Gijima wants orderly ‘disengagement’ from Transnet:
IT services company Gijima says it is committed to maintaining the continuity and sustainability of South Africa’s railway economy despite state-owned freight transport and logistics company Transnet’s persistent efforts to sever relations.
Transnet is currently appealing a recent Gauteng North High Court ruling which dismissed its urgent application to compel Gijima to complete critical data migration and disengagement work following the expiry of a R1.5 billion contract.
Transnet had sought a ruling directing Gijima to complete all disengagement services, take all steps necessary to migrate data centre services to itself and to interdict the IT company from “engaging in any conduct that disrupts or interrupts the provision of services”.
The court ruled that Transnet was not ready to take over the critical IT services from Gijima when the five-year agreement expired.
It said Transnet did not at the time “possess the technical capability, infrastructure, or skilled personnel to assume the services”, adding that what the firm sought to do was as good as reckless behaviour.
But in its appeal Transnet argued that the court erred in its interpretation of Gijima’s obligations regarding the migration of both mainframe and non-mainframe applications. The state entity contended that Gijima has not fully cooperated and Transnet is in fact ready to assume the services.
Gijima’s owner Robert Gumede said Transnet’s objection “has no merit”, and maintained that the freight logistics entity’s lack of readiness could result in dysfunction.
“In compliance with its obligations, Gijima commenced preparations for a structured disengagement and handover process. However, Transnet’s lack of readiness and cooperation threatened to jeopardise the stability thereof, and by extension, the broader railway economy of South Africa,” Gumede said.
Gumede said Gijima was not against handing over, but wanted it done in line with best practice that would not jeopardise operations.
“Gijima looks forward to Transnet’s compliance with the court order and remains committed to ensuring continuity and sustainability of South Africa’s railway economy within the scope of its obligations,” he said.
“Gijima again commits to an orderly disengagement and hopes Transnet shall also begin with its transition plan when the parties meet. However, Gijima committed to both the court and Transnet that it will not jeopardise the smooth operations of Transnet, especially [Transnet Freight Rail], whose uninterrupted services are a lifeblood of the country’s transport logistics.”
Transnet officially started working with Gijima in March 2019, following a December 2018 court order.
The engagement came after a lengthy legal battle over a five-year IT services contract that was initially awarded to T-Systems, an award which the court overturned. The contract term was set to run until June 30, 2025.
Government commits to more incentives for investment in automotive production:
The government has recommitted itself to offering incentives to investors to ramp up local automotive production, which contributes about 5.3% to gross domestic product.
The undertaking by the department of trade, industry and competition comes in the wake of the multi-billion-rand South Africa-China partnership investment in the Eastern Cape’s Gqeberha BAIC SA assembly plant, which recently launched the company’s latest B30 SUV.
The government will support the industry through the automotive investment scheme (AIS) “if it produces completely knocked down kits in South Africa”, the department’s deputy director-general, Tebogo Makube, said at the launch, adding that BAIC could reap the benefits if it complied with AIS requirements by next year as planned.
The scheme is designed to grow the sector through investment in new or replacement models, with components that increase plant production volumes, sustain employment, and strengthen the automotive value chain.
It provides for a non-taxable cash grant of 20% of the value of a qualifying investment in productive assets by original equipment manufacturers and 25% of the value of a qualifying investment in productive assets by component manufacturers and tooling companies.
Makube said the country’s automotive investment programme was the biggest on the continent.
“We have the auto masterplan with a target of driving market share of about 1% global production of autos in the world. We are currently about 0.57% and we have the ambition of pushing the masterplan to 3035, making this kind of investment much-appreciated because it would help us achieve that ambition,” he said.
“With you selling directly to consumers, we want to deepen our local content, currently sitting at 40%, which we want to scale up to 60% by 3035 – creating employment. As a government, we are also directly involved in investment. Through the IDC [Industrial Development Corporation], we now have ownership of 35% of BAIC, making the entity a South African company.”
The partnership that we have with the government of China has led to an increase in bilateral trade, driven by investments such as this one, Makube said, adding, “Through this investment, we also want to drive transformation and enterprise development. Government is committed to providing other incentives to the industry, so that it can produce more vehicles in South Africa.”
