Gauteng will have to
pull out all the stops
if it wants to retain its
economic hub status as
a leading role-player in southern
Africa.
“There is no time for
complacency,” says Liz Whitehouse,
director of African information
specialists Whitehouse & Associates.
“There are so many developments
taking place in the region that
Gauteng is going to have to be very
careful about being complacent
about its position as it might find
itself no longer a front-runner.”
With major infrastructure
development under way in the form
of new ports, roads and railways
in countries such as Namibia,
Angola and Mozambique it is no
longer a given that South Africa and
therefore Gauteng is the central roleplayer.
“The developments under way
have to be monitored as a lot of
them revolve around logistics
and transport and will impact
significantly on Gauteng,” says
Whitehouse. “Traditionally, because
of the Port of Durban being the
primary entry and exit point for
cargo destined for southern Africa,
Gauteng has managed to maintain
its hub position. But that could
change as other ports develop and
transport routes are established,
bypassing Gauteng completely.”
While the province will continue
to play a pivotal role in that it serves
as the headquarters for major
decision-makers in the project
and logistics fields, it does not
mean Gauteng will continue to be
the gateway into southern Africa
via Durban. “It makes sense for
headquarters to be in Gauteng as it
has all the necessary infrastructure
in place to ensure smooth
operations. These very decisionmakers
are, however, starting to look
carefully at what goods go where
and how they can be channelled
most effectively.”
More than anything else, says
Whitehouse, the port developments
in southern Africa are bringing
choice into the market. “The
dependency on the Port of Durban
is slowly but surely diminishing and
that does have an impact on trade.
A lot of warehouses in Gauteng for
instance are being utilised purely
because it makes sense to do so to
pick up goods on the return trip
from delivering copper for instance
to the port. But should another port
be used this will no longer be the
case.”
Whitehouse believes it is time that
provinces such as Gauteng take a
long hard look to see how they can
remain viable
in the future.
“If one looks
at Namibia
– and in
particular
Walvis Bay
– then we
are up for
competition.
They are
working
very hard
to market
themselves
and to grab business. Over and
above that they have taken the time
to really look at what the market
needs and what they need to do to
provide that – and to improve trade
for the region and the country as a
whole.”
According to Whitehouse,
countries like Namibia and
Mauritius are succeeding in their
attempts to position themselves as
viable trade hubs because of these
approaches.
“Mauritius is a good example of a
country systematically setting itself
up as a textile hub, diversifying its
economy and moving away from
sugar,” she said. “While there is
value in the argument that they
are a small country and it’s easy
to manage the process, there
are lessons to be taken from this
country. They have developed a
central strategy that is
simple in its approach.”
Whitehouse says with
no complex strategies
at play in the country
and with goals
clearly outlined, countries like
Mauritius and Namibia and specific
regions within these countries are
able to focus on what they want to
accomplish.
“It is essential that Gauteng has a
strategy in place, which I am not so
sure it has. We cannot be complacent
or rest on our laurels thinking that
will be enough to maintain our
position in the region. We will lose
our competitive advantage and it
will be very difficult to grab that
market back once it is lost.”
INSERT & CAPTION
Mauritius is a good example
of a country systematically
setting itself up as a textile
hub, diversifying its economy
and moving away from sugar.
– Liz Whitehouse
