http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.02
R/$ = 10.98Change: -0.03
Au 1191.90 $/ozChange: -6.55
Pt 1218.00 $/ozChange: -11.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 27, 2012

SA firms face fewer constraints than Bric counterparts but skills a major concern

Back
Africa|Grant Thornton Johannesburg|System|Africa|Brazil|China|India|Russia|South Africa|Equipment|Finance|Long-term Finance|DAVID CAMPBELL
Africa|System|Africa||Equipment||
africa-company|grant-thornton-johannesburg|system|africa|brazil|china|india|russia|south-africa|equipment|finance|longterm-finance|david-campbell
© Reuse this



While South African businesses face fewer constraints to expansion than their counterparts in other Bric nations (Brazil, Russia, India and China), the country’s “endemic” skills shortage continued to weigh it down, Grant Thornton Johannesburg CEO David Campbell said on Monday.

The latest Grant Thornton 'International Business Report' (IBR) again highlighted the lack of a skilled workforce and overregulation as the two biggest blockages for economic growth.

With 25% unemployment and a modest 3% projection for growth, there is no ambiguity around the severity of our skills shortage. Unless we address how to appropriately up-skill and educate the population, South Africa will not be able to take advantage of the accessibility and affordability of finance to drive long-term growth,” Campbell noted.

Thirty-eight per cent of South African executives said that the skills shortage affected their business (36% Bric), while 37% believe that overregulation and red tape were hindering growth (36% Bric). Both South Africa and the Bric nations are more exposed to these constraints than the rest of the world.

However, South African businesses faced significantly fewer constraints to expansion than companies in other Bric nations, with local executives feeling less constrained by the cost of finance, access to long-term finance and order demand.

The quarterly survey, which looks at the views of senior executives in privately held businesses all over the world, revealed that 35% of Bric businesses experienced shortages in terms of the quantities of orders being placed, while this was only the case for 18% of those surveyed in South Africa.

Thirty-four per cent of Bric respondents also felt constrained by the prohibitive cost of finance, compared with 17% in South Africa and 29% of businesses in the Bric nations cited the shortage of access to long-term finance as a barrier to growth, compared with 13% in South Africa.

Globally, 22% of business executives experienced difficulty in accessing long-term financing and high costs of finance.

“The South African economy has been insulated from much of the global market turbulence owing, in part, to the country’s top-ranked audit and accounting standards, a sound banking system, and well-regulated stock exchange,” said Campbell.

He added that South African businesses should view this local strength as an opportunity to make progress through long-term investments in research and development (R&D) and equipment that would place companies at an advantage once the developed world moves out of the recessionary period.

The IBR research also showed that businesses in the emerging markets were leading the way in investing for long-term growth.

Forty-five per cent of businesses in the Bric countries plan to increase investment in R&D over the next year, compared with just 18% of businesses in the Group of Seven nations (G7).

Similarly, 47% of Bric businesses plan to increase investment in plant and machinery over the next 12 months, compared with 37% in the G7.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
South Africa’s Finance Minister Nhlanhla Nene
Updated 3 hours ago South Africa’s Finance Minister Nhlanhla Nene has emphasised the role of the private sector in delivering the 51 Programme for Infrastructure Development in Africa (Pida) projects, collectively valued at $68-billion, being prioritised for implementation by 2020....
Solidarity CEO Dirk Hermann
Updated 7 hours ago Trade union Solidarity, which has 7 000 members working at Eskom, is urging the State-owned utility to abandon its voluntary-severance offer to employees and focus instead on rebuilding staff morale as part of a broader effort to improve the currently dire outlook...
The South African Chamber of Commerce and Industry’s (Sacci’s) Copper Theft Barometer increased to R13.2-million in October – 43% higher than in October 2013. The barometer had increased from R13-million in September and R12-million in August and recorded its fifth...
More
 
 
Latest News
Updated 2 hours 34 minutes ago The Central Energy Fund (CEF) has backtracked on its decision to appoint Tshepo Kgadima as a director and chairperson of national oil company PetroSA following the public “controversy” dogging the new appointee. Nonhlanhla Jiyane had now been appointed as interim...
South Africa’s Finance Minister Nhlanhla Nene
Updated 3 hours ago South Africa’s Finance Minister Nhlanhla Nene has emphasised the role of the private sector in delivering the 51 Programme for Infrastructure Development in Africa (Pida) projects, collectively valued at $68-billion, being prioritised for implementation by 2020....
Updated 3 hours ago This year, 82 companies met the JSE’s Socially Responsible Index (SRI) requirements relating to environmental, social and governance (ESG) policies and management practices, compared with only 72 companies in 2013, as companies become more aware of how they...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks