Event organized by Cap40. Conference presented by Tim Harris on the South African Opportunity: analysis of SA political situation, economy and 2013 budget. Watch Tim Harris interview here: http://www.youtube.com/watch?v=HRRlZET3dkg Join Cap40 Community here: http://cap40.co.za/

1. Event Organized by:

2. The South African
Opportunity: analysis
of SA political
situation, economy
and 2013 budget
24 April 2013
Tim Harris MP

4. 2012: A bad year for South Africa…
• Widespread strikes in mining & transport
• Sovereign Credit Ratings downgrades from Moody’s,
Standard & Poor’s & Fitch
• Foreign direct investment down 44% year-on-year
• R200m state spending on President Zuma’s personal
uncovered

5. 2013 Budget Analysis

10. 2013 Budget Highlights
GOOD
Youth Wage Subsidy
Special Economic Zones
Small Business Tax Review
Incentives for Charitable Giving
NDP Alignment
NOT SO GOOD
A drag on African Growth
Infrastructure spending
Mining Tax review
Stealth taxes
NDP Accountability

11. Three underlying
problems
with the South African
economy…

12. High structural unemployment…

13. 5

14. Inability to achieve high growth rates when
times are good…
Average Growth
(2002-2010)
Highest Growth
(2002-2010)
Peru 6,3 % 9,8 %
Ghana 6,0 % 8,4 %
Vietnam 7,3 % 8,5 %
Singapore 6,5 % 14,5 %
Panama 6,6 % 12,1 %
Upper Middle Income
Countries
6,4 % 8,9 %
South Africa 3,6 % 5,6 %

15. • Education remains broken
• Ideological deadlock within ANC’s ruling alliance
• The Cosatu trade union’s dominance
• A National Treasury that controls finances but not
policy
• General hostility to Foreign Direct Investment
• Spend our time looking backwards, not forwards
Political blockages…

16. 8
South Africa’s Ranking
2012/2013
Strength of
Auditing and
Reporting
Standards
1/144
Co-operation in
Labour-
Employee
Relations
144/144
Efficacy of
Corporate
Boards
1/144
Quality of
Maths and
Science
Education
143/144
Regulation of
Securities
Exchanges
1/144
Hiring and Firing
Practices
143/144
World Economic Forum’s
Global Competitiveness Report

17. The DA’s Plan for
Growth & Jobs

18. Breaking down the insider/outsider economy
• Apartheid built an economy of insider and outsiders
dominated by large state and private companies
• Today we still have division: Big Government, Big Unions and
anti-competitive Big Businesses on the one side, and the
majority of South Africans on the other
• Our solution is to make markets work for the many, not just
the few
• The state has a responsibility to intervene when markets fail,
but also when powerful public and private sector players
abuse their market power at the expense of others

19. 29
Western Cape: The Province of Opportunity

20. 30

21. Five reasons why I’m optimistic…

22. 1. The African Opportunity

24. 2. We have proven we can deliver
in the 2010 World Cup…

25. 3. We have companies that
have taken on the world, and won…

26. 4. We have the world’s biggest reserves of
mineral resources at $2,5 trillion
(estimated by Citibank, 2010)

27. 5. The prospects for democratic transition
• The DA is the only party to have grown every election (1994 = 1,7%)
• Control 27 municipalities and Western Cape
• 2014 Target: 30% of the vote and another province
• 9m under the age of 34 eligible to vote (but 4,7m unemployed)

28. Tim Harris MP
tim@da.org.za
0824273751
Thank you…