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High pay, low productivity, skills shortage, restrictive labour laws...

6 Jul 2011

South Africa is not an attractive manufacturing destination because the rates of pay in this country are too high and the productivity levels far too low and when this is combined with a shortage of skills it makes it a highly unlikely destination for low-cost assembly-line manufacturing that has underpinned much of the growth in Asia.

According to The Citizen article, if South Africa wants to move ahead economically, it needs to either abandon its labour laws and minimum wages and try to attract low-cost manufacturing, or to dramatically improve the quality of its education system and produce workers who are skilled, competent, and entrepreneurial. Read more...