Minister in the Presidency, Mondli Gungubele, says government is working towards a new consensus together with its partners and business in order to improve the business environment for growth.
Minister Gungubele was speaking on the side lines of the 4th South African Investment Conference on Thursday at the Convention Centre in Sandton.
“The recent challenges have assisted the country to sober up and realise that we need one another, where we are able to sit together and see how our interest are bound together.
The Minister agreed with his colleagues that the issue of agility is one thing that government has to improve on.
“We have come to accept that we announce plans, and you find that a portion of that requires legislation which is going to take 3 years when the intention of the plan was that it was supposed to have effect this current financial year…. That is the biggest problem of government, but in that consensus when we work together we are able to deal with those challenges,” he said.
The Minister reiterated that consensus is key and together they must determine what actions must be taken to improve the business environment.
“I have no doubt that together in a common room this country will succeed,” he said.
Speaking about the current reforms and how far they can take the country in terms of growth, Economist Isaah Mhlanga, said that the country needs to look at reforms on a local government level where small and medium-sized businesses are found.
He said that this is where the country has the ability or a chance to improve job creation.
“If you look at the continent, more than 60% of the jobs are created by small and medium-sized businesses that operate on a local level.
“The legislative framework in our local government is quite inhibitive for individuals or small businesses to operate and I have not yet heard a review that is undertaken to look at those inhibiting legislation at local government levels that can also attract investment,” he said.
Mhlanga said that people need to remember that it is not countries that compete with one another but it is companies that compete with companies in different countries, and its regions that compete with regions in different places.
“On that note, we need to see and relook at how local government legislation inhibit the creation of jobs that can actually help to attract investment into those localities,” Mhlanga said.
Pulane Tshabalala Kingston, founder and managing director of Mirai Rail Corporation, emphasised the critical importance of supporting the growth of small to medium sized enterprises in a manner that is real and sustainable.
She said that there are three main things that need to be done, the first being the issue of access to funding which is always a challenge.
“This is a particular challenge in so far as small and medium businesses that are owned by black women in this country.
“The second issue is the payment terms, the fact that there is no clarity or certainty around when goods and services will be paid for and that’s a significant challenge for the sustainability of a small business,” she said.
Lastly, Kingstons spoke about the issue of streamlining the complex and inconsistent supply chain mechanisms.
“If those were the central mechanisms we would begin to see growth and we would begin to see the quality and efficiency of services and products at a national level,” she said.
South African Breweries (SAB) CEO, Richard Rivett-Carnac, emphasised that an extra effort between government and business and a lot of commitment from both sides with timelines is needed for reforms to be implemented.
He said that a line needs to be drawn in the sand for reforms to be fully implemented.
Speaking about SAB’s investment at the SAIC, Rivett-Carnac said that it is going to be great for the economy.
“Our investment will add about 25 000 jobs within to the value chain and the beer industry itself supports about a quarter of a million jobs, so it is a meaningful increase in the number of jobs.
“More investments will undoubtedly come from our company and others if the reforms are being implemented in a timely matter,” he said. – SAnews.gov.za
