Cape Town - Ensuring that South Africa’s investment appeal and “open for business” message evokes more than just passing interest is a tough ask at Davos, according to Mark Appleton, SA head of multi asset and strategy at Ashburton Investments.
With China, the migrant crisis, geopolitical tensions in the Middle East, the growing gap between rich and poor bombarding participants at Davos 2016, the South African delegation cannot afford any missteps in terms of the message and the way it is presented, warned Appleton.
"The message as evidenced by Finance minister Pravin Gordhan's communications to date has been that they are there to listen, they are there to convince global investors that the SA government appreciates the scope of the challenges and above all they are there to convey the message that SA is open for business," said Appleton.
The desire to promote public private partnerships and increase interaction and consultation with the private sector has been mentioned. Some positives have also been highlighted such as recent significant foreign investment into the SA Automotive sector in particular.
Minister of Trade and Industry Rob Davies has indicated that there had already been a number of bilateral meetings with investors at Davos.
"The feedback is that there is a definitive expression of interest in possible investment into SA especially now that the rand is so cheap," said Appleton.
He added that, unfortunately, there have also been some negative perceptions generated as well.
"The apparently very late withdrawal of President Zuma from a public session and the focus on the passing into law of the controversial 'promotion and protection of investment bill' does South Africa’s image no favours," said Appleton.
The bill replaces existing bilateral investment treaties and does not treat foreigners as favourably as these bilateral treaties did.
"There is never a dull moment when dealing with South African issues it seems. Overall, however, while it seems to be a question of two steps forward and one step back, there is a sense that South Africa will find a way to muddle through," said Appleton.