LETTER: Long-term trouble for SA

Your editorial opinion refers (“Tau has chance to turn around trade & industry”, July 4). Tariffs may offer some relief in the short term, but in the long term SA is in trouble based on the following:

• A century from now all knowledge, skills and manufacturing capability will be concentrated in Asia — the monopoly of goods will be on a global scale and any price could be imposed to even cover the tariff itself.
• Most primary industries are in sunset mode due to a lack of investment to expand or acquire new technologies to boost efficiencies. This is certainly the case in the mining industry, with few mega-mines coming into production despite a global rush for green metals. The result will be a growing trade deficit.
• This department neglects the informal sector, yet with customised digital platforms is may facilitate growth and collaboration among SMMEs.
• The new EU regulations related to the carbon footprint of products, which will kick off in a few years, will also place a lot of producers or manufacturers at a disadvantage due to a lack of investment in climate-friendly technologies.
• The SA business community generally looks to Europe and the US for growth, but somehow conveniently overlooks the rest of Africa, particularly in markets that are now saturated in SA but may offer opportunities for growth elsewhere.

Phuthela Myeni
Via BusinessLIVE

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