BLSA throws weight behind Ramaphosa's R1.2trn investment drive

President Cyril Ramaphosa’s initiative to raise R1trn in new investments over five years could add 4 percentage points to the country’s foreign direct investment, Business Leadership South Africa (BLSA) said Thursday, as it welcomed the plan.

"If we achieve these figures, I believe we can double our GDP growth, and add 4 % into our foreign direct investment capability," said BLSA Chief Executive Bonang Mohale.

"We believe the target is achievable especially if we support it with much needed structural reform and policy certainty," said Mohale.

Mohale said the organisation which represents 80 of the country’s largest businesses and multinational companies would heed Ramaphosa’s call to "chart a new path” for the economy which has suffered low growth levels in the past few years.

He said business was willing act as a "capable partner in helping to set the country on a new sustainable course towards inclusive growth".

On Tuesday, Ramaphosa announced that government would hold an investors conference, with the aim of generating at least $100bn - or about R1.2trn in new investments over the next five years.

The conference which is scheduled to take place later this year would target local and international investors.

Mohale stressed that the "stubbornly high" unemployment rate in the county was one of the key areas that business has committed in addressing, including the strengthening of state institutions to fight corruption.

The organisation has also raised concern in the governance of state-owned enterprises, which plays a critical role in stimulating the economy.

Public entities like Eskom and SAA  have been hobbled by poor governance and financial losses, with the National Treasury coming to the rescue.

"The state of our public service is worse than what we inherited in 1994, we need to redouble our efforts in state building and put South Africa back on the growth path," he said.

Mohale said BLSA had pledged the services of its members to serve on the board of state enterprises if required, and encourage financial institutions to restructure loans owed by the firms.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
ZAR/USD
17.02
(-0.49)
ZAR/GBP
21.23
(-0.30)
ZAR/EUR
19.15
(-0.35)
ZAR/AUD
11.82
(-0.63)
ZAR/JPY
0.16
(-0.27)
Gold
1775.96
(+0.05)
Silver
18.04
(+0.61)
Platinum
808.51
(+0.34)
Brent Crude
42.92
(+2.64)
Palladium
1912.01
(+1.34)
All Share
54521.90
(-0.17)
Top 40
50179.89
(-0.26)
Financial 15
10150.02
(-0.64)
Industrial 25
76554.73
(+0.52)
Resource 10
50138.02
(-1.24)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1572 votes
I am taking a hit, but should be able to recover in the next year
23% - 2065 votes
My finances have been devastated
34% - 3079 votes
It's still too early to know what the full effect will be
25% - 2234 votes
Vote