More investment in SA ‘likely to be put on ice’
Business Leadership SA warns of more to come as Sibanye announces an investment strike
Business Leadership SA deputy chairman Bonang Mohale has warned that "more is yet to come" after Sibanye announced an investment strike in the country this week and Pioneer pulled a deal, citing the recent sovereign credit ratings downgrades. "There’s evidence that the public sector is unable to raise bonds through the bond markets. The private sector is not immune — as we’ve seen recently," Mohale told Business Day in a wide-ranging interview this week. The effects of lower investor confidence would be a huge blow to the economy. "It’s catastrophic because SA needs more employment, not less; SA needs more foreign direct investment [FDI], not less; SA needs more growth, not less. If we don’t show that SA is an investment destination, these are the risks," he said. Although the rand and bond yields had remained stable, this was based on investors’ preference for emerging markets. There remained a "desperate need" for regulatory stability and policy certainty, he said. Sibanye Gold on...