SA mission targets US investment
16 March 2007
Trade and Industry Minister Mandisi Mpahlwa is leading a high-level mission to New York, Detroit and Chicago from 17 to 23 March as the Department of Trade and Industry and the International Marketing Council join forces to persuade US investors to "take another look at South Africa".
The public-private sector mission will promote investment in South Africa's automotive, biotechnology, business process outsourcing, financial services, and information and communication technology sectors.
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"While investment from the US has been good, this mission aims at increasing investment in existing sectors as well as highlighting new opportunities in which South Africa has pockets of excellence that can be grown with US investment," says Sharma.
Business process outsourcing
Business process outsourcing (BPO), a sector that is expected to grow globally by 50% a year over the next five years, is a major focus of the mission.
According to Brian Whittaker, CEO of Business Trust - one of over 40 agencies and companies taking part in the mission - South Africa's BPO strengths in "play to the US's needs."
South Africa, says Whittaker, "offers a high quality, value-based destination for offshoring business processes, in a stable investment environment supported by world-class infrastructure."
The DTI said in a statement on Friday that there were currently around 70 service providers serving local and offshore customers in the country, "supported by excellent business ethics and cultural affinity with the US."
The government has given its full backing to the sector. On Friday, the DTI launched a five-year, R1-billion incentive scheme for BPO investors that is expected to attract around US$175-million in foreign investment and create up to 100 000 new jobs by 2009.
Mfanu Mfeyela, CEO of Business Process enabling South Africa, says the mission's message to the US - which accounts for more than 60% of globally offshored business - is that South Africa provides value for money.
According to the DTI, setting up a 1 000-seat centre in South Africa offers a saving of over 55% compared to a US operation. "As an indication of quality, 95% of first-time calls are resolved in South Africa. In contrast, the figure from India is 66%."
'Take another look at South Africa'
Margaret Dingalo, stakeholder relations director at the International Marketing Council of South Africa (IMC), which is partnering with the DTI on the mission, says the delegation's US investment drive will "showcase the boundless possibilities available to investors."
According to Dingalo, the mission - with the slogan "Take another look at South Africa" - aims to "challenge potential investors to consider opportunities that many people in that part of the world are not aware of.
"We believe that the initiative will help achieve South Africa's 6% economic growth target, as well as enhance our tourism, trade and investment prospects ahead of the 2010 Fifa World Cup."
Asked earlier this month how the South African delegation would respond to investor concerns about black economic empowerment (BEE), the DTI's Sharma said the government's BEE regulations were aimed at "changing the way business is conducted in South Africa.
"BEE is a mechanism to promote equitable growth and development in a sustainable manner," Sharma said. "The experience of BEE has shown that not only is it a moral imperative, but it also makes excellent business sense."
Sharma said the level of interest shown in the upcoming mission "has been very positive, and we expect some important investment announcements to be made as a result of the mission."
SouthAfrica.info reporter
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