Experts agree that South Africa has potential as an investment destination

Panel discussion at [THE INSIDERS] cautions that focus needs to be on enterprise development

Earlier in October, Glacier by Sanlam partnered with TIME magazine to host the first [THE INSIDERS] event, held at the JSE in Sandton. The event aimed to create a space in which a panel comprised of world class market and financial experts could share their inside knowledge into what is really happening in the global economy.

The panel consisted of some of South Africa’s foremost experts: Clem Sunter, voted by South African CEOs as the speaker who has made the most significant contribution to best practice and business in South Africa and currently Chairman of the Anglo American Chairman’s Fund; Kokkie Kooyman, three times winner of the Investment Week Global Fund Manager of the Year award and current Head of SIM Global; and Kuseni Dlamini, one of the Mail & Guardian’s top 200 young South African’s worth taking out to lunch, and a member of the Advisory Council for Wits Business School.

The event was hosted by TIME magazine’s Africa Bureau Chief, Alex Perry, and moderated by e.tv news anchor, Eleni Giokos.

The panel discussion focused on local and global economic trends, particularly South Africa, and Africa’s, potential as a future economic force.

“’Africa Rising’ is a growing topic covered by international media,” commented Alex Perry. “There is an understanding that the continent offers a great deal of potential – especially as an investment destination, rather than a destination at the receiving end of aid. Like most emerging markets, Africa offers a massive opportunity for the growth of wealth, but this often goes hand in hand with social unrest and protest.”

With current local events on everyone’s minds, the discussion focused particularly on the current socio- and economic instability in South Africa, and whether this was something that the country would be able to eventually overcome from an economic standpoint.

Clem Sunter pointed to the ‘flags’ that can be recognised in retrospect when looking at previous examples of markets about to experience economic upheaval, many of which can now be seen in present day Europe.

“An aging population, growing debt and unemployment, and increased social unrest are currently all being seen in Europe, currently the world’s largest economy. It means that emerging markets such as South Africa begin to offer a rare opportunity for investment, but current social unrest has the potential to derail this,” he commented.

The severe impact of current conditions, paired with a continued global economic meltdown, is evident, but the conclusion of the panel was that South Africa has the potential to overcome this, and indeed prosper.

Kuseni Dlamini argued that South Africa’s economy can be built, but only through increasing the country’s competitive advantages. “If Dubai and Singapore could successfully position themselves, and therefore become the next big global financial centres, there is no reason why South Africa cannot do the same and be the economic hub of Africa. However, we need to be seen as innovators and investors, not commodity sellers,” he commented.

“The best investments come at times of pessimism, particularly in emerging markets, which means that essentially South Africa offers a sound investment opportunity,” added Kokkie Kooyman. “Countries such as South Africa have a huge, growing young client base, but in order to avoid growing social economic unrest and protest, jobs need to be created for them.”

Taking guidance from other emerging markets, the panel argued that the country can benefit from factors such as a growth economy and a young population and begin to position itself as the African economic hub.

However, the conclusion of the panel was that strong leadership and a focus on supporting and building entrepreneurs will be vital in achieving this.

“We need to focus on supporting small businesses and entrepreneurs, rather than looking at wages and productivity in big companies,” explained Sunter.

Dlamini added that government needs to make it easier for entrepreneurs to set up business, as innovation is currently being constrained by red tape; with Kooyman adding that government cannot create jobs – it needs rather to enable businesses to create jobs.

Due to the success and positive feedback following the first event, [THE INSIDERS] is set to become a regular feature.

To view some of the comments and soundbites captured on YouTube, please click on the links below:

OPENING COMMENTS: http://youtu.be/KfQD_B6XGRc (Dur: 03’30”)

CURRENT SA ECONOMY: http://youtu.be/FMvKNJJbZX0 (Dur: 03’29”)

ENTREPRENEURSHIP IN AFRICA AND SOUTH AFRICA: http://youtu.be/vx4ZEvno0sU

EDUCATION, CSI AND NGOs: http://youtu.be/ruQpYlGQ7P8 (Dur: 07’36”)

ENTREPRENEURSHIP, INVESTMENT AND INTEREST RATES: http://youtu.be/XwHCmE3eGq4 (Dur: 08’58”)

PUBLIC SERVICE, UNEMPLOYMENT AND CORRUPTION: http://youtu.be/nX52UcG0RJg (Dur: 05’01”)

SOUTH AFRICA NOW – SOLUTIONS FOR A NEW ERA IN A NEW AFRICA: http://youtu.be/6661mJ6KXwQ (Dur: 06’01”)