Chinese investors wary of SA red tape - official

Source: Fin 24, 22/06/2018

Chinese investors are concerned about the lengthy lead time it takes
for South Africa to conclude investment deals and turn around
projects, a top leader in the National Planning Commission said on
Wednesday.
According to Tshediso Matona, head of the National Planning Commission
secretariat, the complexities associated with multi-approval plans
have been singled out as a major disincentives by Chinese investors
looking invest in the country.
`The Chinese investors have repeatedly raised [the] concern that South
Africa always takes a long time to make decisions when it comes to
investment projects,` said Matona, during a Vision 2030 forum to
discuss the National Development Plan (NDP).
`The Chinese have deep pockets, but these are the disincentives they
have raised.`
The National Planning Commission developed the NDP. The NDP outlines
the long-term vision and strategic plan for the country`s economic
growth. The government’s blueprint is aimed at stimulating growth and
address inequalities and unemployment by 2030, through partnerships
between the public and the private sector.
The plan was adopted by Cabinet in September 2012.
Matona said infrastructure development was one of the key priorities
of the NDP, and that fresh approaches were needed in project
management in order to address the current fragmented regulatory
framework.
The former CEO of Eskom said projects such as rail, road and energy
infrastructure would benefit from improved and innovative
implementation strategies.
He said he was encouraged by the private sector’s willingness to
support the NDP, but urged the government to demonstrate decisive
leadership in driving the plan.
`Government must demonstrate political commitment and leadership to
really drive the plan, because we can’t expect the private sector to
work with a plan that they don’t see as having [the] full backing of
the state,` said Matona.
Matona also lamented the poor economic growth rate, saying it would
take a great deal of work to achieve the estimated 1.5 % rate for 2018.
The two-day Vision 2030 Summit, which is attended by business and
government leaders, is aimed at coming up with practical solutions to
drive the plan.