Randburg Chamber of Commerce and Industry says things do not bode well for residents financially
Grey listing has also historically led to a decline in foreign investment, something that we in SA cannot afford right now, CEO of RCCI says.
Randburg Chamber of Commerce and Industry CEO Linda Blackbeard believes the greylisting of South Africa was expected.
The country has been greylisted by the Financial Action Task Force, a body that sets global standards to combat money laundering among other things.
“This move puts South Africa in the company of countries such as Syria, Haiti, Yemen, and Mozambique,” Blackbeard said.
“Who thought we would ever be compared to these countries? It tells me how serious our situation is. It also tells the financial institutions and investors that the country is not fully compliant with anti-money laundering and terrorist financing standards. Not great at all for investors and our poor economic levels.”
Blackbeard added that it had been said that in recent months, South Africa had made significant progress on many of its recommended actions to improve its financial system, but more work was needed to increase investigations and prosecutions of money laundering, as well as the seizure of assets due to crimes.
“We are just not seeing accountability and thugs are not being taken to book. When Finance Minister Enoch Godongwana said SA should be ‘prepared for the possibility’ of greylisting, it was a clear message to us that we could expect it to happen. Greylisting is expected to hike the cost of doing business in South Africa by increasing the amount of due diligence companies have to carry out, and we may also find sending funds offshore and transacting with international banks more onerous.”
Greylisting has also historically led to a decline in foreign investment, something that we in SA cannot afford right now, Blackbeard added.
“Along with the Eskom debacle and the same old same old promises we received in the budget speech, with nothing meaningful for the middle class and lower income group, this is just another spanner in the works. Doesn’t seem to spell a sunny day. I just wish I could be more positive about everything but what we are left to deal with is a handful for most people and businesses.”
All in all, these things did not bode well for the economy and businesses that were already struggling, she said.
“Let the fuel price hike in March not blow you away as this will see everything across the board increase as well. Higher costs we pay on everything, less in our already empty pockets, and a weak economy.”
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