Call for long-term certainty for US investors

To continue to attract foreign direct investment (FDI) from the United States, South Africa needs to create long-term certainty for investors by not only protecting South Africa’s status as the gateway to Africa, but by providing an investorfriendly environment that cuts unnecessary red tape, discourages corruption and promotes labour stability. “There are currently over 600 US companies doing business in South Africa but the country needs to meet the above objectives to enhance its current global competitiveness in the investment race,” says Donna Bryson, president of the American Chamber of Commerce (AmCham). AmCham’s board has identified several ways in which South Africa can achieve this. The country needs to put in place an investment framework that is transparent, clear and consistent. “The attempted intervention by the executive following the Walmart/ Massmart competition procedure created an impression of inconsistent, reactive thinking,” says Bryson. A new framework on FDI should also be particularly inviting for smaller and medium-sized investors. South Africa also needs to be perceived as stable and as placing the highest value on safeguarding the security of private-sector assets, she said. Also important is an improved taxation, regulatory regime and incentives. “The Chamber welcomes tax amendments currently being formulated and implemented that will enable regional investments to flow through South Africa without being taxed,” she said. CAPTION Donna Bryson … The US is currently SA’s largest portfolio investor.