Zuma says SA a lucrative destination for investment

DURBAN – South African President Jacob Zuma told the KwaZulu-Natal (KZN) business community on Saturday that he was "pleased" investors were "taking advantage" of the lucrative business opportunities offered in the country.

"South Africa is a lucrative investment destination where the returns on investments are high. The government offers a wide array of incentives, corporate tax relief, and has also established Special Economic Zones throughout the country," he said.

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The president was speaking at the Inkosi Albert Luthuli International Convention Centre (ICC) in Durban at the official opening of the province's InvestSA One Stop Shop, the third to be launched across the country this year.

He said companies were attracted to the country because of its infrastructure, institutions, goods and market efficiency, financial market development, technological readiness, business sophistication and innovation.

Due to domestic and global economic challenges, though, government had to implement programmes with fewer resources than before, he said.

"We thus remain fully committed to the country's fiscal framework as articulated in the recently tabled Medium-Term Budget Policy Statement."

"The National Treasury is leading us in preparing proposals that are designed to bring the public finances back onto a sustainable path. Government departments will have to reduce expenditure on non-core business more than before.

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"The Medium Term Budget Policy Statement has already indicated that some institutions that have also been draining government resources such as some state-owned enterprises are required to achieve turnarounds," he added.

He said government was "supporting" SOEs, as could be seen in the newly established SABC board and finding leadership for Eskom.

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The continued support of institutions that strengthened the country's democracy and economy were important, he said. "In this regard, we value the work that is done by the South African Reserve Bank and we will continue to protect its independence.

"We value our Chapter 9 institutions and also those we established to promote clean governance such as the Public Service Commission and the Special Investigation Unit which help us to fight corruption and maladministration in the public sector," he said.

The One Stop initiative is being punted as an effort to attract and retain investment through an improved business environment that cuts red tape.

"We had been sensitized by businesspeople in various forums about challenges they face when seeking to establish businesses in South Africa due to various bureaucratic requirements," Zuma told attendants, mostly from the business and corporate realm.

He said that services offered by "key departments" such as home affairs, labour, environmental affairs, trade and industry and agencies such as the Companies and Intellectual Property Commission (CIPC), South African Revenue Service, Visa Facilitation Service centres and others would all be available "under one roof" at the One Stop Shop.

African News Agency

Source: Zuma says SA a lucrative destination for investment