South Africa's leader of the opposition addresses US business leaders on country's challenges
Newly-elected Democratic Alliance (DA) leader, Mmusi Maimane, says political uncertainty and labour relations are the biggest challenges facing business investments in the country.
The DA leader was addressing top business executives at a breakfast organised by the American Chamber of Commerce in Sandton earlier on Monday. He also discussed South Africa's economic challenges and the DA's policies regarding the inclusive economy and jobs.
Just a few days into his job, Maimane has lashed out against the current political environment, which he says is hampering business confidence and investment. He says one of the problems South Africa faces is incoherent policies.
In his address, Maimane said: “The difficult frustration is that one day we agree that the economic future of South Africa must be expressed on how we use the National Development Plan and on another day, I come back and find other people saying no we are going to take this policy direction.”
He further told businesses that government needs to address the crumbling infrastructure if it wants to grow the economy and reduce unemployment. He pointed out Eskom and called it “a crisis which is holding South Africa's economy hostage.” Maimane says in Gauteng, e-tolls, just like Eskom, “will create a stranglehold on our economy.”
One of the policies of the DA is to see small businesses thrive. The party also wants government to limit red tape so businesses can operate freely and cheaply, and Maimane says his party is looking at ways to grow, especially, small black businesses.
On other issues: The DA leader says he supports the role of unions in the economy but was against the huge wage demands being asked. He also criticised some unions for overplaying their roles.
He addressed the need for government to do away with punitive exchange controls and relax strict labour laws that drive up costs for foreign investors.
Meanwhile, the United States (US) still represents an important trading partner for South Africa. Through Its Africa Growth Initiative Act (AGOA), South Africa benefited more than R1.7 billion in export revenue.
The US imported R55 million in fruits and vegetables, R51 million in wine and beer and R41 million in tree nuts. A total of 30 000 jobs were created in the automobile industry through the initiative.
AGOA is likely to come before the House of Representatives in the US in June this year, but South Africa's position in AGOA is fragile, with the DA wanting South Africa's membership in AGOA extended.