Africa Law Update
Asia  Europe  USA  UK  Middle East  Africa

Treasury Publishes Framework to Facilitate Foreign Capital

On Thursday, March 29, 2018 South African National Treasury has published the Foreign Member Funds Framework for public comment.

The framework, which is to be declared by the Minister of Finance in terms of the Collective Investment Schemes Act (Act 45 of 2002), not only aims to create a favourable regulatory environment but also facilitate the flow of foreign capital through South Africa. The aim is to make it seamless and attractive for foreign funds to be managed and invested into the rest of the continent.

In the 2014 Budget, the Minister of Finance announced the introduction of an alternative class of investment funds called Foreign Member Funds (FMF) in order to promote South Africa as a financial management hub, particularly for investments into Africa.

The current dispensation allows South African institutional investors to invest offshore, subject to various foreign investment limits, depending on the type of institutional investor.

Retirement funds and the non-market linked business of insurance companies can invest up to 30% of their total retail assets and collective investment schemes, asset managers and market-linked business of insurers can invest up to 40% of their total retail assets. An additional 10% is allowed for investments into Africa.

The declaration will also include those provisions of the Act that will be applicable to FMFs.

Public comments received during the consultation period will assist the drafting and finalisation of the regulatory standards, as well as the draft notice for the declaration of the FMF as a collective investment scheme in terms of section 63 of the Collective Investment Schemes Control Act.

Comments on the draft framework document of the FMF are invited and should be sent to Keegan Edwards, Deputy-Director for Prudential Regulation, at by 30th April 2018.

For more information about the above, kindly click here

Call for Improved Safety in Mining Sector

On Wednesday, March 28, 2018 Mineral Resources Minister Gwede Mantashe has called for increased vigilance on health and safety in the sector.

This follows three fatalities which have been reported at mines this week. The fatalities bring to 22 the total number of fatalities recorded in the first quarter of 2018.

Minister Mantashe has urged employers and labour to continue to work with the department in finding solutions to health and safety matters at the mines, through established structures including the Mine Health and Safety Council (MHSC).

In 2017, fatalities increased for the first time in 10 years, where 88 mineworkers lost their lives, compared to 73 in 2016.

For more information about the above, please click here

Introduction of National Minimum Wage Delayed

On Tuesday, March 27, 2018 South African Labour Minister Mildred Oliphant says implementing the National Minimum Wage by 1 May 2018 will not be possible.

Briefing the media in Cape Town on Monday evening, the Minister said the delay was due to the fact that Parliament won’t be able to finalise the Bills aimed at implementing the new policy by that date.

This was due to the fact that the Bills were only referred to Parliament in November 2017 and this has not allowed sufficient time for Parliament to process the Bills.

The Labour Relations Amendment Bill and the Basic Conditions of Employment Bill contains amendments that are consequential to the National Minimum Wage Bill and the agreed Code on stabilising the labour relations environment in South Africa.Over and above this, social partners reached an agreement at NEDLAC that contains a Code of Good Practice on Collective Bargaining, Industrial Action and Picketing.

The Code provides practical guidance on collective bargaining, the resolution of disputes of mutual interest, the resort to peaceful industrial action and picketing processes.The Accord on Collective Bargaining and Industrial Action commits social partners to take all steps necessary to prevent violence, intimidation and damage to property.

It also seeks to improve the capacity of the social partners and other agencies to resolve disputes peacefully and expeditiously. The Bills propose that the National Minimum Wage be set at R20 per hour and be reviewed annually.

The minimum wages for domestic and farm workers will initially be set at R15 and R18 an hour respectively. This will be adjusted to be brought on par with the National Minimum Wage within two years of its implementation.

Parliament is currently conducting public hearings on the Bills and will thereafter consider oral and written submissions.

The Bills will then be revisited with a view of making any changes based on submissions, before Members of Parliament deliberate on them. This will culminate into a vote on the Bills being submitted to the National Assembly and the National Council of Provinces before being sent to the President to sign them into law.

For more information about the above, please click here

30 March 2018
In this issue:
Lajpat Nagar-1
New Delhi - 110 024, India
Ph: +91-11-29814816 / 29814817
Fax: +91-11-29815116
International Desks
Asia & Australia
Shivkumar Idnani
UK & Europe
Sameer Rastogi
Rahul Gupta
Middle East
Dinesh Sabharwal
INDIA JURIS I I Presentation, Awards & Rankings I Publications I Disclaimer