http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.02Change: -0.01
R/$ = 10.68Change: -0.05
Au 1286.35 $/ozChange: -1.15
Pt 1424.00 $/ozChange: -2.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 28, 2012

SA economy has globally competitive aspects

Back
Agriculture|Johannesburg|Polokwane|Africa|Ghana|Investment Solutions|Africa|Brazil|Ghana|Malawi|Nigeria|Senegal|South Africa|Zambia|Agriculture|Manufacturing|Mining|Chris Hart|Jacob Zuma
Agriculture||Africa|Ghana||Africa|Ghana|Zambia|Mining|
agriculture|johannesburg|polokwane|africa-company|ghana-company|investment-solutions-company|africa|brazil|ghana|malawi|nigeria|senegal|south-africa|zambia|agriculture-industry-term|manufacturing|mining|chris-hart|jacob-zuma



The South African economy has a number of competitive attractions in the global context, economist Chris Hart said on Tuesday.

"The country is solvent, there is yield and there is growth," Hart said in Johannesburg.

"We see this reflected in our financial markets, where investors are supporting our bonds and supporting our stock markets. That suggests that South Africa has an attraction as an investment destination."

However, the country's internal problems were hampering long-term investment, he said.

Hart, chief economist at Investment Solutions, was speaking at a Johannesburg Chamber of Commerce and Industry breakfast.

He said policy uncertainty played a role in hampering the growth and movement of long-term investment, and the country needed policy certainty.

Long-term investment was essential in industries such as mining, agriculture and manufacturing.

"It's not a case to say we've got policy certainty – you've got a choice between dreadful and awful – which is what happened in the mining industry," he said.

"It needs to be supportive policy choices to attract investment."

Hart said it was extremely difficult for small businesses to be formed and to operate in the South African economy, and this contributed to the high unemployment rate.

The economy faced a major problem with its levels of unemployment.

"The reason for unemployment is internal more than external," he told the meeting.

"Unemployment [in South Africa] is exceptional."

He compared South Africa's unemployment rate to that of Brazil. In 2002, joblessness in both countries started decreasing. Then came the 2008 global financial crisis.

The period between 2002 and 2008 generated many jobs. Brazil's unemployment rate decreased after this, but not South Africa's.

"Polokwane also happened... and that's a problem," he said, referring to the African National Congress' elective conference, held in Polokwane in December 2007, where President Jacob Zuma was voted in as ANC president.

"The unemployment rate suggests that we need to be looking at this as a national priority. I think job creation is one of our lowest policy priorities."

The regulatory structure for small businesses was wrong because regulations required economies of scale to administer, which was inappropriate for small business, he explained.

"Your source of capital for small business is largely your households, [which] are effectively savings deficient," he added.

"[Households are savings deficient] because of policy, which basically taxes household capital formation; and it's taxing the things like dividend and interest, which reduces the viability of actually saving."

The fact that people were not being compensated with interest also contributed to the lack of savings.

South Africans should put small business formation at the centre of policy by restructuring the regulatory framework, he said.

The country was fortunate because it was in a good "neighbourhood", with Africa seen as a potential growth region.

"South Africa can still be a gateway, but that opportunity is closing because Africa, in its own right, is establishing itself."

Countries with improving constitutional arrangements, such as Senegal, Ghana, Malawi, Nigeria and Zambia, were places to target in terms of business, Hart said.

Edited by: Sapa
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Article contains comments
The amount owed to municipalities for services has continued to rise, reaching R94-billion by June, compared with the R93.3-billion recorded in December. Households still accounted for the bulk of the aggregate municipal consumer debts; however, this had declined...
Key players in South Africa’s tourism industry say the country’s new immigration rules, which came into effect in May, could damage the country’s tourism sector. The regulations require that visa applications be made in person so that biometric data can be...
More
 
 
Latest News
Updated 6 hours ago Government, in conjunction with industry clusters had to encourage preferential procurement in the mining industry, Department of Trade and Industry (DTI) capital equipment and allied services director Tapiwa Samanga has said. In a statement issued on Monday, he...
Neil Gopal
Updated 6 hours ago The South African Property Owners’ Association (Sapoa) has appealed to Rural Development and Land Affairs Minister Gugile Nkwinti to invoke the discretionary powers available to him under the Spatial Planning and Land Use Management Act of 2013 to prevent...
Updated 6 hours ago The Financial Services Board (FSB) has extended telecommunications group MTN’s broad-based black economic-empowerment trading platform MTN Zakhele’s exemption to the directive requiring over-the-counter (OTC) trading platforms to apply for a licence to operate,...
More
 
 
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
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
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