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Dear [subscriber:firstname | default:reader],

Welcome to the final Quarterly Edition of the Tutwa newsletter of 2020. What a year it’s been!
This issue will focus on South Africa’s readiness to attract foreign direct investment (FDI) in the midst of the Covid-19 pandemic that has added to economic woes already in place even prior to the impacts of this global health crisis. While many hope to be able the imagine a Post-Covid-19 economy, the reality is that we must begin rebuilding the economy amidst COVID-19 as the virus will be with us for some time.

President Cyril Ramaphosa has announced his Economic Recovery Plan met by mixed reactions. Finance Minister, Tito Mboweni followed with the Medium-Term Budget Policy Statement which was generally felt required more practical steps for us to yield positive results. Senior Associate, Nkululeko Khumalo argues that despite South Africa’s recent economic anguish, it can play a pivotal role in attracting gateway investment targeting the rest of the African continent.

Pondering South Africa’s challenges and options available, Tutwa’s Anna Ngarachu and Matlala Setlhalogile offer a compelling piece, zooming in on the need for a comprehensive policy framework that addresses the separate – yet interconnected – challenges the country faces. While policies are required, at Tutwa Consulting Group, we recognise that policies on their own will not do the trick. We require a capable public service, working hand in hand with private and civil society, to reignite our journey towards our desired path.

We take time in this edition to recall the Investment Conference that took place in 2019. It is important that we reflect on the various investment pledges made by the private sector. What chance does SA stand of receiving these investments when most investors have either deferred or canceled their announcements made during President Ramaphosa’s investment drive?

Picking up on the sentiment away from globalisation, Lesley Wentworth considers what African countries have to do as they look to repositioning their economies as global value chains are disrupted in the wake of the Covid-19 pandemic. How likely is it that an economic recovery will be found in ‘near-shoring’ especially with continental coordination efforts at the highest levels?

We always appreciate your comments and inquiries. Connect with us at info@tutwa.co.za and we will assist you with policy insights that will help your organisation today!

Time for SA to Rejig Investment Attraction Strategies

Author: Nkululeko Khumalo
The carnage wreaked by Covid 19 to what was an already economically anaemic Mzansi is self-evident. Poverty and unemployment are at an all-time high and the economy is expected to shrink by more than 7% this year. By all standards South Africa is in a state of economic emergency, and, like in all emergencies, policymakers should implement what may be …
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It’s time to willingly take the red pill

Author: Anna Ngarachu and Matlala Setlhalogile
The post-2009 era is characterised by several events that include the Zuma-era patronage, consistent - sometimes late-night - cabinet reshuffles, the State Capture years, crumbling state institutions typified by the rot in SOEs and weak law enforcement agencies. This era represented the height of State Capture. What is synonymous with this period is how the path outlined by the ruling …
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Trade and investment's role in Africa’s post-COVID recovery

Author: Lesley Wentworth
Older than modern civilisation, the concept of ‘globalisation’ really came into vogue around the turn of the millennium with what the Economist refers to as the “sudden increase in the exchange of knowledge, trade, and capital around the world, driven by technological innovation, from the internet to shipping containers”. Today, no country has ‘escaped’ globalisation – and no doubt, there …
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