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“It takes no more time to see the good side of life than to see the bad.” – US singer Jimmy Buffett.
MY LAST article received quite a few negative comments; in fact, it received more negative comments than positive ones.
To those that are so negative, what will it take to convince you that things are better today than they were 10 years ago?
My previous article made mention of the increasing real gross domestic product per capita which results in higher consumption per capita and a higher standard of living; this is now shown graphically in the figure below.
But let’s not dwell on what the naysayers have already refuted as heresy, and focus on some other interesting facts.
I will not deny that South Africa has its problems, but which country does not?
However, even with the problems we face, there are several aspects to the South African economy which makes it stronger than the typical emerging market economy – despite our economic growth lagging that of the sub-Saharan region.
These aspects were highlighted in my previous article, so again, I will not dawdle. Rather, I will highlight even more of South Africa’s achievements, as mentioned in the latest version of the Industrial Policy Action Plan (IPAP) 2013/14 – 2015/16.
As an indication that corruption/collusion is not always tolerated:
• Within the cement industry, a settlement of R148.7m was reached with Lafarge,
• Within the telecommunications industry, Telkom was fined R449m for market abuse,
• Within the food industry:
- a settlement of R88.5m was reached with FoodCorp on price-fixing in the wheat flour and maize-meal sub-sector;
- a settlement of R16.7m was reached with Astral Operations on price-fixing in the poultry sub-sector; and
- Oceana was fined R35m for price-fixing.
There are numerous positive aspects mentioned in the latest industrial policy plan, so I will only cover some of the industries and highlight one, maybe two, of the achievements in each.
• Automotives: 128 projects were approved under the Automotive Investment Scheme; investments of R12bn; incentives of R3.4bn; currently sustaining 56 197 jobs.
• Clothing, textiles, leather and footwear: the Clothing and Textiles Competitiveness Programme has stabilised sectoral production and employment.
Since the introduction of the programme, employment decline has been halted and more than 12 205 new decent permanent jobs have been created. The programme supports 49 888 jobs out of a total of 101 511 in the sector.
• Agro-processing: the creation of 55 000 new jobs; reduction of 498 000 tonnes per annum in CO2-equivalent emissions.
• Green industries: Sun Edison South Africa broke ground on its first South African project, a 28 MW solar plant in Limpopo. This R1.2bn project will be followed by a 30 MW, R1.4bn project at Witkop, near Polokwane.
I could carry on and mention the other positive aspects/achievements - but if you are not convinced by now, perhaps you never will be.
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Arthur Schopenhauer, often called the “philosopher of pessimism”.
Will you ever be convinced that things are not that bad?
- Fin24
*Geoffrey Chapman is a guest columnist and trade policy expert at the SABS. Views expressed are his own.
MY LAST article received quite a few negative comments; in fact, it received more negative comments than positive ones.
To those that are so negative, what will it take to convince you that things are better today than they were 10 years ago?
My previous article made mention of the increasing real gross domestic product per capita which results in higher consumption per capita and a higher standard of living; this is now shown graphically in the figure below.
But let’s not dwell on what the naysayers have already refuted as heresy, and focus on some other interesting facts.
I will not deny that South Africa has its problems, but which country does not?
However, even with the problems we face, there are several aspects to the South African economy which makes it stronger than the typical emerging market economy – despite our economic growth lagging that of the sub-Saharan region.
These aspects were highlighted in my previous article, so again, I will not dawdle. Rather, I will highlight even more of South Africa’s achievements, as mentioned in the latest version of the Industrial Policy Action Plan (IPAP) 2013/14 – 2015/16.
As an indication that corruption/collusion is not always tolerated:
• Within the cement industry, a settlement of R148.7m was reached with Lafarge,
• Within the telecommunications industry, Telkom was fined R449m for market abuse,
• Within the food industry:
- a settlement of R88.5m was reached with FoodCorp on price-fixing in the wheat flour and maize-meal sub-sector;
- a settlement of R16.7m was reached with Astral Operations on price-fixing in the poultry sub-sector; and
- Oceana was fined R35m for price-fixing.
There are numerous positive aspects mentioned in the latest industrial policy plan, so I will only cover some of the industries and highlight one, maybe two, of the achievements in each.
• Automotives: 128 projects were approved under the Automotive Investment Scheme; investments of R12bn; incentives of R3.4bn; currently sustaining 56 197 jobs.
• Clothing, textiles, leather and footwear: the Clothing and Textiles Competitiveness Programme has stabilised sectoral production and employment.
Since the introduction of the programme, employment decline has been halted and more than 12 205 new decent permanent jobs have been created. The programme supports 49 888 jobs out of a total of 101 511 in the sector.
• Agro-processing: the creation of 55 000 new jobs; reduction of 498 000 tonnes per annum in CO2-equivalent emissions.
• Green industries: Sun Edison South Africa broke ground on its first South African project, a 28 MW solar plant in Limpopo. This R1.2bn project will be followed by a 30 MW, R1.4bn project at Witkop, near Polokwane.
I could carry on and mention the other positive aspects/achievements - but if you are not convinced by now, perhaps you never will be.
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Arthur Schopenhauer, often called the “philosopher of pessimism”.
Will you ever be convinced that things are not that bad?
- Fin24
*Geoffrey Chapman is a guest columnist and trade policy expert at the SABS. Views expressed are his own.
