I have just spent a week in Dubai. We were guests of pay TV operator MultiChoice, so I have to mention them to justify my pricey plane ticket. The broadcaster is expanding not just outside our borders, but beyond the continent. Group CEO Calvo Mawela and chairperson Imtiaz Patel are already permanently stationed in the United Arab Emirates (UAE), from where they are seeking a seat for the company at the global dinner table.
For the next six months, the Arab state is hosting the Dubai Expo where 192 countries are exhibiting their technological innovations and cultural offerings. It is natural to be intoxicated by the modern architectural marvel that is Dubai; the skyscrapers that tower beyond view, including the world’s tallest building, the Burj Khalifa, and the other man-made wonders.
Over lunch we had lengthy and heated discussions with the group of South Africans I was travelling with about what it takes to achieve these unbelievable levels of development in a relatively short space of time. Visionary leadership has allowed the UAE to transform the city from a fishing and small trading outpost into literally the headquarters of globalisation — in half a century.
China’s development was much faster, but that’s a story for another column.
My argument over a good intake of golden liquid and outstanding cuisine was that South Africans must not even dream of achieving progress such as this. We are stuck in the middle-income trap and our poor policy decisions and weak governance are slowly trekking us back into third-world status. Yes, we are different countries. The UAE is not a democracy, its population is a 10th of ours and its developmental needs are different ... blah, blah, blah.
I’m not suggesting for minute that SA can build cities à la Dubai; I’m just opining on how visionary leadership can transform societies over a short period of time.
Another thing I observed while there is that we have become largely irrelevant in the bigger scheme of things. I know it will sound harsh, but no one cares about us. This country accounts for between 0.5% to 1% of global GDP; apart from our commodities, the world is interested in very little else we have to offer. We are the most industrialised country on the continent, but are we using that as a competitive advantage? Are we showing the world we are the natural gateway to Africa, despite our geographical disadvantage? Absolutely not.
If an investor sitting in Dubai right now, with a billion dollars to spend in Africa, looked at a map of the continent, would SA be the natural destination for that money? It used to be when we were the miracle story, but sadly we have squandered that opportunity. For starters, we can’t keep the lights on, which severely diminishes our appeal as an investment destination. If that investor buys the story that we are fixing power supply and blackouts will soon be a thing of the past, then they have to contend with the red tape involved in setting up operations here. If they decide, after that headache, to set up shop anyway, we can place them in one of the special economic zones, where they can benefit from tax breaks and so on. That’s a plus.
However, if their operation demands specialised skills, they will soon discover we don’t have enough of those to go around. Our people are poorly educated and unskilled. Importing those skills becomes another headache because Home Affairs places onerous requirements on skilled migrants.
Once in business, their operation is intermittently disturbed by industrial action because major unions are in bed with the governing party and they call the shots. Then there’s the added cost of crime. Syndicates hijack construction sites with impunity; people get murdered in broad daylight. Don’t forget corruption; some palms will want to be greased.
Add to all of this the inconvenience of a nonexistent rail network, a poor and congested road network and the lengthy trip to get your goods from the southern tip of Africa to the rest of the world. A smart investor takes their money to Morocco or Kenya.
MultiChoice showcased South African cultural works at the Dubai Expo and I applaud it for doing so. One glitzy evening we were given a sneak preview to Blood Psalms, a mega TV production that debuts in February. You can tell from the costume and set design alone that a lot of money has been thrown into this production. Hopefully global audiences take to the storyline.
As for South Africa, it is a horror show executive-produced by the ANC. We are just less than a week away from the local government elections, when voters will decide who runs their towns and cities.
Don’t be surprised to see the ANC returning with increased majorities to govern many of the municipalities it broke. Ours is not an electorate prone to punishing bad governance. We prefer to throw stones after the fact.
As I said to my lunch mates on the 77th floor of a glassy skyscraper in Dubai ... don’t even dream of South Africa developing to these majestic levels. We have the leaders we deserve.