Jul 22 2011

South Africa’s investor-friendliness questioned

Published by at 7:59 am under South Africa,Top Stories

South Africa got a very negative mention in the Financial Times Deutschland (FTD) this morning. The topic: the SA government’s intervention in private sector deals with foreign investors. The report speculates the international investor community might be close to the point where it strikes South Africa off its list of potential investment destinations.   

In short, a report which South Africa and its jobless mass needs like a hole in the head.

The news that the SA government has appealed the local anti-trust authority’s OK of the proposed Wal-mart/Massmart deal was written up in a critical report, which lists a number of recent examples where the government had also intervened to prevent, or reconstruct, proposed deals with foreigners.

The MTN/Bharti Airtel and Freeworld/Kansai deals and the way the anti-competition authority and SA government responded to them, got special mentions.

The message: foreign investors beware – capital-unfriendly government ahead!

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