Hi and welcome to another week of MorningBru, let’s keep this intro short and sweet so let’s get straight to it.

Market View

This Weeks Overview

National Headlines:

• Police seize R200k worth of fake rugby gear outside Cape Town's DHL Stadium during a Springbok vs. All Blacks match

• Nine lions escaped from Kruger National Park, and entered a nearby lodge.

• Cape Town launches a Data Strategy to drive service delivery improvements through data transparency and innovation.

• President Ramaphosa is set to sign new education bill (BELA) into law on Friday, amongst criticism by other parties.

Business World:

• MTN faces backlash from the Advertising Regulatory Board for falsely promoting "unlimited" local calls and SMSes under its SuperFlex plan.

• South Africa will streamline visa processes in 2025 to attract more Chinese and Indian tourists by introducing a fast-tracked system for group travel.

• SARS introduces new medical aid data reporting rules to streamline tax submissions, effective October 2024.

• Salga and municipal worker unions have finalized a historic five-year wage deal featuring a 6% increase for the current year and provisions for municipalities in financial distress.

Interesting Internationally:

• James Earl Jones has passed away at 93, the iconic voice behind Darth Vader, and Mufasa

• The European Court of Justice has ordered Apple to pay Ireland €13 billion in back taxes.

National Stories:

Faux Gear Frenzy:

As the Springboks battled the All Blacks on the field, police were scoring their own victory outside the DHL Stadium. During Saturday's Rugby Championship Test in Cape Town, law enforcement seized counterfeit rugby apparel worth R200,000 from vendors operating without permits. Western Cape police, alongside City of Cape Town officials, cracked down on stalls selling fake sportswear, with several fines issued to the illegal traders.

Provincial commissioner Lt. Gen. Thembisile Patekile labeled the operation a stand against economic sabotage, hoping it serves as a warning to others. Meanwhile, inside the stadium, the Boks edged past their arch-rivals 18-12, securing the Freedom Cup for the first time since 2009.

Lions on loose

It’s not every day that you see a pride of lions roaming outside Kruger National Park,but it does seem seeing animals outside the park is a weekly occurrence after last week’s elephants escape. Nine lions have ventured beyond the park's boundaries and into Ngwenya Lodge, triggering a coordinated effort from SANParks and Mpumalanga authorities to guide them back. Using bait, helicopters, and veterinary support, the team is patiently waiting for the lions to become active after dusk to safely dart and capture them. This isn’t the first wildlife escape—recently, elephants made a similar break, highlighting the challenges of low water levels during winter.

Cape Town Goes Digital

Cape Town is pioneering data-driven governance with the launch of its Data Strategy, a first for African cities. Unveiled by Mayor Geordin Hill-Lewis on September 9, this initiative aims to enhance public services by leveraging data for transparency, efficiency, and accountability.

The plan gives residents access to real-time data, from service delivery maps to water quality monitoring, through an Open Data Portal. By transforming how the city handles data, Cape Town aims to improve infrastructure across water, energy, and sanitation sectors. The strategy has been years in the making, bolstered by a collaboration with the UK’s Foreign, Commonwealth, and Development Office (UKFCDO) since 2018.

BELA the Bill

South Africa’s Basic Education Laws Amendment (BELA) Bill is expected to be signed into law by President Cyril Ramaphosa this Friday. The bill proposes significant reforms, including making Grade R compulsory, criminalizing parental neglect in school attendance, and regulating home-schooling with mandatory site visits. It also requires school governing bodies to get approval for language policies and reinforces the ban on corporal punishment. While aimed at improving the education system, the bill has sparked concern over centralizing decision-making powers, with critics warning it undermines local school governance.

Business World

(Un)limited Promises

MTN's SuperFlex advertisement promising "unlimited" local calls and SMSes has been deemed misleading by South Africa's Advertising Regulatory Board (ARB). A disgruntled customer complained after being cut from the service despite the "unlimited" claim. MTN defended its stance, citing a proprietary algorithm and an acceptable usage policy that regulates user behavior, warning customers before downgrading high-usage accounts. However, the ARB ruled that the term “unlimited” cannot have restrictions, calling MTN’s marketing inherently deceptive. The telecom giant is now reviewing the regulator’s recommendations, which require them to amend or withdraw the misleading advertisement.

Tourism Red Tape Gets a Snip

In a bid to attract more Chinese and Indian tourists, South Africa’s Department of Home Affairs (DHA) is rolling out the Trusted Tour Operator Scheme (TTOS) in January 2025. TTOS will simplify visa processes for group travelers from these countries by allowing approved tour operators to offer fast-tracked visas. Currently, Chinese and Indian tourists account for a tiny portion of international arrivals—1.8% and 3.9%, respectively—despite China alone making over 100 million outbound trips in 2023.

By reducing visa hurdles, Home Affairs hopes to boost tourism numbers, stimulate economic growth, and create jobs. The new system, developed with the Department of Tourism, aims to match the success of similar initiatives, like the Trusted Employer Scheme.

Tax Checkup

The South African Revenue Service (SARS) is shaking up medical aid reporting rules, aiming to make tax season smoother for all. Starting October 5, 2024, medical aid schemes must adhere to updated data requirements, helping taxpayers better navigate their obligations. The changes will improve accuracy in reporting disabled members, payments by third parties, and break down allowable versus non-allowable medical expenses.

Why it matters: SARS says these updates will not only streamline tax returns but also reduce audit headaches and expedite the allocation of medical tax credits. Employers and medical aid schemes will need to update their reporting methods in line with SARS' new Business Requirements Specification. A grace period of six months allows for partial compliance during the transition.

Wage Deals

In a landmark move, the South African Local Government Association (Salga) has secured a five-year wage agreement with municipal unions, marking a significant shift in public service labor relations. Starting July 2024, municipal workers will see an immediate 6% salary boost, with future increases tied to inflation rates plus a fixed percentage. The deal, forged after intense negotiations, introduces a revamped exemption process for financially struggling municipalities. This agreement aims to stabilize the sector and ensure long-term benefits for approximately 300,000 municipal employees. With a focus on fiscal predictability, the deal also includes a one-time R2,000 payment for lower-income workers without housing allowances and sets the stage for improved housing conditions.

Interesting Internationally

Hollywood's Legendary Voice Falls Silent

James Earl Jones, the formidable voice behind Darth Vader in "Star Wars" and Mufasa in "The Lion King," has died at the age of 93. With a career spanning over six decades, Jones left an indelible mark on cinema and theater, collaborating with luminaries like Stanley Kubrick and Arnold Schwarzenegger. His deep, resonant voice brought to life some of film’s most memorable lines, including the iconic "I am your father." Tributes from stars and fans alike celebrate his profound impact on the arts, highlighting both his iconic roles and his influential presence in Hollywood. Jones's legacy as a master of voice and character will resonate for generations.

Apple Hit with €13B Tax Bill by EU Court

In a major legal setback for Apple, the European Court of Justice has ruled the tech giant owes Ireland €13 billion in unpaid taxes, wrapping up an eight-year dispute. The European Commission had accused Ireland of providing Apple with illegal tax benefits from 1991 to 2014, a claim Ireland has resisted for years. This ruling ends a protracted legal saga and demands Ireland recover the taxes, a move Dublin had been trying to avoid. Apple, now reeling from the decision, claims it is a retroactive attempt to alter tax rules and denies any special treatment. The ruling underscores the EU’s aggressive stance on corporate tax avoidance and follows a similar judgment against Google for market dominance abuses.

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