Conclusion

Despite slow economic growth in recent years, South Africa remains a good investment destination with some highly desirable fundamentals, and significant growth and profit-making potential. This is the key message that should be communicated to the global investment community.

To continue to attract FDI, government must acknowledge that improved investor confidence will be the cheapest and most effective stimulus for the economy. A commitment to policy certainty is needed, as policy instability does not instil confidence and create increased perceived risk for international capital. Serious foreign investors take a long-term view, and any uncertainties make their calculation of the reward required for an investment that much higher.

In addition to credible communication about long-term stability and policy certainty, there is a need to address crime, corruption, education failures and a lack of service delivery to generate the kind of improved sentiment about the country, which will stimulate foreign investment and create more growth and employment opportunities.