From Biznews community member Norman Stewart
I think this story is newsworthy as currently South Africa is in a desperate financial position with our country having been mismanaged, known to be corrupt and before anyone jumps on the bandwagon of racial slur, this has nothing to do with colour. Our economy that was dependent on mining, agriculture, manufacturing and tourism has degenerated through bad management policies to the point where it is no longer relevant or attractive to outside investors. We all understand the financial difficulties facing the world but South Africa has disappointed all and is likely to suffer more than the rest of the emerging countries.
South Africa desperately needs investment to develop Infrastructure Projects that will create jobs and stimulate the economy. Our Government should be making every effort to attract foreign investment for this purpose.
I represent massively wealthy Asian families as a Gatekeeper of some of their assets and in particular one commodity Gold. As Westerners we have no concept of the wealth these families have and they have no interest in publicising the fact. They own banks, and are massive industrialists moving billions of Dollars on a daily basis. They have employed some of the brightest brains in the world as custodians of their assets and advisers of their wealth. I am fortunate enough to be able to discuss confidentially many issues on a daily basis with these clever and powerful people.
So the story starts in August 2015 when I made the request to my one principal as to whether they would be prepared to invest in South Africa. He agreed on the basis that they would provide 80% investment on Infrastructure Projects that are approved by Government and will create jobs and stimulate the economy with a capital requirement of no less than Euro 500 million. Further to this he explained that the funds would be invested on a non recourse basis so it would not be a loan to be repaid with interest and in Euro’s.
I was so excited especially seeing that the newspapers were full of talk about developments in large projects that would stimulate the economy and create jobs. So I approached Government in writing, both local and central offering the investment opportunity and in particular mentioning the Oil & Gas Development Zone for Saldanha Bay and Renewable Energy or Traditional Energy Projects. I wrote to Wesgro, IDC, Dept. of Trade & Industry, Minister Jeff Radebe’s office (Head of Phakisa Development Projects), The Minister of Finance Nhlanhla Nene, The Presidency and the Minister of Energy Tina Joemat-Pettersson.
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Nobody responded other than Charmaine from the Presidency which was an automated response to say she was out of office. I had expected a quick response inviting me to discuss this investment opportunity but sadly it appeared obvious that investment is not a priority in South Africa. Not to be beaten and because I was embarrassed to report back the lack of interest to my principal, I started phoning the offices and asking to meet, as well as using some of my business associates to request meetings with Government on my behalf.
Finally in beginning of November 2014 I received a call from the IDC offering to meet with me which we did via conference call from IDC Cape Town office to Mr Kugan Thaver & Mr Thokoana Tsolo. Mr Thaver suggested that there were few priority projects requiring funding, Titanium Beneficiation Plane, Water Desalination Plane, Koega Smelter Project etc., etc. He then suggested in writing that we concentrate on the Desalination Plant and Titanium Beneficiation Plant for Saldanha Bay. I received the Executive summary and passed on to my principal who agreed to provide 80% of R30 billion subject to the IDC/Governement proving that they could provide the R6 billion or 20% investment to match our 80%. We were then advised that first a bank feasibility study needed to be done (which had been previously done) which would require R350 million that we would need to fund. I explained that if the IDC could prove that they would be capable of R6 billion then the project would be funded 100% or R30 billion and we could proceed with whatever studies were required. All went quiet and we were advised that they do not work like that.
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My principals had a very strong feeling from information that they had that the Government did not have extra funds to pursue projects.
After the Nene saga, I wrote again to the new Minister of Finance Pravin Gordhan offering the funding if required. I also phoned Mr Pule Setai (Ministers Assistant) and discussed our offer per telephone and he assured me that it would get to the Minister. To date nothing has happened and nobody has called me from any other department.
Why would an investor be treated like this when our country is supposed to be wooing investment?
Further to this which is sad, my principals because of who they are and the financial power they wield are very involved with the IMF, World Bank, UN, Us Treasury, and the Central Bank of Europe are so disappointed in South Africa and our Government. When I apologised to them they laughed at me and said what did I expect with leaders like we have in South Africa. They discuss us and something like this is just another financial bruise for South Africa.
