Finweek English Edition - - SPOTLIGHT -

“It was clearly a strat­egy to iso­late me. I also think it was a bait­ing ex­er­cise done in the hope that I would sink to the same level. I am thank­ful that the board was be­hind me be­cause I was en­trusted by Seifsa mem­bers to carry out a spe­cific man­date. The as­sump­tion that all the power re­sides with the CEO was fa l se, and I com­mented as much dur­ing ra­dio in­ter­views. It was not my place to an­swer to th­ese per­sonal at­tacks, but rather to rep­re­sent our mem­bers con­struc­tively,” he says.

Nyatsumba ad­mits that re­la­tions be­tween em­ploy­ers, labour and the gov­ern­ment is strained and far from nor­mal.

“There is also a great de­gree of mis­trust be­tween par­ties. And if we can­not come to un­der­stand each other’s a l lowed to do. Other fac­tors t hat is­sues, the sec­tor will drown even more plague t he i ndustry to­day i nclude than it did dur­ing the 2008 f inan­cial cheap im­ports, es­pe­cially from Asia, cri­sis,” he warns. and the high cost of labour in SA.

Man­u­fact u r i ng’s s ha r e of t he “State-owned and pri­vate com­pa­nies econ­omy has shrunk f rom 20% i n in China and In­dia are given in­cen­tives 1983 to 16% in 2013. Be­tween 1983 to man­u­fac­ture. So their prod­ucts end and 2003, it de­clined by a per­cent­age up [in SA] at a cheaper price than what point each decade. This decline started it costs us to make. If we do not bring to ac­cel­er­ate to two per­cent in the last back tar­iffs for v ulnerable sec­tors, decade – from 18% in 2003 to 16% in our com­pa­nies will hardly be able to 2013. com­pete and the sit ua­tion will just

Ac­cord­ing to Nyatsumba, t here worsen.” have also been a grow­ing num­ber of I n 2 014, l oca l man­u­fact u r er s smaller, fam­ily-owned com­pa­nies that ex­ported about 35% of their prod­ucts, closed down over the past few years. while im­ports cap­tured nearly 45% of “Man­u­fac­tur­ing in South Africa is in the do­mes­tic mar­ket. In the met­als and se­ri­ous trou­ble. If noth­ing is done by en­gi­neer­ing sec­tor, 60% of prod­ucts pol­i­cy­mak­ers, the sit­u­a­tion will only were ex­ported and im­ports ac­counted get worse,” he says. for the same per­cent­age of the do­mes­tic

Pre-1994, the coun­try had very high mar­ket. tar­iffs in place that pro­tected lo­cal “Cur­rent in­di­ca­tors are that im­ports man­u­fac­tur­ers. “Then, af­ter 1994, are gain­ing t he up­per hand at t he in­stead of analysing the in­dus­try and ex­pense of l ocal pro­duc­ers, t heir HIS MOTHER WHO PASSED de­ter­min­ing which sec­tors would be em­ploy­ees and the lo­cal econ­omy,” he AWAY IN 1986, WHILE HE says.vul­ner­a­ble­toin­t­er­na­tion­al­com­pe­ti­tionWAS STILL A UNI­VER­SITY STU­DENT and ad­just­ing t arif f s ac­cord­ingly, Nyatsumba adds that any coun­try

tar­iffs were elim­i­nated al­to­gether,” that can­not com­pete in man­u­fac­tur­ing IN AMER­ICA. ALSO THE MUR­DER

Nyatsumba ex­plains. will have a skewed bal­ance of pay­ments. OF HIS BROTHER, ADO­NIS, IN

He adds that there used to be a “This is the case in our coun­try. We JUNE 2009, WITH NO AR­RESTS

num­ber of world-class in­dus­tries in all − em­ploy­ers, labour and gov­ern­ment HAV­ING BEEN MADE TO DATE, SA that had just needed time to adapt − need to start singing in the same AF­FECTED HIM GREATLY. to com­pe­ti­tion, which they were not voice. We need to get rid of pol­icy


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