the most absorbent plants you can have in your home

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English ivy is one of the most absorbent plants you can have in your homeCredit: Getty

English Ivy is a poisonous plant that should be kept away from animals in your home.

However, its also rated as one of the best plants around when it comes to acting as a natural dehumidifier.

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English Ivy grow best in bright light and the soil should be kept moist.

A great way to optimise its ability for air purification while keeping it healthy is to place it in a hanging pot.

This way, it’s also out of reach.

You can buy English Ivy for as little as £3.99 from Gardening Express or £5.99 from Waitrose.

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Peace Lily

Peace lilies are beautiful and can be bought for as little as £5

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Peace lilies are beautiful and can be bought for as little as £5Credit: Getty

Peace lillies are also poisonous, like English Ivy, but they can also be great helpers with soaking up moisture in your home.

They grow well in high humidity areas with lots of shade such as your bathroom.

They should be kept away from pets because of their toxicity – so keep yours on a window sill where it is out of reach.

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You can buy the plant for £6 in B&Q and £5 in Homebase.

Bamboo Palm

Bamboo palms enjoy light, warmth and humidity

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Bamboo palms enjoy light, warmth and humidityCredit: Getty

Palm plants such as Bamboo Palms are great at absorbing moisture and keeping mould at bay.

They can grow as tall as three metres, meaning they are great for purifying any airborne nasties in your home.

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Bamboo palms cost £14.99 in B&Q.

Other palm plants include Areca Palms, Lady Palms, Dwarf Date Palms and Reed Palms.

You can buy an Areca Palm for £12 from Gardening Express.

Snake Plant

Snake plants require low maintenance

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Snake plants require low maintenanceCredit: Getty

Snake plants grow best in areas with low light or without a window – which means they’re ideal for places like the bathroom which are prone to getting damp.

You can buy one from B&Q for £14.99 or even cheaper at Homebase for £10.

Orchid

Homebase currently has reduced prices on Orchids

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Homebase currently has reduced prices on OrchidsCredit: Getty

Orchids aren’t just pretty to have around the house – they also work hard to keep air clean and healthy.

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They reduce humidity in the home and require very little upkeep and maintenance on your end.

You can purchase an orchid for £10 in B&Q or £9 in Ikea.

The cheapest offer around is at Homebase where they are currently reduced from £11 to £5.50.

What is mould and how to get rid of it?

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Mould is more likely to grow during the winter months.

Olivia Young, Product Development Scientist at Astonish revealed exactly why this is.

“Unfortunately, mould is a common problem many people face during winter. It thrives in conditions that are warm and damp, so your bathrooms are likely to be the most affected place.

“That said, during the colder months most rooms in your home could be vulnerable to mould growing.

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“This occurs primarily from condensation that builds up on your windows when you’ve got your radiators on.

“If you think about it, when windows and doors are closed, there’s not much chance for the air to circulate and the moisture to make a swift exit.

“This build up is what can cause dreaded mould to make an appearance, especially in bathrooms, as it creates that warm and wet environment that is a breeding ground for mould.

“If left untreated, not only is it unsightly but it can also pose a serious risk to your health, so it’s really important you treat it.

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“The key to tackle mould is to act fast.

“Try to come into as little contact with it as you can. So, grab your gloves, tie up your hair and get to work to remove any signs of mould as soon as you notice them.

“To keep mould at bay, there are some simple solutions you can introduce throughout home.

“The first is keep it ventilated. Yes, even in the cold winter months try to leave your bathroom window open for at least 10/15 minutes post shower or bath. This will get rid of any excess moisture quickly preventing mould gathering.

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“If you’re having a repeat problem with mould in one particular area, it might be because the humidity levels are too high. You can get a dehumidifier that will help keep the levels low and reduce the risk of mould returning.

“The golden rule to remember when dealing with mould is the quicker you can treat it, the better. If you leave it, it will only get worse so never ignore it!

“To successfully get rid of mould every time, I recommend opting for the UK’s No 1 Mould & Mildew Remover, that effectively removes mould and mildew stains almost instantly, with no scrubbing necessary.”

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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The problem with 360-degree performance reviews

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The problem with 360-degree performance reviews

Investment banks’ favourite employee evaluation tool is easily gamed and frequently undermined

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Virgin Media O2 to relocate North West HQ to Island in Manchester

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Virgin Media O2 to relocate North West HQ to Island in Manchester

The company is set to move from one of its major offices in Wythenshawe, where it has been since 1991.

The post Virgin Media O2 to relocate North West HQ to Island in Manchester appeared first on Property Week.

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