BLSA calls on private sector to take advantage of Brics investment opportunities

Bonang Mohale. Picture: Muntu Vilakazi/City Press
Bonang Mohale. Picture: Muntu Vilakazi/City Press

Business Leadership South Africa has called on the SA private sector to help build on the Brics Summit by taking advantage of the investment opportunities presented.

The call followed an announcement of $14.7bn (R193bn) worth of investments by China ahead of the summit and complements pledges of Saudi Arabia and the United Arab Emirates, BLSA said, which equate to about 12% of SA's GDP.

"The investment announcement was a timely boost ahead of such an important gathering. We would like to see the local private sector match these efforts and help unlock the opportunities presented by these investments," said BLSA CEO Bonang Mohale.

In recent months, BLSA has been working with presidential special envoys to help drive the project to recruit $100bn in foreign direct investment and another $100bn made up of domestic direct investment.

"Our board remains committed to ensuring that local business matches – rand-for-rand – the FDI target. We are confident this is achievable.

"Already, one of our members – Sappi – has just announced R7.5bn over the next five years," said Mohale.

Another BLSA member, Old Mutual, helped generate R10bn investment inflows with its recent relisting on the JSE, said BLSA.

Mohale said South Africa’s relationship with Brics countries now needed to mature to allow the country to export an increasing proportion of value-added goods to these countries and address the trade and investment deficit between them, most notably with China.

"BLSA appreciates Brics' position as an important alternative structure to help South Africa advance its economic goals, and the country needs to aggressively take advantage of infrastructure funding opportunities offered by the New Development Bank, commonly referred to as the Brics Bank," Mohale added.

Earlier on Thursday, ANC Treasurer-General Paul Mashatile on Thursday invited private investors to take up equity stakes in state-owned companies.

Parastatals were the "engine driving the economy", he said.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
16.95
(+0.27)
ZAR/GBP
21.78
(+0.56)
ZAR/EUR
19.90
(-0.12)
ZAR/AUD
12.09
(-0.08)
ZAR/JPY
0.16
(+0.66)
Gold
1897.46
(+0.78)
Silver
24.19
(+1.84)
Platinum
885.00
(+0.57)
Brent Crude
42.88
(+1.08)
Palladium
2305.01
(+2.82)
All Share
54506.88
(-0.39)
Top 40
50319.94
(-0.51)
Financial 15
10003.88
(+0.72)
Industrial 25
73358.17
(-0.86)
Resource 10
54053.58
(-0.58)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1390 votes
It depends on how the funds are used.
73% - 8998 votes
No. We should have gotten the loan elsewhere.
16% - 1985 votes
Vote