South Africa is going through an economic slump which impacts employment and the poverty levels in the country.
When you talk about economic hubs, or thriving cities in this country, there are a handful of places that spring to mind. Workers and foreign investors flock to cities like Pretoria, Johannesburg, Cape Town, and Durban seeking employment and investment opportunities.
Executive Chief economist at Alexander Forbes Investments Lesiba Mothata believes that there is a second tier of cities, whose potential is as yet unharnessed. He thinks that this could help us break through the 3 percent economic growth barrier.
Lesiba Mothata of Alexander Forbes Investments, believes smaller pockets of economic and industrial growth are waiting to be uncovered in second tier towns like Kimberley, Bloemfontein, Polokwane and Nelson Mandela Bay.
Questions around why Port Elizabeth cannot become the car manufacturing powerhouse in Southern Africa, or why Nelspruit can’t become the Dubai of Africa as a retail and agricultural export hub are issues that the economist addresses with #WeekendBreakfast host Africa.
Alexander Forbes Investments Lesiba Mothata believes that if Cyril Ramaphosa is to become the President of the country, he should focus on the second tier of cities which include Bloemfontein and Port Elizabeth.
Mothata says that most of the economic growth in the country comes from Pretoria, Durban, Cape Town and Johannesburg. He adds that South Africa is trying to get the country to grow using macro policies, which is admirable, but focus needs to be placed on the migrated economic outcome.
In Port Elizabeth, what’s missing is the value chain across the line of having a car that is fully functional says Mothata.
We are still importing components, they are still made elsewhere in the world, and we are just assembling.— Lesiba Mothata, executive chief economist at Alexander Forbes Investments
Click on the link below to hear the full audio...
This article first appeared on CapeTalk : Second tier cities could save SA's economy says Alexander Forbes Lesiba Mothata