MBEKI: WORLD SPOTLIGHT ON SA ECONOMY

Wow, strange man this leader of ours! When it suits then the papers are full of hype and misquotes and when it suits again he quotes out of them.

Makes me wonder what he actually believes!

Mbeki: World spotlight on SA economy
Donwald Pressly Cape Town, South Africa
22 December 2006 01:21


South African President Thabo Mbeki has pointed to South Africa's good economic performance in 2006, which produced "some of the best news about our country" and world recognition of this success.

In his internet column, ANC Today, on Friday, the president devotes much space to the strength of the business and fiscal environment. He points first at the American NGO, Open Budget Index, which conducted a study of 59 countries and which ranked South Africa in the top four countries worldwide "in terms of the transparency surrounding our national budgets" relating to the quality of information provided to citizens."

New Zealand scored the highest on the index, at 89 points, followed by France with 87 points, Britain with 86 points and then South Africa with 85," noted Mbeki. "The Open Budget Index report made particular mention of the Medium Term Budget Policy Statement, which celebrated its tenth anniversary this year, and the People's Budget, which is a newspaper-sized, summarised version of the Budget designed to enhance accessibility."

Turning to the construction sector, Mbeki noted that a December report showed that shares of South Africa's leading construction companies looked set "for further growth in the new year amid the rising momentum of infrastructure expenditure". He noted Old Mutual Asset Managers equity analyst Feroz Basa as saying that Murray & Roberts's share price increased 93%, Group Five's 88%, Aveng's 79% and WBHO's 65%. Mbeki quotes further Basa as saying: "The irony is that many analysts, including me, thought that these shares were already fully valued at the beginning of the year, yet we have seen these steep price rises anyway and they look like they are going higher, mostly on sheer hype."

Mbeki notes that one South African newspaper also reported that: "The Dubai consortium that bought the Victoria & Alfred (V&A) Waterfront says it disagrees with the high political risk assigned to South Africa by international rating agencies, and is looking at making substantial investments across a range of economic sectors. Mbeki noted that Dubai World Company Nakheel Hotels & Resorts CEO, James Wilson, who spearheaded the R7-billion acquisition, said: "We believe quite strongly that the risk that international rating agencies give South Africa is too high. There is a crime issue, but employment will solve that." Mbeki took note that Dubai World had committed an additional $1-billion (R7-billion) for further development of the V&A Waterfront. Mbeki also quoted Wilson as saying: "The investment returns here are what attract us. The costs of entry are lower here than in the rest of the world. With the price of entry being low, obviously the investment return is higher for us," Wilson said.

South Africa had a sophisticated economy with a proper legal system and a good banking system similar to those in the United States and the United Kingdom. The country had huge, largely untapped investment potential, Mbeki quoted Wilson as saying. Mbeki said: "Our overwhelming practical national experience during the year that is about to close, whatever the few negatives that might have raised their ugly head, communicates the unequivocal message that the nation remains firmly on course towards the realisation of the goal it has set itself of doing everything necessary to achieve its renaissance as a winning nation." -- I-Net Bridge