Strategic partnerships and prospects between Poland and SA

Slawomir Sonarski (left), First Secretary – Trade & Investment Section, Embassy of the Republic of Poland in SA; Marcin Kubiak – Ambassador, Embassy of the Republic of Poland in SA and Andrzej Kiepiela – Consul, Embassy of the Republic of Poland in SA.

Wits Business School's Professor Gillian Marcelle, who welcomed the Polish Embassy to the school, said "We ... hope to collaborate our efforts in securing and fostering great partnerships between the two countries and SA-Poland universities."

The key advantages of such an affiliation are the location of Poland within continental Europe and the fact that Poland is part of the European transportation corridor, which proves valuable for trade purposes. Poland is the gate-way to other European countries due to its convenient position. During the recession in 2009 Poland was the only country in the European Union (GDP -4.2%) to have a positive GDP growth of 1.7%. Therefore, Poland has achieved economic and political stability.

Productive labour force

Says Sonarski, "With this positive partnership the GDP's of both countries will achieve an equal value of US$75 billion (about R532 billion) by 2015. Trade should reach US$5 billion (about R35.5 billion) which is five times the amount it is today".

With the educational climate in South Africa being what it is, he went on to explain that Poland can account for 11% of university students in the EU and has more universities and higher education schools than in China. There are more than 2 million students and 400 000 graduates per year.

In addition, more than 90% of these students are fluent in foreign languages, the learning of which is obligatory in the Polish Education System. English is now the most popular foreign language and is learned from the age of 10. All these factors contribute towards increasing labour productivity.

"In any kind of locked door regarding the economy, qualified people are the key," says Sonarski.

Investment opportunities

Other investment incentives include the €90 billion (about R858 billion) grants co-financed from the EU and the 14 Special Economic Zones (SEZ). A SEZ is a designated area in which manufacturing or distribution activities can be conducted on preferential terms aimed at supporting regional development. The total area of the SEZ's is 20 000 hectares and will operate until 2020. The benefits of obtaining a SEZ permit are that one will be eligible for income tax exemption, the land being purchased is available at a competitive price and there is free assistance in dealing with formalities regarding the investment project.

According to the World Investment Prospects Survey 2009-2011, Poland is the 11th most attractive country in which to invest. The investment climate in Poland was rated a 3.3 out of a possible 5 points. The main strengths being the size and growth of the local market, the access to international markets and the presence of suppliers and partners.

The main drivers of economic growth are said to be the strong contribution of net exports such as households spending (2.3%) and the construction sector (4.1%). Poland export 900 000 cars a year and have the biggest automotive factory in Europe. The automotive, aviation, biotechnology and IT sectors are supported by the Polish Government's Investment and Employment grants both of which create at least 500 new jobs.

Stricter credit policies pay off

Poland is much less affected by the "Velvet Crisis" than neighbouring countries. This is due to the bank's stricter credit policies that were in place before the crisis. The dynamic growth of foreign debt is not a factor as in so many other countries. Compared to the USA, the financial instruments are far less sophisticated and the stock market has less of an influence on the economy.

"An investment strategy with Poland would be a benefit to any foreign country due to the placement, grants from the EU and the high educational standards. South Africa and Poland have much in common and this is the reason why this partnership will promote the economy of both countries equally," concludes Sonarski.