SA advised to talk less and do more

BUREAUCRACY and its drag on competitiveness are hurting the economy, delegates at a manufacturing indaba in Johannesburg heard on Monday.

They also heard that business needed to be quick and agile and that stronger technology links and collaboration between universities and industry would help foster industrial innovation.

Widespread vocational training was vital, since for every engineer the country produced it required between eight and 10 artisans.

However, delegates were told SA was “very far from a failed state” and that “we talk ourselves down”. Despite this, the country needs to “do more, talk less and focus on what works”, if it wants to alleviate poverty and unemployment.

“Without competitiveness, there is no sustainable future,” said Bruce Strong, chairman of the Manufacturing Circle.

The body represents mediumto-large manufacturing firms from a wide range of industries.

Strong said manufacturing should “avoid whining” and blaming the government and labour for its woes.

Rather, it should “articulate problems” and “gain the support of all stakeholders”.

In his keynote address, Trade and Industry Minister Rob Davies said the tariff cuts made by South Africa during the Uruguay round of global trade talks between 1986 and 1994 were much deeper than for other developing countries because of apartheid-era “arrogance”.

“That’s because the apartheid regime said we were a developed country,” he said.

“They took the cuts of developed countries. We have a much more open regime [than developing countries].”

Davies acknowledged business concerns that the “small and open economy” struggled to fend off imports, including low-quality and illegal goods dumped or smuggled into South Africa. He conceded SA had “trade remedies” it could employ against zero and low-tariff imports, including anti-dumping duties.

Denel COO Jan Wessels said “top-niche manufacturers” were needed as they could not compete with low-wage countries and the mass production of hitech products by the US.

There was a high degree of interdependence in global manufacturing and “collaboration” was vital. — BDlive