South Africa should do more to create policy certainty to attract R1.2 trillion ($100 billion) in new investment envisaged by President Cyril Ramaphosa.
This emerged during a meeting between Brand SA and 22 European business representatives in Johannesburg. European business say government’s inefficiencies remain a major stumbling block to growing their investments in the country. European companies have a lions share of the Foreign Direct Investment in the country.
The Presidency of Cyril Ramaphosa has ushered in new hope for the country. But inefficiencies within government departments coupled with poor communication on policies remain a concern for investors seeking new growth opportunities in the country.
The slow pace of the business visa application process is another challenge facing European investors. Europe is a major player in the South African economy – accounting for about 75% of foreign direct investment and creating about 850 000 jobs.
Brand SA’s Petrus de Kock says European companies have demonstrated their commitment to the local economy despite many challenges that they are facing.
“Policy clarity on some of the bills passed, the land issue is one bill the other bill like the copyright bill or the mineral petroleum resources act.”
European businesses say they want more clarity on the land question and broad based black economic empowerment. Many put the blame on government for its lack of clarity on these policies.
Donne Kruger is with the Euro Chamber, “A lot of the issues pertain to coordination between SA government institutions. At the higher level is on the policy outlook of the country for example the land question came up.”
Brand SA will take their recommendations to the relevant stakeholders in government. The engagement is being held in the context of preparing for the investment summit later this year. Brand SA plans to hold more such meetings with other investment blocks in the country.
