R/€ = 15.08Change: 0.17
R/$ = 13.41Change: 0.14
Au 1147.47 $/ozChange: 1.02
Pt 944.00 $/ozChange: 9.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Oct 08, 2012

Zille warns investors turning elsewhere as SA becomes too risky

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

South Africa has become too complacent about its position as the “gateway” to Africa and was not “making it easy” for foreign investment to flow into the country, said Western Cape Premier and Democratic Alliance (DA) leader Helen Zille.

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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Economy News
Updated 1 hour 10 minutes ago Cosatu's provincial general secretary, Tony Ehrenreich, had strong words for government and higher income groups as union members marched to Parliament on Wednesday. “We want them to tax the people who live in Clifton and Sea Point,” he demanded, saying workers...
Updated 1 hour 32 minutes ago A recently introduced Smart City solution has enabled the Johannesburg Roads Agency (JRA) to develop a complete view of the city’s roads inventory, with over 1.6-million images and 700 000 locations of JRA assets being captured onto the system for tracking,...
Updated 1 hour 36 minutes ago Stern warnings and a list of demands were delivered by the Congress of South African Trade Unions (Cosatu) during their World Day for Decent Work march in Cape Town on Wednesday. “We will not tolerate the exploitation of our workers,” said Tony Ehrenreich, Cosatu...
Latest News
Updated 15 minutes ago World-renowned fuel cell scientist Dr Sharon Blair would like to see South Africa supply 25% of the global demand for fuel cells by 2020, stating that the country has a tremendous opportunity to develop the industry and capture a share of the growing sector. However,...
Updated 38 minutes ago Public Enterprises Minister Lynne Brown should table an uncensored contract agreement between Eskom and one of its coal suppliers owned by the Gupta family, the Democratic Alliance (DA) urged on Wednesday. The Sunday Times reported on September 13 that Gupta-owned...
Updated 54 minutes ago Cosatu's provincial general secretary, Tony Ehrenreich, had strong words for government and higher income groups as union members marched to Parliament on Wednesday. “We want them to tax the people who live in Clifton and Sea Point,” he demanded, saying workers...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96