SA economy needs to be inclusive

12 July 2016

Professor Simon Roberts who led the Centre for Competition, Regulation and Economic Development (CCRED) in a research conducted on opening the country’s economy said the was a great need to regulate competition and rivalry and amend competition act.

The CCRED released a research on Tuesday on opening the country’s economy. The organisation hosted a media briefing to outline the barriers to entry in the economy.

“The South African economy needs a new approach to regulation, competition, and industrial policy to open the economy for greater participation, particularly by black industrialists, according to research released today by the Centre for Competition, Regulation and Economic Development (CCRED) at the University of Johannesburg” said CCRED in a statement.

Roberts said their research showed that not enough was done over the past 22 years.

“Entry barriers are significant, but their magnitude and how they can be reduced is poorly understood,” said Professor Simon Roberts of CCRED.

“Our studies – into both individual firms and important economic sectors – underscore what South Africa needs to ensure a more inclusive economy, including greater performance-based competition, investment in capabilities and learning, and mechanisms for rewarding effort and creativity.”

“We cannot keep going down the same road, smaller businesses and black industrialists need capital to be able to try, fail and still continue,” Roberts said.

He added that small business support is necessary from all different stakeholders including private sector and government.

Roberts further said their research has revealed extensive anti-competitive practices.

“South Africa needs to create a more competitive environment to realise inclusive growth,” Roberts said.

The research is set to give a perspective on all sectors in the country that contribute to the economy of the country.

Researcher Pamela Mondliwa says South Africa has to allow competitors or new business to thrive.

“In order to pull outsiders into the economy, we need to change the rules of the game,” Mondliwa said.

Researchers from the organisation will release reports on different sectors such as retail, banking, transportation among others.

Meanwhile another researcher Reena Das Nair said supermarkets play a key role in linking suppliers to consumers.

“Fruit and Veg for example could afford to offer products to consumers at significantly lower prices,” Das Nair said.

This article was published in the NewAge.