Foreign direct investment (FDI) into Africa is indeed fraught with legal red tape, but there are platforms available that help potential investors navigate their way through.
One such organisation is the European Union Chamber of Commerce and Industry, and its executive chairman, Stefan Sakoschek, said its mission is to present different investment and views in the region.
As a private sector initiative, the chamber provides input to the South African government on potential barriers to investment. “Once we’ve identified an issue, we compile a position paper – usually in response to a green or white paper.”
He emphasised the importance of transparency and accountability in legislation for foreign investors, although the slowness with which laws are processed can be a deterrent. He pointed out that at present there are about 30 Bills being discussed in parliament or awaiting the president’s signature.
He explained that there is also growing competition for a piece of the FDI pie. South Africa is up against South East Asia and the Middle East on a global scale, Namibia and Mauritius regionally, and Nigeria and Kenya on a continental basis.
“You can do whatever you like to make a country attractive, but it must have resources,” he said.
