Johannesburg - The Oxford Business Group (OGB) report on South Africa reflects that the country offers long term growth prospects despite the challenges it faces.
"The central message contained in the report is that South Africa offers significant and serious long term growth and development potential despite the challenges which we confront at present, some of those are challenges not of our own making but the winds of the world economy is blowing in our direction," Trade and Industry Minister Rob Davies said at the inaugural launch of The Report South Africa 2012, on Friday.
The business group spent about nine months in the country compiling the report that looks into government's efforts to boost growth across the industrial sector, among others, as well as looking at challenges in doing business in the country.
Government as well as the industry were interviewed in compiling the report. "The report articulates a clear message that South Africa is open for business," said the minister, adding that the country has great potential to attract investment.
"For government it is important that we situate the OGB report and the private and public perspectives it contains in the overall context of our economic development strategy," noted the minister.
It was also important to situate the report in the overall context of the country's economic strategy, he said.
South Africa also aimed to improve its competitiveness and has worked on achieving stabilisation in several industries that were vulnerable such as the clothing industry. Challenges such as inequality and unemployment still persist.
OGB head Michael Benson-Colpi said the report was for people who wanted to learn about South Africa. "It is a comprehensive report on South Africa, it is an educational as well as a marketing tool," he said.
The report was produced in partnership with the dti.
Brand South Africa's Ignatius Sathekge said it was important for the country to increase inter-African trade which could create opportunities for the country.
Meanwhile, Absa Capital CEO Stephen van Coller said the country remained relatively robust given happenings in the global economy, adding that there was a new sense of optimism with Africa being the second fastest growing region.
However, the country "was not out of the woods yet" as it faces issues such as the downgrading of the country by rating agencies as well as currency volatility. He said the country punched above its weight in attracting multi-nationals.
Regional Editor for Africa for the OGB Robert Tashima described South Africa as sophisticated, adding that the country's government budget was in good health. South Africa was praised in that it took about 19 days to register a business compared to the rest of the continent.
Unemployment at 24% was described as a structural challenge. "The problems are concerning but they are not a cause for despondency," said Tashima.
In the report, the country was credited for having policy and political stability, a good business environment, natural resources as well as infrastructure. "These can propel the economy forward, they offer opportunity," said the Editor.
On the energy side, programmes like the Renewable Independent Power Producers programme, the report found that "prospects for growth were electrifying".
The report additionally noted that inequality in South African society posed "long term concern".
Some of the growth strategies identified in the report include the diversification of exports, and strengthening skills sets.
The report features an interview with President Jacob Zuma as well as contributions from Finance Minister Pravin Gordhan and Reserve Bank Governor Gill Marcus among others. It also provides a detailed sector by sector guide for investors.
OBG is a global publishing, research and consultancy firm that publishes economic intelligence on markets in Africa, Asia and the Middle East, among others.
