Canada offers South African ICT firms a better route into the North American market than a direct entry into the US, says Canadian entrepreneur Leonard Brody.
Brody, who has helped raise millions of dollars for start-up companies and was involved in one of the biggest Internet initial public offerings, will visit SA later this month. He will also be a speaker at ITWeb`s IT Confidence conference on 21 February.
"Canada has become, in the shadow of the US, one of the most important countries for technology in the world," he said from Toronto yesterday, adding that Canada is one of the world`s biggest turnaround successes, having come from financial destitution in 1993.
He attributes the county`s turnaround to, among other things, elaborate public-private partnerships, tax policies, a strengthening of well-known Canadian venture funds and a firm decision by the country as a whole to become competitive.
"But no country has a lock on innovation," he says. South African entrepreneurs have been highly successful and he believes partnering can benefit both South African and Canadian companies.
Canada, as a gateway to North America, offers South African companies a preferable entry into the North American market than a direct entry into the US, where the size of the market makes things difficult for newcomers.
"There is also more of a cultural similarity between SA and Canada than there is with the US," he adds.
Brody says SA can offer a cost advantage as well as skills, and South Africans can in turn benefit from Canadian management experience in North America.
"There is a ton of deal flow going on between SA and Canada already. And there is a large number of South Africans in Canada. It would be nice to find ways to formalise that."
Although Canada promotes immigration of skilled people to grow its economy, Brody says there is a need for a mixed strategy that incorporates relocation as well as partnerships with offshore companies.
"You have to do both. We built the country on good, talented immigrants, but there will always be people who don`t want to move their business but who would want to enter partnerships."
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