Businesses in the UK have expressed confidence in President Cyril Ramapohosa’s economic reform agenda, saying they hope there will be stability after the upcoming ANC elective conference in December.
This is the first indication of the support business has for Ramaphosa as he seeks a second term as leader of his party.
“We are pleased with the way things are going and have a lot of faith and [are] crossing lots of fingers that this trajectory continues because it is only with stability and the presence of the rule of law and anti-corruption that countries are able to thrive,” said Anglo American head of government relations Froydis Cameron.
Ramaphosa engaged with British and South African business leaders at Lancaster House in London on the sidelines of his two-day visit to the country this week, which included a visit to Buckingham Palace and a meeting with Prime Minister Rishi Sunak at 10 Downing Street to bolster trade relations between the two countries.
Ramaphosa used the trip to urge the UK to make good on its promise to provide funding for the just energy transition plan.
In a statement released by Downing Street after the discussions, the office of the prime minister said the two leaders had discussed strengthening co-operation on green hydrogen and sustainable infrastructure, building on the just energy transition partnership and opportunities to increase exports and access to services.
Ramaphosa and Sunak welcomed new collaborations on cutting-edge science and technology, with Sunak citing the Square Kilometre Array intergovernmental radio telescope project as an exciting example of global innovation, the office said.
“The leaders also confirmed new bilateral agreements on health and education, which will ensure that the UK and South Africa are working together to improve pandemic preparedness and upskill young people for the jobs of the future.”
Some of the reforms of late have been really encouraging for us.
— Craig Fish, head of treasury at Anglo American
Commenting on his meeting with Sunak, Ramaphosa said in a press briefing that South Africa had strongly put across its message that it wanted more investment by British businesses in the country and increased trade, specifically in regard to increased quotas for wine, sugar and canned fruit.
Craig Fish, head of treasury at Anglo American, said it was important to realise that most countries were heading towards uncertain economic terrain.
“In every jurisdiction that we operate in there are always challenges. It’s energy security in Europe. In Latin America we have some tricky challenges with poverty. And so every country has challenges, but I think the defining thing about South Africa at the moment is political leadership because we are able to engage and acknowledge the challenges,” he said.
“In South Africa we get a chance to engage in tax and fiscal policy as well as to have a seat at the table. Some of the reforms of late have been really encouraging for us if you look at renewable energy and the relaxation of the restrictions for us to be able to bring in investments.”
The abolishment of exchange control was another huge bold step, said Fish, adding that it made it easier to engage with their investors and say “South Africa is clearly signaling that it’s open for business”.
Cameron said the company respected South Africa’s democratic processes. However, she hoped that Ramaphosa’s efforts to push the country towards a “much more stable position will continue because, to be honest, corruption underpins so many bad things and if you cannot rely on the rule of law and judiciary in a business environment it becomes very difficult”.
UK-based Mabbey Bridge businesses development manager Darren Keep said the current outlook on South Africa was “largely positive” and there seemed to be a will to address rural infrastructure challenges.
“The need for bridges all over South Africa is not in doubt and so funding is the biggest challenge. Infrastructure investment is always returned for five, six times over and so we are very hopeful that more funding will be allocated to infrastructure, which will allow us to help link up rural communities throughout South Africa,” he said.
Hive Hydrogen Africa general manager Colin Loubser, a company currently building the largest ammonia plant in Nelson Mandela Bay, bringing in £5bn (about R103bn) investment, said there had been improvements in dealing with state-owned entities in the last three months.
“We have seen state-owned enterprises really transforming in South Africa to be more co-operative,” said Loubser, whose company is focused on the just energy transition.
Loubser said there had been relative stability in South Africa, with Ramaphosa retaining his presidency, unlike in the UK, which has changed leaders frequently in recent times.
We have seen state-owned enterprises really transforming in South Africa to be more co-operative
He said investors were concerned about the outcomes of the ANC’s elective conference and that it was important not to take risks on security.
“There are going to be ups and downs in any development anywhere in the world and it is just about how you manage them that counts,” he said.
Mo Bros Grooming CEOs Keval and Savan Dattani are eyeing Cape Town with hopes of bringing a “British spin-off and spice” to men’s looks.
“We are hoping to be on board in the next 12 months. We are really keen on a trade deal being agreed, where we would be able to drop all the current trade barriers that we currently have, which would make it really glamorous for us to set up in other countries.”
The Dattanis said they had confidence in Ramaphosa’s administration and that his visit had shown that “there is a level of serious aspirations to make things happen. He is here despite a lot of things going on, like load-shedding, but he has taken the time to speak to British businesses and our king. It means a lot and he will be respected for that.”
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