Decreasing investment protection
Some recent business bills pander to populists, deterring foreign investors.
AS THE elections on May 7th draw closer, the ruling African National Congress (ANC) seems increasingly troubled by a challenge on its left flank from the Economic Freedom Fighters (EFF) led by Julius Malema, a former head of the ANC’s Youth League, who wants to nationalise white businesses and farms without compensation. The ANC is sure to win the election. But fear of losing votes to the EFF has had a worrying effect on recent legislation related to business. Read more
[Source: http://www.politicsweb.co.za/politicsweb/view/politicsweb/en/page71619?oid=579465&sn=Detail&pid=71616 by Anthea Jeffery.]
Delivering on ‘radical’ change, if not on growth or jobs
In August 2012 the Cabinet adopted the National Development Plan (NDP) as South Africa’s policy blueprint from now until 2030. The plan is supposed to boost the economic growth rate to 5.4% of GDP and help generate 11m jobs. Read more
Media coverage of the Promotion and Protection of Investment Bill of 2013 (the Investment Bill) has focused on its role in replacing South Africa’s bilateral investment treaties with various European states. Representatives of these countries have broken their usual diplomatic silence to warn against the reduced protection it gives investors from their states. However, the true significance of the Bill goes very much beyond this. Read more
The Promotion and Protection of Investment Bill of 2013 (the Investment Bill) seeks to ‘promote investment’, which it recognises as vital ‘job creation, economic growth, development, and the well-being of the people of South Africa’. However, the provisions of the Investment Bill are so damaging that they are likely to repel, rather than promote, the investment so urgently required. Read more
[Source: http://www.taxtalkblog.com/?p=10135 by Kay Schröder, Senior Counsel of the German Southern African Chamber of Commerce.]
In an attempt to overhaul its foreign investment protection regime, South Africa gave notice to cancel its Investment Protection Treaty with Germany, one of its most important trading partners. Subsequently, on 23 October 2013 the draft Promotion and Protection of Investment Bill (“the Bill”) was published for public comment. The Bill is set to replace various foreign investment treaties. Read more
58 780 000 (mid 2019 estimate)
4.0% y/y in December 2019 (CPI) & +3.4 y/y in December 2019 (PPI)
-0.6% q/q (3rd quarter of 2019)
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