As hearings continue around the recent tabling of the Promotion and Protection of Investment Bill 2015 – the latest held on Tuesday last week – some European businesses have put their South African business projects on hold, while others are exploring the option of relocating their investments to other African countries.
This despite assurances from the department of trade and industry (dti) that foreign investment rights are protected under the Constitution.
“We know there are a number of projects pending due to the uncertainty related to South Africa’s investment framework. And some of our members are investigating other destinations such as Namibia, Nigeria and Kenya for their regional operations,” said Stefan Sakoschek, executive chairman of the European Union (EU) Chamber of Commerce and Industry in Southern Africa.
According to him, the EU not only represents 75% of foreign direct investment in SA, but also nearly 300 000 jobs. “We remain committed to a mutually advantageous long-term partnership with the SA government but the withdrawal of the country’s bilateral treaties with the EU member states has sent an alarming message to the European business community regarding the standard of protection of investments,” said Sakoschek.
The American Chamber of Commerce (AmCham) South Africa – which represents around R300bn worth of investment in South Africa – has also been vocal around this issue, with the organisation’s executive director, Carol O’ Brien, noting that business confidence in South Africa is at its lowest level ever.
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