Foreign investment, manufacturing key to solving joblessness, poverty

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Manufacturing remains the best option to create employment due to its ability to provide low-income job opportunities on a massive scale.

An investment expert with extensive expertise in cross-border work says if South Africa is to address unemployment among the poor, it must raise the bar to attract foreign direct investment in manufacturing.

Lisa Botha, partner at law firm Allen & Overy in Johannesburg, said while manufacturing alone was not a panacea to the country’s joblessness, it would go a long way to extricating many from the poverty trap while facilitating economic growth. But, unlike the rest of sub-Sahara, South Africa had begun to rebound, thanks to the Cyril Ramaphosa factor. Botha attributed the rising graphs on all reports since the last quarter of 2017 to Ramaphosa’s statements of intent.

Botha said the decision by Nissan automotive group to expand its investment in SA, coupled with the additional R40 billion committed to investment in the automotive industry over the next five years, would boost the manufacturing sector, which has performed less well in recent years. “It’s well and good that we have investment in telecoms, banking and related sectors. That’s going to create jobs for people who already have matric or semi-skilled or probably skilled and have tertiary education. But it’s manufacturing that is key to alleviate poverty,” Botha said.“As a nation, our manufacturing sector has enjoyed less investment than other sectors in recent years, so this is very good news,” Botha said.

 

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BUSINESS MAVERICK: SA’s car manufacturing system could help to get SA’s industrial development on the roadTo great political applause, car company Nissan has said it will spend R3-billion on its plant in Rosslyn outside Pretoria to build the Navara model. Announcements like these regularly punctuate the news; it’s all part of SA’s grand Automotive Production and Development Programme, arguably the crown of SA’s interventionist industrial effort. But if this policy is working so well — and it does seem it is — why is it not being applied to other sectors?
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