South Africa needs to improve communications to dispel misconceptions among potential foreign investors about government’s black economic empowerment (BEE) programme, President Thabo Mbeki said on Sunday.
Briefing the media after the seventh presidential International Investment Council (IIC) meeting in Cape Town, he said there was an imbalance between the perceptions and the reality of South Africa among some abroad.
He emphasised there was no chance government would simply seize or nationalise property for BEE purposes.
Although council members agreed BEE was necessary, it could not be counter-productive, and information about the BEE programme had to be properly communicated abroad, he said.
Trade and Industry Minister Mandisi Mpahlwa said the issue of BEE had been raised during the meeting, and everyone had accepted and recognised it as necessary to ensure long-term stability.
However, it was necessary to avoid confusion and unnecessary fears about what it actually involved. There was still a big gap between perceptions and the reality of
South Africa.
Government had to communicate more vigorously and consistently on BEE so that it was not seen as a risk to the security of investment here.
There was concern that not as much investment was taking place, both at home and abroad, as should be the case, Mpahlwa said.
Both Mbeki and Mpahlwa said it was important for potential investors to visit the country to gain first hand information.
Mbeki said government and the council were working on a report to determine what had to be done to facilitate more investment in South Africa, and would be looking at why some investors decided to go elsewhere instead.
This report was expected to be completed by January next year, so the IIC could consider ways to ”move things forward” at its next meeting, he said.
Mpahlwa said the council members had, during the meeting, expressed the view that South Africa should achieve a higher growth rate and that the conditions for this had been established.
This required raising the rate of both domestic and foreign investment, bearing in mind South Africa was competing with other economies for foreign direct investment. South Africa should therefore effectively market its comparative advantages, while addressing those areas where other competing countries did better than South Africa.
Council members advised government to communicate consistently about the country’s economic progress and success stories.
Council members also continued to maintain South Africa was a ”good investment destination”, Mpahlwa said.
Among the foreign council members attending the meeting were Martin Kolhaussen of Commerzbank, Jurgen Schremp of Daimler Chrysler, Frank Savage of Savage Holdings, Tan Sri Marican of Petronas, Niall Fitzgerald of Unilever, and Tony O’Reilly of Independent News Group. – Sapa