Fin24

SA needs to roll up its sleeves

2012-07-25 14:45

Johannesburg - Productivity within the South African economy must rise, the SA Chamber of Commerce and Industry (Sacci) said on Wednesday.

Sacci supported Trade and Industry Minister Rod Davies' position that it was crucial for job creation that productivity be raised across the economy, especially in the manufacturing sector, CEO Neren Rau said in a statement.

"South Africa's historical competitive edge (cheap electricity) is no longer available and a structural change is needed to reposition the productive economy towards higher levels of value addition," he said.

Programmes outlined by Davies to achieve higher productivity included higher levels of beneficiation, more focused incentive programmes - especially for small and medium enterprises - and the prioritisation of key sectors.

Sacci met Davies on Wednesday morning for a dialogue breakfast.

Discussion topics ranged from the proposed Tripartite Free Trade Agreement to South Africa's relationship with China, the green economy, BEE and trade promotion.

Trade policy issues, such as the need for more effective economic diplomacy and government initiatives to address the lack of regional infrastructure, were also discussed.

Rau said: "Currently the low levels of cohesion between government and business do not facilitate a 'Team South Africa' approach."

Wednesday's breakfast was a continuation of fostering a strong working relationship between government and business, he said.

Sacci's annual convention at the beginning of October was also very important in promoting this relationship.

 

Comments
  • marc.hugo.75 - 2012-07-25 15:12

    Actually, we now have expensive electricity. Go ahead and compare with UK (domestic retail London Power, max is 0.90 kw/hr inlusing 20% VAT(the priciest in Europe bar Denmark and Switzerland) and USA where utility companies are strongly competitive. Samples taken of urban peak charges in Georgia, Ohio, NY State. Our rates run higher by far and ESKOM has no intention of ever curbing their rapacious greed. Sure, we need to jack up productivity levels - this means a massive relaxation of labour laws and softening of municipal rates and corporate tax. Otherwise, investors will invest elsewhere. Simple as that.

  • ianon.ym - 2012-07-25 15:16

    I say, s/he says, they say - nobody does.

  • africanwolf - 2012-07-25 16:28

    Send the Chinese home and we will start manufacturing. With all the China towns popping up everywhere it is impossible to manufacture or produce anything.

  • jaun.lombard.9 - 2012-07-25 16:35

    Better labour laws = Better Productivity. If you can fire a worker very easy, you will get more productivity AND problem with the incompetence we have in our municipalities (AG REPORT) will be resolved..........Every department is failing because of the department of Labour!!! Education, health, mines, Eskom, eg!! One solution to fix all!!! AA and BEE is not the problem...it is labour laws keeping incompetent AA and BEE People employed, where it could benefit an AA and BEE candidate who is not incompetent and deserves the work!!

  • nigel.vanysendyk - 2012-07-25 17:48

    LABOUR LAWS people, the enemy is COSATU & its backward ideas, they are the ones destroying jobs & productivity, based on selfish, outdated, impractical ideologies that will destroy South Africa. Wake up South Africa, this backward thinking is dangerous, look at South Korea if you want to see a productive, thinking, hardworking country.

  • strauss.steven - 2012-07-25 21:00

    agree- haven't they learned from the open toilet issue. you can't just close schools without having an action plan on how you are going to cater for the pupils and teachers at the schools you want to close!! helen is on the right track, but dont just cater for the rich and tourist

  • carol.paterson.923 - 2012-07-26 14:04

    There could be major job creation in this country if we stopped importing goods from China and others in the Far East. We have the labour, the expertise and the knowledge to manufacture alot more products and clothing in this country. I notice more and more Chinese infiltrating into SA. With all due respect we don't need them or their cheap quality products and it's about time we stopped buying their goods.

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