Time for the lion to awaken...

I have recently returned from a two-week trip to South Africa, and while nearly all of my time was spent in offices, hotels and meeting rooms, I was fortunate to get out to Pilanesberg National Park (a few hours’ drive from Johannesburg) and see some of the country’s amazing wildlife and scenery. During the safari, I learnt that the mighty lion, supposedly the most feared of the big five, is actually quite a sedentary and docile creature that sleeps for around 20 hours a day, while male lions are usually first in line to feast on the prey caught by the lionesses. The ‘king of the jungle’ has a pretty cushty deal, it would seem…

Meanwhile, South Africa’s economy has been similarly dormant over the past few years and has arguably been resting on its laurels for too long. The country is often positioned as ‘the gateway to Africa’ and is the continent’s second-largest economy and only G20 member. In spite of this, South Africa underperforms when it comes to attracting investment, with only US$1.2 billion attracted in 2017, meaning that the country didn’t even feature among the top five African FDI recipients last year.

2018 has brought much-needed change to South Africa’s leadership, and President Cyril Ramaphosa is now seeking nothing less than a transformation in South Africa’s investment and broader economic development prospects, with an ambitious drive to attract US$100 billion in new investment over the next five years.

This is a welcome and needed sign of the Government’s recognition of FDI as a critical driver of sustainable economic growth, and an efficient, compelling investment policy and promotion framework is needed to help ensure this ambition is fulfilled.

The siesta time is over and the landscape is competitive – it’s time to reengage in the hunt!

South Africa’s FDI ‘siesta’ is over: time to en-engage in the hunt for much-needed investment. Image courtesy of 1funny.com