THE BOKS AND BIG BUCKS

Investors gathered for the second annual South Africa Investment Conference as the country promised renewed optimism and a Springbok-style recovery despite a moody outlook.

- Karen Mwendera

AT THE SANDTON Convention Centre in Johannesburg on November 5, just as business leaders queued up for the second annual South Africa Investment Conference, there were more animated lines forming outside the OR Tambo International Airport, as screaming South Africans awaited the return of the only heroes-of-the-moment, the Springboks, after their historic win at the 2019 Rugby World Cup in Japan.

In Sandton, business leaders wearing sharp suits and serious expressions; at the airport, heaving masses in a wave of green; both venues resonating contrasting sentiments; one of uncertainty, the other of hope.

The week that the Springboks won, South Africa saw ups and downs – the sporting victory came a day after the country faced the prospect of being downgraded by Moody’s.

The Springboks’ victory signaled a turning point not only for the sport but also the economy, as was in evidence at the two-day conference.

“We can hold investment conferences but if we are not going to address the fundamental issues, we are unlikely to achieve change,” says Isaac Matshego, an economist at Nedbank, to FORBES AFRICA.

“We need to address the real issues. Policies are still being disputed such as the Mining Charter and the lingering uncertainty [about] land expropriation, to boost overall sentiments.”

Just three days before the summit, ratings agency Moody’s lowered its outlook on South Africa’s credit rating from stable to negative.

Moody’s said that this “reflects the material risk that the government will not succeed in arresting the deterioration of its finances through a revival in economic growth and fiscal consolidation measures”.

But one man wore a smile on his face despite the moody outlook.