So I really think South Africans needs to eat a little bit of that humility pie…especially with the way foreign investors are choosing to spend their money these days.
Direct investment inflows to South Africa have dropped by a jaw breaking 70 percent in 2010 when compared to 2009 that is according to a report presented at the United National Conference on Trade and Development.
70 percent! Do you understand what that means? It means we only managed to attract enough investor interest for them to bring in about $1.5 billion US dollars in investment for the whole year!
That is peanuts considering that some countries manage to attract that money from one export shipment, of like I don’t know, coffee.
South Africa moved from the number 4 slot of the biggest attractor of foreign direct investment on the continent to last place…yeap number 10…riiiight at the back.
And you know who beats us? Libya, Egypt, Uganda and Angola. All which are countries that don’t exactly have stable political climates at the moment.
See the investors with the deep pockets are not longer the United States or Europe, which loved South Africa for its stable business climate.
Now China and India are the ones with the money and they prefer to invest it in mineral resources such as diamonds, gold and of course oil.
The two countries don’t care much about political stability and corporate governance a country boasts as long as they will see a return on its investment.
The new FDI attracting countries now has the opportunity to finance infrastructure development, education, improve healthcare etc.
Obviously it is not always that simple, as on this continent we have a lot of leaders who like filling their own pockets, but recent anti government protests across the continent is proving that civilians just won’t take that shit no more.
South Africa is losing money where it counts the most; foreign direct investment is almost, well to me at least, like getting an advance on your salary. All you need is to show your investors that their money will grow if they trust you…
Barcode Rebels also agree that the country has to work overdrive to get rid of this image that we hate or fellow brothers and sisters.
On special assignment a couple of weeks ago, they did a segment of attacks on foreigners, there was an immature video by a freelance reporter. In the video the last thing that kills this poor guy, who was hard working God Fearing and all that; is a rock to the head. Some girl is the one who hits his head with the rock, jumping around screaming “Ya…I kill you”…ok she didn’t actually say that but she looked a bit like the gorilla who would be chanting that.
The girl was arrested, then released. The special assignment people got an interview with her. Do you want to know what her response was to “so chick why you kill him?”
She answered “I don’t know…I just saw people beating him and I joined in.”
Then they say “errr but do you realize that you have killed a man?”
And then they got to the boy that started the whole attack on this foreign man. Best way I can describe him is some high school dropout, with nothing better to do in his life then smoke glue and think of ways to make some cash and popularity from killing innocent people.
The issues of xenophobia is definitely scaring away investment by millions. And we need to be active Africans and stop isolating our economy as the chosen one…it may be not that way for much longer….