Auditing giant sees investment future
Bright prospects as Richards Bay's economy and developments grow
DESPITE many economists forecasting that investors will most likely shy away from South African soil, auditing firm Ernst and Young reveals it is not all doom and gloom for the local economy in its Africa Attractiveness Survey.
The company said, ‘while sceptics still abound, the evidence of the continent’s clear progress over the past decade is irrefutable’.
In the past year, Zululand has been a prominent example of investment growth with a list of prospective developments on the horizon, including the Alkantstrand and Mzingazi Canal Precincts, John Ross Eco-Park and three new industry players Nyanza Light Metals, Phaka-Sangle Energy Africa and Oasis Eco Solution, moving into a 22-hectare Richards Bay Industrial Development Zone (RBIDZ) plot near the Port of Richards Bay.
The latest KwaZulu-Natal business barometer, compiled by renowned economist Mike Schüssler of Economists.co.za, also indicates that the province’s economic growth rose by 2.7% year-on-year, ‘which still gives a lot of hope’.
However, during a presentation on the global economic climate in Richards Bay last month, economist Dawie Roodt warned that the world market is becoming ever more competitive, putting added pressure on the region’s investment attractiveness.
‘Japan and Europe are currently looking to devalue their currencies to support their export markets and protect local industries, potentially making them more competitive than South Africa.
‘Trade protection laws are also being implemented around the globe, which will make trading between countries a lot trickier.
‘The only way to attract investors back to South Africa is to offer them better returns on their investments,’ said Roodt.
Perception promise
Fortunately, Ernst and Young’s survey shows progress has been made regarding investor perceptions since an inaugural survey conducted in 2011.
‘The majority of respondents are positive about the progress made and the outlook for Africa.
‘The fact that there are a number of companies with an already established presence in Africa, that are very positive about the continent’s growth prospects and are getting down to business, is crucial.
‘These are believers in the Africa growth story, who do not need convincing.
‘They are growing their investments, creating new jobs and focusing on long term, sustainable growth opportunities.’
