ANDREW BAHLMANN: BEE, blackouts and Competition Commission trip up foreign investment

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Reforms and the creation of incentives for upskilling people are needed to make SA more competitive

When the National Treasury first published its Economic Policy Paper at the start of Cyril Ramaphosa’s presidency, its purpose was to set the agenda for discussions on economic policy within the ANC and to serve as a framework for the economic policy of a new government.

The Competition Commission has been active in adjudicating acquisitions by foreign investors of local companies such as Clover and PepsiCo. But do these sorts of deals affect the economy’s engine room — the mid-market sector of businesses with a turnover of R300m-R800m that create employment and fund the government’s tax coffers as they grow?

To accomplish this would require many reforms to BEE, the power grid, the Competition Commission — as well as the creation of incentives for upskilling people to improve productivity and make SA more globally competitive. We cannot omit from strategic thinking that we live in an AI world where robots will increasingly perform the basic labour, so humans must have a high skills level to be employable.

 

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