http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.07Change: 0.08
R/$ = 12.00Change: 0.15
Au 1202.08 $/ozChange: 25.88
Pt 1148.50 $/ozChange: 26.00
 
 
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 Letters 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
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
As is well known, at the end of last month, retired General Muhammadu Buhari defeated incumbent President Goodluck Jonathan in Nigeria’s Presidential elections. A northerner and a Muslim, Buhari won a majority of the votes in predominantly Christian States in the...
More
 
 
Latest News
Updated 3 hours ago Top aluminium producer United Company Rusal will start producing metal at its Boguchansk project, in Russia, by June and will ramp up output over the following year depending on demand, the company's chief executive said on Monday. Weak aluminium prices are forcing...
Updated 3 hours ago Dubal Holding, the holding company for Dubai's stake in Emirates Global Aluminium and other assets, is considering possible acquisitions in local and international energy projects, it said on Monday. The firm was looking for equity interests related to coal, solar,...
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96