Nigeria and Kenya threaten SA’s gateway status

South Africa must get off its butt and become more productive and competitive or risk losing its preferred Africa gateway status to competitors like Nigeria and Kenya. That was the message from Dr Azar Jammine, director and chief economist at Econometrix, when he addressed an American Chamber of Commerce briefing in Sandton last week. “The world’s insatiable demand for raw materials from Africa represents a huge opportunity for the continent as a whole,” Jammine said. “Last year saw a 27% increase in foreign direct investment in Africa, but with South Africa attracting far less than Nigeria.” Jammine believes the rest of Africa has “woken up” to the vital role that education, skills and entrepreneurship plays in attracting foreign investment with previously “strict, dictatorial policies” giving way to free enterprise. South Africa on the other hand is increasingly perceived as antagonistic towards private business development. One of the ways in which the country can secure its position as an economic powerhouse in Africa is to continue to expand into sub-Saharan Africa, he added. Len Moult, MD at 3M South Africa and AmCham board member, believes the economic race on the continent is a very positive sign. “It’s a great incentive for all parties involved to get their act together and leverage all opportunities provided.” CAPTION: Dr Azar Jammine … ‘SA must become the tortoise not the hare in the African economic race.’