Fin24

SA most business-friendly Brics nation

2012-08-07 16:42

Cape Town - A World Bank report has ranked South Africa the best among Brics country for ease of doing business, ahead of powerhouses China and Russia.

The report ranks SA 34th, ahead of fellow Brics nations China (79), Russia (123), Brazil (127) and India (134).

Higher rankings indicate simpler regulations and procedures for international business practices, as well as international investor trust.

Nils Flaatten, CEO of Western Cape trade and promotion investment agency Wesgro, has warned that while SA leads the Brics nations in terms of investor trust and corporate governance procedures, job creation is crucial to the country's economic growth.

"South Africa's business ranking is something to be proud of. We have the second most stable financial system in the world and our sophisticated and established regulatory structures make us trustworthy in the eyes of investors.

"We are ranked number 10 globally for investor protection, which is leagues ahead of the other Brics nations. However, we need to ensure that our economic growth translates into job creation and job absorption,” Flaatten said at a recent University of Stellenbosch Business School Careers Fair.

South Africa's official jobless rate currently stands at 24.9%, one of the highest in the world, with 4.47 million people without jobs.

"Although this is a welcomed announcement, the global trend predicted for the next few years is declining demand and trade, which will negatively impact employment.  

"The world is being challenged to create 600 million jobs over the next decade. In sub-Saharan Africa it is expected that the employment rate will stagnate in the coming years, remaining at the current 3.0% growth rate until 2016," he said.

A recent report by the World Bank indicated that the richest 10% of South Africans contribute 58% to the country's economy, while the bottom half - which earns less than 8% of the nation's income - contributes 0.5%.
 
South Africa will struggle to grow the economy until its riches are spread more evenly, the report said.

Flaatten said this was not a sustainable balance.

"There is a strikingly high disparity between rich and poor in this country. Almost 50% of our economy is service-orientated, but it is the manufacturing sector that is responsible for sustainable job creation.  

"We need to ask ourselves whether our service economy is ensuring enough job opportunities, especially with our schooling system putting more matriculants into the SA economy every year," he said.

 - Fin24

Comments
  • theuns.cordier - 2012-08-07 17:17

    BRICS= Exploiting the Resources of our Country just to see the Government Officials drain all those funds into their own pockets... Most corrupt Invention ever... Why do you think China, Russia, India and Brazil is ranked so high... Because they know what is good for their own country by not exploiting their own resources to much but keeping a Cap on it... As soon as the Nationalise our mine, banks ext our ranking will go into the Top 10 easily due to the Corrupt Bra wanting more and more...

  • Pixie86 - 2012-08-07 17:19

    i know a few idiots who will overlook this and seek the negative

      chaplinncharlie - 2012-08-07 17:32

      Nothing to overlook it all there to be seen that this can't be good for the long term....

      jo.barton.92 - 2012-08-08 08:07

      SA officials are easier to bribe.

  • sefako.mokgalaka - 2012-08-07 17:27

    And DA wants labour laws further relaxed so that the workers will continue to be exploited.

      rowan.maulson - 2012-08-07 21:58

      No, They want the labour laws relaxed so that MORE business will open up and therefore employ more people.

      jo.barton.92 - 2012-08-08 08:08

      @sefako.mokgalaka - Just goes to show what you know about business and yet you think you qualify to answer or comment on.The current labour laws make it very hard for more people to be employed and for more businesses to remain open for a long time.

  • victor.tamaranui - 2012-08-07 17:33

    Yep, Inequality is next on the agenda for sure.

      victor.tamaranui - 2012-08-07 17:47

      BRICS will change the future forever. We now have 3rd world giants willing to work together to beat the west at their own game. Currently as Individual currencies the West manipulates BRICS currencies to ensure progress is diluted. Just look at the Big 3 British banks at the moment all caught completing criminal acts and manipulating markets. As a collective these 5 GDP's have a greater share of the world market than the US or the Euro-zone. The next 20 years are going to be drastic regarding whom exactly is 3rd World....

