A New Economic Requirement

For the South African economy to grow, absorb youth in employment and be internationally competitive - a great focus needs to be put in a handful of industrial areas.

South Africa is arguably the greatest country on the African continent - a beacon of hope and a model to be looked at and emulated, taking a moment to discard any political influence, South Africa needs to look at areas where we have a natural or achieved competitive edge.

1.    Tourism

What a country we live in, if the 2017 Tourism Indaba, is anything to go by, we have a rich diversity of areas to visit.

All our 9 provinces offer something special, are attractive and more importantly, unique. Each offering something the other does not and something that it can build competitiveness on. 

Tourism in South Africa accounts for less than 5% of the GDP. Reportedly offering a little over 1 500 000 jobs. 

Conversely, tourism in the Southeast Asian countries can account to well over 50% of the economy.

Not to repeat the mistakes and false dream mongering that we experienced with the 2010 Soccer World cup, when township home owners and entrepreneurs went out on a homestay roll out that has not reaped sufficient benefit for the entrepreneurs.

South Africa should have a well-conceived strategy, allow willing and interested entrepreneurs to join the vision, providing a conducive environment and staying out of the way of the entrepreneurs.

Sitting at a Chamber of Commerce networking function a few weeks ago, I realized just how under represented the tourism industry is as a viable sector to invest in. Incumbents make one thing there is no scope for new and innovative providers of experiences and accommodation.

Opportunities exist from rural towns and villages to a stone throw from major cities.

2.    Agriculture & Agro-Manufacturing

The South African Department of Public Works is the biggest land owner in South Africa - land that can be made available to keen and willing entrepreneurs who wish to pursue agriculture or farming.

This land is varying in quality and potential for use, but coupled with some innovative technologies, all this land can be fully utilized.

Let's take a practical example; 10 tunnels growing tomatoes can produce 24 tons per tunnel and if we'll mangled, this can be sustained throughout the year.

Yields can thus accrue to 240 tons per year per tunnel, which gives 2 400 tons for the year and a potential income of R2 160 000.00.

If we work on a 40% labour rate, it means the entrepreneur can hire 20 people at an average salary of R3 600.00.

From such a simple example, a willing entrepreneur, would be able to slowly grow a business that would put food on his/her table in a sustainable manner as well as uplift the community through jobs and place money into the local economy.

If this is replicated with 20 entrepreneurs, 420 sustainable jobs could be created.

If one goes further into agro-processing and/or manufacturing, the number of jobs to be created increases exponentially.

South Africa has no clear competitive advantage in the manufacturing of products, in comparison to countries like China, but what we do have a great natural advantage on is the ability to grow fresh produce, package it and export it to the rest of the world.

3.    Financial Services

South Africa consistently ranks in the top 5 of all financial services ranking – this is a competency we have grown, perfected and constantly developing.

The scope for opportunity, especially for young entrepreneurs is significant. The development of FinTech shows exactly how massive this potential is.

I am always astounded that I seldom need to carry my wallet to pay for products and services. Most of my coffee is paid with my phone, fuel from some providers, equally so and I once paid for parking in Cape Town using the very same App on my phone.

The convenience cannot be fully expressed, but much appreciated. This is the future of financial services, convenience.

Those in the know always refer to this as disruptive innovations and they are on the increase and offer opportunity for entrepreneurs.

The convenience is underpin by a service offering that can be executed to any client right across the world, all from the convenience of South Africa.

Sending money as a service — conveniently and securely to family and friends across the continent is becoming ever more essential, with remittance levels in some African states taking up quite a chunk of the GDP income of the country.

As a service industry sector, the Financial Services sector can offer a lot of opportunity for employment of young people.

4.    Renewable Energy

This space offers one of the best opportunities for South Africa, unlike most of the entrenched sectors, discussed above, it is ‘new’ to the world, allowing for marginal equal opportunity for all.

This is a sector that can offer real Radical Economic Transformation.

This new sector can offer opportunity for both black and white, emerging and entrenched as well as the young and old.

Entrepreneurial opportunities exist from installing, to manufacturing and up to the commissioning of large power plants in wind, solar, thermal and tidal energy.

US research indicates that the solar and wind energy segments offer the greatest and widest scope for entrepreneurial opportunity and consequent potential for employment.

Keeping in line with the NDP outlook of gradual improvement of living conditions — special attention needs to be given to these areas of the economy in order to have the greatest impact on the development and growth of the economy and sufficient address of the hopes of our citizens.

Over time we would be empowered to decrease the ever growing wealth disparities we face and lead to a time of poverty eradication. There are no easy roads to take, no silver bullets and more importantly, no other body to help us, but us.