The World Bank and South Africa earlier this week signed an agreement that aims to boost the local environment while also helping enhance foreign direct investment into the country. The agreement was signed between the Department of Trade and Industry(dti) and the World Bank.
“Support from the World Bank and its development partners promotes South Africa’s growth agenda. The dti and InvestSA hope to gain insights into best practice from the partnership,” said director general at dti, Lionel October.
According to SA News, the partnership will deploy a Country Private Sector Diagnostic, a standard World Bank tool which identifies industry sectors that can attract significant domestic and foreign investment which can deliver positive impacts in the near term.
This investment is one of government’s commitment to improving its current rank of 82 out of 190 global economies by the World Bank, within the next three years. Added to this the bid made by President Cyril Ramaphosa to attract $100 billion in investment to South Africa.
SA News also notes that the partnership is also supported by the Swiss State Secretariat for Economic Affairs and the Prosperity Fund of the UK’s Foreign and Commonwealth office. Another member of the World Bank Group, the International Finance Corporation (IFC) has also expressed its allegiance in a desire to help South Africa.
“IFC is committed to working across the World Bank Group to help South Africa achieve best practices and real impact in its reform efforts. The target set by President Ramaphosa of generating investment of $100 billion within five years is important. It sets the tone for the policies needed to attract foreign direct investment,” added IFC regional director for Southern Africa, Kevin Njiraini.