Why European businesses are delaying investment in SA

[Bradley Prior]

Why European businesses are delaying investment in SA

European businesses are delaying investment in South Africa because of poor power and water supply and the costs of complying with Black economic empowerment legislation, representatives of an industry body said. [Bloomberg]

 

[maumau]

About time somebody is held accountable. Hope more foreign companies follow suit, it will force these idiots to fix infrastructure.

"The Finland-based packaging company has sued the city of Ekurhuleni, which lies east of Johannesburg, after an electricity sub-station it depended on blew up twice and affected production and has delayed a 70 million euro ($83 million) investment in new machinery, van der Nest said."

 

[Aghori]

Add striking employees, a culture of entitlement, unsteady land ownership rights, corruption... the list goes on and on...just like our leaders speeches.

 

[RVQ]

While the ANC are at a snails pace working on resolving power generation, as mentioned in this article, power distribution is also now collapsing under ever failing ANC run municipalites. It would be easy enough to privatise generation and focus public resources on distribution and transmission but all the money to be stolen is on generation so the ANC will never move for that just like CR refuses to budge on changing BEE to discourage corruption, fronting and tenderprenaurs

 

[Aghori]

While the ANC are at a snails pace working on resolving power generation, as mentioned in this article, power distribution is also now collapsing under ever failing ANC run municipalites. It would be easy enough to privatise generation and focus public resources on distribution and transmission but all the money to be stolen is on generation so the ANC will never move for that just like CR refuses to budge on changing BEE to discourage corruption, fronting and tenderprenaurs

CR is a puppet for the ANC as a collective. His personal policies are good but he cannot implement anything without their permission.

 

[hj007]

Making it clearer that below r50m of turnover requires no bee requirements for ownership would make a lot of people a but more relaxed.

But I agree, why even bother with the red tape/changing requirements if you can just as easily set up manufacturing next door or manufacture globally and just import. You'd have to MASSIVEly change the entire environment before wanting investors to invest and manufacture locally.

 

[diesel]

The ANC smile and promise the world to the white investors to come invest but when election time comes they smile at the black majority and point fingers and blame everything on the white investors.

 

[My_King]

Why is there no sanctions yet?

 

[Aghori]

Why is there no sanctions yet?

It's a country of Colour so yeah...democrats and the cucked EU love the ANC.

 

[system32]

At the same time laws compelling companies to be partially owned by Black South Africans and to procure goods and services from Black-owned companies to help redress the inequities of apartheid are overly bureaucratic and expensive to comply with, the representatives said.

Let's be honest - who likes racist laws?

 

[WollieVerstege]

Making it clearer that below r50m of turnover requires no bee requirements for ownership would make a lot of people a but more relaxed.

But I agree, why even bother with the red tape/changing requirements if you can just as easily set up manufacturing next door or manufacture globally and just import. You'd have to MASSIVEly change the entire environment before wanting investors to invest and manufacture locally.

Tried that, does not really work. The very next question from them is, what happens to my investment when turnover goes above R50m.

 

[Arthur]

I can add my $0.02 from direct personal experience. I'm closely involved in an attempt by a European company to purchase two SA companies. The B-BBEE issue nearly killed the deal, and is still not resolved. What's also causing huge delay, and intense frustration for the overseas purchaser, is the red tape and ongoing delay in obtaining excon approval from our overlords. SA stands to lose millions if the purchaser walks away shaking his head because of SA's loony policies and red tape.

 

[RVQ]

Making it clearer that below r50m of turnover requires no bee requirements for ownership would make a lot of people a but more relaxed.

But I agree, why even bother with the red tape/changing requirements if you can just as easily set up manufacturing next door or manufacture globally and just import. You'd have to MASSIVEly change the entire environment before wanting investors to invest and manufacture locally.

The black ownership model won't attract investors, you essentially want someone to supply 100% of the capital and give a nobody ownership of something you funded or worst have some corrupt ANC cadre get involved in your company and risk your image on the global stage, that didn't work well for KPMG, SAP and other multinational companies... I say kill the BEE Ownership model and promote training and employment of the disadvantaged, that way investors would be more willing to setup multi-billion rand operations to employ tens of thousands of workers, it wouldn't matter if you black or white because there is the potential for more jobs than people seeking employment...

 

[TelkomUseless]

I can add my $0.02 from direct personal experience. I'm closely involved in an attempt by a European company to purchase two SA companies. The B-BBEE issue nearly killed the deal, and is still not resolved. What's also causing huge delay, and intense frustration for the overseas purchaser, is the red tape and ongoing delay in obtaining excon approval from our overlords. SA stands to lose millions if the purchaser walks away shaking his head because of SA's loony policies and red tape.

ANC doesn't want investments. They say they do "lip service"... but their actions "red tape", bee etc says go-away

 

[etienne_marais]

About time somebody is held accountable. Hope more foreign companies follow suit, it will force these idiots to fix infrastructure.

"The Finland-based packaging company has sued the city of Ekurhuleni, which lies east of Johannesburg, after an electricity sub-station it depended on blew up twice and affected production and has delayed a 70 million euro ($83 million) investment in new machinery, van der Nest said."

You still believe it works that way in Africa ?

 

[lkswan747]

Well, strike me down! What a revelation.

 

[hj007]

I can add my $0.02 from direct personal experience. I'm closely involved in an attempt by a European company to purchase two SA companies. The B-BBEE issue nearly killed the deal, and is still not resolved. What's also causing huge delay, and intense frustration for the overseas purchaser, is the red tape and ongoing delay in obtaining excon approval from our overlords. SA stands to lose millions if the purchaser walks away shaking his head because of SA's loony policies and red tape.

Excon is a complete disaster. It's terrible as a SAn to buy from overseas owners and it's awful for outsiders to invest locally.
Also, you cannot give a timeframe, unlike competition commission approval, so deals just die.

And that's for relatively large transactions - good luck doing something small with a few million.

 

[Milano]

ANC doesn't want investments. They say they do "lip service"... but their actions "red tape", bee etc says go-away

Cyril wants foreign investment in the same way he would “tie” young white South Africans to a “tree” if he could, to stop them leaving South Africa. He is just willing to do absolutely nothing to encourage either. Or maybe he meant lynching

 

[Oldfut]

The black ownership model won't attract investors, you essentially want someone to supply 100% of the capital and give a nobody ownership of something you funded or worst have some corrupt ANC cadre get involved in your company and risk your image on the global stage, that didn't work well for KPMG, SAP and other multinational companies... I say kill the BEE Ownership model and promote training and employment of the disadvantaged, that way investors would be more willing to setup multi-billion rand operations to employ tens of thousands of workers, it wouldn't matter if you black or white because there is the potential for more jobs than people seeking employment...

Yeah, family member lost his job (and so did quite a few black people) when an Australian company couldn't stomach the BEE bribe they were going to be forced to pay.

 

[zophas]

The thread headline uses the word "delaying" which seems to imply that investments will eventually come.
Dream on.