Growth-boosting foreign investment needs clear and simple state policies

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Flow can introduce new technologies and inject technical expertise, spurring development

The world is facing a difficult road in its journey to recover from the negative economic effect of the Covid-19 pandemic. The deepest global recession in decades occurred in 2020, despite governments’ efforts to counter the downturn with fiscal support.contraction in global GDP in 2020 and the International Labour Organisation noted in a recent report that the Covid-19 crisis would push global unemploymentin 2022.

For economies to truly reap the benefits of FDI, it is important that governments ensure they are actively improving the investment climate and creating an environment that is attractive to and does not hinder foreign investment. to block US private equity firm Emerging Capital Partners from buying fast-food chain Burger King SA and Grand Foods Meat Plant because it was concerned the transaction would have a “substantial negative effect on the promotion of greater spread of ownership” as championed by the country’s broad-based BEE policy, which aims to enhance the economic participation of previously disadvantaged population groups.

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Please focus on Domestic Direct Investment and FDI will follow. SA companies should stop hoarding money and targeting old industries like SOEs unlike Industry 4.0

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