Oct 08, 2012
Zille warns investors turning elsewhere as SA becomes too riskyBack
Mangaung|Rustenburg|Africa|Environment|Flow|Mining|Platinum|Training|Africa|Africa|Angola|Kenya|Mozambique|Rwanda|South Africa|Marikana Mine|Communications Technology Infrastructure|Flow|Helen Zille|Infrastructure|Power
© Reuse this
Speaking at a South African Chamber of Commerce and Industry convention, last week, she pointed out that South Africa had placed many obstacles in the way of investors and with increasing risks in the country, potential investors would start turning to the rest of Africa, particularly “booming” Mozambique and Angola, for opportunities.
She noted that other African nations were outperforming the country, citing, for instance, Kenya’s information and communications technology infrastructure surpassing South Africa’s, and Rwanda, which emerged from a “flattening” civil war 12 years ago, excelling in the implementation of a conducive regulatory environment and ease of doing business.
The continent was labelled as the “flavour” of the next few years, but Zille commented that many Africa-focused investors had concerns about investing in South Africa.
Policy uncertainty, such as lengthy debates about nationalisation and the confiscation of land without compensation, at the ruling party’s policy conference, remained an obstacle.
The potential investors also pointed to the labour unrest in the platinum sector and the subsequent events that resulted in the death of 46 near the Marikana mine, in Rustenburg, and questioned the extent to which the unrest and violence had spread to other industries.
The series of events had revealed South Africa’s growing inequality and the wall between the “insiders”, who had jobs and wealth, and the “outsiders”, who were poverty-stricken and, in many cases, without hope, added Zille.
She also noted that the investors believed the mines in South Africa were marginal, low profit and high risk and, that many saw mining opportunities elsewhere in Africa as more attractive and less risky.
Other obstacles to investment included red tape and an unfavourable regulatory environment, as well as the constraints of broad-based black economic-empowerment, which, the DA leader said, should rather be adapted to include training, skills development and job creation and not predominantly the transfer of equity to individuals.
Further, Zille noted that disputes between various factions in the tripartite alliance in the run-up to the African National Congress’ elective conference in Mangaung in December, added political uncertainty.
Investors were concerned about corruption, the perceived collapse of independent State institutions and abuse of power, which could undermine the country’s democracy.
“We are not making it easier for investment and the more obstacles we put in place, the less likely the investors will invest and the less likely we are to grow our economy and create the jobs we need,” she stressed.
South Africa, which was also competing against every country in the world to become a foreign investment destination, should consider what action should be taken to create the conditions which would result in people with skills and capital, as well as entrepreneurs, innovators and foreign investors, entering the country.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
South Africa’s national oil company PetroSA, through its subisidiary PetroSA Ghana, has secured a seven-year $150-million reserve-based lending credit facility with a consortium of banks. PetroSA CFO Lindiwe Bakoro said the company was pleased to close this...
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
This Week's Magazine
Updated 1 hour 49 minutes ago The World Bank, the European Union, the African Development Bank (AfDB) and the government of Sweden have agreed to provide Zimbabwe and Zambia with $294-million for the repair of structural deformations on the Kariba dam wall and avert the possible collapse of the...
Updated 1 hour 49 minutes ago Executive chairperson of the Global Electricity Initiative (GEI) Philippe Joubert says energy utilities globally, together with the business community more generally, have come to terms with the science of climate change, particularly as extreme weather events begin...
Updated 1 hour 49 minutes ago JSE-listed Emira Property Fund reported distribution growth per participatory interest (PI) of 9% for the six months ended December 31, 2014.
Updated 1 hour 49 minutes ago Sub-Saharan Africa is still faced with the challenge of providing citizens access to electricity and an additional $450-billion will need to be invested to ensure that people in urban areas have access to electricity by 2040.
Updated 1 hour 49 minutes ago Consulting Engineers South Africa (Cesa) last month said it was dismayed that the Department of Water and Sanitation (DWS) was seconding 35 Cuban engineers on a two-year contract to share their expertise with South African engineers in the water sector.