With the rest of the world in such a financial mess, SA has a unique opportunity to capitalise on the situation and propel itself into the knowledge economy, said Johann Rupert, chairman of the Rembrandt group of companies, at the opening of the Silicon Cape initiative this morning.
The Silicon Cape is a project headed by Vinny Lingham, founder and CEO of Yola, which aims to promote the Western Cape as a hub for IT innovation and entrepreneurship.
Rupert called for a greater effort by government to create tax-free zones within the country, which would attract the kind of people who would develop intellectual capital.
“The power of the individual is rising in relation to the once all-powerful monolithic state. Their capital resides within their heads; they don't even have to cross the customs line to move their capital, as it resides within their heads and on their hard drives. The state has to be very nice to these people if it wants to attract them,” said Rupert.
The world's financial system is changing and countries like the US will find increasing competition from China and other emerging markets, Rupert said. Africa continues to lag behind in almost every sector, from infant mortality to wealth creation.
“For those who think that race is a factor, let me tell you it is not. I saw the differences between East and West Germany - just after the Berlin wall fell. East Germany was a basket case and they are from the same gene pool as their West German counterparts,” he said.
Rupert held discussions with various political parties about making parts of South Africa tax-free zones, and other economic incentives to help stimulate the economy. “If we attract young wealthy entrepreneurs, they will buy goods manufactured by unionised and non-unionised labour. Cosatu and the other unions should welcome such initiatives,” he said.
Rupert also made comparisons between inherent values of commodities, manufactured goods and the knowledge economy. He pointed out that Intel turned sand into silicon and then into Pentium computer chips - which were more valuable than gold.
The new generation of entrepreneurs still have to prove themselves, Rupert said, and will have to invent new products, goods and services without repeating the mistakes of the past.
Share