FINANCE •
photo created by jcomp - www . freepik . com
MAJOR BLOCKAGES CONTINUE TO STIFLE EXPORT INDUSTRY
By Ernest Lai King
The 2022 State of the Nation address ( SONA ) reminded South Africans of what awaits if the economy does not provide much-needed jobs , create wealth , and drive sustainable development . Another episode of looting , destruction and violence as witnessed in KwaZulu-Natal and Gauteng in July 2021 will be an inevitable consequence , writes Ernest Lai King , Managing Director of 1 Road Consulting .
The SONA emphasised that a new consensus must be reached where the state creates an environment to allow the private sector to invest , unleashing the country ’ s dynamism and economic potential . It emphasised that government does not create jobs . Business creates jobs . Our future hangs on a knife ’ s edge . Record unemployment , woeful economic growth , the probability of a sovereign debt crisis , and blockage after blockage chokes our economic advance and global competitiveness . But unblock these , and a massive pent-up flood of investment will flow . We are a resilient people . We have looked into the abyss many times , and every time we have stepped back . South Africa still stands – albeit unsteady on its feet .
We must unblock the blockages to South Africa ’ s economic growth . It is now all about the economy .
Significantly , according to recent World Economic Forum statistics , the quality of our local port infrastructure is ranked at just 4.8 out of 7 points , lagging behind emerging market peers such as Chile at 4.9 and Namibia at 5.2 . The quality of our railways is of even greater concern , ranked at just 3 out of 7 points – below Tanzania at 3.2 , Botswana at 3.6 , and Kenya at 4 .
For example , South Africa sold goods amounting to R1.8 trillion last year , but the country could have exported hundreds of billions more , were it not for blockages such as disintegrating railways , dysfunctional ports , collapsing roads , unreliable power , and obstructive laws and authorities .
Richards Bay Coal Terminal ’ s export volumes have dropped to their lowest in 25 years and Transnet Freight Rail ’ s inability to service
www . africanmining . co . za |
African Mining Publication |
African Mining |
African Mining • June 2022 • 31 |