Page 19 - CEN 13 Apr.indd

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No amount of innovation, carefully honed sales pitches
or product offerings could prevent full stockyards and
empty order books. Countries tightened their purse
strings and investors sat back, holding their breath,
waiting for the upturn.
Ironically, 2010 saw South Africa being invited into the
BRICS community and who can forget the 2010 Soccer
World Cup? This event was held before us like a carrot,
promising to give South Africa a much needed facelift
and investment boost via tourism, at this crucial time.
Stadia needed building, so construction boomed, while
mining teetered and the populace generally tightened
their belts, put their houses up for sale and also
prepared themselves to weather the storm ahead.
No sooner did we feel that we had survived it, than
the Double Dip pulled the rug out from underneath us;
the Eurozone started a slow collapse and Lady Liberty’s
crown settled rakishly on her head, leaving her a little
dishevelled and worse for wear.
China all but over boiled as consumer demand
increased with 300-million people moving from the
rural regions into the cities, demanding cars, white
appliances and all manner of other goods previously
regarded as capitalism – while our coal was exported to
keep the Asian furnaces alight and our power stations
crumbled from lack of maintenance.
Today, we are sitting on 25%
unemployment, the highest level in
20 years, interestingly, comprising
a cross section of educated and
uneducated people.
Much of the population lacks access
to infrastructure and basic services,
confidence in the ruling power is
abysmally low and South Africa as
a brand, is no longer the flavour of
the month, with investors tentatively
watching and waiting to see where
exactly we are going economically.
“It is important that South Africa puts up an
‘Open for Business sign’ to foreign investors and
address the factors that make us unattractive as an
investment destination.”
Ernie Lai King, Head of Edward Nathan Sonnenbergs China and
executive in ENS’ Tax department
(Historically, from 1993 until 2012, South Africa GDP
Growth Rate averaged 3.22%, reaching an all time high
of 7.60% in December of 1994 and a record low of
-6.30% in March of 2009 and has continued sluggishly
since then, faring well below the African average.)
Yes, we are at a time where we need a clear national
strategy, where strong leadership is required to quell
the growing discontent that last year saw the roll-out
of national strikes that almost brought the country to
its knees.
We once again sit with the threat of rolling black-outs
hanging over our heads as Eskom crumbles, but still
hikes up its prices. Our education system is in turmoil;
corruption is rife; the police force is out of control and
our currency is starting to look like Monopoly money.
We need incentives to encourage investment; we need
to look to the country as a business: How skilled and
competent are our leaders; how flexible are we as a
nation; how innovative and how committed to our
own success?
Peter Thompson, Regional Director, Terex Construction,
Sub Saharan Africa, voices his opinion: “If government
takes drastic steps to fix the labour crises in the country
and abolish certain elements of the BBBEE scorecard
for business, foreign confidence will be established and
grow and major mining houses will remain in South
Africa and not seek competitive advantage elsewhere
on the continent for diversification and growth.
“If these cards do miraculously fall in place, the yellow
equipment market will boom and will do so for years
to come, as we have an abundance of commodities in
South Africa.
“A large unknown factor however, is the northern
hemisphere’s drive to green and the drop in demand
for coal and other power generation commodities.”
We have a land of entrepreneurs, of lateral thinkers
and brilliant business minds, fit to rival any First World
country on the map.
However, I fear, that if we don’t do something quickly
to harness these attributes and get our own house in
order, within the next ten years, we too may become
outdated, irrelevant and obsolete on the world stage.