Tag Archives: trade

SA has much to offer investors despite challenges

 

The Oxford Business Group (OGB) report on South Africa shows that the country provides long term growth prospects in spite of the obstacles it faces.

“The core message contained in the report is the fact that South Africa offers considerable and serious long term growth and development potential in spite of the challenges which we confront at present, some of those are challenges not of our own making but the winds of the world economy is blowing in our direction,” Trade and Industry Minister Rob Davies said at the inaugural launch of The Report South Africa 2012.

The business group spent roughly nine months in the country producing the report that investigates government’s efforts to enhance growth across the industrial sector, among others, in addition to examining challenges in conducting business in the country.

Both Government and industry were questioned in compiling the report. “The report articulates a clear message that South Africa is open for business,” said the minister, adding that the country has exceptional possibility to draw in investment.

“For government it is vital that we situate the OGB report and the private and public perspectives it contains in the overall context of our economic development strategy. It was also essential to position the report in the overall context of the country’s economic strategy”, the minister he was quoted saying.

South Africa also focused to boost its competitiveness and has worked tirelessly on achieving stabilisation in a number of industries that were vulnerable for example, the clothing industry. Issues such as inequality and unemployment continue to persist.

OGB head Michael Benson-Colpi pointed out that the report was for individuals that wished to understand more about South Africa. “It is a comprehensive report on South Africa, it is an educational in addition to a marketing tool,” he said.

The report was produced in partnership with the DTI.

 

Brand South Africa’s Ignatius Sathekge stated it was essential for the country to boost inter-African trade which could create opportunities for the country.

For the time being, Absa Capital CEO Stephen van Coller pointed out that the country continued to be relatively robust considering the events in the global economy, adding that there was a fresh sense of optimism with Africa being the second fastest growing region.

Having said that, the country “was not out of the woods yet” simply because it is faced with issues for instance the downgrading of the country by rating agencies along with currency volatility. He stated the country punched above its weight in attracting multi-nationals.

Regional Editor for Africa for the OGB Robert Tashima referred to South Africa as sophisticated, adding the fact that the country’s government budget was in excellent health. South Africa was lauded in that it took roughly 19 days to register a business when compared to the rest of the continent.

Unemployment at 24% was identified as a structural challenge. “The problems are worrying however they are not grounds for despondency,” said Tashima.

The country was praised for having policy and political stability, an outstanding business environment, natural resources in addition to infrastructure. “These can catapult the economy forward, they provide opportunity, pointed out the Editor.

When it comes to energy sector, programmes like the Renewable Independent Power Producers programme, the report discovered that “prospects for growth were electrifying”.

The report at the same time mentioned that inequality in South African society posed “long term concern”.

A number of the growth strategies recognized in the report include the diversification of exports, and strengthening skills sets.

Source: BuaNews

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SA to reap benefits as a result of joining Bric

 

South Africa’s membership to the Bric group of emerging economies will prove to add value and benefits to the country’s trade and exports, President Jacob Zuma said.

“It is going to positively encourage and promote the development of trade and investment which boosts industrialization and stimulates job creation,” said Zuma.

 

In economics, BRIC can be described as a grouping acronym that makes reference to the countries of Brazil, Russia, India and China, who are all considered to generally be at a comparable phase of newly advanced economic development. It is usually rendered as “the BRICs” or “the BRIC countries” or as an alternative as the “Big Four”.

He was addressing a question in the National Assembly with regards to the benefits associated with being a member of the Brazil, Russia, India and China grouping. South Africa becoming a member of the bloc would most likely take it from Bric to Bricsa.

Zuma talked about the business opportunities and possibilities offered for South Africa to do business with the various other Bricsa members were “fantastic”.

 

“We at the same time co-operate as members in the aspects of finance, agriculture, statistics, justice development, finance institutions, business development and exchange in addition to academia.

“Completely new elements of co-operation are increasingly being given consideration when it comes to science and technology, culture, sport, climate change and energy.”

 

He explained the “influence,effect and impact” associated with the grouping was increasingly being felt internationally and that South Africa’s membership connected the African continent to other countries in the world.

South Africa is going to participate in its very first meeting as a member of the group on 14 April.

Source: southafrica.info

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UK trade ties set to double with South Africa by 2015

British Minister for Africa Henry Bellingham

British Minister for Africa, Henry Bellingham, set an objective to double trade volumes and strengthen commercial ties between South Africa and the UK by 2015.

Bellingham announced the actual commitment duringĀ  bilateral discussions with International Relations and Cooperation Deputy Minister, Ebrahim I Ebrahim, last Wednesday in Pretoria.

The trade goal had been set by President Jacob Zuma during his state trip to the UK in March earlier in the year.


Great britain is just one of South Africa’s major trading partners, whilst the United Kingdom remains one of the primary two most significant foreign investors in South Africa. There exist in excess of 200 South African companies that have already established a local presence in the UNited Kingdom.

Total trade between the UK and South Africa increased by 173 percent between 1998 and 2008, from R25.492 billion to R69.630 billion.

Minister Bellingham also congratulated South Africa on its return to the United Nations Security Council following a short absence together with such an overwhelming vote in its favour.


He also indicated Britain’s determined commitment to closely collaborate with South Africa and also to share views on important things of mutual concern.

Ebrahim expressed appreciation for the UK’s commitment to maintaining International Development support at a level of 0.7 percent of Gross National Income (GNI), even during the tough economic times.

Ebrahim’s meeting with Bellingham were held within the context of fortifying North-South relations as well as consolidating the African Agenda.

Bilateral relations between South Africa and the UK are generally strong across the board, covering fields as diverse as defence, trade liberalisation and development co-operation.

SourcedĀ  – BuaNews, mirror.co.uk

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