Cape Town - In the
late 1980s, when then South African ambassador to the UK Denis Worrall was leaving London, he was approached by a number of international businesses to “guide” them in investing in South Africa.
At the time, although apartheid was on its way out, many business people felt insecure on how and where to invest here.
“The late 1980s were, from an external point of view, very difficult. Business people were unsure of what was going to happen if the ANC took over,” Worrall told Weekend Argus.
“At that time it was about risk.”
So Worrall started a political consultancy, Omega Investment Research, which provided political risk analysis to companies all over the world.
“When, in 1994, the ANC came into power under Nelson Mandela, the country looked much more settled and the so-called political risk analysis increasingly gave way. I employed 15 people and we focused on promoting investment into South Africa and Africa, holding workshops and conferences, and sending briefs and newsletters all over the world,” Worrall continued.
“But now, to be frank, we are back at political risk analysis as far as SA is concerned.”
These days, Worrall’s company has more than 11 000 companies and as many influential individuals in 26 countries as clients, all of whom have an interest in Africa.
“But today, there’s an awful lot of concern about investing here,” he said.
Worrall, 79, who has three sons, lives in Cape Town with his wife, the renowned Romanian-born psychologist Anita, who runs Pro-Ed House School for children who learn differently.
“She works a good 10 or 11 hours a day. I also work long hours. I don’t believe in retirement although I’m pulling back a little.
“I probably have one of the most varied careers of anybody you could know.
“If you see lots of papers lying around, it is because I am thinking of writing a book. I think my career has a story,” he said.
Worrall’s work takes him around the globe, including Africa – and he has particularly strong connections in Ghana and Nigeria.
“We are also very active in Hong Kong and have done workshops there, in China and Singapore.”
A political scientist and lawyer by training, Worrall became a Senator for the Cape Province in 1974, representing the National Party, and was later elected to the House of Assembly as MP for Gardens. He chaired the Constitutional Committee of the President’s Council until 1982, when he became South Africa’s ambassador to Australia until 1984. He was then made ambassador to the UK. He resigned in 1987 and returned to South Africa, where he stood against senior government minister Chris Heunis in Helderberg in the 1987 election.
He lost by 39 votes, and went on to form the Independent Party with Wynand Malan. Worrall, with Zach de Beer and Malan, became one of three co-leaders of the Democratic Party from 1989 to 1994, when Tony Leon became leader.
Worrall also lectured at a range of universities in South Africa, Nigeria and in the US, and is the former vice-chairman of the International Bank of Southern Africa and other companies.
He established Omega Investment Research in 1990.
These days, when clients inquire about investing in Africa, Worrall, who briefs clients through his Insight business briefs, generally expresses optimism about business prospects on the continent.
“Fifteen or 20 years ago, and even until three or four years ago, you would say to businesses, ‘your door to Africa is South Africa’.
“You could have said, ‘Nigeria may now be bigger in terms of gross income but South Africa has an exceptional diversity’.
“You would say to people, ‘make SA your entry point to Africa’. Businesses would automatically set up in SA. Nowadays it’s different. Lagos and Accra can make strong claims. Until recently, Nairobi could make claims.
“Banks and international banking are now well established in Africa, so you have the finances you need if you are a major company or a smaller business going into Africa. It’s a changed situation. In the past three or four years, we have seen increasing confirmation of this.
“Whether it is because of Jacob Zuma or not is not the issue, but the Zuma years have been extremely bad for South Africa, from an international investment point of view, and our economy has gone backwards.
“I have argued consistently that we have lacked leadership and focus. Our economy and politics need focus and President Zuma, regrettably, is not the man to provide it.
“People realise corruption has become systemic. Most municipalities in SA end up with qualified audits, and we clearly aren’t being run efficiently.
“Bureaucracy is a major factor and there’s a lack of co-ordination. For example, we have the Tourism minister complaining that the Home Affairs minister has introduced visa requirements that are literally going to knock back tourism to this country. Where’s the leadership? Where’s our cabinet in all this?
“The National Development Plan, for instance, is supposed to be central to business and, in chapter six, we have a comprehensive plan in respect to helping black people to get into agriculture.
“Yet here comes the minister of Land Reform with an absurd proposal whereby commercial farmers will be offered the value of half their farm – yet that minister is supposed to know the NDP. It’s crazy. Where were the minister of Agriculture and the head of the NDP when those announcements were made?”
Worrall said a major area of interest for his company is that of food security.
“We face major problems in farming. Our farmers have declined from over 100 000 to 35 000, and the average age of farmers is about 58. When you come with legislation like this, nobody will buy farms.
“One of the things we do as a company is market farms. We’ve just sold a farm in the Boland to a British industrialist. He would not have bought it if that statement about agricultural policy had been made at the time.
“Labour issues and BEE are also becoming increasing considerations when it comes to investment in SA. The rating agencies have got it right: it is crucial that we see a pick-up in relations between labour, the private sector and government.”
Asked about highlights in his life and career, Worrall said: “Meeting and falling in love with my wife is one of my highlights. No question about it. She has enriched my life enormously.
“She is an extraordinary woman. She has lived all over the world and speaks five or six languages. I met her when I was studying in America 49 years ago and she came back to SA with me.
“She did her PhD on the cognitive advantages of bilingualism. She has set up Thinking Schools in SA – a concept developed at Exeter University and now becoming world-wide.”
On further highlights, Worrall continued: “I am obviously a happy father.”
So, what are the prospects for investing in Africa? And is Africa open for business?
“I am a firm believer that Africa is open for business,” he says.
“… The area that interests me is agriculture because 60 percent of the arable land required, if the world is to meet its food targets in 20 years time, is in Africa – and the fact is there is enormous potential for agriculture in Africa.”
Weekend Argus