Nigel Casey: Why SA remains attractive to British investors

The British High Commissioner, Nigel Casey, recently spoke to CNBC Africa’s Karabo Letlhatlha about the investment message of President Cyril Ramaphosa and how it is being received by British companies already investing in South Africa. Casey highlighted the long-standing historical ties between British companies and South Africa, dating back to over a century primarily in the mining sector. However, the relationship has evolved to encompass various sectors of the economy, including services, with British companies viewing South Africa as a strategic market and a gateway to the rest of the continent. Casey expressed confidence in the investment message delivered by President Ramaphosa, stating that British companies are always looking for reasons to be positive about South Africa. He noted that the President's efforts have been well-received, with companies like Anglo-American reaffirming their long-term commitment to the country. This positive sentiment aligns with the broader goal of positioning the UK as the leading G7 investor in Africa by 2022, surpassing competition from countries like France and the US. Amid the uncertainty surrounding Brexit and its potential implications, Casey emphasized the UK's ambition to strengthen its investment ties with Africa, particularly with South Africa. He highlighted the importance of investment as a key priority for African governments and private sectors, with the UK positioning itself as a financial hub facilitating capital flow for development across the continent. When addressing the case for investing in South Africa, Casey underscored the importance of viewing it as a long-term commitment rather than a quick return opportunity. British companies that have thrived in the South African market have weathered various business cycles, indicating a resilient approach to investment. South Africa's status as Africa's most developed economy, coupled with robust infrastructure, legal framework, and political stability, presents a compelling proposition for investors. Despite challenges such as an unreliable energy system and high youth unemployment rates, South Africa offers advantages that British investors find appealing. The country's strategic location as a gateway to other African markets, along with its established legal system and political stability, adds to its attractiveness as an investment destination. While acknowledging competition from other African countries vying for investment, Casey emphasized South Africa's significant advantages that can be leveraged for further growth and development. In terms of sectors of interest for British companies, Casey highlighted three key areas. First, telecoms, with a focus on mobile broadband expansion, presents opportunities for investment. Second, infrastructure projects demonstrate strong commitment from the South African government, making it an attractive sector for British investors. Lastly, the renewable energy sector offers significant potential for growth, aligning with the country's energy needs and global efforts towards sustainability. Overall, Nigel Casey's insights shed light on the continued appeal of South Africa to British investors, driven by a combination of historical ties, President Ramaphosa's investment message, and the country's strategic advantages. Despite challenges, the long-term commitment and growth opportunities in sectors like telecoms, infrastructure, and renewable energy position South Africa as a compelling investment destination for British companies.