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Sun City – As trade union Cosatu decried "Walmartisation", the proposed takeover of SA retailer Massmart by US giant Walmart, a National Treasury official urged South Africans to embrace globilisation in order to create jobs.
“We must embrace globalisation instead of sloganeereing and toyi-toying against it,” said National Treasury director general Lesetja Kganyago on Thursday.
Kganyago was addressing conference delegates at the 25th anniversary celebrations of the Association for the Advancement of Black Accountants.
“We are busy exploring the demerits of globalisation while other countries are finding ways of benefiting from it,” he added.
On Wednesday, trade union movement Cosatu and some of its affiliates vowed to oppose the proposed R30bn takeover of retailer Massmart by the US’s supermarket giant Walmart.
Cosatu and its affiliate SA Commercial, Catering and Allied Workers’ Union (Saccawu) said on Wednesday they would propose the takeover of Massmart because the Wall Street giant had a “history of buying from the cheapest” suppliers and that would erode jobs in South Africa if it were to take over Massmart.
The unions were also concerned about possible job losses resulting from possible restructuring once Walmart assumes control.
However, Kganyago said the country “is in need of foreign direct investment and Walmart’s investment is exactly that”.
Mentioning China, Kganyago said countries that did well economically increased their production levels and efficiency “instead of sloganeering against globalisation”.
South Africa had to do the same and find ways of matching the productivity levels of its major trading partners if it were to grow its economy and create more jobs.
Since 1990, South Africa’s productivity increased 16.6%. “But its has since become less competitive again in recent years,” said Kganyago. “At the same time China’s productivity per employee grew by 400% and India by 200%,” he said.
The issue of the rand’s strength against major currencies was not the most important factor in assisting exports. “We must raise our productivity levels and increase exports of goods the rest of the world wants if we are to grow the economy,” said Kganyago.
- Fin24.com
“We must embrace globalisation instead of sloganeereing and toyi-toying against it,” said National Treasury director general Lesetja Kganyago on Thursday.
Kganyago was addressing conference delegates at the 25th anniversary celebrations of the Association for the Advancement of Black Accountants.
“We are busy exploring the demerits of globalisation while other countries are finding ways of benefiting from it,” he added.
On Wednesday, trade union movement Cosatu and some of its affiliates vowed to oppose the proposed R30bn takeover of retailer Massmart by the US’s supermarket giant Walmart.
Cosatu and its affiliate SA Commercial, Catering and Allied Workers’ Union (Saccawu) said on Wednesday they would propose the takeover of Massmart because the Wall Street giant had a “history of buying from the cheapest” suppliers and that would erode jobs in South Africa if it were to take over Massmart.
The unions were also concerned about possible job losses resulting from possible restructuring once Walmart assumes control.
However, Kganyago said the country “is in need of foreign direct investment and Walmart’s investment is exactly that”.
Mentioning China, Kganyago said countries that did well economically increased their production levels and efficiency “instead of sloganeering against globalisation”.
South Africa had to do the same and find ways of matching the productivity levels of its major trading partners if it were to grow its economy and create more jobs.
Since 1990, South Africa’s productivity increased 16.6%. “But its has since become less competitive again in recent years,” said Kganyago. “At the same time China’s productivity per employee grew by 400% and India by 200%,” he said.
The issue of the rand’s strength against major currencies was not the most important factor in assisting exports. “We must raise our productivity levels and increase exports of goods the rest of the world wants if we are to grow the economy,” said Kganyago.
- Fin24.com
