SA needs new economic doctrine‚ says Susman

"Economic growth that is lower than that of other emerging countries‚ extended labour unrest and a lack of job creation are adding to a slowdown in consumption-led growth in South Africa," says Susman.

"It is as if those in work are conspiring with government to keep the unemployed out of work and out of the markets‚" Susman said.

"It is only by growing private enterprise‚ large and small‚ that the fiscus's coffers can be fed. It is business that creates the sustainable jobs and the new industries this country needs so badly," he added.

Susman says that the flow of restrictive‚ populist legislation being imposed on commerce in South Africa‚ particularly on the labour and trade practices‚ were hurting jobs and small businesses.

Woolworths generates more than 23‚000 direct jobs in South Africa and about double that throughout its supply chain. The company sources about 90% of its product locally and, through its enterprise development programme, supports emerging black-owned enterprises.

These include Chic Shoes‚ which has produced more than 400‚000 pairs of leather pumps for Woolworths‚ and Bagpac‚ which makes recyclable paper shopping bags for Trenery and Country Road stores.

About 50% of Woolworths' sales are generated by black customers.

Taxes and regulation

"We pay R1bn in taxes and believe we make a material difference to the lives of millions in this country. Our future customers will only come from a more liberalised economy where government and business share a vision of growth - a strengthened‚ not a weakened‚ National Development Plan‚" Susman said.

"With unemployment hovering at about 25%‚ the government is falling behind its target of 5m new jobs promised in the 2009 elections. Lack of policy coherence‚ poor infrastructure and stifling trade laws have hindered growth and hurt investments," says Susman

The International Monetary Fund's country study this week said three factors hold back growth and job creation in South Africa: poor education; collective bargaining that leaves wages too high for job creation by small or new businesses‚ while the large firms are replacing workers by machines; and the great distances between jobs and job seekers due to apartheid policies.

"As a result‚ many people are excluded from the labour market‚ firms prefer to employ machines rather than workers‚ there are too few small- and medium-sized enterprises‚ and innovation is stifled. Most South African enterprises seem to see their expansion potential in Africa‚ not South Africa‚" the study said.

Manufacturers complain

Shoprite Holdings' chief executive Whitey Basson said last week he was concerned about the decline in South Africa's manufacturing sector and by its lack of innovation and competitiveness.

"Many manufacturers complain that due to high input costs they cannot compete with imports and therefore they beseech the government to limit those imports by imposing higher duties on imports.

"This attitude places the retailer in a difficult position because the people employed in the manufacturing industry are also its customers‚ and if they are unemployed the business suffers.

"The dilemma is that the retailer owes the people of this country the opportunity to buy what they need at the lowest prices - 50m people cannot be held to ransom by manufacturers that are unable to compete effectively in a world market‚" he said in the group's annual report.