Be Careful What You Wish For
Finweek English|22 November 2018

While big investment by multinationals is often welcomed in Africa, not all investment results in favourable outcomes for businesses and people on the continent.

Johan Fourie
Be Careful What You Wish For

At Cyril Ramaphosa’s recent Investor Conference, multinational corporations pledged billions of rand to the future of South Africa. The hype was intoxicating, crowned by Alibaba chairman Jack Ma’s enthusiastic call for investment in education and entrepreneurship: “For a country to develop, there are three basic things that have to be done that are important. The first is education; it’s always good to invest in education. Investing in people is the best investment in the whole world. And the second thing is trust; build and support entrepreneurs. Make entrepreneurs the heroes. At the top of this is a good and clean government.”

Ramaphosa echoed his sentiments: “We want to make our businesspeople heroes. Let us see them as heroes because they are here to develop our economy.”

This is a dramatic change from the rhetoric of last year, when entrepreneurs were publicly castigated as pariahs pushing against transformation, inclusion and equality. Ramaphosa acknowledged this: “We should … move away from what we’ve become accustomed to how we treat entrepreneurs and call them all sorts of names. We treat them as enemies, with terms like white monopoly and all that. It ends today.”

At the conference, companies like Naspers* promised R6bn to invest in the technology sector and start-ups. It suggests a moment of optimism after years of lacklustre economic performance.

But not all business is good business.

This story is from the 22 November 2018 edition of Finweek English.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the 22 November 2018 edition of Finweek English.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM FINWEEK ENGLISHView All
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021