Tech up or stay behind: local economist

POLOKWANE – Glen Steyn, the city’s local economist from Glen Steyn and Associates, foresees tough times ahead for Limpopo regarding economic growth as one of Limpopo’s core industries, the mining sector and more especially the platinum sector, showed a decline in demand for this metal which in return effects the economy’s growth.

Steyn forecasts a slow growth for 2017, indicating a 1,8 percent for Limpopo, 1,7 for Polokwane and 2,1 percent for South Africa. Steyn says 2018 however could see the economy perhaps stabilising, but businesses should not place their hopes on it as the market is dependent on how the international market recovers, especially Europe.

His advice for business owners and enterprises is to find a way to make their capital work so that one can make provisions for difficult economic times ahead.

Steyn says certain sectors like government and financial services have largely contributed to the GDP and economic growth of Polokwane, but now during these tight economic times that this city are currently experiencing, are these sectors seen as “constipated businesses” which in a sense hampers the growth of the city. He added that these sectors can be good for economic growth, but their is always a risk factor for investors should something in these markets go wrong due to economic hardships.

Steyn says businesses who is not on par with the technology today is surely losing out. The internet has made worldwide industries a connected industry. He says platforms like social media has became a very popular business model for many industries and is becoming the face of the future for business models.

He says social media as a business platform can cut out a lot of overhead costs, like marketing for instance, when you can reach millions of people from the chair of your office. Steyn thus reckons that these technological platforms are showing the trend in becoming the direction businesses prefers to operate in this day and age.

“The internet, smartphones with its apps as well as various other mobile and tablet apps including broadband connectivity is the playing field to do business these days. But businesses must also be aware at all times of security concerns when it comes to the protection of secretive information which could prove harmful if landing in the wrong hand,” says Steyn.

Steyn says in developed communities like Polokwane for instance the internet and social platforms is trending very well, it is however in poorer communities in destitute areas that education to these technologies needs attention. He says people who are poor and poorly educated would struggle with the digital migration and to adapt to it.

“The cost of production are at or above the market and that is why more businesses are jumping into the digital space which include management, personnel and operationally. Businesses in the digital space should continue and increase to create ad extend social media platforms and networks”, Steyn concluded.