There is a myriad of technologies that will shape our future and the future of business. Artificial intelligence (AI), robotics, computer technology, internet of things and web-based technologies are at times the illusive terms of a future we aim to describe and understand, but most of us really have a limited understanding particularly when it comes to how these technologies can be utilised in our businesses and how they can be financed.
In its 2018 economic outlook, the African Development Bank (AfDB) says the continent’s infrastructure requirements run to $130–170 billion a year, far higher than earlier estimates of $93 billion.
President Cyril Ramphosa recently announced a R400bn infrastructure fund for South Africa’s creaking infrastructure and with the Africa Infrastructure Summit 2018 having just ended, it’s appropriate to explore some of the opportunities for grants and incentives for infrastructure finance.
The Manufacturing Indaba 2018, held on the 19th and 20th of July at the Sandton Convention Center, covered general matters around the de-industrialisation which has occurred in South Africa, what opportunities lie in re-industrialising the country and promoting localisation.
Policy for localisation has been a prominent feature of the PFMA (Public Finance Management Act – National Treasury) and the B-BBEE codes through the “empowering supplier” status which requires that at least 25% of cost of sales, excluding labour cost and depreciation, must be procured from local manufacturers or local suppliers in SA.
The question from commerce is usually “where are the market opportunities?”.
Let’s not beat around the bush- Key decisions made by the finance Minister Pravin Gordhan in the 2016 Budget speech will impact your business growth and survival in this tough economic climate. The Minister had his job cut out for him as he made tough decisions to ensure that companies can reach their projected turnover goals for the next financial year resulting in the growth of our economy.
If you want to expand and increase your turnover in the next financial year here are the developmental funding opportunities identified from the budget speech 2016 per industry:
I attended a great session recently on the topic of the Cost of Complexity in Manufacturing, hosted by GIBS and presented by Andre de Ruyter, CEO of Nampak on September 16, 2015.
We have all, I'm sure, been reading of how the economy is not ideal for South African manufacturers and that with wage and labour issues, struggling consumer demand, power cuts and insufficient policy to support a healthy manufacturing environment, the picture looks bleak - this is the same old rhetoric we hear over and over.
Sure an economies cycle of growth and decline is never over but most people I know are pessimistic (at best) about the future of our economy and being in a sector that looks for growing businesses I found myself asking – where is the light?
A recent research report by McKinsey Global Institute, South Africa’s Big Five: Bold Priorities for Inclusive Growth provides a view into the enormous opportunity within the South African economy.