While the economic outlook remains bleak, at least for the next year, Gauteng is in a slightly better position because a lot of industry is based in the province, including the manufacturing belts in Ekurhuleni and the West Rand. But, says Joan WarburtonMcbride, CEO of the Johannesburg Chamber of Commerce and Industry, you can only export if you produce something. “Exports are at the end of the chain. If you go back to the manufacturing base, it is diminished, depleted and neglected. It has reduced in number and skill. That is where we need to start.” Warburton-Mcbride says the province needs a strong, concerted focus on its manufacturing sector. “In the current context, exports are not going to grow significantly. Government in general has focused on the wrong end of the supply chain and should return to the basics of re-stimulating the manufacturing sector. This won’t happen overnight,” she says. Warburton-Mcbride believes the current situation has developed over 10 to 15 years. She adds that several manufacturers have moved to other African states or are seriously considering doing so. “East and West Africa, Namibia, Botswana and Zambia are offering very good incentives to South African companies. Not only have we not stimulated local manufacturing, we are losing our existing manufacturing base to other African countries.” According to WarburtonMcbride, raising tariffs on imported goods is a band aid solution that does not tackle fundamental manufacturing issues. “Manufacturers, traditionally, have been our employers. Government needs to pay a lot of serious attention to the sector.” She believes a lot of problems reside at Home Affairs since investors who want to bring in highly skilled people have a very hard time doing so. “We require a special unit that fast-tracks and simplifies the processes required of investors who want to establish any form of manufacturing and which requires skilled people,” she argues. “Investors can go anywhere in the world; they are savvy people and look at offers all over the globe. Government should be considering everything instead of arriving with preconceived ideas.”
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Raising tariffs on imported goods is a band aid solution that does not tackle fundamental manufacturing issues. – Joan Warburton-Mcbride