ActionSA plans to turn around R1 trillion in lost investments over the past decade

18 April 2024                    

ActionSA is highly concerned with reports that foreign investors have disinvested over R1 trillion from South Africa over the past decade.

South Africa’s investor environment and businesses continue to suffer due to the ANC’s economic policies, corruption, cronyism, and gross government incompetence. Consequently, South Africa has reportedly haemorrhaged over R1 trillion in investments over the past decade, significantly hindering our capacity to create jobs and grow the economy.

Economic growth averaged a meagre 0.76% p.a. from 2014-2023, much weaker than our population growth rate of 1.15% p.a., during the same period. Simply put, the average South African is poorer in 2023 than in 2014. Similarly, over the past decade, the unemployment rate rose from 25.1% in 2014 to 32.4% in 2023 due to the lack of investments and inadequate job creation. In real terms, the number of unemployed South Africans rose from 5.1 million in 2014 to 7.9 million in 2023.

During this lost decade, foreign companies left South Africa, choosing to invest and create jobs in other African countries, like Egypt, Kenya, and Ghana.  It is imperative for South Africa to grow the economy to alleviate the country’s unemployment crisis. We must make South Africa more competitive and bring back foreign investments to jump-start the economy and spur job creation.

Creating jobs is one of ActionSA’s main priorities. ActionSA’s job creation platform rests on four pillars: (1) a vibrant private sector functioning in a market-based economy, (2) innovative entrepreneurship and small businesses, which create jobs and propel the economy, (3) reduced political interference and power of trade union, and (4) a stable and reliable ActionSA government in power.

In government, ActionSA will create a business-friendly competitive economy, which will attract international investments and jobs. These investments will be used to prioritise strategic and job-creating industries, like manufacturing, and increase our international competitiveness. Private-public partnerships are also vital to realising South Africa’s success. Finally, labour and minimum wage reform are also key priority areas, which will aid South Africans in getting jobs in the new vibrant economy.

Issued by Pieter Scribante, Team FixSA Member: Economic Development, 18 April 2024