Sound governance will attract FDI

To attract investment from the United States, African countries need to ensure their governance is sound and that there is a more uniform approach to trade facilitation. “The better regulated and more robust the environment, the easier it is to invest,” says managing director of the American Chamber of Business (AmCham) and CITI country officer for South Africa, Donna Oosthuyse. She says South Africa is ranked in the top three globally with regard to financial services. “That’s a big plus for any potential foreign investor,” she says. But one of the biggest challenges to investing on the African continent is the lack of uniformity in terms of regulation, in her view. “However, the issue seems to have been recognised and there is a continental trend towards addressing this and finding harmonisation,” she said. A good example is the Southern African Development Community (SADC) Banking Association which promotes regional financing integration, she said. Massmart chief executive, Grant Pattison, agrees, adding that a lack of clarity of clear-cut trade policies by African countries also hampers foreign direct investment (FDI).