Retailers seek legislation amendments to drive job creation, greater investment
More jobs could be created in Africa if labour laws were less restrictive, Clicks group CEO David Kneale said on Monday.
Speaking at the World Retail Congress Africa, held in Sandton, he stated that South African labour laws might, however, be made even more onerous leading up to the 2014 elections, as the ruling party campaigns for support from unions.
“Retail holds significant opportunities to create jobs and the sector could be a driver of growth in South Africa and [the rest of] Africa, but we need flexibility to accomplish this,” Woolworths group retail operations and international director Paula Disberry added.
She noted that the issue of flexibility had to be discussed jointly by government and industry.
“As the retail industry, we also have to communicate more, to help government understand the impact and implications of legislation on our businesses,” she said.
National Consumer Commission commissioner Ebrahim Mohamed agreed that, if the current policy position was not reconsidered, it would be difficult for international companies to continue investing in African countries.
“Aspects such as fixed employment, as well as tariffs and rates payable have to be reviewed,” he said.
Kneale added that international retailers were also being held back from investing in Africa by a lack of understanding of the various regulations, such as health standards, which were different in every African country.
“Another major challenge facing retailers in Africa is the variability [in legislation], especially with regard to moving goods,” Disberry said, adding that regulations were not reliable or constant, as the same process could take days or weeks.
Meanwhile, she also stated that, to make investing in Africa easier, the skills base and quality of education had to be dealt with.
“Government also has to start intervening in environmental aspects to ensure a sustainable future,” she said.
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