The Presidency has firmly rejected assertions that the proposed BHP Billiton takeover of Anglo-American signals a lack of confidence in the country’s investment climate.
During a media briefing at the Union Buildings on Monday, Presidency spokesperson Vincent Magwenya addressed the allegations, emphasising the government’s commitment to fostering a conducive environment for investors.
Magwenya highlighted ongoing efforts to address key challenges affecting investor confidence, including loadshedding, logistics sector issues, and combating crime and corruption.
On Friday, the Anglo-American board said it had concluded that BHP’s proposal significantly undervalues the company and its future prospects.
“In addition, the proposal contemplates a structure that the board believes is highly unattractive for Anglo-American’s shareholders, given the uncertainty and complexity inherent in the proposal and significant execution risks,” said the company.
“The board has therefore unanimously rejected the proposal.”
Establishment of the JICC
Magwenya said significant steps in this direction were the establishment of the Joint Initiative on Crime and Corruption (JICC) in collaboration with business leaders.
This initiative aims to tackle serious crimes and corruption while bolstering the credibility of law-enforcement institutions.
“Some of the issues being sighted are in the process of being resolved with the participation and partnership of business.
“For example, in June 2023, President Cyril Ramaphosa, members of his Cabinet, and senior business leaders agreed to establish a partnership to reverse the economic downturn and rebuild confidence in the country’s trajectory.
“Three priority areas were identified as undermining investor and societal confidence, namely loadshedding, the challenges in the freight logistics sector, and crime and corruption,” he said.
Fight against corruption
He added: “The JICC was established to drive collaborative efforts to tackle the most serious forms of crime and corruption and support government efforts to remove South Africa off the FATF [Financial Action Task Force] grey list.”
He outlined notable achievements in the fight against crime and corruption, including the appointment of new leadership in critical state institutions such as the SA Police Service and the National Prosecuting Authority.
These efforts have resulted in substantial progress, including significant arrests and convictions related to corruption cases.
Despite ongoing challenges, Magwenya expressed optimism about the progress made and the commitment of both government and private sector stakeholders to address concerns affecting the investment climate.
He urged the investor community to take note of the positive developments and reiterated Ramaphosa’s confidence in South Africa’s rebuilt institutional capacity.
Investment commitments
Highlighting recent investment commitments, Magwenya listed several completed projects across various sectors, underscoring the continued confidence of both domestic and international investors in South Africa’s potential.
These investments, ranging from automotive to renewable energy projects, according to Magwenya, demonstrate a substantial inflow of funds into the country’s economy.
Among the significant investment commitments are those from major companies like Amazon Web Services, Google, Toyota, and Anglo American, reaffirming their faith in South Africa’s economic prospects.
“President Ramaphosa also finds it satisfying that both domestic and international investors continue to demonstrate confidence towards South Africa through their continued investments, as evidenced in the last few years and in exceeding the investment targets set at the beginning of the term.
“President Ramaphosa is confident that the rebuilt capacity of the state remains firm and focused on responding to crime and corruption.”
