Government policy on prudent fiscal discipline and stringent fiscal consolidation‚ as outlined in the 2017/18 budget‚ will remain unchanged‚ Communications Minister Ayanda Dlodlo emphasised Friday, writes Linda Ensor.
The minister briefed the media on the outcome of the Cabinet meeting held on April 26‚ the first after President Jacob Zuma’s Cabinet reshuffle.
The reshuffle and South Africa’s credit ratings downgrade did not take place because Finance Minister Malusi Gigaba was not present at the meeting‚ Dlodlo said‚
She also re-emphasised government’s commitment to bolster the economy‚ which was “reaffirmed during the successful engagement” between Gigaba and the global finance community during his visit to the United States to attend the Spring meetings of the International Monetary Fund and the World Bank. He had also interacted with domestic investors.
Dlodlo cited a number of studies that ranked the country among the top investment destinations in Africa and the world.
The AT Kearney’s 2017 foreign direct investment confidence report placed South Africa 25th in the global rankings of most attractive destinations for foreign direct investment.
This ranking‚ Dlodlo said‚ showed that South Africa’s strategic partnership with foreign investors was “gaining momentum and further demonstrates that our country’s blueprint on development is yielding results”.
“Improvements in short-term economic prospects and the long-term investment in the country’s manufacturing sector have been cited as some of the key drivers of SA’s improved rating on the index‚” the minister said.
Dlodlo also referred to the Africa Investment Index 2016 by Quantum Global‚ which ranked the country the fourth most attractive investment destination in Africa after Botswana‚ Morocco and Egypt.
She said South Africa’s attractiveness as an investment destination was also highlighted in the African Economic Outlook 2016 report‚ which placed the country fourth among investment destinations in Africa in 2015.
South Africa was ranked 47th out of 138 countries in the World Economic Forum Global Competitive Index 2016/17.