The US Department of Commerce has gone on a charm offensive to woo South African investors through its Select USA programme.
Addressing delegates attending a recent investor function held by the US Commercial Service and hosted by the Johannesburg Chamber of Commerce and Industry (JCCI), Consul General Michael McCarthy used an armoury of hard facts to underscore the strength of his country’s commerce and industry.
According to McCarthy the US’s tally of global foreign direct investment (FDI) stock stands at $1.7 trillion with 2016 alone yielding $457 billion in FDI.
“We offer an opportunity to tap into one of the most innovative business and technology communities on the planet, with 31% of the world’s total spend in research and development coming from the United States.” Yet several local entrepreneurs that attended the seminar raised concerns about America’s regulatory environment, additional barriers to entry, and the prohibitive impact of a strong dollar.
But Deon Govender, a representative from law and policy advisory firm Covington & Burling, said investors shouldn’t allow forex fears to stand in the way of realising their aspirations. A local enterprise that did exactly that, overcoming massive barriers to find a foothold in the States, was Sasol whose petrol chemical plant launched in Louisiana in 2011 had a $7bn price tag attached to it.
“Today Sasol’s investment represents one of the largest single FDI projects in the States,” McCarthy said, and the largest ever in that particular state’s history. McCarthy also mentioned the base local simulator training and virtual reality company, 5DT, had established in Florida, and the 40 Nando’s restaurants in the States, “of which there are six in Washington”.
He added that Select USA’s “premier event” was the annual summit held in June. He said this year’s gathering in the capital had been attended by 3000 people from some 66 nations who had been attended to by representatives from 51 US states and economic development departments.
The next summit in Washington will be held from June 10-12.
Sasol’s investment represents one of the largest single FDI projects in the US. – Michael McCarthy
