Mondli gungubele, Minister in Presidency, states that government is working to reach a new agreement with its business partners in order improve the business environment for growth.
Minister Gungubele spoke at the 4th South African Investment Conference in Sandton on Thursday.
“The country has been able to wake up to the fact that it needs one another. We are now able to sit down together and see how our interests are connected.
He agreed with his colleagues that agility is an area where government needs to improve.
“We have come to accept that we announce plans, and you find that a portion of that requires legislation which is going to take 3 years when the intention of the plan was that it was supposed to have effect this current financial year…. He said that this is the greatest problem in government. However, when we all work together, we can overcome those problems.”
The Minister reiterated that consensus was key and that they must jointly decide what actions should be taken to improve business conditions.
He stated, “I have no doubt this country will succeed together in a shared room.”
Economist Isaah Mhlanga discussed the current reforms and their potential impact on growth. He said that reforms should be implemented at the local level, where small and medium-sized enterprises are located.
He said that this was where the country has the opportunity or the ability to improve job creation.
“If you look at Europe, more than 60% are created by small and mid-sized businesses that operate on the local level.
He stated that the legislative framework in local government is very restrictive for small businesses and individuals. There has not been a review to examine those laws that are preventing them from operating. This could also make it difficult to attract investment.
Mhlanga stated that it wasn’t countries that compete against each other, but companies that compete in different countries with companies from different regions.
Mhlanga stated, “On that note we need to look at how local government legislation hinders the creation jobs that can actually attract investment to those localities.”
Pulane Tshabalala King, founder and managing Director of Mirai Rail Corporation stressed the critical importance to support the growth of small- and medium-sized businesses in a sustainable manner.
She stated that there are three main things she needs to do. The first is to access funding. This is always a challenge.
“This is a particularly challenging area for small and medium businesses owned by black women in the country.
She said that the second issue is the payment terms. “The fact that there isn’t clarity or certainty around when goods or services will be paid for is a significant challenge for small businesses to sustain themselves.”
Kingstons then spoke about streamlining the complicated and inconsistent supply chains.
She said, “If these were the central mechanism we would start to see growth” and that they would be able to improve the quality and efficiency at national level of services and products.
Richard Rivett Carnac (South African Breweries) CEO stressed the need for extra effort between government officials and business. He also stated that it took a lot of commitment and time from both sides to implement reforms.
He said that it was necessary to draw a line in the sand before reforms can be fully implemented.
Rivett Carnac spoke out about the investment made by SAB at the SAIC and said that it was going to be great for our economy.
“Our investment will create approximately 25 000 new jobs within the value chain. The beer industry supports around a quarter of one million jobs, so it’s a significant increase in jobs.
He stated that more investments would be made by his company and other companies if reforms were implemented quickly.
(With inputs from South African Government Press release)
