Foreign investment could add billions in revenue to South Africa's GDP

20 November 2018 Consultancy.co.za

Having analysed the new policies under Cyril Ramaphosa and their potential economic impact, economists at global professional services firm PwC have estimated that the new investments that South Africa aims to draw up until 2024 are likely to add nearly R340 billion to the country’s GDP. 

In addition to navigating a period of sluggish economic growth, South Africa is currently trying to break down the reputation that it accumulated under the previous Zuma administration, one dominated by corruption, a disorganised and overly intrusive regulatory environment, and consequently poor returns on investment.

Ramaphosa’s economic agenda has been simple in principle, consisting primarily of plans to draw foreign investment to boost the country’s economic growth. To this end, the new President has laid out a five-year plan that hopes to draw $100 billion in foreign investments by 2024.

The President recently held a Presidential Investment Summit, where he invited leaders of business from across the globe to examine investment opportunities in South Africa. According to Ramaphosa, the conference was relatively successful in that it secured R290 billion of promised investments from firms across the world as well as some domestic firms.

Foreign investment could add billions in revenue to South Africa's GDP

The consulting world – particularly the Big Four accounting and advisory firms – have been closely monitoring these plans for boosting investments and offering their insights. A Managing Director at Deloitte recently argued that the Investment Summit should be used as a platform to declare South Africa’s newly found economic openness to the world.

PwC has now made its own predictions regarding the five-year plan. According to economic analysts at the firm, the investments drawn under the new plan will provide a world of economic benefits, including the addition of R338 billion to the GDP and the creation of approximately 165,000 jobs both directly and indirectly. 

Government coffers are also expected to benefit from the growth in investment, specifically through the anticipated addition of nearly R60 billion to government revenues. In the long term, PwC places the boost to production from the investment at nearly R470 billion between 2025 and 2035.

According to the firm, “This (increased investment) aligns with president Ramaphosa’s State of the Nation Address (SONA) 2018 in which he promised to use investment, among other levers, to address the country’s challenges of poverty and inequality.” Nevertheless, the actual road to realising this potential might be bumpier than expected.

“However, following a challenging economic and political period in South Africa leading up to the appointment of President Ramaphosa in February 2018, attracting FDI is much easier said than done,” the firm said, adding that “the challenge for South Africa is to ensure that the already-listed factors that influence investment are addressed. Investment pledges will only translate into actual investments if a supportive business environment, policy certainty and political stability are in place. These too were pledges of SONA 2018.”

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Palesa Madumo and Tshepo Sefotlhelo take the helm at Vuma Reputation Management

18 April 2019 Consultancy.co.za

Two years after a change in ownership, South African public relations consultancy Vuma Reputation Management has announced a change in its senior leadership. Palesa Madumo and Tsehpo Sefotlhelo take over as joint CEOs at the firm to replace incumbent CEO Janine Hills.

Vuma was established in 2005, and has grown into a successful public and reputation management firm. The firm’s services include media training, stakeholder management and crisis communication, among others. In 2017, the firm underwent a change in ownership to improve its compliance status with the B-BBEE framework.

Janine Hills, who founded the company in 2005, has now stepped down from her position as CEO. Hills is a former executive in the hospitality sector and has also worked for telecom giants Vodacom in the past. Her goal with Vuma was to leverage her nearly three decades of experience to helo firms across South Africa with managing challenging economic scenarios.

Now, Hills believes it is time for her to step down from her position at the helm. She will be replaced by Palesa Madumo and Tshepo Sefotlhelo, who will act as joint CEOs. Madumo holds a degree in Management from Stellenbosch University and has over 15 years of professional experience.

Palesa Madumo and Tshepo Sefotlhelo take the helm at Vuma Reputation Management

She has communications consultancy experience, and has been the Head of Group Communications at Business Connexion. Sefotlhelo is also a highly experienced professional, having worked in the media relations domain for a number of years, including at Ogilvy public Relations.

He was a Business Director at Ogilvy, and will now take over at CEO. He holds a degree in marketing from the University of Johannesburg. As the new CEOs take over, Hills will remain on the board of Vuma, where she will continue to play an active role in organisational decisions.

“A good leader knows when to pass the baton to the next generation of leadership. It is time for the Executive Directors to take over and I am confident that they are well equipped to take Vuma Reputation Management to greater heights,” said Hills.

“We would like to thank Janine for her vision, leadership and confidence in our capabilities to lead Vuma following her years at the helm. This is a great example of what can be achieved through a true commitment to transformation. Having been in the business for years, Palesa and I have the skills and experience to scale the company and ensure its sustainability into the future,” added Sefotlhelo.

 

Madumo said of her promotion, “Working off an excellent foundation makes our roles - to continue providing excellent service to our valued clients and stakeholders and ensuring that the organisation has skilled and happy people working in it, an exciting prospect.”