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Using Maputo's port is no act of treason
March 5, 2004
Like most patriotic South Africans, I was shocked by a report by Margie Inggs on Toyota and Spoornet (March 3).
Reading the headline and subhead I got the impression that Toyota, like Highveld Steel, was no longer going to ship their exports through Durban but rather move to the port of Maputo.
Imagine my surprise when after reading the article I found that I too made the mistake all laymen make, expecting the article content, headline and subhead all to address the same subject.
Of course Inggs's article did make the point that some (other) businesses were considering moving their exports through Maputo but to make this connection (to Toyota) required an abstract leap of faith.
But Inggs's article does, by omission, raise some interesting points. These relate to the ideals of the Southern African Development Community (SADC) and the role played by the South African government and business.
The primary objective of the SADC protocol on trade is to further liberalise intraregional trade on the basis of fair, mutually equitable and beneficial trade arrangements, complemented by protocols in other areas.
Further on it suggests that we need to be attending to inter-regional and multilateral economic co-operation, and of supporting member states in marketing exercises and investment promotion.
It advises that SADC members will enhance development, diversification and industrialisation.
Does this mean that we need to fear loss of trade to the port of Maputo? Why then did we construct the Maputo Corridor if we now seek to deny Maputo these opportunities?
But there is a more fundamental question that we need to address. What is the objective of Ms Inggs when she sensationalises her news reports?
Does she understand the role of government not only within the SADC but in regard to making SA Incorporated more competitive? Why should we deny the Highveld Steels, the Columbuses, the BMWs and others, which are better placed to utilise the export facilities in the Maputo Corridor and port of Maputo?
If this will lower their export costs then why do journalists make it seem that going to the port of Maputo is an act of treason? In attempting to make SA Inc more competitive in the global market, surely we should encourage them to do whatever is necessary to lower manufacturing and transport costs.
If this means exporting through Maputo, then so be it. The bonus here is that they avoid being fleeced by two hopelessly inept local parastatals Spoornet and SA Port Operations.
Vusi P Khumalo
Saldanha Bay
I refer to your report concerning the improved interim results of Relyant Retail (Business Report, March 2).
There is no doubt that the restructuring of this group has brought some improvement to the business, but as a minority shareholder who has experienced considerable pain over the years, I am not happy with your analysis of the figures as published.
While an earnings and gearing improvement is more than welcome, a deeper look at the numbers reflects some disturbing aspects: on a lower inventory figure accompanied by a very small turnover increase for the period, creditors and accruals have literally gone through the roof.
Making effective use of supplier funding is a sound management tool, but it distorts the gearing ratio by a sizeable percentage in that it appears to reflect a temporary reduction in loan finance.
The improvement in the debtors' book is very welcome, but coming on the back of a very sizable increase in provisions less than two years ago (a few hundred million rand was deemed necessary at the time) it is hardly prudent to recall the reduction of bad and doubtful debts to profit.
Total provision against a R2 billion book has dropped from 28.3 percent to 26.7 percent in six months - a reduction of 7 percent.
The savings in interest payments because of the restructuring as well as the significantly lower tax number make the figures look far more respectable than actual trading success.
There is no doubt that the recapitalisation has made a positive impact on its performance but there is still too much smoke and mirrors for my liking.
Stormin' Norman
Sandton
It's not only the food prices that are driving tourists away.
We "swallows" from Europe who own property in South Africa and spend four or five months here each year - when we employ gardeners, house staff and probably contribute about R20 000 a month to the economy - are now only entitled to stay for 90 days, at the end of which we must apply for an extension, pay R425 and produce air tickets and other paperwork, including police clearance from our home country.
We are told, hopefully ironically, that the reason for all this bureaucratic obfuscation and gross inconvenience is to ensure we do not become a burden on the state. Pass the sick bag!
KW Bate
Hout Bay
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