Why Finland is keen on investing in SA
CNBC Africa spoke to the Honorary Consulate of Finland, Jouni Dahllund at the launch of the Invest Durban initiative about the need to attract foreign direct investments to South Africa.
Mon, 27 Nov 2017 11:59:37 GMT
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AI Generated Summary
- Finnish companies are looking to invest in South Africa, particularly in sectors like food and technology.
- The one-stop-shop initiative aims to streamline investment procedures and reduce bureaucratic barriers for foreign investors.
- Potential for Finnish companies to set up production facilities in South Africa to meet local demand and boost the economy.
The Honorary Consulate of Finland, Jouni Dahllund, recently addressed the need to attract foreign direct investments to South Africa, particularly in Durban. Finland has been traditionally focused on indirect investments in South Africa, such as machinery and production equipment in sectors like paper, mining, and process industries. However, there is a growing interest among Finnish companies to explore more direct investment opportunities in the region.
One notable example is the Finnish dairy company Valio, which recently received import permits to introduce their cheese and dairy products to the South African market. Dahllund highlighted the potential for Finnish companies to set up production facilities in South Africa to meet local demand, rather than shipping products overseas. This move could not only boost the availability of Finnish products in the market but also create job opportunities and contribute to the local economy.
In addition to the food industry, Finnish investors are also eyeing opportunities in technology sectors where Finland excels, such as telecommunications and automotive suppliers. The Consul emphasized the attractiveness of these industries for Finnish companies and the potential for collaboration with South African partners.
Despite the interest in investing in South Africa, Finnish investors face challenges and frustrations, primarily related to bureaucratic processes and red tape. The Consul acknowledged the ongoing efforts to streamline investment procedures, citing the one-stop-shop initiative as a significant step towards creating a more conducive environment for foreign investment. By reducing barriers and simplifying processes, South Africa aims to attract more foreign investors and drive economic growth in the region.
Overall, the prospect of Finnish companies expanding their presence in South Africa presents a promising opportunity for both parties. With a focus on key sectors and improved investment conditions, the collaboration between Finland and South Africa could lead to mutual benefits and long-term partnerships.
