More emphasis needs to be placed on growing the country’s exports, according to John Lawson, CEO of the Cape Chamber of Commerce and Industry.
Speaking at a recent conference in Cape Town, Lawson highlighted the critical importance of creating an environment conducive to export growth, stressing that it was essential for the country’s broader economic development.
"Exports make our economy grow faster and, in doing so, create more jobs," he told delegates attending the event at the DHL Stadium. "More jobs mean less crime, leading to safer communities, healthier societies and, ultimately, happier lives. This is not just about growing and supporting a few successful businesses but about improving the entire nation.”
Lawson pointed out that accelerating export growth was one of the most pressing priorities for South Africa. "We need smart businesses that can compete internationally and we need to get it right. For this to happen, the entire value chain must be competitive. This includes managing input costs upstream and ensuring that products can move efficiently through ports downstream. Competitiveness across the value chain does not happen by chance. We need to facilitate and work together to make it a reality."
He raised concerns about several key challenges holding back export growth in South Africa. "If the business environment isn’t conducive, we’re going to struggle. High electricity costs, rampant crime, inefficient ports and a lack of reliable shipping options are all obstacles that need to be addressed."
Lawson called for a stronger business environment, arguing that the country could not afford to let these issues go unchecked.
"The environment won't improve by itself. We can't just sit back and complain – action is required. We need a purposeful, driven approach involving various stakeholders."
He said two years ago the Chamber had launched a research study to identify key factors that allowed 70% of the world’s leading export nations to grow faster than others. “This research examined the South African context to determine whether the conditions needed for export growth were being met. We found that crime, electricity and freight transport were the key impediments to growth. We’ve just completed the same research again, and we suspect the same issues to still be major barriers."
He said crime, in particular, remained a concern, adding significantly to the cost of doing business. “We estimate that it could contribute up to 60% to overall expenses. Then there are the costs incurred for electricity and freight transport. These costs are a significant burden for businesses trying to compete internationally."
Lawson highlighted the importance of efficient logistics and freight solutions, saying it was another rising cost making the country uncompetitive.
He said there was a need for shared responsibility to improve the business environment. "People often don’t see change happening fast enough, but at the Chamber, we facilitate action. We bring people together, identify the issues and work to solve them," he said, urging for active co-operation rather than leaving things to chance.
