Thursday, 15 October 2009

Why South Africa?

I have been questioned by some about my going to South Africa, the country's growth and its embedded challenges. I feel the first reaction of people inside and outside is to point to the negative factors of crime and social discomfort. But personally, I think the advantages of this land can be harnessed to overcome the challenges and natural flaws of a transitional society.

First of all it is important to acknowledge the fact that South Africa is the obvious bridge between Southern Asia, and the South Pacific with Europe. As well as a bridge between India's rising economy with America. This is mainly due to its cultural position, and the recent acceleration in it s IT and communications infrastructure. These times are becoming the end of distance for investments and cultural transactions. The geographical location is important, but the cultural location is more important for South Africa now. It should be now the Government's goal to enhance and leverage these advantages.

The great position brought in by the gold and platinum prices over the last months, allowed South Africa to sail a little better through the global recession. Yes, money is still scarce and tax holes are yet to be filled. But so far, the position is good to come out of the curve with a fair advantage.

And the long term policies are fine. But a series of medium term actions can be iplemented. Therefore, the most obvious industries to exploit and capitalize should be areas that have its basis on what South Africa is already doing well, just adding a little more value through service, research and the expertise that has been won through painfully surviving years of FDI drought. Growth opportunities i find on a first glimpse:
  • * Logistics
  • * Mechanical Engineering Design
  • * Value Added Technology Services
  • * Entertaining and Culture
  • * Green (Eco-Friendly) Industries
The idea is to take what it already has, to seize the natural cultural position and the geographical one, along with its new talents and to do it fast by creating the right alliances. Alliances, Creation, Development. That should be the mantra. I know it will be mine.

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