Located in the Coega special economic zone, the BAIC SA assembly plant has been hailed as one of the most significant automotive investments in South Africa in the past 40 years — and the largest investment by a Chinese company in the automobile sector in Africa. The R11 billion venture was developed as a joint venture with the state-owned IDC.
Despite “initial setbacks” in the project, BAIC had stayed committed, Eastern Cape Premier Oscar Mabuyane said.
“Initial years were marked by disruptions — the global Covid outbreak, lockdowns and supply chain setbacks. Yet BAIC remained steadfast – continuing to invest and completing the construction of its world-class plant in Gqeberha in 2023,” Mabuyane said, describing the B30 launch as a reaffirmation of faith in South Africa’s manufacturing capacity, “and in particular, the Eastern Cape as being at the heart of our automotive industry”.
Chinese ambassador Wu Peng said the project reflected the dynamic economic and trade cooperation between the two countries.
“In recent years, China has upheld the principles of extensive consultation, joint contribution and shared benefits, continuously strengthened trade and investment cooperation with South Africa. We have achieved genuine mutual benefits and win-win results,” he said.
BAIC South Africa chief executive Yang Yixin said the B30 had been built to meet the diverse demands of South African roads and was available in both fuel and hybrid options.
SA declares gender-based violence and femicide a national disaster amid rising crisis:
The government has officially classified gender-based violence and femicide (GBVF) as a national disaster.
The head of the National Disaster Management Centre, Bongani Sithole, made the decision after reviewing new reports from government and civil society. The centre found that the ongoing violence poses serious and immediate risks to people’s safety and now meets the legal definition of a national disaster.
“This effort brings together every part of government and every major sector,” Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa said, welcoming the decision. “GBVF is not a women’s issue – it is a national crisis.”
By classifying GBVF as a national disaster, the national executive becomes responsible for coordinating the country’s response, using existing laws and systems already in place.
The classification means that all parts of government must strengthen their support for GBVF programmes; authorities must fully implement their prevention and emergency plans; communities, the private sector and individuals are urged to take more decisive action to prevent violence; and people are urged not to commit acts of gender-based violence.
National, provincial and municipal governments must also work together on prevention, support services, relief and long-term recovery.
Importantly, this is not a national state of disaster. No emergency powers are being activated.
Instead, the move strengthens existing efforts, including the inter-ministerial committee on GBVF, the intergovernmental committee on disaster management and the National Joint Operational and Intelligence Structure priority committee.
Other existing initiatives are the 90-Day GBVF acceleration programme; the expansion of Thuthuzela care centres — one-stop facilities that provide integrated care and support for survivors of sexual violence — as well as the strengthening of sexual offences courts and reforms to the criminal justice system.
Government departments, municipalities, NGOs and communities must now send regular progress reports to the National Disaster Management Centre so their work can be monitored.
The classification will be lifted once the situation no longer meets the definition of a disaster. If a national state of disaster is declared in the future, this classification will lapse automatically.
On Friday, the eve of the G20 Leaders Summit, women and LGBTQI+ across South Africa hosted a national shutdown, led by the non-profit Women For Change, where thousands downed tools to highlight the scourge of GBVF.
It had demanded that GBVF be declared a national disaster, “because until South Africa stops burying a woman every 2.5 hours, the G20 cannot speak of growth and progress”.
On Thursday, at the G20 Social Summit, President Cyril Ramaphosa announced that the government would classify GBVF as a national disaster.
“For almost 10 years, I have listened to the most horrific stories imaginable,” Sabrina Walter, the founder of Women For Change, said in a statement posted on the social media platform TikTok.
“I have witnessed the unbearable grief of families who had to identify the bodies of the women they loved. I have sat with survivors who carry their trauma in every breath they take. Women For Change has carried these stories with deep honour and relentless determination.
“Today, that persistence has been recognised. We have won. Our petition – backed by more than 1.1 million people across the world – demanding GBVF be declared a national disaster has succeeded … This moment feels impossible to describe.”
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