RECENT events confirm that SA’s perceived receptiveness towards foreign direct investment (FDI) is declining. As a result, some foreigners are disillusioned and look to better growth prospects elsewhere in Africa. The case of European Union (EU) investors — our single largest source by far — confirms this: aggregate EU FDI stocks in SA declined 23% in 2010-12, when their global FDI stocks increased. And that was before the legislative barrage unleashed before last year’s elections.As our economy is plagued by high unemployment, social discord, low growth, and rising political populism, the signal failure to retain, let alone ignite, foreign investor interest from our major source is disturbing. But why is this the case? And will the Promotion and Protection of Investment Bill, soon to be presented to the Cabinet, change this?Our politics have changed sharply in recent months. The African National Congress (ANC), harried by the populist Economic Freedom Fighters, is struggling to res...
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