Structural reforms key to whetting investor appetite – deputy finance minister Masondo

JOHANNESBURG - Deputy Minister of Finance David Masondo says global investors still have an appetite to invest in South Africa, but warns that the country’s immediate challenges continue to put a damper on spirits.

Inefficiencies in the energy and logistics sectors, poor infrastructure, crime and corruption, as well as policy uncertainty, are believed to be the biggest factors driving down investor confidence.

ALSO READ: 

- Tough road ahead as SA tries to meet FATF requirements to get off grey list - Treasury

While Masondo admitted these made South Africa a hard sell, he remained upbeat that structural reforms would help attract more investment again.

Masondo made the comments after a series of meetings with US Deputy Treasury Secretary, Wally Adeyemo.

“Investors are interested in returns, and as they chase these returns, they must also manage risks - and if our jurisdiction is risky, we won’t have investments. And it’s for this reason that one of the key issues that has raised concerns, and that’s why we are greylisted, is our ability to combat illicit finance.”

Masondo said South Africa had assured the U.S. and other global leaders that it would tighten its internal controls as the country cleans up its image.

“If institutions of a country don’t generate confidence among investors – it becomes risky to invest in that jurisdiction.”