Paul Janisch

Foreign workers' work permits to be doubled

If JIPSA (joint initiative on priority skills acquisition) is to succeed we need to bring in foreign skills to train up our people.  This seems to be an accepted fact, unless you are Cosatu - "the importation of so-called scarce skills undermines the process of local skills development and transfer".  This attitude has been described by Nazmeera Moola in the 3rd of November, 2006 issue of the FM, as a laager mentality - similar to US Republican Congressman. 

The government has decided to ignore these uninformed ruminations and push ahead with the finishing touches to "business-friendly amendments to new immigration legislation, including scrapping the two-year limit imposed on skilled foreign staff." 

This was the headline story in the Business Day on Friday.  The two year limit was designed to force multinationals to pass on necessary skills.  It hasn't worked - more time is needed and at last we'll get it; it's moved to four years.  Greg Durst - Managing Director of Endeavor South Africa  told me they wanted it to be five years.  Four years is a great start.

It seems as though there is also a World Cup aspect to this bill, FIFA partners can now send their experts to South Africa almost immediately.

I think that of all the government's initiatives, JIPSA is the only one that is making serious headway.

Well done to the minister of home affairs, Nosiviwe Mapisa-Nqakula

Productivity plan in place

South Africa has hired Akira Goshi of the Japan Productivity Centre for Socioeconomic Development to help develop a productivity blueprint for the next five years.  According to a report in today's Sunday Times (Productivity just too low, pay too high) SA can become more globally competitive if it works on its productivity. 

The article is really a good news article, it recognises that as an emerging economy we face some serious challenges.  Rising above these challenges is simply a matter of realigning our strategy to take certain things into account.  For instance - it may be an idea to move certain production activities to China

You can’t beat the Chinese at what they do best — being the lowest-cost producer of the world in most things. Even Vietnam, Taiwan and other Asian countries, which were once good cost centres, have moved their manufacturing facilities to China.

I find it interesting that Goshi has identified a series of critical issues that must be addressed immediately in order to improve productivity, the list below seems fairly obvious to me. (Italics is my emphasis.)

• The gap between the rich and poor is growing. (This is the ultimate reason for BROAD BASED BEE).
• Greater focus on practical skills.
• Government departments and institutions need to be more aware of the needs of the country.
• Quality and good service must be installed as a norm at public places.
• Crime has to come down.
• There must be a culture of honesty to root out corruption.
• Beneficiation - SA must develop its raw materials into semi-finished products before it exports it. (Preferential procurement provides bonus points for beneficiation.)

It's clearer than ever now that the success of BBBEE will determine whether South Africa succeeds.