Follow the Chinese model for employment and wealth creation in South Africa

2020-01-20 10:49
Chinese retailer Alibaba rakes in billions of dollars in sales annually on the country's Singles Day.

Chinese retailer Alibaba rakes in billions of dollars in sales annually on the country's Singles Day. (Noel Celis, AFP, Getty Images)

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I am always amazed why Africa, and in our specific context, South Africa does not follow the Chinese model of job creation for millions upon millions of people.

What I am talking about is the great Chinese company, Alibaba. It is in actual fact a larger and more wealthy company than its American counterpart, Amazon, run by Jeff Bizos, one of the wealthiest human beings on the planet.

The way Alibaba works, is to provide a worldwide sales and marketing outlet for small to medium scale Chinese traders and manufacturers.

Peasants and whoever else may be eligible, manufacture a wide range of products from say dresses, shirts, pants, dolls, toys, shoes, welding equipment, computers, radios, torches, toasters, kettles, hats, helmets, safety gear, climbing gear, tents, backpacks, tables, chairs, furniture and so on.

The range of goods manufactured and available for sale is almost unlimited and completely diverse.

Almost anything you can think of, the Chinese small-time workers will be producing, somewhere in China, from large cities to the absolute smallest of rural villages and settlements.

What Alibaba does, is market all these goods through a single internet site.

The way it works, is that you find want you want on the internet, on a website of the Chinese entrepreneurial operation making and manufacturing the item you want.

You then place your order through Alibaba, and pay Alibaba through your credit card. Alibaba contacts the merchant, and the item is delivered door to door, to where you live.

It can either be air-freighted which only takes a few days, or shipped by sea which is cheaper, but takes longer.

Once you receive the item, if it is what you ordered and of the quality promised, and not damaged in any way, you contact Alibaba to say you are happy with your purchase, then they duly pay the merchant.

And that is just how simple the whole process is, and how employment is generated for hundreds of millions of Chinese, who have skilled themselves up sufficiently to produce their particular product.

Furthermore, once they have built up a successful trading record, they can apply to Alibaba for working capital to expand and upgrade their enterprise.

The Chinese system is just so efficient that a request for additional working capital from Alibaba can be processed and approved within three minutes.

Come on South African business entrepreneurs with plenty of capital you are sitting on.

Do SA and yourself a huge favour, and let a group of very wealthy businessmen set up a South African version of the Chinese Alibaba, and help reduce the horrific unemployment rate, especially amongst the youth, in this beautiful country of ours.

Sipho Mbuso



Read more on:    alibaba  |  jobs  |  online purchasing  |  manufacturing

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