the south african competitiveness forum · conducted during the 2015/16 financial year. background:...

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THE SOUTH AFRICAN COMPETITIVENESS FORUM Key l essons from the provincial SACF Focus Groups conducted during the 2015/16 Financial Year

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Page 1: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

THE SOUTH AFRICAN COMPETITIVENESS

FORUM

Key lessons from the provincial SACF Focus Groups

conducted during the 2015/16 Financial Year

Page 2: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Background: South African Competitiveness Forum

● Strategic, consultative platform through which Brand SA engages with

business, government, civil society & academia

● SACF focus for 2015/16 FY: focus group consultations in all 9 provinces

● Key issues discussed:

Country/provincial reputation

Country/provincial competitiveness drivers

Sector-specific issues

Ideas for country messaging

Recommendations & actions to rectify shortcomings, and enhance &

leverage off recognised competitive and reputational strengths

● 13 lessons with implications for Nation Brand were derived from provincial

SACF Focus Groups

● To feed into planning the Nation Brand Summit as well as Brand South Africa

planning for provincial & local-level marketing, activations and stakeholder

engagements

Page 3: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Coordinate and Consult

● In terms of the nation brand architecture, i.e. Corporate Identity, and the

use/application thereof by government entities, provincial and city

participants noted the need for closer cooperation on several levels,

including:

– Need for government entities to align to nation brand CI when

communicating & marketing internationally;

– Need for coordination of international visits and to make available

country messaging, corporate identity and related resources to state

owned enterprises, cities, provinces, and government institutions;

Recommendation:

● Develop national policy framework on the application of the nation brand CI

to assist in clarifying issues and manage alignment at national level

● Nation Brand Forum to be utilised as central platform to create such a

framework

Lesson 1

Page 4: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Place Branding and Rebranding

● Availability of resources poses key challenge to rebranding processes: actors

must also consider capacity and time required to implement and

communicate such a positioning locally, nationally, and internationally.

● Re-branding exercises at times not implemented, not completed or

implemented inconsistently. Such branding attempts do more harm than

leaving what exists intact

● Need for clarification around re-naming of Industrial Development Zones to

Special Economic Zones. Terms are currently used interchangeably

Recommendations:

● Place branding, re-branding processes to be undertaken within context of

provincial & national strategic objectives and in alignment and consultation

with the nation brand identity

● Organisations that run IDZs/SEZs must entrench and use correct terminology

when communicating with investors and citizens

Lesson 2

Page 5: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Seeding the country positioning: Inspiring New Ways

● Brand SA requires adequate budget resources to market, communicate &

entrench the country positioning in domestic & international environments.

● State-owned enterprises, cities, provinces and other gov agencies conduct

business and stakeholder outreach projects internationally. Yet coordination

is poor if not lacking entirely.

Recommendations:

● Brand SA to market, communicate and entrench country positioning in

domestic and international environments through: Nation Brand Masterclass;

Enhanced digital brand management platform; Additional budget for domestic

& international ‘above the line’ marketing; Established, clear national policy

level guidelines on application of nation brand corporate identity in domestic

& international marketing, communications, & stakeholder relations

engagements.

● Incorporate nation brand corporate identity, messaging, & related marketing

material into international engagements by government institutions,

corporations, and agencies to create more brand awareness & coherence

Lesson 3

Page 6: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Streamline communications between spheres of government

● Crisis communication management at local, provincial & national level needs

clear channels and enhanced coordination.

● When national incidents that impact on country reputation emerge,

provincial & city structures need to speedily access national level messaging

guidelines and response guidance (e.g. attacks on foreign nationals,

Marikana)

● Challenge: lack of systematic response mechanism to enable national

government to respond and guide the provinces

Recommendations:

● Establish a pro-active government communications mechanism to provide

coherent and timely messaging on incidents that affect country reputation as

a guideline to local, provincial and national level government stakeholders

Lesson 4

Page 7: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Create the brand message & position from the bottom-up

● Cities and provincial offerings play critical role in shaping the competitive

profile and reputation of the nation brand.

Recommendations:

● Brand SA & relevant provincial/city structures to coordinate and collaborate

on absorbing unique projects, interventions, opportunities, and developments

in provinces to showcase as part of the nation brand marketing efforts.

● Proposed Brand SA Knowledge Hub/Portal can consolidated above efforts. Hub

will function as informative, innovative & inspiring online portal intended to

serve stakeholders & general public domestically & internationally.

Lesson 5

Page 8: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Tourism: A notable common strength

● While each province has unique opportunities, human and cultural attributes,

there are common areas of strength:

Tourism

Climate

Perceptions of the people

● Challenge: rivalry between provinces regarding tourism positioning

● While certain level of cooperation exists, there continues to be a need for

more proactive interventions.

Recommendation:

● Provinces to enhance cooperation efforts: e.g. WC, NC & EC to further

expand offerings for tourists that visit usual ‘hot spots’ such as Cape Town &

Garden Route; Mpumalanga to further expand offering of tourism packages to

domestic tourists that incl. trips to Mpumalanga, Swaziland and Mozambique.

