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World economic crisis holds opportunity for SA

Thu, 29 Jan 2009 15:08

The current economic crisis has already led to large numbers of job losses across the globe, but also brings with it a unique opportunity for South Africa to recruit the foreign skills it needs to build up critical industries such as IT, construction, engineering and education over the next few years.

As a result of the credit crisis last year - which saw governments around the world having to step in and guarantee some two trillion US dollars to stabilise their economies - many shaky companies and industries were exposed or left with inventory that could not be sold, such as thousands of new vehicles in the motor industry.

The rapid decline in many sectors caught the business world unawares. Until the middle of 2008 there was nothing untoward indicated in the forecasts for the world economy, except that crude oil prices seemed to be on an upward spiral at USD 140 (the price currently stands at USD 40), commodity prices were high, and there were murmurs of possible problems in the US housing market.

Employment opportunities at that time seemed to be abundant, with demand in many sectors far outstripping supply.

South Africa had several programmes in place to attract skilled foreigners to work in our country because the economic growth rate, loss of qualified people through emigration, and a poor education and training system had combined to create a situation in which skills required across the economic spectrum, and in several critical sectors in particular, could not be found within the local workforce.

Since then the global picture has changed dramatically, with declining business sectors in many countries undergoing massive restructuring and job shedding.

The UK and US, for example, are currently experiencing retrenchments in the construction industry.

However, South Africa, Canada, Australia and China are experiencing shortages in the same sector, so there is a very real opportunity for people with the right skills to obtain work contracts in these countries.

Generally, skilled workers are the most mobile in the workforce as they are the best equipped to sell their talents to countries in which opportunities available.

While South Africa may not be the first choice for foreign workers because of the poor exchange rate and other negative perceptions of the country, I believe it should be sold on the basis of lifestyle, the relatively cheap cost of living compared to other countries, and our first-world standing in many industries.

It will take a concerted and sustained effort by government and the private sector to ensure that we use this unique window of opportunity to promote and develop our country.

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