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A few developments over the past week have had the effect of sending the message that South Africa is not a reliable investment destination - and Cosatu is the driving force behind both.

First, Finance Minister Gordhan's invitation to open a debate on inflation targeting will have the effect of driving up expectations of inflation and actual inflation will follow those expectations. The inflation targeting regime of the past nine years have brought stability and certainty to our monetary policy and in so doing, has acted to reassure potential investors in South Africa that their risks will be rewarded with appropriate profit. Inflation is moreover the number one enemy of the poor who are always hardest hit by rising prices. President Zuma's government would be well advised to make it clear from the beginning that there will be no tampering with the inflation targeting policy of the past nine years.

Second, ICASA's astonishing decision on Friday to reverse its approval of the sale of Vodacom shares to British company Vodafone constitutes a direct assault on any attempt to encourage foreign investment in South Africa. ICASA had more than enough time to consider objections to the deal including those by Cosatu. To behave in such a ham-fisted fashion sends precisely the wrong signal to foreign investors at the very moment in the international business cycle when investment is hardest to come by.

Reducing poverty and creating opportunity must be the overriding focus of all policies and decisions that impact on the economy. Both of the developments described above have the effect of reducing our economy's capacity to lift people out of poverty and create new opportunities for the future.