South Africa is open for business and dedicated to creating a conducive environment for it to thrive, Finance Minister Enoch Godongwana said on Thursday.
Speaking at an engagement with members of the media ahead of the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, Godongwana said the country was focused on economic recovery.
“We remain steadfast in carrying out structural reforms to support and accelerate economic recovery. As government, we remain resolved to deal with the energy and logistics challenges that are adversely impacting our economy,” he said.
This year’s meeting, which runs from January 15-19, will focus on rebuilding trust.
“It is quite apt, considering the complexity associated with the domestic and transnational headwinds we are facing,” Godongwana said.
The theme will link four interconnected priorities, including achieving security and cooperation in a fractured world; creating growth and jobs for a new era; artificial intelligence; and a long-term strategy for climate, nature and energy.
Godongwana said South Africa remained the gateway to Africa and called on international investors to invest in the country and continent.
He said the African Continental Free Trade Area provided opportunities for international companies to partner with local businesses to expand their presence in Africa.
Commenting on structural reforms, Godongwana said fiscal consolidation was needed to tackle soaring debt levels, while monetary policy should stay the course to bring inflation in line with the SA Reserve Bank’s 3-6% target range.
“Structural reforms remain crucial to revive medium-term growth prospects amid constrained policy space. The green transition, increasing resilience to climate shocks, and improving food security for millions of people require strengthened multilateral frameworks and adherence to rules-based platforms for international cooperation,” Godongwana said.
He added that access to competitive international development finance for developing countries was imperative to ensure a successful green transition.
In addition, he said government would table matching competitive financing for green transitions and the Sustainable Development Goals before international financial institutions and key global economic platforms such as the Group of 20.
“As government, we value this engagement. We are encouraged that business holds the same view given the level of representation. We might not agree on all the policy issues. However, it is important that we find common ground and that we speak as one voice in Davos.”
He said Treasury, government departments and Brand SA had prepared key messages that the State and business could use as a guide for the country's engagement at WEF.
“The common message we are taking to the annual meeting is that South Africa remains open for business and is committed to creating a conducive environment.” – SAnews.gov.za
