Patel finds market economy suits him just fine
May 20, 2009
My door is always open, says Ebrahim Patel, the thoroughly charming new Economic Development Minister, at the start of an interview at his 120 Plein Street ministerial office in Cape Town.
The trade unionist turned cabinet minister – who, although he was not on the ANC election list, takes up a special seat in the cabinet – looks like a chief executive in a dark suit and a dark tie.
He is eager to point out that economic policy needs to be forged in an environment where South Africa operates “a market economy”. But he notes that the economy involves both enterprise and workers.
We seem far removed from the heady days when, as the Southern African Clothing and Textile Workers’ Union general secretary, Patel was taking on local clothing manufacturers and encouraging them to support quotas for imported Chinese goods.
He refers to remarks made by Cosatu general secretary Zwelinzima Vavi about the success of the Chinese quotas, but one is left with a sense that, perhaps, he is now seeing a bigger picture than before.
Asked if he would play a more protectionist role in trade policy, he replies: “Let me start with an observation: what we are
focused on are outcomes. In getting to these outcomes, the state has a tool box. It has a number of different tools. No single tool on its own can resolve the problems that we have … including tariffs and trade policy. Overuse of any one tool is likely to result in an outcome that we don’t want.”
The country should focus on skills enhancement, product development, technology, and stronger links between suppliers and producers, he says. “It is about finding a combination between tools.”
A Merc full of integrity
One got the distinct feeling that Sbu Ndebele, the new Transport Minister, really didn’t want to give up that lovely present, a Mercedes S500, even though he complained that the uproar over the “gift” had taken him away from more important matters, such as the bus rapid transport system and resolving the taxi industry’s resistance to it.
The uproar occurred after he received the gift on Saturday from the Vukuzakhe emerging contractors in the province where he has just given up his post as premier: KwaZulu-Natal.
“I must indicate that this matter has created an unwelcome interruption and derailment of my programme as a newly appointed minister of transport, as I have urgent matters to deal with,” he said.
At a briefing in Cape Town yesterday, asked if he really wanted to give up the present, he broke out into a broad smile.
“After careful consideration and discussion, I have voluntarily (decided) to return the S500 Mercedes and two head of cattle.”
He noted that he had never expected to receive the presents, and had carried out the correct procedure by consulting with President Jacob Zuma. The president had apparently not seen any harm in him holding on to the present, but advised him to follow the regulations.
Ndebele repeatedly noted that the only precedent of this kind was when former president Nelson Mandela received a Mercedes – and later a BMW – as gifts. He had not returned them, he noted.
When pressed later about whether he had also received a plasma television screen as well as other gifts, he appeared to stumble a little.
“There was a TV screen … what else was there? Petrol vouchers … some glass and cutlery and wine glasses.”
He added that he “really didn’t want to have anything”. The only thing he wanted to keep was his integrity. “The only thing
I do have is my name … I don’t want to mess it up.”
Look beyond the gloom
There has been an element of doom and gloom around the construction sector because of the global financial meltdown, which has resulted in the cancellation or suspension of some major contracts, particularly in the Middle East.
But is all this negativity justified when large listed construction groups such as Murray & Roberts (M&R), have been able, in a relatively short time, to replace cancelled contracts with work related to the South African government’s multi-billion-rand infrastructure spending programme?
It seems that now is as good a time as any for companies to re-evaluate the appropriateness and viability of their business
strategies for both depressed and buoyant trading environments.
The trading environment is difficult, but it will not remain so forever. Some companies, possibly warmed by the increasing
reference in business circles to “the green shoots” of an economic recovery, are planning for better times.
Esorfranki, the AltX-listed civil engineering and construction group, reported yesterday that despite the slowdown in commercial building, explosive growth was expected after next year from the Gautrain rail project.
It said this was likely to result in the construction of high-rise office towers, hotels, apartment blocks, and various retail and commercial buildings.
Similarly, listed civil engineering and construction group Stefanutti Stocks said that despite the cancellation of large projects in Dubai, it believed the region would provide growth opportunities, particularly in Abu Dhabi, Qatar and Oman.
It has shown faith in this belief by establishing an office in Dubai as a base. It is risky, possibly even dangerous, for any company in boom times to go about its business as if the business cycle will continue indefinitely along a strong upward
trajectory. But the future of a firm will also be at risk if management allows a negative mind-set to prevent it from positioning the business to take advantage of the opportunities that will certainly follow a turnaround.
The big winners of the next economic upturn are thus likely to be those businesses that are already planning, preparing and aligning their operations to take advantage of the next upturn.
Edited by Peter DeIonno. With contributions by Donwald Pressly and Roy Cokayne
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