Anyone willing to turn away foreign investment in South Africa because of valid criticism of the country’s race-based laws and legislation, such as the Expropriation Act, should also be prepared to explain to the unemployed masses why the economy is not growing.
South Africa’s economic situation is so precarious that political leaders can hardly tell serious investors such as the USA and Elon Musk to keep their “noses out of South Africa’s business” when setting conditions for investment.
So, it is alarming that the DA’s newly elected leader, Mr Geordin Hill-Lewis, said in a television interview today that he would not hesitate to tell the current Washington leadership and someone such as Musk not to interfere in South Africa’s domestic affairs.
Mr Hill-Lewis’s harsh and insulting remarks regarding President Trump, in particular, and his administration will not go unnoticed.
He said, among other things, “I’m no fan of MAGA and no fan of Mr Trump whatsoever. I think he has put the world in a very dangerous place and in many ways, he is quite reprehensible, actually. I hold no candle whatsoever for that policy or that administration.”
Neither Elon Musk nor the USA are criticising South Africa for no reason. They clearly stated that they want to bring much-needed investment to South Africa to help get the country’s economy back on its feet and reverse unemployment.
This is, however, hampered by South Africa’s race-based laws, which make it impossible to invest in South Africa, according to Musk. The reasons why the legislation and policy deter investors are justified.
Therefore, it is erroneous to say that the USA and Elon Musk are “poking their noses into South Africa’s business” or that what happens in South Africa “does not concern them”, as South Africa’s Department of International Relations and Co-operation and Mr Cyril Ramaphosa’s Office claimed earlier this week.
Mr. Musk is quite possibly the most successful entrepreneur in world history, while America has the largest and strongest economy in the world. In contrast, South Africa’s economy is growing at only 1%, while peer emerging-market economies are growing at an average of 4%.
South Africa’s investment rate is approximately half the world average, and the result is a failing economy and an unemployment rate of more than 30%, compared to a world average of around 5%.
To rectify this, South Africa must attract investment, and when a country such as the USA and a businessman such as Musk express valid criticism, it warrants attention. Threatening them is not sensible.
South Africa’s survival as a democracy is at stake. Without investment and job creation, the country is heading straight for a national disaster. Populist leaders making populist statements will not create a single job.
Every day that South Africa spends picking and choosing which investment is acceptable is another day that it sinks deeper into the economic quagmire while the populists grow stronger. No sensible South African leader will take that risk.
