Zuma urges SA companies to 'look north'

Companies in South Africa were advised to “look north” by president Jacob Zuma in his June 17 State of the Nation Address. “Sub-Saharan Africa is increasingly becoming a more important trade partner for our country. “We are encouraged that South African investments in the continent increased from R5.5 billion rand in 2002 to R32.3 billion in 2013. “South Africa will continue to champion broader regional integration through the Southern African Customs Union, SADC and the envisaged Tripartite Free Trade Area that spans Eastern and Southern Africa,” he said. The president announced measures to be taken to make South African manufacturers more competitive. They include a “South Africa Connect” broadband strategy adopted by the cabinet in December 2013, as well as the investment of R847 in infrastructure. “We will continue with infrastructure projects that will change the living conditions of our people and boost economic growth,” he said. A local market will be created through the promotion of local procurement. The target is for the state to buy 75% of goods and services from South African producers. “We will utilise the renewable energy sector, the manufacturing of buses, Transnet’s R50-billion locomotive contracts and Prasa’s passenger rail projects among others to promote local content and boost growth,” he said. There was little information about how government was to facilitate the movement of goods into Africa. Unlike the February State of the Nation address he did not refer to harbours, ports or roads once. In February he said “the country’s harbours and ports have been improved,” and “close to 1500 kilometres of new roads or lanes have been built”. INSERT & CAPTION We are encouraged that South African investments in the continent increased from R5.5 billion in 2002 to R32.3 billion in 2013. – Jacob Zuma