How to increase business investment in South Africa
The only way to fix South Africa’s economic problems, improve business confidence, and give hope to citizens is for the ANC to be defeated.
This is the view of Lumkile Mondi, a senior lecturer at the University of the Witwatersrand’s School of Economics and Business Science.
Mondi was responding to comments from Sibanye Stillwater CEO Neal Froneman that business investment in South Africa is on strike until things improve.
Froneman said investors have lost faith in South Africa’s government and have halted investment despite a wealth of opportunities.
Consistent load-shedding, policy uncertainty, disintegrating municipal infrastructure, and problems at Transnet have hurt business confidence.
The Sibanye Stillwater CEO added that pledges by the government to enact reforms to improve economic growth have come to little.
He said businesses could increase investment in South Africa if the economic climate were different, there was policy certainty, and there was enough power.
Speaking on The Money Show, Mondi said he agrees with Froneman, adding that there has been widespread destruction of institutions and infrastructure.
“We are unable to benefit from the global commodity boom because the government has not played its part,” he said.
“The mining companies have postponed all their decisions and investments until there is a government that can make the tough decisions.”
He explained that current investments would only reap the rewards in a few years. However, companies are putting investments on hold because of policy and economic uncertainty.
“The fact that the government’s plan to create an enabling business environment stalled is undermining business confidence,” he said.
“Many South Africans are worried about the future of the country and the possibility of coming out of this mess.”
Mondi said the ruling party does not have the capability or ideas to change matters, which places the responsibility on society and other political parties to act.
“We must start talking about a new government and a coalition which can take on the ANC and EFF alliance,” he said.
He said to create hope and fix South Africa’s economic and investment challenges, the ANC must be defeated.
Unless this happens, South Africa will continue to suffer from a decline in investments and worsening unemployment and poverty.
