The 7% economic growth question

South Africa is poised to achieve an estimated 3.5% growth for 2010, which is below the 7% that the government has set itself.

Instead of focussing its attention on projects that will “take away” from the economy (like NHI or bullet trains or (God-forbid) the ANCYL’s mine nationalisation agenda), the government needs to reposition the economy over the next 2 years, which will lay the foundation for implementing such ambitious projects.

I have put forward a some “solutions” to help the nation achieve it 7% economic growth challenge (currently facing South Africa). Along with this, I hope these “solutions” will help close the (in)equality gap issue:

1) Provide finance for well researched, viable start-up businesses

2) Convince large corporates sitting on cash in their balance sheets to invest locally, through direct engage of the JSE top 40 and top 40 unlisted private companies, use tax incentives as last resort

3) Invest in innovative social housing (private/ public partnerships) and township development (convert apartheid-style townships into modern suburbs). I (personally) don’t understand why we still have ‘native yards’ and ‘native units’ in modern-day/democratic South Africa (as a matter of principle, identity and psychology

4) Encourage micro-financing and co-operative banking structure for women-run businesses

5) Skills and tenders for small EPW (expanded public works) to be source through FET-colleges and institutions (eg school construction, govt vehicle maintenance etc)

6) Tenders for large EPW projects to be centralised at national level, to minimise effect of corruption on the tendering process

7) Convince major banks to lend to expanding businesses

8) Establish Green Industry (with green jobs. New industries advance innovation…this is needed every 5-8 years! The new trend is the GREEN ECONOMY…then biotech, then nanotech…

9) Expand graduate training by introducing an incentive to employers

10) Create tax incentives for smme’s looking to make capital investments

11) Increase on-job training & tech training for drop-out

12) Have a national focus on strategic Investments into 5/6 industries. Pick industries that are in the “Advanced Manufacturing Technology” sectors or in creating secondary industries based on the countries natural resource, an example is the Western Cape where the local government will be investing in a) gas & oil b) BPO c) creative industries d) boat building e) tourism

13) Provide free wireless internet in major business districts and subsidised wifi internet in the suburbs. This will advance entrepreneurship (create new industries) and improve education (through access to information)

Regards,
Vuyisa Qabaka:
Director at the South African Black Entrepreneurs Forum (SABEF) and writes here in his personal capacity.
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