Investment: In Brief
Ogilvy & Mather and Scangroup Limited have agreed to create a pan-African joint venture via a share swap transaction, subject to regulatory and shareholder approval, in order to strengthen a common expansion and growth strategy for sub-Saharan Africa. Scangroup is an associate of WPP, the global communications services group.
South Africa: Municipalities debts to SABC blocks investments.
Five metropolitan municipalities owe the cash-strapped SABC more than R5m for advertising, and at least R4,5m of that amount is more than three months overdue, according to Communications Minister Siphiwe Nyanda. The SABC faced not only loan repayments, but also restructuring and the migration to digital TV, all of which was being done on a shoestring budget.
The minister's written reply revealed Tshwane was the biggest culprit, owing R1990448, of which R1,8m was outstanding for more than 120 days. Johannesburg, whose mayor, Amos Masondo, is also head of the South African Local Government Association, owes R1235084, all of it outstanding for 120 days.
Also on the list was Ethekwini, which owes R1151966, of which R670000 is 120 days overdue. Ekurhuleni owes R53116, all of it three months overdue. Nelson Mandela Bay owes R151163.