IN an attempt to avert a credit ratings downgrade and stimulate economic growth, big business, the labour movement and the government are looking at three sectors – infrastructure projects, agriculture and tourism – to bring much-needed relief to the South African economy.
According to Business Unity South Africa (Busa) chief executive Khanyisile Kweyama, the organisation meets regularly with government officials and the labour movement, and together their efforts have already succeeded in staving off a downgrade.
Busa represents the interests of the business community.
Kweyama also advised Nelson Mandela Bay businesses to carry out research and to remain informed regarding possible opportunities.
She was guest speaker at the Black Business Summit held in Nelson Mandela Bay for the past two days.
In an interview yesterday, Kweyama said Busa’s members, many of them major JSE-listed companies, had lost value due to President Jacob Zuma’s shock decision to axe former finance minister Nhlanhla Nene and replace him with the then unknown Desmond van Rooyen in December.
Four days later, Zuma backtracked on his decision and replaced Van Rooyen with Nene’s predecessor, Pravin Gordhan.
She said Gordhan immediately met business leaders to form a partnership aimed at avoiding a downgrade.
“From there we have had some breathers from ratings agencies.
“At the time Moody’s was meant to come in and most recently Standard & Poor’s and Fitch, and we have successfully managed to get ourselves some time,” Kweyama said.
“None of the agencies has downgraded the country and we have remained at the status we are in, which is also not ideal but at least it does not sink us any further.”
She said the process between business, the government and later the labour movement had identified various work streams to prioritise.
“One is on infrastructure projects KHANYISILE KWEYAMA
that will stimulate the economy, because the only way we are going to tell a positive story about South Africa is if our growth rates increase.
“We have identified the tourism and agriculture sectors as the first points of entry where you can create jobs and hopefully start seeing a turn in our growth rates.”
Kweyama said corporates had also committed to the creation of an SMME fund to the tune of R1.5-billion.
She said they had committed to contributing voluntarily to the fund over and above their other enterprise development initiatives and corporate social investments.”
In addition, creating youth employment was vital.
“In this country the biggest crisis in unemployment is our youth who do not have skills, and even those who are graduates are not able to find jobs in the corporate sector.”
Kweyama said the labour movement had been brought on board to form part of the solution.
“Labour stability is an area that is always brought up by potential investors. We have had very long strikes in the past and we have been working as Busa and as Nedlac [National Economic Development and Labour Council] on labour stability.”
Domestic businesses needed to remain knowledgeable about opportunities for growth in the metro. “Information is the key,” she said.
“When foreign investors come to South Africa their first point of call is Johannesburg . . . it should be a lesson to us as South Africans that we should create centres of excellence around certain businesses.
“Let us not try to duplicate miniJohannesburgs everywhere. The Coega IDZ is the perfect example of what is unique to the Port Elizabeth area.
“A lot of time people outsource to India but I am pleased to note we have that capacity here.
“So the message I will be sending out to potential investors in the country is that they can look here for manufacturing possibilities.
“We have a proper offering for anyone looking to come here.”
The post Three sectors key to growth for SA appeared first on HeraldLIVE.