‘Surprising new rules’ on empowerment are holding investors back, says EU chamber
Investments have already been put on hold or downscaled, says the EU Chamber of Commerce and Industry in Southern Africa
The EU Chamber of Commerce and Industry in Southern Africa says uncertainty over SA’s broad-based black economic empowerment policies, and the costs of implementing them, are among the top challenges for European investors in the country. It says the growing emphasis on ownership over other aspects of the broad-based empowerment policy — such as supply chain or skills development — is compromising existing and prospective investors’ ability to continue with or expand their operations in SA. "In this respect, members of the EU Chamber have reported that an increasing number of tenders by the state-owned enterprises (SOEs) in SA include a requirement of 51% black ownership for their suppliers," Stefan Sakoschek, the chamber’s national executive director, said on Friday. He said the chamber had been informed that "such a discretionary measure lacked sound legal basis" as it would require pre-approval from the Department of Trade and Industry (DTI), based on appropriate studies examinin...
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