Cyril’s growth blueprint ‘no smash-and-grab’

● As he laid out an ambitious businesscentred strategy to resurrect the economy, President Cyril Ramaphosa said he was confident he could attract more than $100-billion (about R1.2-trillion) of investment.

“My main blueprint is to get investments going because one of the reasons we are in this low-growth environment is lack of investment, both internal and external,” he said on Wednesday, referring to a growth rate that has been stuck below 2%, barely above the rate of population expansion.

Asked for his blueprint to revive the economy, he said he would create a “conducive investment climate”, including incentives.

Last month, Moody’s kept South Africa’s credit rating at investment grade, changing its outlook to “stable” in recognition of what it said was the beginning of a reform push.

“I’m approaching it with a private-sector lens,” said Ramaphosa, who left politics in the mid-1990s to become one of the country’s most successful black business leaders.

“When I was in the private sector, you built a book and that’s how I’m approaching it.

“I want to build a book of investment. We are not going to go for a smash-and-grab. We are seeking to create a very good, solid and durable environment for investment.”

Ramaphosa said state-owned enterprises, some of which fell into disrepute and financial stress under president Jacob Zuma, had told him they could raise up to $40-billion to invest in the next five years without borrowing from the government.

“I may be short-changing myself when I say $100-billion,” said Ramaphosa, who has appointed four senior figures, including former finance minister Trevor Manuel, as socalled “lions” to hunt for investments.

South Africa will hold an investment conference in the fourth quarter.

Other investment envoys are Mcebisi Jonas, the former deputy minister of finance; Phumzile Langeni, executive chairwoman of Afropulse Group; and Jacko Maree, chairman of Liberty Holdings and former CEO of Standard Bank.

They will report to Trudi Makhaya, who has been appointed Ramaphosa’s special economic adviser.

Beijing was also prepared to put in money, Ramaphosa said, including funding a $10billion dam in the Eastern Cape.

“I say, ‘Hell, we need the money’, and I am going to ensure that we get the conditions that are suitable for our needs.”

Ramaphosa acknowledged he had to balance business-friendly policies with pent-up demand for social and economic justice.

Addressing the “gaping and bleeding” wound caused by land hunger need not threaten either business or the white minority, he said.

A “solid and durable” environment for investment could only be achieved through inclusive growth, he said.

When I was in the private sector, you built a book Cyril Ramaphosa South African President

Responding to people’s “yearning for land” would insure against “policy mishaps” in future.

Ramaphosa said the principle held for the Mining Charter, which could balance the concerns of mining companies with those of workers and mining communities.

Mining investment has all but dried up because of fears a new charter would dilute ownership continually by transferring shareholdings to black owners.

Mining houses, though, have welcomed the appointment of the ANC chairman Gwede Mantashe as mining minister, saying he can negotiate a charter acceptable to both sides.