Most of the import tariffs protecting South African companies in their home market have been in place for more than 20 years, trade expert Donald MacKay tells Peter Bruce in this episode of Podcasts From the Edge.
That implies that in two decades the protected companies still have not become competitive enough to stand on their own two feet.
It has given the trade instruments in the hands of trade, industry & competition minister Ebrahim Patel a bad name and business is increasingly loath to use them.
If you do, Patel will protect you if you promise to create jobs. And if you want to import something that isn’t made in South Africa, he’ll give you permission provided you undertake in writing to buy from a local producer if someone starts making the product you want.
And all the while the minister has the aim of “creating” heavily subsidised black industrialists who will one day substitute all your imports for you. The state doth wheel and deal in South Africa and by the looks of it a swathe of business has had enough.
Join the discussion:
Subscribe for free future episodes: iono.fm | Spotify | Google Podcasts| Apple Podcasts | Pocket Casts | Player.fm