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The ANC’s Secretary-General, Gwede Mantashe, has unequivocally stated that there will not be any compromise from the ruling party on the highly controversial Private Security Industry Regulation Amendment (PSIRA) Bill, amid calls from crucial trade partners such as the USA to remove certain sections of the Bill – in particular the clause requiring foreign-owned security companies to sell at least 51 percent of their businesses to locals.

Earlier this week the US trade mission made it clear that South Africa will lose out on funding from the International Monetary Fund and the World Bank if it was not willing to consider objections made by various trade partners. 

Mantashe’s brinksmanship and arrogance on the matter clearly shows that the ANC’s interest in its relationship with fellow Brics countries such as China and Russia is more important than South Africa's crucial economic interests.

This antagonistic approach by the ANC is putting at risk South Africa’s access to foreign markets, with the African Growth and Opportunity Act (AGOA) as a clear example. AGOA is currently undergoing an out-of-cycle review due, in large part, to the intransigent attitude of the ANC government.

While Mantashe says the ANC will not be ”dictated to by the US”, ordinary South Africans continue to be dictated to by the ANC’s foolish behaviour, which is putting at risk our ability to grow our economy, facilitate trade and create jobs.

At the ANC’s National General Council (NGC) this weekend, the ruling party must take the following action to protect and promote current trade partnerships, as well as pave the way for future trade partnerships in order to grow our economy.
Immediately withdraw the PSIRA Bill which would require foreign-owned security companies to sell at least 51 percent of their businesses to locals;
Honour the previous AGOA deals which were signed with the US several months ago; and
Agree to amend the Promotion and Protection of Investment Bill, and to produce an investment promotion Bill that re-affirms South Africa’s commitment to being an open, secure and attractive investment destination.
As a developing third world country, South Africa’s ability to create jobs and grow our economy relies heavily on trade and foreign investment. To actively prevent such investment through irrational and over-burdensome regulation and irresponsible comments from senior leadership speaks volumes into the ANC’s attitude towards South Africans who cannot find a job.

Issued by DA