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Godsell: Cut down export costs

Nov 25 2009 08:01 Lauren Thys

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Johannesburg - The true key to growth in the South African economy is removal of the structural impediments making local products more expensive to export.

Bobby Godsell, former chairperson of Eskom and chair of Business Leadership South Africa, had this to say on Tuesday when referring to skills shortages, infrastructure challenges and problems at state institutions.

The global economy has so far been plastered over with stimulus packages, he said, but that is no substitute for tackling the real problems.

Trying to weaken the rand is no more than a "cosmetic" exercise, adds Rand Merchant Bank economist Rudolf Gouws.

That's not how we can improve our competitiveness - there are too many things beyond our control.

Gouws says that although the rand is strong its recent run has simply made up its previous losses.

The rand has improved more than 20% this year - which has trade unions and many ministers worried about the competitiveness of South Africa's export products.

Gouws says that we should focus less on inflation targeting. There are bigger structural problems that make South African products more expensive.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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