Open letter to Finance Minister Mr Pravin Gordhan & affected Ministers

First and foremost, this email is a heartfelt plea to Government to look into what is being discussed here with an open mind and that everything expressed is for the betterment of South Africa. The first two paragraphs are ‘politically’ based but then gets to the meat of the subject, so please bear with me.

Also let me make this very clear right from the start, I am a ‘white’ non-racist South African and the following email is to put a few ideas not only to you Mr Gordhan but to your colleagues in Government about our economy and where work is available as seen from a concerned citizen’s perspective and that of a prospective businessman. That being said, these ideas are well thought out and researched (within the powers afforded to me at this time).

*B-BEE

Broad based ‘Black’ Economic Empowerment is outdated and should now be known today as B-BSAEE, Broad Based ‘South African’ Economic Empowerment and that would be half way to finding a solution to our National problems. Not only that but racism as defined by the UN includes a portion which states ‘non-inclusion or exclusion’ and discrimination towards any group or minority in any economic venture or action is regarded as racism which is supposed to be against our constitution yet is forcibly being entrenched. It is understandable that certain actions were taken in the beginning of our democracy to rectify and redress what had been done during the apartheid era but to continue with it now would be detrimental to us as a people and as a Nation, what with us facing rating agencies, our National debt and the need for Government to make more funds available for infrastructure, education and ‘attempted’ poverty elevation. This action also tends to be a huge block to investments coming in to SA let alone for any ‘white’ South African to invest in their own economy. The thought being ‘why invest when I am being excluded?’ Point should be taken.

*Politics:

Party politics should be taken out of any economic decisions regarding South Africa’s future - probably hard to do at this point in time but again we as a country must strive towards that end together or fail as a country. It would also help, what with the certain political ‘goings on’ at the moment.

*Electricity:

I have just read a post relating to the Swedish way of doing two things that we as a country could implement reasonably quickly regarding the use of garbage as incinerator fuel which makes steam and drives a turbine to make electricity. The Swedes are even importing trash to feed their incinerators. The ‘catch’ – it is reasonably labour intensive (to our benefit) as the garbage has to be filtered to take non-flammable material like metals out of the feed. This works for employment, electricity and on broader based environmental issues. These environmental issues are, that only 1% of the trash lands up in landfills and the smoke from these incinerators is 99% non-toxic. Costs are, for the incinerators, steam works, garbage handling depots and the labour. The effectiveness of using garbage – 3 tons of waste contains as much energy as 1 ton of high class fuel. Even though the IPPPP is in place, these IPP’s (Independant Power Producers) could be implemented a lot faster because of the impending problems relating to power generation in South Africa without reverting to nuclear power sources. One or two incinerator plants per city or town feeding into the national grid could work hugely in our favour on all levels.

*Water:

Because of the shortage and sensitivity of the water issue in South Africa a lot more could be done to conserve it and at the same time make work available. The building of new dams, large atmospheric water generators and solar heated evaporators to putting up water tanks on houses and buildings can and will, over time, reduce the amount of water taken out of the system. These generators can produce commercial amounts of up to 10,000 litres per day and more. The use of basically any water can be utilized by the solar heated evaporators, meaning salt and ‘brak’ (salty) water can be used to extract clean water. The costs to Government and civil society (if we were allowed to participate) would be the construction costs, labour, connections of the generators and evaporators to available storage facilities plus the labour of installations of home storage tanks as far as is possible throughout SA. Making storage tanks a part of any new house, apartment block or building should be gazetted and made law. The addition of grey water tanks and reservoirs to water gardens, city and town parks to small commercial ventures could also be instituted.

*Housing:

If restrictions were lifted on companies being awarded RDP housing and new construction methods were adopted, this particular problem could be dealt with quickly and efficiently. The use of technologies like cement foam casting of houses reduces the time to put up the basic structure in 2 to 3 days with excellent finishes almost guaranteed and looking like a plastered house. Doors, windows, electricity and plumbing to be added (made to measure in new factories) - The use of environmentally safe powdered paints (mixed on site with water), that is fire retardant, non-toxic, odour, lead and solvent free with excellent thermal qualities and cost effective to boot. These are but two methods that could help SA reduce our home backlog and stop the unrest where at least housing is concerned. There are many more available but people and companies need to know that by investing in these new technologies that they will not be excluded from the tenders by undue pressures directed at them by Government enforcing B-BEE in all its facets.

*Material resources and manufacturing:

Doing away with the B-BEE status in South Africa for bigger companies down through to micro businesses and doing away with restrictive practices, would allow for more people getting involved and utilizing our natural resources in South Africa to add value and employ more people. The more we can produce at home means that we can effectively produce more work, not import as much as we do and we would have export products bringing in foreign exchange. This obviously is a simplistic view overall but the basis for thought. South Africa should have a home gown ‘Indaba’ relating to the above dilemma facing us and come up with a short and long term ‘inclusive’ plan to develop our country using the above ‘thoughts’ to map out the way. If we are serious about sorting out our country, something along these lines has be discussed and brought to bear as quickly as is possible. Time is running out.

These are but a few ideas of what can be achieved IF we got everybody on board, from Government right through to the small entrepreneur and from all sectors of business.

T-Set (Prototype on the right) From a personal point of view I have a few products that could be manufactured locally and employ anything from 20 to 300 people depending on which of the products R&D show reasonable possible take off from the world markets. Even if most of this work is ‘farmed’ out to already existing local manufacturers, it 1/ keeps these companies going and people employed and 2/ brings in new foreign revenue BUT because I cannot get access to some basic funding (I am a white 66 year old) all of these products are unfortunately bound to stay on the shelf and not see the light of day. My question is why? Even as an older person I have an understanding of my preferred market (worldwide golf) that most don’t see or understand plus the products not only take myself and my wife off state sponsored pension but to start earning, again not just for myself but for other people connected with my business and in general for South Africa. Our two pensions might be a drop in the huge bucket of Government spending but it all helps in the right direction. All these small amounts can be ploughed back into helping us ‘small guys’ start businesses and thereby help us with our employment backlog among other things.

Shady (Prototype on the left) The reason for asking this is this. If a small to medium sized business can employ just 20 people and there are 5,000 ‘new’ entrepreneurs employing those people, we will be employing 100,000 more people with not too much problem. Extend this to the medium and larger businesses by dangling the carrot of tax cuts connected to the number of new people employed – make finance available to the individual entrepreneurs out there (white, black or other) at lowered finance costs – set up ‘usable’ help centres for these new business to get the needed R&D, materials, educational and financial handling skills and see the results as regards labour and an improved economy.

Help us get South Africa back to work.

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