Fin24

India warns on nationalisation debate

2011-08-10 13:35

Johannesburg - South Africa has a huge advantage as an investment destination, although the nationalisation debate is off-putting, India’s High Commissioner Virendra Gupta said on Wednesday.

“At the moment South Africa has a huge relative advantage... but the nationalisation debate does detract investors,” he said on the sidelines of a seminar in Johannesburg on Indian-South African business relations.

Gupta said he was “not nervous at all” about nationalisation becoming policy and saw the current debate as merely rhetorical.

“I’m advising Indian businesses to come. Various government functionaries have gone out of their way to reassure nationalisation is not government policy.”

However, he did point out that opportunities in the rest of Africa were continuing to improve. The biggest opportunity in South Africa was the size of the market, Gupta said.

At the moment, total investment between South Africa and India was about $7bn to $8bn, although the majority of this flowed into South Africa from India.

Gupta said in five or six years this would be more evenly balanced, at an estimated total investment between the two countries of about $15bn.

The seminar was organised by Business Unity SA and the Confederation of Indian Industry.

Comments
  • zackie - 2011-08-10 13:56

    would be crazy to invest in SA when India is booming?

      Nasdaq7 - 2011-08-10 16:29

      $21bn is invested in India a year by the world's evil capitalists.

  • Nasdaq7 - 2011-08-10 14:12

    Julius Malema won't pay your wages if you nationalize. 90% of the world's wealth is held by Europe, Asia and the USA. For example SA is currently borrowing R350bn to build Eskom power stations. Who is giving those loans? Julius Malema or the wealth industrial nations in Europe, the US, Asia? Mining is just a small part of the economy. Nationalizing it won't help the country. The mines produce far too little income. You don't shun your banker. He is in a far better financial position than you. He can just turn around and say: you take our mines and we block you from loans. Then the ANC will see and taste what Zimbabwe feels like. Even Venezuela is now compensating oil companies for nationalizing them. Why? Because they need access to international loans. The world's wealthy provide their money in order for a country to build up their economy. Google Venezuela remains committed to compensate oil companies, says minister

      TrueAfrican - 2011-08-10 17:17

      Please NasDaq dont make yourself look like an idiot with your sheer ignorance of the mining industry saying that it is just a small part of the economy. Mining contributes an average of 20% to South Africa’s GDP, of which about 50% is contributed directly. It boasts total annual income exceeding R330 billion. It is one of the country’s major employers, with more than one million people in mining-related employment. It is the largest contributor by value to black economic empowerment in the economy.

      Stoffels - 2011-08-10 19:40

      The Economist disagrees with you, TrueAfrican: "Mining now accounts for a mere 2.3% of employment and 3% of GDP, down from around 14% in the 1980s. Having been the world’s biggest gold producer for more than a century, South Africa has fallen behind China, Australia and America. Some of its mines are nearing the end of their productive lives." Here's the rest: http://www.economist.com/node/16248641

      Nasdaq7 - 2011-08-11 02:19

      "Mining now accounts for a mere 2.3% of employment and 3% of GDP, down from around 14% in the 1980s". I agree with Stoffels. http://en.wikipedia.org/wiki/Economy_of_South_Africa

      nexus - 2011-08-11 12:32

      well it would help if we nationalised the mines and claimed ownership... we wouldnt have to pay any foreigners to sell our own gold to us.. but we saw how the international money mongers and their media PR destroyed zimbabwe when robert mugabe tried to nationalise the agricultural sector and destroy the legacy of CJ rhodes... we saw how easy it is to sweep up mobs with our own "xenophobia" rampages a while back. that is how they own us. i wonder where the IMF and the World bank gets the money to loan everyone when the countries they rest on are in debt to them... its like the rothchilds and warburgs fund hitler to confiscate the wealth of european jews and then use it to create the state of israel... and the jews are all too happy for a homeland... they are dogmatically opposed to any suggestion that their paradise is grown from the corpses of mass murder.

      TrueAfrican - 2011-08-11 15:40

      according to the Chamber of Mines of South Africa, the industry contributed: 8.8% directly, and another 10% indirectly, to the country's gross domestic product (GDP). Over 50% of merchandise exports, if secondary beneficiated mineral exports are counted. About 1-million jobs (500 000 directly). About 18% of gross investment (10% directly). http://www.safrica.info/business/economy/sectors/mining.htm

  • Nuck Choris - 2011-08-10 14:13

    Another Gupta

  • Stirer - 2011-08-10 15:06

    all talk about "greedy capitalists" gets to me. Our economy needs greedy capitalists, who never have enough money. Take greedy Raymond Ackerman for example. He too a paltry four stores in the Western Cape and grew it to 775 stores employing 38000 people. Now there's job creation for you. Tell my how nationalization would have helped that?

      Boerseun - 2011-08-10 15:53

      I bet you someone like Malema cannot answer you on this one. Even worse, why do this whole bunch of idiots not go and talk to Mr A and find out how to fix things? Simply put, they are ideologically challengeed.

      TrueAfrican - 2011-08-10 17:10

      Greedy capitalists dont distribute wealth like nationalisation does. Your ideals of "Greedy Capitalists" are no different in quality of life and compensation as Communists are to child labour, overwork and underpay. Raymond Ackmerman is an example of someone that used the system (pre-1994 South Africa) to his advantage to become the person he is. People today run Malema down not because of his policies on nationalisation (which you probably havnt even bothered to look at yet run it down by listening to your family and fellow white peers say) but because of fear that he speaks the truth and white people hate the truth. Sad but True.

      kidblack - 2011-08-10 20:11

      @TrueAfrican : For people that "hate the truth" we sure are miles ahead of you lot init?

      AA - 2011-08-10 22:36

      @TrueAfrican. Go to a capitalist country and then go and visit Zimbabwe or even Cuba and see the difference for the ordinary working individual. Who has it better ? There are very few starving people in capitalist country's, hardly anyone lives in tin shacks and life expectancy is higher.

  • Boerseun - 2011-08-10 15:44

    These warnings have never been heeded by the ANC and in the end they will be sorry for not doing so, way to late.

  • Jim - 2011-08-11 08:36

    It is more important to please the ANCYL and get the votes than to stimulate the economy. They would rather chase investment away with the ANCYL comunist ideals, thats the bottom line. No country will invest with that, So when the job market becomes even worse, then you know why.

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