● Provincial tourism departments to step up efforts to develop tourism in

municipalities.

Lesson 6

Page 9: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Leverage notable common strengths

● Other common strengths that impact positively on the nation brand include:

Infrastructure – Western Cape, Gauteng, KZN (airports, roads, rail, ports)

Tertiary education – Western Cape, Gauteng

Business sophistication & diversification – Gauteng, Western Cape, KZN

Special economic zones & investment incentives

DTI – One Stop Investment Centres

● Challenge: good provincial initiatives abound, yet poor cooperation between

relevant provinces to leverage off these common strengths

Recommendations:

● Provinces to enhance cooperation efforts to leverage off common strengths

through improved communication

● Brand SA to facilitate high-level alignment by strengthening links with key

stakeholders, e.g. from DPE, School of Government, COGTA, SALGA, South

African Cities Network

● These entities also to participate in Nation Brand Summit

Lesson 7

Page 10: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Common Challenges

● Infrastructure development to support rural economies – e.g. Northern Cape,

Eastern Cape, rural Free State & Kwazulu-Natal

● Education quality

● Mismatch of education offerings with primary economic activities in the

provinces, e.g. no tertiary education institutions in renewables ‘hotspot’ NC

offer training to prepare locals for employment in the industry

● Perception of local government and governance; linked to service delivery

challenges.

Recommendation:

● Emulate KZN example by conducting Citizen Satisfaction Survey to gauge

levels of satisfaction with local government performance. In 2015, KZN

provincial government conducted Citizen Satisfaction Survey of 22,000

households. Also enabled provincial administration to identify key priorities

going forward (e.g. increasing employment opportunities & accelerating

housing delivery)

Lesson 8

Page 11: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Land access, agricultural & rural development

● Land reform remains a national imperative, but challenges remain that

hamper rural and agricultural development.

● Reputation challenge because it can easily be misrepresented as factor that

drives ‘policy uncertainty’, while from a citizen perspective government can

be criticised for being too slow to arrest historical challenges

● Challenges: limited budgets for land reform programmes, perceptions of lack

of government commitment, and post-settlement conflicts involving trustees

and Amakhosi (chiefs) in KZN for example

Recommendations:

● Enhance country reputation through improving development prospects in rural

areas by focussing on effective implementation of Agri-villages to support

small-scale agriculture

● Position narrative on land redistribution as constructive and intended to

improve livelihoods, support human development, and correct past wrongs

● Highlight interventions & cooperation between established ‘white farmers’

and emerging farmers, also cases where shareholding by farm labourers have

had a positive impact on agricultural productivity and labour relations.

Lesson 9

Page 12: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Provincial, city & national initiatives to enhance nation brand profile

● Challenge: media reporting & profiling of SA dwells mainly on national

interventions, strategies and development initiatives.

● Yet through SOPA, provincial planning initiatives, and specific interventions at

city and provincial level, significant resources are devoted every year to

improve conditions for communities.

● Such interventions often go un-noticed, and can add much to improve the

governance and service delivery profile of the nation brand as a whole.

Recommendation:

● Profile, for example, Operation Phakisa and its impact on coastal regions,

new infrastructure, Gauteng’s interventions to support SMME’s and local input

into development planning, Special Economic Zones and many more.

Lesson 10

Page 13: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Energy strengths and challenges

● Coal dominates SA’s indigenous energy-resource base (provides 65% of energy

needs). Provides cheap access to electricity, but ensuing pollution threatens

food and water security.

● SA has also become renewable energy hotspot thanks to Renewable Energy

Independent Power Producer Procurement Programme (REIPPP)

● Subsidy-driven growth triggered significant technology improvements, mass

manufacturing and subsequently reduced costs.

● CSIR study highlights financial benefit of renewable energy to the value of R4

billion more than they cost during the first half of 2015.

Recommendations:

● Mandate provincial department officials to oversee implementation of

operating companies and enforce compliance with CSI commitments

● Develop business case for SA to produce carbon-neutral synthetic fuels from

cheap renewable power (CSIR study)

Lesson 11

Page 14: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Diversification of provincial/local economies

● SA economy as a whole relatively diversified, yet specific provinces,

particularly those with strong mining sectors (Limpopo, North West, Northern

Cape) require more diversification.

● Challenge: fluctuation of global commodity prices threaten economic stability

Recommendations:

● Support development of provincial strategies to diversify respective

economies.

● Advance beneficiation along the value chain as means to promote socio-

economic growth in these provinces.

