Aug 27, 2012
SA firms face fewer constraints than Bric counterparts but skills a major concernBack
Africa|Grant Thornton Johannesburg|System|Africa|Brazil|China|India|Russia|South Africa|Equipment|Finance|Long-term Finance|DAVID CAMPBELL
© Reuse this
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.
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.
“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.
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)
Recent Research Reports
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...
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
Capturing and storing carbon dioxide (CO2) is the only way through which the world will achieve the lowest of the United Nations Framework Convention on Climate Change’s (UNFCCC) global warming predictions, called the representative concentration pathway (RCP) 2.6....
The City of Johannesburg has recovered R107-million following the arrest of 22 people allegedly involved in corruption, collusion, fraud and tampering with the city’s electricity systems, which had ultimately cost the city R200-million in lost revenue.