A healthy Nigerian economy can be beneficial for South Africa if domestic corporates are able to strengthen business links with Nigeria, as it is a market for value added goods.

Neren Rau, CEO of the South African Chamber of Commerce and Industry, was commenting on the fact that Nigeria is now being viewed as the economic powerhouse in Africa.

“This development is also an important signal that South Africa is not the only investment destination in Africa.”

“South Africa will now face stronger competition from Nigeria for foreign investment, which means we would have to review our policies and approach to investor confidence.”

“Business needs more than platitudes to investor confidence; business must experience a welcoming investment environment. Several current legislative proposals will incur significant increases to the cost of doing business, weaken property rights and create uncertainty. Examples include the investment bill (PPIB), private security amendment bill (PSIRA) and mining legislation (MPRDA).”

“To improve investor confidence government must consult with the Business Community specifically on the impact that legislative proposals might have on investor confidence and the cost of doing business. This must then be reflected in mandatory Regulatory Impact Assessment (RIA) processes for each policy proposal. To enhance certainty in the business environment, the motivation for each policy proposal should be linked to the NDP.”