Business

South Africa reassures investors

4 May 2009

Potential investors need not be nervous of South Africa's new government, African National Congress (ANC) treasurer-general Mathews Phosa said on Thursday. There would be ample opportunities for foreign businesses in the country, he told the Royal African Society in London.

"I fully understand that a change in leadership makes the international investment community more nervous," Phosa said.

"When that is accompanied by over the top media coverage that borders on the sensational, it becomes a challenge to stay calm and take rational business decisions."

The government of ANC president Jacob Zuma had an ambitious delivery plan aimed at addressing challenges in housing, energy, health, education and public infrastructure.

"Our policy will be to create additional revenue to partly fund the programmes aimed at dramatically boosting the infrastructure in the sectors mentioned," Phosa said.

"There are also opportunities for global businesses to bring the best in technology, knowledge and business acumen to our shores," Phosa said.

The main aim would be to establish domestic policies and structures to address the country's economic and social inequalities.

"Our approach will not be one of placing the blame elsewhere, but to look for the best in our global partnerships to assist us in profiting from the many opportunities in our country."

The government had no intention of discontinuing the conservative fiscal and monetary policies "that saw its financial institutions weather the international storms".

Phosa wooed investors in London throughout last week.

In a separate speech in London on Wednesday, he said the incoming Zuma administration wanted to create opportunities for investors in the health, education, housing, infrastructure, commodities, energy and resources industries.

Sapa