Johnathan Paoli
THE Presidency has moved to dismiss media speculation and reports that BHP Billiton’s proposed takeover of Anglo American, excluding South African assets, is a sign of reluctance to invest in the country.
Speaking during a media briefing on Monday, Presidential spokesperson Vincent Magwenya said that President Cyril Ramaphosa rejected the recent narrative surrounding the market activity as a vote of no-confidence, and denied that the commercial approach by BHP Billiton equalled a hostile environment for investors.
Magwenya said that challenges and obstacles relating to the development of business in the country were being resolved with the participation and partnership of business.
He confirmed that Ramaphosa, Cabinet members and senior business leaders agreed in June last year, to establish a partnership to reverse the economic downturn and rebuild confidence in the country’s trajectory.
He said that the Presidency identified three priorities which played a large role in undermining investor and societal confidence, namely: load shedding, the challenges in the freight logistics sector as well as crime and corruption; but remained confident that the government was making progress in overcoming these challenges.
Magwenya also said the National Logistics Crisis Committee (NLCC) has addressed some of the challenges in the sector,
“While much still needs to be achieved to run the tide around completely, the significant steps taken to rebuild credible institutions have begun to bear fruit and set the stage for further progress. President Ramaphosa will continue improving the functionality of our ports and enable an investor and societal environment that fosters inclusive economic growth and prosperity,” Magwenya said.
He pointed out the automotive industry as an indicator of investor confidence, with some of the recent investments including R4.2 billion by Toyota, Ford invested R16 billion, Mercedes invested R10 billion, BMW put in R5 billion.
“In total over five years, some R83 billion in automotive investments was committed between 2018-2023, of which the majority have been completed,” said Magwenya.
Magwenya outlined the success of the SA Investment Conference which reached R1.5 trillion in investment pledges over the last five years as an indicator of investment appetite in the country.
“The Presidency would implore the investor community to note the optimism expressed by the business community in various publications and platforms on the progress achieved across the three focal areas. This should reassure investors that momentum is building and will be maintained to reduce crime and corruption, continue improving energy supply and resolve logistic backlogs”.
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