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Hilbroy Advisory: Crucial economic crossroads
Hilbroy Advisory: Crucial economic crossroads
South Africa must find the statesmanship to represent the continent, just as Brazil represents South America, and not just itself.
Montreal,
Quebec,
Canada
(prbd.net)
25/05/2011
Montreal, Quebec, May 24th, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: The South African economy is at a crucial crossroads and wrong decisions about the direction it takes could see the country left wallowing in low, jobless growth while other emerging markets power ahead, Investec Asset Management strategist Michael Power warned this week.
A key choice would be how the country handled its recent accession to the group of the world’s largest and fastest growing emerging markets – Brazil, Russia, India and China, Power told the Global Insights conference in London.
“South Africa must find the statesmanship to represent the continent, just as Brazil represents South America, and not just itself. This is about the interests of a billion Africans and not just 48 million South Africans, and that is what Brazil, Russia, India and China are expecting.
“The rest of Africa is now growing at twice the rate of South Africa and there are already predictions that the Nigerian economy will overtake South Africa as the leading economy of the continent by 2022. This could leave slow growth South Africa in an invidious position,” he said.
Power, who sits on Ebrahim Patel’s economic advisory panel – which advises President Jacob Zuma, told the conference of Investec clients and managers from all corners of the globe that relatively high US dollar wages in South Africa were making the country uncompetitive to foreign investors.
“South African workers get paid more than their counterparts in Singapore, while a semi-skilled South African worker gets paid four times more than a similar worker in Nairobi.
“After Germany and Japan were devastated during World War 2, the miraculous economic recoveries that followed – Germany’s Wirtschaftswunder in the 1950s followed by Japan’s “Golden Sixties” era – were both underpinned by ultra competitive US dollar wage rates.”
To industrialize, first you had to create jobs in entry industries like textiles and then, on this foundation, build via innovation and increasing the skills of the workforce, Power said, adding that this was what was happening in the East where China’s rise was being mimicked by Vietnam, Bangladesh and Indonesia.
Power warned that the New Growth Path ambitions of creating 5 million new jobs would not be fulfilled unless significant macroeconomic policy changes were enacted including promoting the rand at levels that made South African manufactured exports far more competitive.
But there are a number of bright spots facing South Africa, especially on the Eastern horizon. The economic rise of India is one. “India has the potential to be a powerful economic driver for South Africa. It is going to be the next commodity powerhouse. It has already overtaken China as an importer of South African coal and has gone from 5 percent of South Africa’s trade five years ago to 20 percent today.”
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates", "believes", "could", "expects", "intends", "may", "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
About
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
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