President’s investment council gives SA thumbs up

Cape Town – South African President Kgalema Motlanthe ended two days of talks on Sunday with the international investment council – attended by five top business leaders – after reassuring them that it was business as usual under his new government.

Commerzbank’s Martin Kohlhaussen, Astra Zeneca’s Percy Barnevik, Mitsubishi’s Masaki Miyaji, Areva’s Anne Lauvergeon and Renovo’s Viktor Vekselberg said they believed South Africa, with its prudent policies, was likely to withstand “the adverse global environment”. Their statement, released after the meeting, said that continued investment growth, especially through the public sector, would assist in this endeavour.According to government spokesperson Dumisani Mahlasela, the business leaders commended the government “for demonstrable efforts” and for stepping up the implementation of the policies and programmes it had adopted in the course of the body’s evolution.The council is nine years old.It was established by former president Thabo Mbeki in June 1999.A government official said Mbeki had been scheduled to attend the meeting, but was unable to do so as he was assisting Zimbabwe in its implementation of a power sharing deal between the two main parties, Zanu-PF and the Movement for Democratic Change.The weekend meeting in Mossel Bay – also attended by finance minister Trevor Manuel and other economic cluster ministers – reflected on the global financial crisis.Trade and industry minister Mandisi Mpahlwa, who chaired the meeting, reported that South Africa’s regulatory environment and policy choices had shielded the economy “to a large extent” from the turmoil that had swept global financial markets.”While the South African financial system and banks remain intact, the potential impact on the South African economy from the imminent global slowdown was a matter of concern,” he said.According to a statement, the council members had commended the government on the progress achieved since democracy, with regard to economic growth and transformation.They also praised the government’s ability “to be self-critical”.The group apparently did not discuss the establishment of a supercabinet – the brainchild of the SA Communist Party – agreed to at an ANC alliance summit at the weekend to assist with the implementation of policies.Business ReportTheir statement, released after the meeting, said that continued investment growth, especially through the public sector, would assist in this endeavour.According to government spokesperson Dumisani Mahlasela, the business leaders commended the government “for demonstrable efforts” and for stepping up the implementation of the policies and programmes it had adopted in the course of the body’s evolution.The council is nine years old.It was established by former president Thabo Mbeki in June 1999.A government official said Mbeki had been scheduled to attend the meeting, but was unable to do so as he was assisting Zimbabwe in its implementation of a power sharing deal between the two main parties, Zanu-PF and the Movement for Democratic Change.The weekend meeting in Mossel Bay – also attended by finance minister Trevor Manuel and other economic cluster ministers – reflected on the global financial crisis.Trade and industry minister Mandisi Mpahlwa, who chaired the meeting, reported that South Africa’s regulatory environment and policy choices had shielded the economy “to a large extent” from the turmoil that had swept global financial markets.”While the South African financial system and banks remain intact, the potential impact on the South African economy from the imminent global slowdown was a matter of concern,” he said.According to a statement, the council members had commended the government on the progress achieved since democracy, with regard to economic growth and transformation.They also praised the government’s ability “to be self-critical”.The group apparently did not discuss the establishment of a supercabinet – the brainchild of the SA Communist Party – agreed to at an ANC alliance summit at the weekend to assist with the implementation of policies.Business Report