Poor utilities deter investment in SA, say European firms

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They also cite the red tape and costs associated with BEE with some looking to invest in neighbouring countries rather than SA

European businesses are delaying investment in SA because of poor power and water supply, and the costs of complying with BEE legislation, representatives of an industry body have said.

The obstacles illustrate the challenges as President Cyril Ramaphosa backs a drive to attract investment to help the economy recover from what’s forecast by the government to be the biggest contraction in nine decades in 2020. Ramaphosa is due to hold an investment conference in Johannesburg next week.

“Until we see a comfortability in terms of utility supply we are relatively cautious,” he said, listing six companies that have delayed investment. European companies also struggle to comply with BEE laws, said Marc van Pelt, MD of Pepperl+Fuchs, a German photo-sensor producer that has facilities in SA.

 

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what, so we're saying that crumbling infrastructure is a problem for investment? I am stunned. Stunned I tell you. Imagine my shock?

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