LETTER: SA is hostile to investment and skills development

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Cyril Ramaphosa’s assurances are misleading when his policies discourage capital formation

Speaking at the fourth SA Investment Conference, President Cyril Ramaphosa said: “As investors, you need to know that your investments are secure, that the operating environment is stable, and that you are supported by policy certainty and regulatory safeguards.” The reality on the ground is different; numerous current and proposed policies serve to render the SA environment hostile to serious capital formation, investment and skills development.

The Employment Equity Amendment Bill sits with the president and must be vetoed if the administration is serious about changing tack from policies that have produced record-high unemployment. Localisation master plans will increase the costs of goods and services, as well as making the movement of goods and inputs through ports and borders more difficult. This will add to rising inflation, with the consequence that embattled consumers cannot engage in much economic activity.

 

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