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Tag: Foreign Direct Investment (FDI)
With the elections now largely behind us, investors’ focus will shift to President Cyril Ramaphosa’s ability and political will in addressing issues of concern, namely: the composition of cabinet to be announced on the 28th of May, transforming the economy with the promised policy reform and resolving the problem that Eskom poses to South Africa.
It is an unmitigated moral tragedy that in the year of celebrating what would have been Mandela’s 101st birthday, the incumbent government has betrayed him on an issue about which that he felt strongly. This is the resolution by parliament to make it constitutionally permissible to expropriate land without compensation (EWC). Despite the rhetoric to the contrary, the resolution does not exempt anyone, not any racial group or entity.
The scale of foreign direct investment (FDI) in the South African internet in recent months has meant that in-country content is on track to soon exceed out-of-country content. The localisation of the content accessed by South African web users is helped by major content and Cloud providers building infrastructure located in Africa’s most diversified economy.
Over the last few weeks, President Cyril Ramaphosa said repeatedly that the private sector is invited to enter into meaningful partnerships with government in establishing an Infrastructure Fund. Ramaphosa said infrastructure expansion and maintenance had the potential to create jobs on a large scale, attract investment and lay the foundation for sustainable economic expansion.
Hot on the heels of President Ramaphosa telling the European Parliament on 14 November that South African land reforms will be enacted in adherence to the country’s Constitution, the joint constitutional review committee formally recommended that section 25 of the Constitution be amended to allow for expropriation of land without compensation.
President Cyril Ramaphosa activated the controversial Investment Act 22 of 2015, by publication of a notice in the Government Gazette, on Friday 13 July.