THE NATIONALISATION DEBATE

Mr Neren Rau, CEO of the South African Chamber of Commerce and Industry (SACCI) said:

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The Nationalisation debate is gaining alarming momentum.  Support that COSATU has recently shown for Nationalisation will dampen foreign investor enthusiasm for South Africa at a time when the worsening political crises and financial woes of EU states are likely to inhibit economic growth in developing countries. The combined impacts on the South African economy are likely to result in slower economic growth and an inability for business to contribute effectively to the national goals of job creation and poverty alleviation.

The furthering of the Nationalisation debate is also a leadership test for the leading political party in South Africa.  Business has to date accepted the President’s assurance that Nationalisation is not on the National Agenda.  The open challenge to the view of the President from within his own party and the recent support given to nationalisation by COSATU add to the conflicting messages that both domestic as well as international investors are experiencing.  In SACCI’s engagements with the diplomatic corps as well as with foreign investors, policy uncertainty broadly and the issue of nationalisation specifically have proved to be leading deterrents to greater investment in South Africa in recent years.

The extension of the debate, by the ANC Youth League, to include expropriation without compensation, stands in stark contrast to the spirit and letter of the South African Constitution. Indeed, nationalisation as a solution to our societal inequalities and the challenges of poverty and unemployment is flawed on a number of political and economic fronts and attacks the fundamentals of a free society including property rights, an independent central bank and a market economy.

SACCI calls for reason to prevail and for appropriate leadership to be exercised in the matter in order to minimise the impact of confusing policy signals to both foreign and domestic economic stakeholders.

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Neren Rau                                                                                          Peggy Drodskie

CEO                                                                                                        COO

011 446 3800                                                                                       011 446 3800