Even Amid Global Slowdown, Southern African Growth Prospects Good

(HN, June 26, 2010) – CAPE TOWN, South Africa -- Southern Africa's growth prospects appear good even amid the global economic slowdown.

However with about a quarter of adults of working age out of work in South Africa, the nation's trade minister Rob Davies said more needs to be done.

South African Trade Minister Rob Davies at Fortune Global Forum

"It’s not where it needs to be...it’s not just the percentages of growth, we need to produce more labour absorption," he said, adding that structural changes also need to happen. Without being specific, he said the structural changes include enhancing "employment drivers."

Davies said recently forged trade agreements with various trading blocks and bilateral agreements are bringing mutually positive results.

In response to a question from HUMNEWS on whether neighbouring countries have benefitted from the hosting of the World Cup as much as they had hoped, Davies said host nation South Africa has "done as much as it could" to make the games a positive catalyst for its neighbours. This included easing border controls. He said it was up to nearby countries to create opportunities to benefit from the games.

 (Some of South Africa's neighbours like Lesotho complain that the reverse has happened: tighter border controls imposed for the Games has actually hurt them.)

In other comments, Davies said the clothing industry is an important sector in South Africa and in neighbouring countries. However more value would be created if the sector "upscaled" itself through, for example, the introduction of new technology. He also wants to see a clampdown on illegal imports of clothing.

The minister made the remarks at an opening media briefing of the Fortune Global Forum, which starts today in Cape Town.

--- Reporting by HUMNEWS’ Michael Bociurkiw, at the Fortune/TIME/CNN Global Forum in Cape Town, South Africa