Consensus on the need
to enhance
regional trade
integration
IF SOUTH Africa is to attract further foreign investment it must adequately address issues like rigid labour regulations, poor education, security and monopolistic structures. That was one of the outcomes of debate at the recent Southern Africa Economic Summit held in Durban.
As the official service provider to the event, Birkart Globistics, represented by c.e.o. Peter Bettac, was among the high level dignitaries invited to debate this and several other issues.
While delegates agreed that several reforms had made the country more attractive to foreigners - gradual trade liberalisation and the reform of the domestic tax system - a series of obstacles still remains.
There was consensus on the need to enhance regional trade integration, strengthen trade agreements with the likes of the EU, and increase levels of productivity. Development of tourism and the creation of small and medium-sized businesses would further enhance South Africa's image for potential investors, according to delegates. Government, business and labour must work hand in hand to achieve these objectives, Bettac told FTW.
Projects like the Maputo - Witbank corridor and similar undertakings show that the government is committed to improving infrastructure. But more needs to be done urgently, he said.
Based on the table alongside which compares South Africa's performance internationally with Zimbabwe for its proximity as well as with Egypt, Philippines and Thailand for their similar levels of development, South Africa ranks below Zimbabwe in several categories such as maths and science education, organised crime and labour regulations. Countries like Egypt, Philippines and Thailand also appear more effective in dealing with education, the labour market and security issues.
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