Is the SA government really serious about encouraging foreign direct investment (FDI)? That was a question the US Department of State recently posed to potential investors. And the answers it received tended to be negative. “While the SA government supports investment in principle, investors and market commentators are concerned that its commitment to assist foreign investors is insufficient in practice,” said the department statement. Some of their concerns, it added, included a belief that the national-level government lacked a sense of urgency when it came to supporting investment deals. And indeed several investors reported trouble accessing senior decision makers. Additionally, it noted that SA scrutinised mergerand acquisition-related FDI for its impact on jobs, local industry, and retaining SA ownership of key sectors. And these, the US authorities suggested, again tended to be negative factors for potential investors. Also, it said that private sector representatives and other interested parties were concerned about politicisation of SA’s posture towards this type of investment.
