• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Corruption threatens foreign investment

Feb 05 2013 18:01

Related Articles

SA investment rating safe - analysts

Foreign direct investment to SA plummets

Manuel: Report corruption

Wealthy Gulf investors eye Africa

A whiff of corruption

Political risks to watch in SA

Cape Town - South Africans view corruption as the greatest hurdle to investment from overseas, revealed a survey from FTI Consulting.

The poll, that was conducted ahead of the Mining Indaba, showed that 80% of respondents see bribery and corruption as the greatest obstacle to foreign direct investment while 70% viewed labour strife as another major hurdle.

However, 71% of those polled regard foreign direct investment positively.

Mark Malloch-Brown, FTI Consulting chairperson, welcomed the support for overseas investments.

“while this is good news for our global clients, great care will need to be taken to ensure all constituencies are on board before a major investment is made in the country, particularly in highly sensitive industries like oil and gas and mining,” Malloch-Brown said.

The survey showed that 53% respondents wary of foreign direct investment in oil and gas. Banking and finance came second with 49%, followed by 44% both for agriculture and defence while 41% were concerned about metals and mining.

Overseas state-owned companies were a concern for 75% respondends and 74% expressed concern with sovereign wealth funds. "This reflects 64% being concerned that foreign investment is used for gaining political influence in the country," the poll stated.

A large number of respondents also expressed anxiety over perceived Chinese investment practices that neglect worker welfare, crowd out employment or result in the loss of control of strategically important minerals.

Regarding "a controversial overseas investment", 87% stated that they would take action in the form of discussions, joining a protest group or contacting the media with only 10% indicating that they inform a political representative.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote