JEAN-PATRICK LEGER - Vesconite
The onset of democracy opened up the possibility of exporting South African products abroad and this has proven extremely beneficial to Vesconite Bearings, which today exports over half of its sales. However, a more open market into South Africa has also meant that our competitors have been more active in South Africa and have been able to take advantage of reduced South African duties, so competition has intensified. Vesconite Bearings’ hope is that South African trade negotiators will continue to engage their international peers and ensure reduced duties among our export partners. Vesconite Bearings is particularly keen on reduced duties to the BRIC countries, where duties currently make exports costly and uncompetitive despite the political will to improve relations between this group of influential emerging national economies.
On a non-racial South Africa: Whereas, in the past, opportunities were limited by the colour of one’s skin, Vesconite Bearings is pleased that democracy in South Africa has led to opportunities for all people to develop skills in the workplace. Vesconite Bearings is particularly pleased that many of its qualified artisans and artisans-in-training are from previously disadvantaged backgrounds and that it has its first woman trainee artisan.
On black economic empowerment: While BEE has been of benefit in ensuring that economic benefits are more equitably spread in South African society, there appears to be a significant degree of hidden corruption involved in many purchases, particularly among State-owned enterprises. Vesconite Bearings would like proper tender processes to be embraced, corruption reduced, and the associated cost to the economy minimised.
On electricity: The current electricity crisis is having an adverse impact on business. Besides problems with electricity generation, there is a 25-year backlog on maintenance of the local distribution infrastructure, and this has resulted in an unpredictable and tenuous power supply. Reduced and irregular electricity availability is increasing the cost of doing business and adding to the difficulty of ensuring that manufacturing and order delivery will take place as promised.