SA is an attractive investment destination − Zuma
2010-03-08 Pringle, Chanel (Engineering News Online, Johannesburg)
Resources > By Topic > OTHER TRADE TOPICS > Investment
The prospects for South Africa’s economic recovery are promising, and the country remains an “excellent destination” for investment in all sectors, including the manufacturing and mining sectors, President Jacob Zuma told the British Parliament on Thursday.
Zuma last week made his first State visit, as President, to the United Kingdom, accompanied by a number of South African Ministers and 216 business people.
“Our visit provides a valuable opportunity for South Africa and the UK to deepen bilateral relations and advance common positions on the broader challenge of building a peaceful, stable and more equitable world,” he said.
It was heartening that the relations between the two countries had grown so dramatically over the past 16 years, he added.
Bilateral trade had grown by 173% between 1998 and 2008, while the UK remains South Africa’s largest investor.
Zuma assured potential UK investors that South African law did not provide for the nationalisation of the country’s mineral resources, adding that there was no discussion within government about the nationalisation of mines.
Both South Africa’s Trade and Industry Minister Rob Davies and Mineral Resources Minister Susan Shabangu reiterated this statement during the State visit to the UK.
Zuma noted that South Africa’s Mineral and Petroleum Resources Development Act gave effect to the notion of State custodianship of mineral rights.
“The law recognises the mineral wealth as a national asset, a common heritage that belongs to all in South Africa and pronounces the State as the custodian thereof,” he said.
Meanwhile, Zuma told the British Parliament that South Africa was also firmly committed to strengthening the African Union and its organs, and to establish them as the primary vehicles for the advancement of peace, security, democracy, growth and development on the continent.
“The people of Africa are determined to act in concert to address the common and separate challenges we face. We remain convinced that the unity of the African continent is its greatest strength. Yet, in our history it has often proved elusive,” he stated.
Zuma emphasised that Africa will have to develop its infrastructure and invest in its industry to enable the continent’s poor to benefit from Africa’s “rich” earth.
“We need to foster regional integration, as a first step to continental integration. Africans must trade with each other, share skills with each other, access each other’s markets, and invest in each other’s economies. We need to improve governance, tackle corruption, align standards and regulations, and ensure the consistent application of the rule of law,” said Zuma.
He added that the support of the UK in terms of efforts to consolidate peace and democracy in Africa could not be understated.
“South Africa and the UK share a common desire for the peaceful resolution of conflict and the achievement of the right of all peoples to self-determination,” he noted, adding that one country in which both South Africa and the UK hold such a determination was Zimbabwe.
He pointed out that South Africa was greatly affected by the crisis in Zimbabwe, given that the influx of economic refugees was placing a “significant strain” on South Africa’s capacity and resources.
Meanwhile, the President highlighted that South Africa and the UK could work together “to advance the effort” to reaching a binding climate change agreement.
Further, he emphasised that there was a need to broaden Africa’s representation in the International Monetary Fund and World Bank.
“In forums like the G20 we remain fervent critics of protectionism, strong advocates of reform, and committed proponents of a greater voice for countries of the South,” he stated.
Zuma also gave the British Parliament an overview of South Africa’s preparedness for hosting the 2010 FIFA World Cup.
“Our stadiums have been completed. Our airports and transport links have been upgraded. Ticketing, transport and other logistical arrangements are in place. We have also heightened preparations around safety and security to ensure that fans, tourists and indeed our own citizens are able to enjoy themselves unhindered,” he noted.
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