SA is not viewed as a preferred investment partner to overseas countries, and this is largely due to government`s involvement in business, says Israel Noko, trade commissioner for the Canadian Embassy.
Noko, participating in a panel discussion held at the Futurex conference in Sandton last week, is insistent the South African government needs to end its involvement in business, as it greatly stifles entrepreneurs.
"There is an obvious conflict of interest," he said.
Noko admitted a similar situation existed in Canada 15 years ago, a situation he described as a "crossroad".
"Many Canadians were leaving town and the economy was not growing."
Noko believes SA is at a similar crossroad, and urgent steps need to be taken if the country expects to achieve government`s intended 6% economic growth. He suggests that, like Canada, SA is looking at selling its state-owned properties to the private sector, thereby empowering smaller entities.
Better communication
In addition, he feels SA should learn to communicate better internationally, as not many countries know what concepts, such as black economic empowerment, are about and are, therefore, intimidated.
"SA should try to simplify its business processes. In Canada, it takes exactly two steps to establish a business. It`s this sort of thing other countries look for."
While Noko made it clear government should step aside, another Futurex panellist, Moira de Roche, president of the Computer Society of SA, believes it should step in.
"The government does not create a good enough environment for ICT to thrive in," she said, adding that South Africans face a Catch-22 situation in the ICT market.
"There are too many entry-level workers who can`t find jobs and too many jobs looking for experienced people," she explained.
According to De Roche, most ICT companies are reluctant to take on entry-level workers due to their lack of experience.
"Governments, such as Canada`s and Ireland`s, work with their universities to provide top skills needed by an entry-level worker and then they subsidise their first year`s salary. We should be doing the same," she noted.
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