‘SA must develop service sector’

It is imperative that South Africa develops strategies for service sector development – in particular to promote greater involvement by South African companies in trade in services. That was the message from Dr Rob Davies, deputy minister of trade and industry, at the opening of the fifth Service Exporter Network – Annual Meeting and Conference in Sandton last week. An initiative of the Genevabased International Trade Centre, this is the first time the meeting has been held outside Europe. More than 80 international trade delegates from 40 countries took part in the four-day event. “Service sectors currently account for two thirds of the global output, one third of global employment, and nearly 20% of global trade,” said Dr Davies. “Between 2000 and 2007, global services sectors grew at an annual rate of 10.1%, which was more than the growth in trading pools.” He said in South Africa service sectors contributed 74% of the gross domestic product (GDP) and 72% of employment. “And of that what we call our backbone infrastructure consisting of energy, transport, services and telecommunications service sectors contribute 18% to the GDP.” Taking the robust service sector into account it was obvious why the government had drafted a comprehensive National Service Sector framework strategy document, he said. “Services and trade in services are becoming increasingly important in developing and developed countries. Services have emerged at the forefront of most economic activity including shaping and reshaping both production and trade.” He said while services were important for economic growth and employment, South Africa was in the fortunate position of having so far been relatively unscathed by the global credit crunch and financial meltdown, and should use this to become more active in identifying offensive interests in trade in services.