http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.03
R/$ = 11.07Change: 0.01
Au 1238.28 $/ozChange: -4.47
Pt 1258.00 $/ozChange: 3.00
 
 
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|Solutions|Chris Hart|Jacob Zuma
Agriculture||Africa|Ghana||Africa|Ghana|Zambia|Manufacturing|Mining|Solutions|
agriculture|johannesburg|polokwane|africa-company|ghana-company|investment-solutions-company|africa|brazil|ghana|malawi|nigeria|senegal|south-africa|zambia|agriculture-industry-term|manufacturing|mining|solutions|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
In the Medium-Term Budget Policy Statement Finance Minister Nhlanhla Nene has outlined concrete plans to consolidate South Africa’s pubic finances and restore macroeconomic balances. The proposed adjustments – lower than planned spending and increased tax revenues -...
Development financier Eastern Cape Development Corporation (ECDC) on Tuesday reported a stable balance sheet for the 2013/14 financial year, boasting a net asset value of R1-billion at year-end. Speaking at the financier’s performance results at the ECDC headquarters...
Finance Minister Nhlanhla Nene
Failed South African lender African Bank Investments (Abil) is likely to re-list on the stock exchange early next year, and its government supervision will be concluded without the use of taxpayer money, Finance Minister Nhlanhla Nene said on Wednesday. The central...
More
 
 
Latest News
Trade union Solidarity warned on Wednesday that ongoing restructuring and retrenchments in the information and communication technology (ICT) industry continued to put employees in the sector under “immense” pressure. This as the union claimed it had received...
Directors of investment holding company Combined Motor Holdings (CMH) say they are satisfied with the results achieved in the six months ended August 31, during which time the local economic environment continued to battle impediments to growth and national dealer...
In the Medium-Term Budget Policy Statement Finance Minister Nhlanhla Nene has outlined concrete plans to consolidate South Africa’s pubic finances and restore macroeconomic balances. The proposed adjustments – lower than planned spending and increased tax revenues -...
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
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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