Interview on parastatal restructuring

A presidential review is underway to determine whether all of South Africa’s parastatals are fulfilling their mandate, creating value and enabling the government to grow the economy. I did an interview with CNBC Africa on the review process being undertaken.

Posted: February 9th, 2011 | No Comments »
Filed under: Public Policy, Public Services | Tags: , ,


Unemployment by Race (2009-2010)

I am running a short series on unemployment in South Africa, starting with some basic statistics over the next few months. I am presenting these online, without much commentary as I still trying to get through the data. This project helps me to keep track on the unemployment data, and share the data. I am using the “official definition” as a starting point. The official definition of employed is:

Employed persons are those aged between 15-64 years who,during the reference week:

  • Did any work for at least one hour; or
  • Had a job or business but were not at work (temporarily absent).

The table below provides the official unemployment rate by race for the second quarters in 2009 and 2010.

Read the rest of this entry »

Posted: October 14th, 2010 | No Comments »
Filed under: Economic Inclusion, Unemployment in South Africa | Tags: , ,


Local Obsession and the Economy

"Local obsession"

Bianca Mavuso wearing Francois Vedermme

How do we tell the story of economic policy in South Africa? As an analyst my tools are statistics and substantiation, and even sometimes a case study. Steve Mandy, a fashion artist, tells the story through art. (A profile of Steve is found here.) His exhibition – which I have viewed only through online pictures – tells a more accessible story. (Details on the exhibition are here.)The exhibition titled “Local Obsession” – which involves Steve working with fashion designers – offers a profound and demanding reflection of the clothing industry, and more broadly, the South African economy.

I requested permission to use some of the images. Steve Mandy made a phone call, and explained the motivations behind his exhibition. The aspect that stood out for me was using what was available to develop and fund the exhibition, and how the exhibition appealed to an audience outside the traditional audiences that attend art exhibitions. This is a typical case of an entrepreneur using the available inputs to explore an existing opportunity.

Extract from Artist Summary

This exhibition builds on the concept of international super monopolies and their involvement in African economic markets. This opaque influence infiltrates African countries with great subversive skill and the effects are not apparent to the general consumer. I have used ‘Fashion’ as a metaphor for all industries effected by foreign involvement and symbolised foreign intervention with Chinese Theatrical masks which are hidden within images.

Source: Steve Mandy

Whilst, I am not a sophisticated art goer, I have always appreciated the artist’s perspective. In this case, the exhibition matches a beauty of the exhibition, with an invitation to think and act about our deeper social and economic issues. The exhibition and its motivations raises three broader issues for economic policy in South Africa.

One – Behavioural Change

The exhibition asks South Africans for more consciousness in buying choices. The idea being that buying South African helps us to grow an industry. There have been several attempts to shift buying decisions towards South African products. The challenge for businesses however remains providing value to customers, both in terms of quality and price. The exhibition shows that there are strong possibilities for providing both affordable and high quality clothing products in South Africa. In this sense, it provides a much more imaginative restatement of the traditional debate on low cost imports in South Africa, which asks the questions devoid of creativity. The  question is  “Do poor people benefit more from cheaper products which

Local obsession

Priynaka wearing a Haroun Hansrot Creation

make South Africans factories unviable, or do they benefit from having jobs in factories?”. The exhibition turns the question around asking instead: What are possibilities for creating a viable clothing industry that both provides good quality goods, and serves a market effectively.

Two – Value Chains

At first blush, I was left wondering what on earth do resin and steel have to do with clothing. Here again, the exhibition seeks to show  how unconventional inputs are crafted into products, with a bit of imagination. It however raises a deeper insight -  producing internationally competitive products requires value chains that give fair value and price to businesses, if South African businesses are to create awesome products, which are potentially job creating. The linkages and the innovation in other parts of the economy create new inputs, and as such scream out for conversion into unexpected opportunity, is something we very often glance over in developing economic policy.

Three – Make it happen locally

Local obsession

Gugu Msimang Creation Multi media Fibre glass, resin and fabric

There is obviously too much rah-rah in the entrepreneurial world, and huge structural challenges for South African entrepreneurs. However, as Steve mentioned in our chat, he finds ways to use what existed to create the exhibition. This included partnering with a range of designers, manufacturers and involving communities in the process.

Granted, the structure of the economy is an obstacle for entrepreneurs. Yet, there is a lesson for  those struggling to start-up (that includes me) can learn a lesson or two. The lesson is somehow make a plan.

In fact, it shows that if think creatively and logically at the same time, the inputs might be available.

In sum, the exhibition raises some important and valid public policy issues in an accessible and beautiful way. Personally, it provided both a distraction and space to think about the South African conversation.

Posted: October 7th, 2010 | No Comments »
Filed under: Economic Inclusion, Entrepreneurship | Tags: , , , , ,


Unemployment by Province (Second Quarter 2010)

Unemployment Rate by Province (Second Quarter 2010)

Province% Unemployed
KwaZulu-Natal20.8
Western Cape21.8
Limpopo22.6
South Africa (Total)25.3
Gauteng27.1
Eastern Cape27.7
Free State28.0
North West28.1
Mpumalanga28.1
Northern Cape30.1
Table on unemployment rate by province from Labour Force Survey Second Quarter 2010
Ebrahim-Khalil Hassen


Source: Statistics South Africa

Posted: September 25th, 2010 | No Comments »
Filed under: Economic Inclusion, Unemployment in South Africa | Tags: , ,