‘It’s a challenge, but 9% annual growth is achievable’

Address the issues or miss out, says JCCI’s Brebnor JOY ORLEK IF SOUTH Africa is to achieve its targeted annual growth of 6%, Johannesburg’s economy needs to grow by at least 9% per annum, a recentlyundertaken Johannesburg Chamber of Commerce and Industry survey has revealed. “Over the last decade Johannesburg has grown at 4.7% compared to the SA average of 3.2%. In 2005 and 2 006 it achieved 6% growth,” Chamber CEO Keith Brebnor told FTW. The target is not unrealistic, but several impediments stand in the way. A shortage of skilled staff, the high cost of doing business, poor government service delivery and poor infrastructure are just a few. And these issues need to be seen in a global context. “Our telecommunication costs, for example, are too high,” says Brebnor, pointing out that in India proposals are in place for free broadband access. Add to that high transport costs, constraints in the harbours, customs delays, rail and road congestion and high costs of security, and the enormity of the challenge is clear. “The road network and the public transport system need urgent attention before we get totally gridlocked by 2 010,” says Brebnor, “a spectre raised by the SA National Roads Agency whose startling statistics illustrate the point." Roads in Gauteng now carry 534 vehicles per 10 kilometres of road. This is around four times more than the Western Cape, the next busiest province. Last year 2 38 621 vehicles hit Gauteng roads – 13.4% more than in 2 005, and in December 2006, vehicles in Gauteng numbered around 2.7 million – more than the rest of the SADC. “Johannesburg and the province desperately need more road capacity,” says Brebnor. “The present budgets at provincial and metro level are totally inadequate and traffic is already nearing gridlock during normal business commuting hours,” he said. And while enhanced public transport plans are welcome, they will stem rather than reverse growth of private vehicle utilisation and make no impact on growth in road freight movement, in his view. The resulting congestion impacts on trade and business deliveries contributing to a lack of competitiveness and adversely affecting the bottom line of business, all of which pushes up the overall cost of doing business. If Johannesburg is to achieve anywhere near the 9% per annum growth rate, the province will need to address these business challenges sooner rather than later – or risk missing the global competitiveness boat.