Long Reach

The honeymoon is over. It began when President Nelson Mandela addressed the world from the United Nations in October 1993 and called for the lifting of sanctions against South Africa. Since then the country has been bathed in a warm glow of political and commercial goodwill. Thousands of prospectors have visited the country, exploring the plethora of potentially profitable opportunities which clearly exist in South Africa. But the fact remains that since the lifting of sanctions, there has been virtually no significant direct foreign investment in the country. To an extent, this is not surprising. Investors usually follow traders, and there is no doubt that trade is picking up nicely. But it is at this point that the honeymoon has ended. Our cover story, The Risk You Take (page 6), clearly spells out to South Africans what the world expects of them before the international investment community will put its money where its mouth has been. As Gail Leftwich points out in her column, The Hard HiJrk ofBeing Ordinary, on page 5 of this edition: “The new world which South Africa has joined is an economic playing field featuring single-mindedly focused participants in a game with unforgiving rules. No longer may South Africans rely on their former friends, all of whom are competitors, to smooth the way for them, or accord them special, protected status.” Fortunately, South Africa’s new Government of National Unity seems to have taken this point to heart. As our cover story points out, analysts who have recently rated South Africa in terms of its investment risk, acknowledge that government has made considerable progress in meeting many investor expectations. Indeed, it is not surprising that they have done so. President Mandela and his Cabinet don’t have to look too far to see the growing unemployment queues and to realise the importance of job- and wealth-creating investment. What the world now wants to test is the degree of government’s commitment to fiscal and monetary discipline as its long disadvantaged constituency inevitably begins to demand faster progress in the provision of basic needs. The honeymoon is definitely over.

From this edition, SOUTH AFRICA, The Journal ofTrade, Industry & Investment, will be offering our advertisers added value through an expanded distribution. The magazine, which is published in New York, has until now been distributed mainly in the United States, but many advertisers have indicated that they would also like access to European and Asian market’. We are therefore expanding our distribution into these areas. In addition, international advertisers have suggested that we should develop a South African distribution to offer them access to the local market. The magazine will therefore be distributed through South African news agents who will also ensure that it reaches branches and associate distributors in southern Africa. We can say we are the most widely distributed magazine on South Africa in the world.

South Africa, The Journal of Trade, Industry and Investment
Publisher: David Altman
Writer, David Altman