Innovation key to competitiveness – Gordhan

ADDRESSING Zululand’s industry leaders and business owners, Finance Minister Pravin Gordhan spoke frankly about global trends, misconceptions and negative attitudes stifling both South Africa and the region’s economy.

The minister was speaking at a business breakfast hosted by the Zululand Chamber of Commerce and Industry (ZCCI) in Richards Bay on Monday.

He said since the global recession, the country has not yet been able to rise above a somewhat lacklustre global economy, but that South Africans had to remain positive.

‘The recession has taught us lessons in acting collectively in crisis,’ Gordhan said.

‘We spend too much time on blaming each other and this criticism puts us in a negative light with potential foreign investors.

‘It’s necessary for us to work with common purpose, because if we don’t pull the same rope in this global tug-of-war, we won’t win in a world market.’

Highlighting the State’s achievements, Gordhan said the country’s Gross Domestic Product (GDP) has grown by two-and-a-half times from 1996 to 2011, while water, social grants, sanitation and employment improved in the last two decades.

‘The rife criticism in the media that we have more people on social welfare than people with jobs who pay tax, is misleading.

‘People forget that those dependent on welfare buy Coke – there is tax on cool drink, not to mention other products they buy, so ultimately they do pay tax.’

As the second-fastest growing region in the country, Gordhan indicated that KZN’s captains of industry and entrepreneurs consider global trends to stay competitive.

‘We live in a world of stamina and this region has become a magnet for foreign investors since Africa was placed on the map in the past 10 years.

‘This means the local private sector has to stay updated on mega and mini market trends, be innovative and produce relevant global products, while keeping their workers and community well informed.’

Sectors requiring more attention were noted as agriculture and energy.

‘We need to get over our energy shortage, so we’re looking into nuclear, gas and oil exploration and hydro energy,’ said Gordhan.

‘And with renewable energy valued at just over 80 cents a unit, it is not only a great venture, but an affordable one too.’