New Africa Investments chairman Nthato Motlana=20 has told South Africans to knuckle down to work to=20 convince investors that the country is a worthwhile=20 place to put their money, reports Karen Harverson
New Africa Investments Limited (Nail) chairman Dr=20 Nthato Motlana has urged South Africans to stop toyi- toyiing and work to convince foreign investors that=20 South Africa is a safe destination for international=20
“Despite the political miracle of the 1994 elections=20 and the Government of National Unity, the influx of=20 foreign investment to South Africa has not happened,”=20 he said.
Motlana told delegates at the Investment Trade and=20 Tourism Forum for Rebuild South Africa 1995, held at=20 the World Trade Centre this week, that while United=20 States investors had boasted to him of the trillions of=20 dollars available for investment, South Africa was not=20 seen as the right market. =20
“Unfortunately, our transition to democracy occurred at=20 a time when a group of nations in South East Asia had=20 just industrialised and become highly competitive.=20 Unless we can prove South Africa is a better option in=20 terms of its labour, markets, free movement of capital=20 and political stability, we have a major problem.”
“Education, work ethic and discipline are the keystones=20 of the success of countries like Malaysia, Singapore,=20 India and even Bangladesh to which investment is now=20 beginning to flow.”
Countering Motlana’s view, the Department of Trade and=20 Industry’s (DTI) Director of Industrial Development,=20 Dennis Fulton, said an increase in capital inflow was=20 taking place as opposed to past outflows.
“South Africa is entering a fourth phase in its=20 economic history which is expected to result in=20 industry-led globalisation of the South African=20
The first phase began in the 1800s with the country’s=20 agrarian phase, which today contributes seven percent=20 to 11 percent to the gross domestic product (GDP). This=20 was followed by the discovery of diamonds and mineral=20 resources which earned South Africa its position as the=20 leading supplier of industry inputs. Mining today=20 contributes nine percent to 12 percent of the GDP.=20
The third phase, entered into in the mid-1970s,=20 developed and diversified South Africa’s manufacturing=20 sector as a result of an inward policy of self=20 sufficiency following increased isolation. The=20 manufacturing sector contributes 25 percent to the GDP,=20 with manufactured goods making up 38 percent in value=20 of exports.
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