Lesson 12

Page 15: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Social cohesion and identity

● Social cohesion improves a country’s overall competitiveness and economic

performance and contributes to sustainable economic growth (good health,

child development and labour market adjustments)

● Challenge: Race-related violence on university campuses across the country

Recommendations:

● Government to encourage social cohesion through strategies geared towards

narrowing the gap between those with access to quality basic services

● Highlight and support initiatives such as the Anti-Racism Network South Africa

to tackle racism on a national scale

● Call on all South Africans to make individual effort to overcome divisions,

educate their children about equality, to build society not divided by

privilege based on race, class, space or gender

Lesson 13

Page 16: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Summary: Recommendations (1)

● Develop national policy framework on the application of the nation brand CI

to assist in clarifying issues and manage alignment at national level

● Nation Brand Forum to be utilised as central platform to create such a

framework

Lesson 1 - Coordinate & Consult

● Place branding, re-branding processes to be undertaken within context of

provincial & national strategic objectives and in alignment and consultation

with the nation brand identity ( e.g. City of Durban, North West Province,

Eastern Cape)

● Organisations that run IDZs/SEZs must entrench and use correct terminology

when communicating with investors and citizens

Lesson 2 - Place branding & re-branding

Page 17: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Summary: Recommendations (2)

● Brand SA to market, communicate and entrench country positioning in

domestic and international environments through:

Nation Brand Masterclass

Enhanced digital brand management platform

Additional budget for domestic & international ‘above the line’ marketing

Established, clear national policy level guidelines on application of nation

brand corporate identity in domestic & international marketing,

communications, & stakeholder relations engagements.

● Incorporate nation brand corporate identity, messaging, & related marketing

material into international engagements by government institutions,

corporations, and agencies to create more brand awareness & coherence

Lesson 3 - Seeding & entrenching the country positioning Inspiring New Ways

Page 18: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Summary: Recommendations (3)

● Establish pro-active government communications mechanism to provide

coherent & timely messaging on incidents that affect country reputation as a

guideline to local, provincial and national level government stakeholders

● Brand SA & relevant provincial/city structures to coordinate and collaborate

on absorbing unique projects, interventions, opportunities, and developments

in provinces to showcase as part of the nation brand marketing efforts.

● Proposed Brand SA Knowledge Hub/Portal can consolidated above efforts. Hub

will function as informative, innovative & inspiring online portal intended to

serve stakeholders & general public domestically & internationally.

Lesson 4 - Streamline communication between spheres of government

Lesson 5 - Create the brand message and position from the bottom-up

Page 19: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Summary: Recommendations (4)

● Provinces to enhance cooperation efforts

● Provincial tourism departments to step up efforts to develop tourism in

municipalities.

● Provinces to enhance cooperation efforts to leverage off common strengths

through improved communication

● Brand SA to facilitate high-level alignment by strengthening links with key

stakeholders (e.g. DPE, School of Gov, COGTA, SALGA, SA Cities Network

● These entities also to participate in Nation Brand Summit

Lesson 7 - Leverage notable common strengths

Lesson 6 - Notable common strengths - tourism

Page 20: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Summary: Recommendations (5)

● Emulate KZN example by conducting Citizen Satisfaction Survey to gauge

levels of satisfaction with local government performance & identify key

priorities going forward

● Enhance country reputation through improving development prospects in rural

areas by focussing on effective implementation of Agri-villages to support

small-scale agriculture

● Position narrative on land redistribution as constructive and intended to

improve livelihoods, support human development, and correct past wrongs

● Highlight positive interventions & cooperation in agricultural sector

Lesson 9 - Land access, agricultural & rural development

Lesson 8 – Common Challenges

Page 21: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Summary: Recommendations (6)

● Profile, for example, Operation Phakisa and its impact on coastal regions,

new infrastructure, Gauteng’s interventions to support SMME’s and local input

into development planning, Special Economic Zones and many more.

● Mandate provincial department officials to oversee implementation of

operating companies and enforce compliance with CSI commitments

● Develop business case for SA to produce carbon-neutral synthetic fuels from

cheap renewable power (CSIR study)

Lesson 11 – Energy Strengths and Challenges

Lesson 10 – Highlight/profile provincial, city & national initiatives

Page 22: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Summary: Recommendations (7)

● Support development of prov. strategies to diversify respective economies.

● Advance beneficiation along value chain to promote socio-economic growth in

provinces

● Government to encourage social cohesion through strategies geared towards

narrowing the gap between those with access to quality basic services

● Highlight and support initiatives such as the Anti-Racism Network South Africa

to tackle racism on a national scale

● Call on all South Africans to make individual effort to overcome divisions,

educate their children about equality, to build a society not divided by

privilege based on race, class, space or gender

Lesson 13 – Social cohesion and identity

Lesson 12 – Diversification of provincial/local economies

Page 23: THE SOUTH AFRICAN COMPETITIVENESS FORUM · conducted during the 2015/16 Financial Year. Background: South African Competitiveness Forum Strategic, consultative platform through which

Nation Brand Performance Presentation

Prepared by Brand South Africa Research

Contact:

Dr Petrus de Kock, General Manager – Research

[email protected]

Dr Judy Smith-Höhn, Research Manager

[email protected]

Leigh-Gail Petersen, Researcher

[email protected]

Readers are welcome to use the data contained in

this report for their own purposes provided they

acknowledge the source as: Brand South Africa,

Research & Nation Brand Performance Presentation,

October 2015, available at:

www.brandsouthafrica.com