What is Corporate Welfare

Government Policies South Africa May 2016By: Paul Young, CPA, CGA

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This presentation is on perspective when it comes to South Africa

Paul Young - Presenter

BioCPA/CGA25 years of experience in Academia, Industry and Financial solutionsYoutube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

AgendaGovernmentGDPEconomyBanking SectorGovernment PoliciesCorruptionTrade Canada and South Africa

Government/ IssuesIn his first appearance after this court ruling at the beginning of May, a brawl also broke out as EFF members were evicted for heckling.Controversial arms deal: What you need to knowOne of the Saab Gripen fighter jets, bought by the South African Airforce, as part of the country's controversial arms deal - Cape Town, South Africa, 20061999: largest-ever post-apartheid arms deal announced with contracts totalling 30bn rand ($5bn; 2.5bn) to modernise national defence forceDeal involved companies from Germany, Italy, Sweden, the UK, France and South AfricaAllegations of bribery over deal dogged governments of President Jacob Zuma and predecessor Thabo MbekiMr Zuma's former financial adviser Schabir Shaik convicted in 2005 for corruption over deal. Found guilty of trying to solicit bribe from Thint, local subsidiary of French arms firm Thales, on behalf of Mr Zuma - then deputy president. Released on parole on health grounds after serving just over two yearsAnother official, Tony Yengeni, chairman of parliament's defence committee at time of deal and ANC chief whip, convicted of fraud in 2003. Also freed on parole after serving five months of four-year sentenceApril 2016: commission of inquiry into deal found no further evidence of corruption or fraud.South Africa next election 2019

https://www.stratfor.com/video/challenges-ahead-south-africas-ruling-partyhttp://www.bbc.com/news/world-africa-363131745

South Africa - GDP

South Africa The South African Reserve Bank (Sarb) has revised its GDP growth forecast downwards for 2016, from 0.8% to 0.6%, noting that the domestic economic growth outlook remains weak.While a recovery is still expected in the next two years, the forecasts for boththese years have been revised down by 0.1 percentage point to 1.3% and 1.7%, said Reserve Bank Governor, Lesetja Kganyago, of the outlook for 2017 and 2018.While the Banks forecast for GDP growth in the quarter is barely positive, it does represent the low point of the forecast, and a slow upward trend is expected going forward,Kganyago said.He said that the economic slow down is also reflected in labour market trends, with the unemployment rate rising to 26.7% in the first quarter of 2016, from 26.4% year earlier.TheSarb left its benchmark repo rate unchanged at 7.0% on Thursday, while lending rates remain at 10.5%.Kganyago said that inflation is now expected to average 6.7% in 2016, compared with 6.6% previously. In 2017 and 2018 inflation is expected to average 6.2% and 5.4%, marginally down from the previous forecast.

http://www.tradingeconomics.com/south-africa/gdp/forecasthttp://businesstech.co.za/news/finance/124321/reserve-bank-cuts-south-africas-growth-target/6

South Africa / Economy

South Africa's manufacturing output resumed its decline and mining production contracted as weak global demand pushed the country's ailing economy closer to a recession.Manufacturing production shrank 2 percent in March and mining output plunged by 18 percent - the most on record - figures from Statistics South Africa showed on Thursday.Mining production in South Africa shrank 18 percent year-on-year in March of 2016 following a downwardly revised 8.3 percent fall in the previous month and worse than market expectations of 12.8 percent drop. It was the sharpest decrease on record as copper production declined the most by 38.3 percent, followed by other metallic minerals (-27.5 percent), manganese ore (-24.3 percent), platinum-group minerals (-23.7 percent) iron ore (-21.4 percent). Diamond output fell 18 percent and gold production dropped by 7.4 percent. On a monthly basis, mining output decreased by 3.4 percent compared to an upwardly revised 2.1 percent growth in February. Considering the first quarter, mining shrank 5.2 percent from the previous period. Mining Production in South Africa averaged -0.08 percent from 1981 until 2016, reaching an all time high of 24.30 percent in October of 2013 and a record low of -18 percent in March of 2016. Mining Production in South Africa is reported by the Statistics South Africa.

http://www.tradingeconomics.com/south-africa/gdp/forecasthttp://businesstech.co.za/news/finance/124321/reserve-bank-cuts-south-africas-growth-target/3. http://www.theafricareport.com/Southern-Africa/south-africa-risks-recession-as-manufacturing-and-mining-sectors-contract-amid-drought.html7

South Africa / Banking Sector

1. http://www.banking.org.za/docs/default-source/publication/banking-sector-overview.pdf?sfvrsn=68

South Africa - Budget Deficit/GrowthIn a speech to parliament, Gordhan said the budget deficit would be reduced to 2.4 percent of gross domestic product over the next three years, confirming the resilience of public finances. The Treasury cut the 2016 growth forecast for Africas most industrialised economy to 0.9 percent in February from the 1.7 percent forecast earlier but said it still expected to cut its budget deficit to 3.2 percent even in the face of lower revenue, by cutting spending.

1. https://www.newsghana.com.gh/south-africa-to-reduce-budget-deficit-to-2-4/9

South Africa / Government PoliciesFDI

TaxationCorporate Tax Rate 28%Consumption 14%

https://en.portal.santandertrade.com/establish-overseas/south-africa/foreign-investmenthttps://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.htmlhttps://en.portal.santandertrade.com/establish-overseas/south-africa/tax-systemhttp://businesstech.co.za/news/business/94129/south-africa-needs-to-raise-taxes-but-a-vat-increase-would-be-a-bad-idea/http://www.tradingeconomics.com/country-list/sales-tax-rate10

Government Corruption

http://www.transparency.org/country/#ZAF11

Canada and South Africa

South Africa is a major gateway to the African market, and South Africa is one of Canada's most significant commercial partners in Africa. South Africa was identified as an emerging market with broad Canadian interest in Canadas Global Markets Action Plan, launched in 2013. According to Statistics Canada, Canadas bilateral merchandise trade with South Africa totalled over $1.5 billion in 2014, consisting of more than $440 million in exports to, and more than $1.1 billion in imports from South Africa.Top Canadian exports to South Africa include lentils and wheat, power generation machinery, electrical machinery, sulfur, optical equipment, pharmaceuticals, and pork. South Africas exports to Canada include citrus, beverages (wine), nuclear machinery parts and minerals such as iron, titanium, chromium and copper.Canada is a significant investor in South Africa. Canadian investments largely focus on the mineral and mining sector, as well as transportation, food processing, hospitality, information and communication technologies, and instrumentation sectors. A Memorandum of Understanding on cooperation in mining and mineral development was signed between Canada and South Africa in March 2015. A Double Taxation Agreement has been signed to facilitate trade and investment, between Canada and South Africa

1. http://www.canadainternational.gc.ca/southafrica-afriquedusud/bilateral_relations_bilaterales/canada_south-africa-afrique-du-sud.aspx?lang=eng12

SourcesContact: paul_young_cga@Hotmail.comOther linksSocialism - https://www.youtube.com/watch?v=fhk2b97BYKU

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