‘Cost of doing business is killing us’
The cost of doing business in SA is killing many businesses.
This was the view of Chemical and Allied Industries Association executive director Deidre Penfold at the annual Manufacturing Indaba for the Eastern Cape.
The indaba, held at the Boardwalk ICC on Wednesday, opened up the floor to businesspeople to discuss tools, incentives and investments available to manufacturers and to air concerns.
The roadshow brings together provincial manufacturers and businesses to explore growth opportunities, find out about the latest manufacturing incentives and trends, and provide a platform for networking and collaboration.
During the discussion, Penfold said the chemical industry was one of the most undermined sectors in the country.
“The interest of our members is crucial because we have a lot of multinational companies that are based in SA and unfortunately there has been a decline in the chemical manufacturing industry.
“We now import close to 97% of chemicals into the country,” she said.
“In terms of the African market, it is limited – the cost of doing business is killing many businesses in the country and the port tariffs are really horrendous.
“And if we talk about the rubber industry in our country, it is shocking.
“As of June 1, the rubber industry closed its doors because of the high tariff rates of doing business in SA,” she said.
Nelson Mandela Bay Business Chamber CEO Nomkhita Mona said events like the indaba were of great importance.
“The importance of events such as the Manufacturing Indaba should not be underestimated,” she said.
“It is important for the city to stay in touch with the latest technological innovation within the manufacturing sector.
“To remain relevant in today’s changing world, the sector needs to have access to support mechanisms available.
“There also needs to be constant seeking of opportunities to access new markets.”
Other issues discussed included general economic trends that could affect manufacturers, and insight into strategic thinking around opportunities to develop and threats to manage when moving towards Industry 4.0.
Industry 4.0 is the name given to the current trend of automation and data exchange in manufacturing technologies
“Additionally, the impact of the industrial revolution [Industry 4.0] needs to be examined, and indeed embraced where necessary, and with Industry 4.0 evolution under way it has become apparent that the future will no longer be what the world has envisaged for many years,” Mona said.
“Processes, products and services will be impacted.
“So it’s important for industrialists to reflect and unpack these changes through platforms such as the Manufacturing Indaba Eastern Cape.”
She said the Business Chamber had identified tourism as a critical growth sector for the region.