Time for Ramaphosa to rekindle a vital investment tool

aim of fast-tracking investment, of getting new projects, new jobs, new exports, new growth. I encourage any initiative to reduce red tape and create certainty for investors.

Meanwhile, the Special Economic Zones (SEZ), which should offer tax breaks and other incentives to investors – local and foreign – are being rolled out. Just last week, cabinet gave the green light to the Atlantis SEZ on the outskirts of Cape Town, a cluster which will focus on green technology projects.

There are still gaps between the package of assistance which companies are led to expect when they invest in SEZs, and what they actually receive. However, once these have been ironed out, they should be a big draw-card for Ramaphosa’s investment dream.

Of course, it would be naive to suggest that all potential investors are converts just yet. As the President and his investment Sherpas are no doubt told every time they meet a potential recruit, the outside world is looking nervously at the current debate on land seizure.

No board of directors anywhere in the world is going to approve an investment unless there is a cast-iron guarantee that the investment will be safe from arbitrary expropriation.

We need a clear, transparent and certainty-enhancing resolution to the question of land expropriation without compensation, and we need it speedily. To achieve this, every ounce of the President’s persuasive powers and leadership skills will be needed.

If he succeeds, it will be much easier to reach his $100bn new investment target; if he fails, the entire economy will suffer.

In the meantime, the President must also look carefully at the 12I incentive – an overall review of the state’s basket of incentives is currently being conducted by government – and he should instruct the Treasury to top-up 12I.

He has an important instrument to achieve his investment ambitions; he just needs the courage to persuade the Treasury to write another cheque.