In addressing the thorny issue of attracting investors to South Africa, Finance Minister Enoch Godongwana and Derek Hanekom deserve full marks for their honesty.
President Cyril Ramaphosa’s fourth investment conference felt like South Africa was a country with no daunting problems and a parallel universe in which everything, from the economy to service delivery, functions smoothly.
But Finance Minister Enoch Godongwana, who was long the ANC’s economic policy wonk, injected a dose of reality into Ramaphosa’s investment conference. After all, he knows an uphill battle when he sees one. Hanekom says the social unrest in July last year was a “blow to investor confidence” and the absence of prosecutions for the perpetrators of the violence makes it difficult to sell the South Africa investment story. The rule of law and prosecution of wrongdoers are important considerations before investors commit their capital in any country.
A cynic might say that Godongwana and Hanekom are stating the obvious or that corruption and crime can hardly be spoken about in the past tense. But at least they are being straightforward about such issues.On the bright side, Godongwana has highlighted the government’s recent progress with pro-growth and investment structural economic reforms in the energy, digital economy, and transport and logistics sectors.
This is in reference to the government’s plans of splitting Eskom into three units , as well as allowing private players to generate electricity for their own needs of up to 100MW. He also noted initiatives to improve the efficiency and competitiveness of South Africa’s ports by involving private sector players. Godongwana conceded to the widely shared criticism that the government was not moving fast enough on structural reforms.
Discovery CEO Adrian Gore offered an upbeat note at the conference, saying the narrative about South Africa was too negative. For investments and the country to thrive, the narrative needs to be more positive, says Gore. “The investment opportunity tactically is that the narrative is much worse than the reality and if you are an astute investor that … is where you can make super-profits. The narrative here is continuously negative. But the country is more resilient than people think.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The rules you should know before buying in a complex or estate in South AfricaThe popularity of gated communities – and especially estates – has grown steadily over the past few years, thanks to the added security that they offer homeowners.
Read more »
South Africa loses out on coal price boom as Transnet rail hampers exportsSouth Africa is missing out on some of the riches on offer from the commodities boom as a rail network beset by problems hobbles its exports.
Read more »
How much it costs to insure an electric car in South AfricaNaked recently published a list of estimated monthly insurance premiums for electric cars sold in South Africa.
Read more »
Property in this seaside ‘zoom town’ in South Africa is boomingThe number of residential property sales transactions in St Francis Bay surged to its highest level in a decade during 2021 – with no signs of the market demand for homes abating, says Richard Arderne, area principal for Pam Golding Properties.
Read more »
The surprising impact the Russia-Ukraine war will have on cars in South AfricaThe Russia-Ukraine war will have a notable impact on South Africa’s car market, but not for some of the obvious reasons you think, say automotive experts at Cars.co.za.
Read more »
Hyundai South Africa adds Grand Creta to range, pricing starts at R449 900Hyundai unveils seven-seat version of its Creta SUV. South Korean carmaker Hyundai has added another SUV to its local range with the new Grand Creta making its debut in Mzansi this week. Hyundai has an extensive crossover and SUV range in South Africa.
Read more »