      chaplinncharlie - 2012-08-07 17:59

      Yes Victor only for these Powers China,Russia,Brazil and India to exploit South Africa... I think the correct way of seeing who would benefit the most, should be in this order China, Russia, India, Brazil, South Africa.

      victor.tamaranui - 2012-08-07 18:13

      People like you are just pessimist and do not want change. Just live the same way...where would Humans be now if we thought this way?? The West dictating the world is over. we have hardly progresses yet all they do is this Boom and Bust Theology which further in-debts Africa and the 3rd world. A different route is required. Let the world trade the BRICS currency and see us flourish on an even playing field.

      chaplinncharlie - 2012-08-07 18:19

      Victor i get what you saying but the problem we have at the moment is that we can't even look after ourself. The whole government is so corrupt that all these resources and money coming into our system would just be diluted between the few corrupt bastards... The point i'm making is that this should be manage and maintained but a person just can't depend on our current government... Maybe they should get a Govern-body that could manage this???

      victor.tamaranui - 2012-08-07 18:30

      Bud, It can only get better .... I try on to dwell on the failings and take in the successes as well. The next item on the agenda is further taxes on the Mineral resources ensuring these funds are kept in this economy accelerating our progress. Seems if Australia does so as of the 1 July 2012, No one is up in arms ready to over-run the Government. Different rules for different countries. Why is this ?? Surely you agree more funds available to progress a better living environment for all RSA citizens is the ultimate goal.

      chaplinncharlie - 2012-08-07 18:40

      Again Yes i agree with you but will those funds filter through??? That is the Question. "The next item on the agenda is further taxes on the Mineral resources ensuring these funds are kept in this economy accelerating our progress." that will be the way forward as the people that is looking to exploit us will take their cheap money some-where else and we will keep the serious investors... Again like i said I agree with you but as it stands right now i feel we will fail in the above due to the current Government.

      wesley.bischoff - 2012-08-07 19:15

      It's already in place in the form of AA, BEE, BBBEE....

      chaplinncharlie - 2012-08-07 19:20

      Ja Wesley that ain't gonna cut it...

      jo.barton.92 - 2012-08-08 08:14

      @victor.tamaranui - we cannot compete with India, China and Russia when it comes to education.These countries, especially India and China invest very heavily in education unlike our government.There are so many Indians from India and Chinese from China in our country and yet we have no-one from our country in theirs.That is so because we will never be able to stand up to them with the education we have.They are much more hard working that our masses and strive hard to be the best.We want the easy route in school with lowered education.

      theo.greeff.5 - 2012-08-08 09:21

      @Jo: You've hit the nail on the head. The reason these countries are making such huge strides is their heavy investment in education. But the investment goes further than simply throwing money at the problem, it's about quality. They're instilling their citizens with a no-nonsense, hard-working mentality, which is where our system is failing. For us (SA individually and as a part of BRICS) to succeed, we will have to take a serious look at the structures that are hindering quality education of our masses. This ties in with Victor's comment about the mining taxes: While more revenue out of the mining industry seems like a great idea on face value, it won't mean a thing until our government learns to apply the considerable resources they already have effectively. The thing is, they have to realise that they simply don't have the capacity to be the sole provider of employment - but they do have the capacity to create a climate where we as a country generate highly sought-after, skilled and determined workers (which will, of course, help alleviate poverty, crime etc - and generate more funds for government projects to boot).

      victor.tamaranui - 2012-08-08 18:43

      That's why we need more money ...to better everything.... Why don't yous' see this glaring fact. Lack of funds is hindering our progress. Brics is a collective, All partners bring essentials to the table. The Euro-zone is comprised of many different economies with vast differences in GDP as is the difference between Germany and Greece. The smaller economies have been dropped the ball here as this was their opportunity to complete with the Pounds and US dollar.

      victor.tamaranui - 2012-08-08 19:33

      If 2 % of it is corrupted away the other 98% will be invested into a first world environment we require.

  • okonkwo7 - 2012-08-07 17:47

    Inequality leads to ( if we can't have it then let's destroy it) mentality! Ticking time bomb

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