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SA 'can reach 6% growth fast'

Oct 23 2005 20:01

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Pilanesberg - South Africa could achieve 6% economic growth before the government's target date if its policies were rapidly implemented, the International Investment Council (IIC) said on Sunday.

"Countries such as South Africa and Brazil are perfectly situated to take advantage of the opportunities generated in the world economy as a result of the growth in China and India," Trade and Industry Minister Mandisi Mpahlwa said at a media briefing in the Pilanesberg National Park.

Council members suggested that remaining barriers to growth, such as skills shortages, regulations and infrastructure, should be dealt with more quickly.

President Thabo Mbeki established the IIC in 2000 to draw on the insight of international business leaders on how to meet South Africa's growth and development challenges.

Mpahlwa said the investment climate survey indicated that the burden of regulations on businesses was not that great in South Africa.

"Overall, the investment climate survey was quite positive in terms of the South African economic environment."

Council member Percy Barnevik, who is chairperson of the board of Astra Zeneca, said that while the second economy was often seen as a "drag on growth", increasing micro-credit and training women in small enterprises could increase growth between 1% and 1.5%.

Chairperson of Reuters Niall Fitzgerald said South Africa had an enviable record of macro-economic success.

"From a macro-economic standpoint, South Africa can easily accept more risk in the way it pursues development," he said.

The three day council was attended by the chief executives of several international companies and South African government ministers.

President Thabo Mbeki offered his condolences to the Nigerian President Olusegun Obasanjo, his government and the Nigerian people, following the death of Obasanjo's wife Stella, 59, after surgery in Spain earlier on Sunday, and the deaths of more than 115 people in a plane crash in Oyo State, north of Lagos.

 
 
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