From BDlive

Investors still have confidence to invest in South Africa despite strikes that have curbed economic growth, Finance Minister Nhlanhla Nene said on Monday.

Mr Nene told an internal auditors’ conference that investors not only looked at “one event” in a country but at the “broader picture” of future economic growth and development plans.

“Investors have stayed in the country … and they have worked with government and civil society to find solutions,” he said, with particular reference to mining companies.

Earlier this year South Africa experienced a five-month strike at platinum mines — the longest ever. The strike was the main reason the economy contracted by 0.6% in the first quarter.

There was also a wage strike in the steel and engineering sectors, which dented confidence levels.

Mr Nene said South Africa’s economy would grow faster in coming years with support coming from an acceleration in the implementation of the National Development Plan — the country’s growth and development framework.

South Africa’s weak economic growth had put revenue collection under pressure, although Mr Nene said government would stick to the spending ceilings put in place to avoid over expenditure.

“The expenditure ceiling identified in the last budget remains in place and if this should prove insufficient, additional measures will be considered to meet our fiscal objectives,” he said.

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