DARYL SWANEPOEL: Ditching our regulatory load could revive factories to fire up growth engine

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BEE rules, labour laws, skills shortages, failing municipalities and crime weigh on decision-making by business

Driving through the industrial areas of the East Rand, one can see that the once-mighty “workshop of Africa”, has become a depressing business. The humming sound of industrial machinery has made way for abandoned factories, now a breeding ground for pigeons and migrating swallows.

Discussions that the Inclusive Society Institute has held with manufacturers affirmed that they are passionate about SA and want to continue to invest in the country, but regulatory burdens — including stringent BEE requirements, rigid labour legislation, skills shortages, failing municipalities and crime — weigh heavily on decision-making by business owners and managers.

departure of SA’s biggest cheese factory from Lichtenburg, North West, over continued poor service delivery, should be a wake-up call for municipal managers countrywide — shape up or business will ship out. Keeping costs in check will improve the competitiveness of SA goods. This move will in turn enhance export growth, especially in the lucrative African market that has turned its sights eastward when purchasing goods.The same goes for steel input pricing. We cannot continue to protect upstream steel production at the expense of the downstream steel industry.

 

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