South Africa needs “very predictable, clear regulatory systems” as it seeks mutually respectful and mutually beneficial foreign investment, South African Competition Commission Commissioner Tembinkosi Bonakele said at the Southern Africa France Business Forum on June 22.

Hosted by Business France, French Foreign Trade Advisors and the French South African Chamber of Commerce and Industry, the forum sought to strengthen business ties between France and South Africa.

Bonakele said South Africa still had the power to choose between good business investment and bad business investment.

Generally, Bonakele said there were two options regarding foreign investment into South Africa, the first being to make the domestic market completely open to any and all foreign business interests and investment.

Alternatively, the second option was to be completely closed to any investment other than what emanated from within the country.

Having a completely open-door policy would, however, mean foreign investors would enter South Africa with the sole objective of exploiting it and leaving once a profit could no longer be made.

This, he said, was what South Africa had become accustomed to in the past, evidenced by the many old and depleted mines throughout the country.

“Unfortunately, it is a story that continues to play out [for] some of [South Africa’s] northern neighbours,” Bonakele added. “The story of foreigners, particularly Europeans who come in, dig and go, and leave only open holes.”

However, he said South Africa should choose neither path in making its determination about foreign investment. “We are seeking partnerships that are based on mutual respect and mutual benefits.”

Doing this required robust and clear regulations. “There are positive roles we play to ensure that the economy is dynamic and competitive for investments,” said Bonakele.

As such, South Africa needs to demonstrate that it has an open market and that barriers to entry are low, to spur local and foreign investment, and grow freely and expand markets.

“South Africa is a modern economy, when it comes to [these factors]. We do also have a legacy where we support the inclusivity of the economy by bringing in small and medium-sized enterprises as we seek to expand the reach of investments,” he said.

Further, Bonakele said Africa was one of the economic frontiers yet to be unleashed. “Many people, when China started [its economic expansion], were very doubtful [of its] capacity.

“They were doubting [what China] could produce. We all remember how people used to mock its products, laws; people used to talk about how [China] does not protect intellectual property,” he noted.

But, said Bonakele, some people knew that China was a frontier to be unlocked at the time. “Those who are doing very well, even in [South Africa] were some of the early investors in the Chinese economy.”

As such, he said, Africa’s confidence in the “African story” is not in any way misplaced. “It is bound to take off – this economy and this continent, because the world cannot afford to have an Africa that does not make its own contribution.”