Interventions for fostering growth Suggestions to enhance investor confidence South Africa should build on its strengths, in addition to trying to overcome its weaknesses. Money flows where there is a competitive advantage.
Build on strengths and focus on competitive advantages
Instead of entering industries in which South Africa may not be competitive, the country should focus on industries where it has a competitive advantage such as agriculture, mining and the automotive industry. For instance, efforts should be directed to ensure that the automotive industry and supply base are even more internationally competitive. The country is already competitive in agriculture and should focus on related industries such as food processing. By ensuring the quality, and improved marketing and branding, of locally produced food products, we could compete globally.
12
Create a geopolitical alternative
The world is in for a bumpy ride, from a political and economic perspective, in the next couple of years. South Africa should establish itself as a geopolitical alternative if manufacturing, supply chains or trade routes are disrupted in other jurisdictions. Disruptions caused by the global Covid-19 pandemic highlighted the role that South Africa could play as a geopolitical alternative for global companies.
Incentivise youth employment and training
The Broad-Based Black Economic Empowerment scorecard could be reconfigured to incentivise businesses to invest more in youth employment and training. It is suggested that the Youth Employment Service (YES), started by President Cyril Ramaphosa, be extended to allow for three years of employment. Currently, businesses that participate in the YES programme create one-year positions for youth aged between 18 and 35. Many young people who completed only a one-year internship still end up without a job. It is suggested that this be extended to three years, offering those who received the internship a better chance of finding permanent employment.
