Johannesburg - South Africa faced up to the fact that it was not as competitive as it should be at yesterday’s inaugural SA Competitiveness Forum, which was addressed by Deputy President Kgalema Motlanthe.
Motlanthe said as the first of its kind in South Africa, the forum would give leaders from all spheres a platform for debating the country’s will to win, as well as arriving at some common understanding of how to improve the economy’s competitiveness.
Motlanthe said the forum was no small feat, given that everyone lived in a global village where goods and services recognised no borders and where countries continuously strove to penetrate foreign markets to sell their products.
“Because of this open-ended access to the global markets, South African products need to compete on the basis of improved quality, value for money and desirability,” he said.
“Beyond the competitiveness of our products, we need to prove our worth on a number of socio-economic indicators such as political stability, cultivating an investment friendly environment, greening the economy, transparency, predictability as well as having good macro-economic policies.”
Khulekani Mathe, a senior policy analyst at the National Planning Commission, told the forum that there were indications that South Africa as a brand had been sliding. “We don’t have to do gimmicks to attract investors. It is important to know the areas where we are doing well and where we are not and ask why; how to effect the National Development Plan projects; where we want to be by 2030; and what type of a country and society we want to be.”
In the latest Global Competitiveness Index released by the World Economic Forum in September, South Africa dropped one place to 53rd out of 148 countries surveyed. The previous year, it dropped from 50th to 52nd.
In the Deloitte Global Manufacturing Competitiveness Survey released earlier this year, South Africa’s manufacturing industry was ranked 24th, down from 22nd in 2010.
“The survey reveals that it is time for the government and business to come together to create a progressive, innovative and competitive economy that will make South Africa an attractive destination for foreign investors,” the auditing and consulting firm said.
The forum is an initiative of Brand SA, the official marketing agency for the country.
Collins Chabane, the Minister for Performance Monitoring and Evaluation, said South Africa was challenged by diverging perceptions from inside and outside about what the country was and what it was not.
“But nobody can disagree that South Africa is not as it was in 1994. It has changed for the better, not worse. We are making critical moves in key areas.”
Last week, Brand SA said the country had already made strides in its international competitiveness. A range of international indices observed that although there were challenges facing the country, there were many positive developments, particularly in the area of entrepreneurship and innovation.
The agency added: “Latest reports show the country’s domestic situation is also improving, with unemployment decreasing to levels last seen in 2008. National pride has also been shown to contribute decisively to a country’s reputation and competitiveness.
“The forum aims to create the impetus of this national positivity while indicating how we can all join hands to work together for South Africa’s development.” - Business Report