Rand far too strong - Vavi

The rand is far too strong, Cosatu secretary-general Zwelinzima Vavi said yesterday.

He was speaking in Johannesburg at the launch of a joint declaration by the country's three major trade union federations - Cosatu, the Federation of Unions of SA, and the National Council of Trade Unions - and manufacturers to create jobs.

"The declaration calls for interventions to ensure an appropriately valued, competitive and stable currency," Vavi said.

A competitive currency would allow South African manufacturers to compete more effectively with other developing countries, he said.

"The government from time to time speaks about the need for the rand to reach a competitive level, but we only really hear this in the Budget speech or the state of the nation address."

Vavi called for a reduction in real interest rates, as well as the introduction of concessional finance for productive investment.

Manufacturers who signed the document included Arcelor-Mittal SA, Consol Glass, Hulamin, Bell Equipment, and Altron.

Econometrix chief economist Azar Jammine said recent comments by Economic Development Minister Ebrahim Patel and Trade and Industry Minister Rob Davies, to the effect that the rand should be weakened to boost manufacturing, were misplaced.

Commenting on talk that the government should intervene to weaken the rand, Jammine said such suggestions were "overdone, overplayed and somewhat misplaced because our manufacturing sector has gained ground despite the stronger rand."