State capture impeded DTI’s efforts to re-industrialise economy, says Rob Davies
The minister says the election of President Cyril Ramaphosa provides hope and the investment climate has improved, but Eskom is a serious risk
Bad governance, corruption, state capture, and a lack of cohesion across the government has impeded the department of trade and industry’s efforts to re-industrialise the economy, minister Rob Davies said on Tuesday. However, in his address to the Cape Town Press Club on the prospects for the economy, Davies said the election of President Cyril Ramaphosa has provided hope that these matters can be addressed. The investment climate has improved remarkably over the past year as policy certainty takes hold, though Davies conceded that Eskom and the electricity crisis poses a serious risk to the country, both operationally and financially. Davies said the dramatic increase in foreign direct investment to SA last year when it had declined globally was an indication of this. Foreign direct investment to SA increased from $1.3bn to more than $7bn. “Our industrial policy has worked but it has not done what we wanted it to do,” Davies said, attributing this to poor governance and corruption....
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