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Phosa: South Africa’s instability scares away investors

20 May 2015

”Inconsistent mining, land reform and BEE policies are causing investors to be wary of South Africa,” says former ANC treasurer general Mathews Phosa.

In prepared notes for a speech at the Austrian Business Chamber AGM in Johannesburg, the former ANC treasurer general and Mpumalanga premier named four areas where such stability was lacking.

These were:

— Inconsistencies in land reform and land ownership laws.

— BEE policies that are often challenged and inconsistent send messages to [the] investment community.

— Mining policies are costing the industry dearly, with investment now going elsewhere in Africa, such as Zambia, Mozambique and Angola, among others.

— Agricultural development policy, coupled with land reform, not been settled since 1994 is leading to reduced output.

This needed to change, as a general lack of policy stability leads to political, social and economic uncertainty. Policy stability in contrast created an “investment friendly culture where every investor feels protected and free to do business”.

Read the full article from Mail&Guardian.

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