CAPE TOWN, Oct. 14 (Xinhua) -- President Cyril Ramaphosa on Monday pledged to carry out far-reaching reforms to make South Africa a destination of choice for foreign direct investment (FDI).
Next month South Africa will be hosting the second South Africa Investment Conference as part of its drive to attract 1.2 trillion rand (about 80 billion U.S. dollars) in new investment over five years, Ramaphosa said in his weekly address to the nation.
The inaugural investment conference last year raised around 300 billion rand (20 billion dollars) in committed investments, "but we know that we need far-reaching reforms to achieve our target," the president said.
Such reforms will help cultivate a new crop of home-grown companies, he said.
The most effective way to reduce poverty and create economic opportunities for South Africans living in townships and rural areas is to enable them to start up and grow their own businesses, Ramaphosa said.
While many entrepreneurs struggle to mobilize capital and access markets, they also find it difficult and costly to meet the regulatory requirements for starting and running a business, according to the president.
"Key to this will be the introduction of a common application form across our development funding institutions," he said.
The government, he said, is working to make business easier for both the person starting out in their garage and for the multinational looking to open a new factory.
"We are making it easier to start a business, register a property, deal with construction permits, pay taxes and trade across borders," said Ramaphosa.
To promote greater efficiency, the government is reducing the time it takes to grant licences and permits and is working with business to ensure that the conditions attached to licences are not too onerous or costly.
The country has prioritized immigration reform to attract more skilled workers and to grow tourism, Ramaphosa said.
Visitors to South Africa will soon be able to apply for an e-visa online, according to Ramaphosa.
The president recently signed a law to establish an electronic deeds registration system that will improve turnaround times, enhance accuracy and make information more readily available.
Improving competitiveness is not only about the cost and ease of doing business but also about institutional quality, restoring the balance of powers across different state entities, enhancing administrative efficiency and governance, Ramaphosa said.
If the country has to create jobs and reduce poverty, its needs to grow its economy at a much faster pace, said Ramaphosa.
"For that, we need much more investment, from both local and international business," he stressed.
Ramaphosa said his country is using every available opportunity to reach out to investors to talk about the great business potential both in South Africa and across the African continent.
