Davos – President Jacob Zuma took the opportunity at the World Economic Forum’s (WEF) annual meeting in Davos, Switzerland, on Friday, to assure the business community that South Africa’s economy is resilient and the country is open for investment.
Zuma and his delegation held fruitful and successful discussions with global investors at the WEF on Friday, the presidency said in a statement.
Zuma met the CEOs and chairmen of multinational corporations during the Business Interaction Group (BIG) on South Africa – an annual forum where the president and key government ministers engaged international investors to discuss opportunities in the country and also to hear their views on improving the investment climate in the country.
The presidency said South Africa recognised the importance of foreign direct investment (FDI), which accounted for 42 percent of the country’s GDP.
Zuma welcomed the participation of the private sector in building the South African economy and moved to assure the business community that the economy was resilient, and that the country had a strong and vibrant democracy with an active and vocal citizenry and vibrant media, all of which acted as good checks and balances on the leadership in the country.
“The BIG meeting has been extremely helpful. We appreciate all the constructive comments and suggestions on all areas from the economy to social development,” Zuma said.
“The positive contribution of the international and domestic business community in such a negative economic climate is very encouraging. This has given us good feedback as we prepare for the state-of-the-nation address and budget next month.”
Zuma said he was generally upbeat about the visit to Davos.
“We are very happy with the visit. It has definitely been worthwhile. Team South Africa has done extremely well in Davos, marketing the country in a difficult and very competitive economic climate. We managed to put our message across effectively and received a positive hearing.
“There is a lot that we need to do and we are already working on many of the issues that the global business community has been raising. Team South Africa will meet at home to discuss all these matters further so that we can work together to build our country and take it forward,” he said.
The presidency said inward FDI flows continued to grow in South Africa, with a number of companies having expanded operations and made new investments. It pointed out that South Africa was also an important source of FDI for the African continent.
Zuma also expanded on the country’s response to the depressed economic climate, including government’s nine-point plan to spark growth. The plan includes agriculture and agro-processing, advanced beneficiation of mineral resources, higher impact industrial policy action, boosting small businesses, an energy capacity increase, promoting FDI, and developing a robust ocean economy, science and technology, water and sanitation, and managing state-owned companies.
He said the country was becoming a “frontier” for FDI on, among others, the green economy, ocean economy, and oil and gas, which provided new opportunities.
Zuma further briefed investors on the establishment on an inter-ministerial committee on investments and the establishment of a one-stop inter-departmental clearing house to make it easier for companies to invest.
“We will focus on among others, cutting the red tape significantly to address the concerns that the investors have been raising.”
Zuma also briefed the BIG meeting on efforts to improve education and skills development, including building new universities, training colleges, and building and refurbishing schools.
The investors had sought information and had also commented on various areas, including energy, oil and gas, the scrap metal industry, the ocean economy, mineral beneficiation, human settlements and its importance in building social stability, regional integration, and the need to stabilise growth and set expenditure ceilings, the presidency said.
Zuma and the government also emphasised South Africa’s prudent financial management, with an added focus on the country’s robust monetary policy framework, the presidency said.
According to the statement, the global CEOs emphasised the need to ensure that policies were implemented and there was certainty at all times.
“The need for predictability was also raised in the context of the recent changes of finance ministers and the impact thereof,” the statement said.
“The president responded that while governments all over the world are entitled to change ministers, South Africa had responded without delay when concern was raised, especially given the economic climate. The meeting appreciated the swift changes that were made afterwards, resulting in the appointment of minister Pravin Gordhan as the minister of finance.”
African News Agency