News South Africa

CGCSA CEO calls on industry to build structures

The CEO of the Consumer Goods Council South Africa (CGCSA), Gwarega Mangozhe, officially opened its annual conference on Wednesday, 10 October 2012, by saying that it appears that Africa is finally setting course for living up to its promise, but as with any large scale, fundamental change, it comes with pain of shaking off the old order.

"Finally Africa is becoming the most dynamic place to be. However, it will test all of us to our core. Added to which the age of 'commodities for Africa' is slowly being replaced, here, and on the continent, with a rapid catch-up of demanding, segmented, consumers, who demand what they know is available to their peers around the world."

Turning to South Africa, he reminded delegates that on an average day many people are dealing with strikes, political turmoil, we face deep social unrest, nervous shareholders, colleagues and customers, an infrastructure stretched to its limit, product innovation cycles that we've never seen before, credit issues, rapid migration of people and goods and money and processes.

"As an industry, compared to any other industry, I believe our core strength, is to know when to collaborate. This industry would not exist if we did not know how to do that. We have retailers, transporters, manufacturers, importers and service organisations, all in a strange mix of collaboration and competition. In addition, we have all South Africans, and many outside, as our consumers - providing us with a daily test. How much better can it get?"

"Our industry is a very large involuntary and informal partnership between hundreds, no, thousands of investors, and a whole range of public goods, such as roads, ports, communication systems, structures that enforce brand IP, and education. Yet, there is no over-arching structure to guide or discuss this partnership between us and the custodians of these public goods. So, we look forward to seeking to build such structures, to benefit all our stakeholders."

He believes that the industry's core skills are going to be put to yet more additional tests. "We cannot expect to be immune from the problems around us - of deep poverty, of inequality, of hopelessness, and of parents who simply can't do what's best for their children.

"Anyone who believes that we need a competitive manufacturing basis in our economy will need access to the market - and that is us. To live up to that aspiration will require the scale-up of skills development and enterprise formation and development at a scale unheard of by any of us and we intend to be in the middle of all of this."

Let's do Biz