Counting the Loss: South African Government Assures Business Community

 

As part of efforts aimed at restoring confidence after a devastating xenophobic attacks that led to destruction of business outlets across over four South African cities, the South African government has kick started a campaign to seek the understanding of the business community aimed at providing assurances, and calming frayed nerves. This is coming against the calls by business leaders urging the government and the ruling African National Congress (ANC) to work towards progress especially with the prosecution of people suspected of corruption, for confidence to be restored in the country.

President Cyril Ramaphosa on the other hand addressed business leaders on the country’s attractiveness as an investment destination in an atmosphere weighed down by the violent crime sweeping the country. A move many see as face saving, judging from the negative impact the attacks have had on the World Economic Forum which kicks off today in Cape Town, South Africa.

Brand SA used the present national mood in South Africa as opportunity to host an impromptu meeting between the President and business leaders from across the country on the sidelines of the World Economic Forum (WEF) in Cape Town. The President used the opportunity to comment on the negative news that has pervaded the country in recent times, especially that of women who were murdered by some men and also those who died during the xenophobic attacks.

Speaking yesterday evening, President Ramaphosa said that it is most unfortunate to meet at a time when the country is going through a spate of horrible news. He harped that the nation is in deep mourning; “we are all deeply disturbed by the killings of women. … It calls on us as men to rise up and say this should never happen in our name. As men we should stand up and say that we are going to bring an end to the abuse of women and children,” he added.

Continuing, the President said that South Africa is facing a challenge of people taking laws into their hands, “as much as they have certain grievances I have said that taking action against people from other nations should never be allowed. SA is a home for all. We are not the only country that has become home for people who are fleeing their own countries,” he said. Making references to reports of residents who took part in co-ordinated attacks, looting foreign-owned businesses in Tembisa, Alexandra, Hillbrow, Cleveland, Jeppestown and the Johannesburg CBD since Sunday. The violence continued on Tuesday, spreading to other areas including Germiston on the East Rand. Similar violence also took place in the Pretoria CBD last week.

President Ramaphosa of South Africa

Ramaphosa provided business leaders with a report back on the government’s progress in improving SA as an investment destination. On coming into office Ramaphosa set a target to achieve a top 50 status in the World Bank’s ease of doing business index. SA is rated 82 out of 190 countries. He said demonstrable progress had been made on reforming the visa regime; decreasing rail and port tariffs; improving policy certainty in mining; and on the drafting of an oil and gas bill. He said the Integrated Resource Plan — SA’s long-term plan for meeting SA’s energy needs — was “close to being finalised”.

But in the panel discussion following Ramaphosa’s speech, business leaders said they needed to see more demonstrable progress, in particular with the prosecution of people suspected of corruption, for confidence to be restored. The Chairman of Absa Wendy Lucas-Bull said that the biggest frustration for South Africa at the moment is [not] seeing action in our plans. “We are very good at coming up with plans but we have not delivered with the speed that the circumstances demand. We are in a turnaround situation and a turnaround situation needs very visible leadership and very consistent leadership.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

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