Interventions for fostering growth Suggestions for fostering growth Enhance export competitiveness
Faster export growth will help propel economic growth, but to achieve this, manufacturing competitiveness must improve. South Africa’s score on the 2020 Competitive Industrial Performance index dropped four positions to 52 out of 152 countries assessed (Unido, 2020). Suggestions to enhance export competitiveness include: • Implement export incentives. • Reduce port tariffs and improve port efficiency. • Consider re-instating rail subsidies for containers destined for export. • Emulate the automotive support programme for key industries.
Fix municipalities
It is imperative that municipalities function properly. To achieve this, ethical leadership, service orientation and good governance are required. Local governments need to be properly capacitated and free from political interference and constant churn. Strong external controls must be in place to prevent financial loss and wastage. Given the central role that the manufacturing sector plays in creating jobs and national wealth, and the need for a well-functioning manufacturing sector to ensure the economic sustainability to ensure the wellbeing of the nation, the maintenance of municipal infrastructure and services within industrial areas needs to be prioritised by local authorities. Communities also need to be more involved in municipal matters and hold local government accountable.
Flexible labour laws Labour legislation is viewed as onerous and hampers employment. Suggestions to modernise labour laws include: • Revisiting the centralised collective bargaining model. •M aking it easier for employers to hire and fire workers. The current standard three-month probation period should be extended to at least one year to properly establish a person’s skills and attitude. Implement transport subsidies
It is expensive for workers, who often live far from their places of employment, to commute to and from work. Implementing transport subsidies will assist manufacturers and help overcome spatial distortions.
Improved access to financing
Having access to sufficient financial resources is crucial to enable entrepreneurs and smaller businesses to grow. The current financing rules should be revisited to ensure that they actively promote economic development by mobilising and allocating resources efficiently – making it easier for entrepreneurs to access credit.
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