Finweek English Edition - - ONLINE @FIN24 - By Greta Steyn

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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