Govt seeks foreign cash injection

The South African government is fishing for R155bn worth of foreign investment in local industry. And, according to Sadiq Jaffer, the Department of Trade and Industry’s chief director for investment promotion, there have already been nibbles.

Jaffer told journalists he can’t say much yet about discussions with investors, but several of these potential investors are interested in green energy.

He says foreign interest is currently very high, but questions are being asked about South Africa's energy policy into the future.

Countries like Russia, China, India, Brazil and America are being targeted.

Trade and Industry Minister Rob Davies told a press conference before his department’s budget address that over the next three years about R115bn worth of investment into South African industries is imminent.

In the light of South Africa's unemployment figure Davies emphasised the essentialness of this sort of investment in local industry.

He says the recession has highlighted structural weaknesses in the South African economy, where consumption has grown twice as fast as manufacturing.

The country cannot depend on the global cycle improving, he says.

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