vLex South Africa

Issue number #88-4 (December 2020) of publication South African Journal of Economics is now available

A resource has been added South African Journal of Economics (from the number 1-1, March 1933)

With the election of a more climate-focused administration in the United States and the European Union (EU) honing in on the mining industry to reduce their carbon emissions, the South African government and mining industry must work together to effect the transition to a lower carbon future. Please see full Publication below for more information. (See Article)

FTI Consulting’s Resilience Barometer ™ data reveals how, for too many organisations in South Africa, the pandemic has exposed a lack of resilience across critical areas: from business models, to supply chains, and from crisis management, to regulatory changes in an increasingly fragmented world. (See Article)

The COVID-19 pandemic has disrupted businesses, caused market volatility and triggered asset devaluations across the globe. In addition, were participants considering using impairments to account for the impact of the pandemic in current and future financial reporting? Please see full Publication below for more information. (See Article)

FTI Consulting South Africa published a report on the Energy Transition in South Africa in February 2020, which covered the shape and pace of South Africa’s energy transition across the power, liquid fuels and mining sectors. A few weeks later, a somewhat distant health and economic shock in China and Europe rapidly became front and centre in South Africa. In this follow up article, we focus on the power sector and explore the developments during 2020. We review how events this year have impacted the energy transition of decarbonisation and supply diversification in the power sector. Please see full Publication below for more information. (See Article)

South Africa is experiencing a corruption crisis and whistle-blowers could play a crucial role in addressing this. But the socio-political context is hostile to whistle-blowing and South Africans who witness fraud and corruption often prefer to remain silent for fear of reprisal. On 5 November 2020, former South Africa Airways (SAA) board chair, Dudu Myeni, revealed the identity of an anonymous whistle-blower who had given evidence in camera at the Zondo Commission of Inquiry into state capture. Please see full Publication below for more information. (See Article)

World Law Group member firms recently collaborated on a Global Cannabis Guide that provides a brief overview of laws and policies regarding the use of cannabis in various jurisdictions. It briefly outlines information on the most important legal issues, from relevant legislation and general information to special requirements and risks. The guide does not claim to be comprehensive, and laws in this area are quickly evolving. In particular, it does not replace professional and detailed legal advice, as facts and circumstances vary on a case-by-case basis and country-specific regulations may change. (See Article)

The COVID-19 pandemic has exposed a multitude of governance failures around the world and led to increased calls for fundamental changes to our global political, economic and social systems. Against the backdrop of a looming global recession, addressing corruption and the misappropriation of state resources remains as important as ever. Please see full Publication below for more information. (See Article)

Report on Supply Chain Compliance 3, no. 21 (October 29, 2020) - An article in The Africa Logistics discusses the major issues companies and entities in the industrials, manufacturing and transportation (IMT) sectors are facing due to COVID-19-related restrictions and regulations. According to the article, the barriers put up across regional and national lines to stem the spread of the virus have led to bottlenecks, delays and shortages as supplies and products are unable to move across borders. Critically, supply chain disruptions in Europe and Asia have put a crimp in the flow of industrial machinery and transport equipment to Africa, causing further delays and shortages. (See Article)

COVID-19 and the consequent economic effects have meant significant job losses for the people of South Africa. Many families have been affected, and our future generation (the youth) are affected both immediately and in the long run. The impact of COVID-19 on access to education has been significant and disproportionately affected learners in poorer households. This immediate effect will have long-term consequences, which, coupled with the direct employment effects of COVID-19, are concerning. Please see full Publication below for more information. (See Article)

International arbitration remains the dispute resolution mechanism of choice for cross-border disputes. Although this is a global trend, recent years have seen a significant increase in the use of international arbitration to resolve disputes involving African parties. (See Article)

President Ramaphosa’s call to action on the green economy in his newsletter this week signalled recognition of the need for South Africa to build its recovery based on a climateresilient economy fit for these unprecedented times. Please see full Publication below for more information. (See Article)

A recent case decided by the High Court of South Africa dealt with the curious interplay of an employee’s rights as they arise from both a written contract of employment and labor legislation. Although the judgment may at first seem confusing, a careful analysis sheds light on how these parallel sources of rights and obligations operate in conjunction. (See Article)

Africa could be playing a far greater role in the development of the global digital economy but it requires bold decisions if the continent is to influence global affairs, the global economy and the global imagination. This was the vision of economic change outlined in The Economist’s special Report on The African Century (May 2020). Please see full Publication below for more information. (See Article)

Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” Rarely can the ‘sage of Omaha’ be disputed, but on his point around timing, five minutes is a very long time in today’s real-time world when you’re dealing with a cyber-attack. Please see full Publication below for more information. (See Article)

An increasingly common feature of the global mergers and acquisitions markets has been the use of warranty and indemnity insurance (“W&I Insurance”), also referred to as reps and warranties insurance. The use of W&I Insurance has been one of the more significant developments in M&A transactions in recent years. Although used on some South African transactions, W&I Insurance is not as commonly used as it is in the European and North American markets. (See Article)

It is fair to say that although the South African mining industry represents 8% of our GDP, and employs approximately 450 000 people, by 2019 figures, it is SA's sweetheart industry. The mining industry was one of the first industries to be permitted to resume activities during the lockdown (and in some instances did not even fully shut down at all). Please see full Publication below for more information. (See Article)

With numerous sectors experiencing financial distress and companies and individuals facing the increased likelihood of insolvency as a result of the economic disruption caused by Covid-19, forensic practitioners will play a key role in supporting South Africa’s economic recovery. Please see full Publication below for more information. (See Article)

Lack of cybersecurity preparedness continues to create problems and risks for companies in South Africa. Lack of cybersecurity preparedness continues to create problems and risks for companies in South Africa. The 2020 FTI Consulting Resilience Barometer, which polled more than 2,000 respondents from large companies across all G20 countries, reported that companies in the region are suffering cyber attacks and falling victim to ransomware more than global averages (33% vs. 27% for overall attacks). While most leaders in the region are aware of the risks - 84% surveyed believe they have cybersecurity gaps - less than half said they have made investments in that part of their business in the last 12 months. This disparity between known risk and response is concerning even during the best of times. Please see full Publication below for more information. (See Article)

Tobias Faber and Camilla Fröhlich from the Frankfurt office virtually interviewed Pete Frielinghaus, a resilience specialist and fellow of the Business Continuity Institute, on Business Continuity Management (BCM) in Africa and the implications of COVID-19 on BCM. Please see full Publication below for more information. (See Article)

With more than 3 million cases worldwide, COVID-19 has not spared any continent. As of 14 May 2020, almost 50,000 cases of COVID-19 had been recorded across 52 countries in Africa, with over 2,000 deaths. (See Article)

South Africa-specific information concerning the key legal and commercial issues when entering a memorandum of understanding in anticipation of a future commercial transaction. This Q&A provides country-specific commentary on Standard document, Memorandum of understanding (commercial): Cross-border. (See Article)

Survey - The widespread disruption caused by the Coronavirus pandemic has led to ‘business unusual’ for many companies in South Africa as they respond to new challenges in an unpredictable and rapidly changing operating environment. Please see full Publication below for more information. (See Article)

On Friday, 8 May 2020, the Labour Court upheld an urgent application by the National Union of Metalworkers of South Africa (NUMSA) and the SA Cabin Crew Association (the Unions) against South African Airways (SAA) and its business rescue practitioners.... (See Article)

On 21 April 2020, the President of South Africa addressed the nation yet again to inform South Africans of additional economic and social relief measures to be put in place as a result of the novel coronavirus (“COVID-19”) pandemic... (See Article)

On 1 May 2020, the Labour Court handed down a highly anticipated order in the application instituted by the Association of Mineworkers and Construction Union (AMCU) against the Minister of Mineral Resources and Energy (Minister) and the Chief Inspector of Mining (CIM), amongst others. Please see full Publication below for more information. (See Article)

New regulations were published by the Department of Cooperative Governance and Traditional affairs on 29 April 2020 (the “Regulations”, gazette no. 43258) outlining the rules applicable during Alert Level 4 and the Department of Employment and Labour (the “DEL”) provided a briefing to media, addressing expectations on employers to ensure employees’ safety and mitigate the spread of the virus in the workplace. (See Article)

Pursuant to the Regulations published in terms of section 27(2) of the Disaster Management Act 57 of 2002 (Regulations) and the subsequent amendments thereto, the Information Regulator, established in terms of The Protection of Personal Information Act 4 of 2013 (POPI Act) has issued a Guidance Note on the processing of personal information of data subjects in the management and containment of COVID-19. (Guidance Note). Please see full Publication below for more information. (See Article)

On 29 April 2020, regulations were issued in terms of the Disaster Management Act 57 of 2002 that regulate how the country will operate under an Alert Level 4 (Regulations). The Alert Level 4 will be applicable from 1 May 2020 until a new alert level is announced by the government. Please see full Publication below for more information. (See Article)