The ongoing appreciation of the local currency and the drop in the interest rates were a testimony that South Africa’s economy was in good standing, Trade and Industry Minister Alec Erwin said on Saturday.
Addressing delegates at the final day of a National African Federated Chambers of Commerce (Nafcoc) meeting at Sun City in the North West province, he said the Rand would not longer be a weak currency any more and exporters and importers should adapt to this.
”We are bearing the positive results of years of restructuring country’s economy to adapt the world market trends. The strong currency and low interest rates are good to sustain the development of our economy.”
Erwin said in 1994 the African National Congress (ANC) government understood what it wanted to achieve in terms of revitalising the economy.
”We took office at the time when the country was in its weakest point. It depended on mineral wealth, we were isolated, the cost of local products was high and people’s income was unacceptably low.”
The government knew that it had to start rebuilding and changing the economy so that it was competitive with other economies.
”We knew that when the rebuilding process start the economy will not be able to take pressure when markets were opened up,” he said.
Trade and Industry Department director-general Alistair Ruiters said a recent review of a number of government’s small business development agencies showed areas of challenges when it comes to implementation of programmes.
In particular the 1999 mid-term review and widespread consultations identified a number of weaknesses.
The most significant of these were: the generic approach towards small business development proved ineffective, suggesting the need for differentiated services, instruments and delivery concepts adapted to the different segments of small, medium, and micro enterprises; wide spread regional and local differences in polity absorption called for a more bottom-up approach; the promotion of entrepreneurship in the context of basic formal and technical education needs special attention; and business associations need to play a more significant role in the support process.
Ruiters said that, to date, a lot of progress had been made in addressing all these issues.
”One of the policy changes we have made is the amendment to the Small Business Act as one of the policy instruments that the department is utilising in particular, to create a voice for small business community,” he said.
”These changes were necessitated by the demise of the National Small Business Council. It is this regard that we see the chamber movement as critical role-players in the development of small business.”
The 38th Nafcoc annual general meeting, which started on Friday, concluded on Saturday with the signing of an agreement between two new unitary business bodies.
One of these is the Chamber of Commerce and Industry of SA, which comprises Nafcoc, the SA Chamber of Business, the Afrikaanse Handelsinstituut and the Federation of African Business and Consumer Services. The other organisation is Business Unity South Africa, which was made up of the Black Business Council and Business SA.
President Thabo Mbeki witnessed the signing ceremony of the constitutions of the two entities during a banquet. ‒ Sapa