Locals urged to invest in SA
THE private sector in South Africa has been urged to co-invest and to make investment projects available so that BRICS countries can invest in the country.
Dr Iqbal Survé, chairman of the SA chapter of the BRICS Business Council and of Independent Media, yesterday told delegates at Durban’s International Convention Centre there was a willingness among BRICS (Brazil, Russia, India, China, South Africa) partners to support SA in areas where the country needed assistance.
Survé, who was speaking at the BRICS Business Council meeting, said South Africans as business people and ordinary citizens were unusually hypercritical of the country’s position in the global economy.
He said the BRICS countries were looking to invest in South Africa because it had “deep local capital markets, a healthy banking sector and strong regulatory institutions” among other factors.“We have a strategic geological location at the tip of the continent.
“While the African continent is an attractive prospect, intraBRICS exports have increased significantly over the past few years. With the threat of even greater imbalance in the world economy, our common future lies in working even more closely together.”
Survé said the South African private sector’s mindset was to continue to invest in the EU, but BRICS had opened the front door for investment that would not only benefit the country but the continent.
“To deal with poverty, inequality and unemployment we need to boost our investment in our infrastructure – this is what allowed China to develop into a global economic power.
“If we don’t invest in our infrastructure – especially technology integration to create our own technology platforms on this continent – then we are not going to create the jobs we need or to grow our economy.”
Survé said South African corporates were sitting with billions of rand or were choosing to invest in Europe or Australia because they were afraid of taking risks, and instead opted for a conservative approach.
He said he had chosen to invest in South Africa and the continent because he was committed to the development of Africa as a technological hub.
New Development Bank vice-president Zhu Xian told delegates their mandate was to mobilise resources for infrastructure and sustainability.
“We provide loan guarantees and other financial instruments partnering with the public and
private sector. Part of the responsibility is to build a knowledge-sharing platform among member countries. Over the past three years we have made impressive progress in the business, with 23 projects in all the member countries having allocated $5.7bn in finance.
Minister of Trade and Industry Rob Davies said there was a monopoly, with some global economic players winning big to the detriment of others. “Our BRICS co-operation is to have an inclusive roll-out, so we work together to ensure that technology can create a better life for many citizens across the world.
“What we have now are monopoly practices to make a huge number of losers among a small number of winners. Davies said investment from other BRICS countries into the country amounted to nearly $18bn.
“Between 2003 and 2017, 189 projects created 36 850 jobs. Between 2001 and 2016 South Africa invested $69bn in other BRICS countries.”
Sihle Zikalala, MEC for Economic Development, Tourism and Environmental Affairs, said BRICS was one of the most critical platforms to enhance economic trade and political relations.
“The KZN government has embarked on an infrastructure revolution that we believe will change the face of the province for many years to come. In the expenditure of the government over the next seven years we will spend R200 million in infrastructure development which will see investment in road construction, airfreight, railways, water and sanitation, electrification and the maritime industry, among others.”
Zikalala said through BRICS partnerships, KZN would continue to benefit in its oceans economy, shipbuilding and repair, agriculture, oil and gas, automobile and pharmaceutical sectors.