ONE’S first reaction to the report that the ANC has suggested a tax on foreign capital inflows to fight rand strength is horror. It’s not difficult to envisage capital flight in response to a country that sends the message to foreign investors that they’re not welcome.
But it’s not that simple. Trouble is, we are stuck in a culture which puts foreign capital on a pedestal.
This isn’t difficult to understand, as there were years when SA had to run a current account surplus because it could get no foreign capital to finance a deficit.
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