20 August 2013
Decisive leadership, a framework agreement for the mining sector, and the adoption of the National Development Plan have helped South Africa maintain a strong reputation in Africa and abroad following last year’s Marikana tragedy, says Brand South Africa CEO Miller Matola.
Briefing journalists in Pretoria on Monday, Matola said the country’s improved ratings around its financial discipline, education and human development, had also contributed to the world’s perception of the country as a preferred destination for investors.
On Friday, South Africa commemorated the first anniversary of the Marikana tragedy, in which 44 people lost their lives in strike-related unrest in the days leading up to and on 16 August 2012.
Response to Marikana
Matola said the the South African government’s response to the tragedy had contributed to the country’s sustained positive outlook.
“I think what is important is the action that came out of that, and what was gratifying for us as South Africans was that in July, for example, [ratings agency] Moody’s indicated that they were encouraged by the kind of responses they were seeing, hence they affirmed our rating although still keeping it at a negative.
“But I think the critical point is they affirmed the rating. [That] really speaks to some of the actions that have been taken by the government in terms of commitment to fiscal discipline, ensuring we bring down our debt-to-GDP ratios.”
Matola said while the second half of 2012 and parts of 2013 had been testing, President Jacob Zuma’s prompt establishment of a judicial commission of inquiry into the Marikana tragedy, and Deputy President Kgalema Motlanthe’s role in developing a framework agreement to ensure that the mining industry never faced a repeat of the tragedy, were good steps.
While the commission of inquiry was still ongoing, the government, mining companies and labour unions – with the exception of the Association of Mineworkers and Construction Union (Amcu) – had signed a framework aimed at bringing stability to the sector.
National Development Plan
Matola said it was importantly that the National Development Plan (NDP) had been accepted as a policy blueprint and was being adopted by government departments as a guide for delivering on the government’s mandate.
A policy blueprint for eliminating poverty and reducing inequality in South Africa by 2030, the NDP identifies the key constraints to faster growth and presents a roadmap to a more inclusive economy that will address the country’s socio-economic imbalances.
Matola said that, having massively boosted its image by hosting a successful 2010 Fifa World Cup, South Africa’s next “world cup” should be the implementation of the NDP.
He noted that on top of an increased investment in skills and education, South Africa had, according to recent studies and surveys, improved in terms of rankings when it came to education, doing business and confidence in its banking sector.
South Africa maintained its 36th position out of 50 nations under review in the 2012 Anholt-GfK Roper Nation Brands Index, an annual survey which measures the international perceptions of various developing and developed countries across the world.
“If you look at the Nation Brand Index … we remained 36 out of 50 countries, and largely those are developed economies,” Matola said. “That is a year when two-thirds of the economies declined in terms of their brands, and I think that says a lot about this country.”
SAnews.gov.za, with additional reporting by SAinfo
