Hill-Lewis turns away US investment at a risky time

Those who are willing to turn away investment from the US and Musk must also explain to the unemployed why the economy is not growing.

Anyone who would be willing to reject foreign investment in South Africa because of criticism of the country’s race-based laws and legislation such as the Expropriation Act must also be willing to explain to the unemployed why the economy is not growing.

South Africa’s economic situation is so dire that political leaders can hardly tell serious investors like the US and Elon Musk to “keep their noses out of South Africa’s affairs” when they set conditions for investment.

It is therefore concerning that the DA’s new leader, Mr Geordin Hill-Lewis, said in a TV interview today that he would not hesitate to tell the American leadership and someone like Musk not to interfere in South Africa’s domestic affairs.

Mr Hill-Lewis’s sharp and insulting remarks toward President Trump and his administration in particular will not go unnoticed.

Among other things, he said: “I am not a supporter at all of MAGA or President Trump. He has placed the world in a very dangerous position. He (Trump) is, in fact, reprehensible. I have no time for that policy or administration.”

Neither Elon Musk nor the US is criticizing South Africa without reason. They have made it clear that they want to bring much-needed fixed investment to South Africa to help get the economy back on its feet and to reverse unemployment.

However, this is made difficult by South Africa’s race-based laws, which, according to Musk, make it impossible for him to invest in South Africa. These laws and policies are, for understandable reasons, a deterrent to investors.

It is therefore not correct to say that the US and Elon Musk are “sticking their noses into South Africa’s affairs” — even less so that what happens in South Africa “does not concern them,” as South Africa’s foreign ministry and Mr Cyril Ramaphosa’s office said this week.

Mr Musk may be the most successful entrepreneur in the history of the world, while America has the largest and strongest economy in the world. In contrast, South Africa’s economy is growing at only 1%, while its emerging market peers grow at an average of 4%.

South Africa’s investment rate is about half the global average, resulting in a failing economy and an unemployment rate of more than 30%, compared to a global average of nearly 5%.

To fix this, South Africa must attract investment, and when a country like the US and a businessman like Musk raise criticism for valid reasons, it should be taken seriously. Threatening them is not wise.

What is at stake is the survival of South Africa as a democracy. Without investment and job creation, the country is heading toward a national disaster. Populist leaders with populist statements will not create a single job.

Every day that South Africa sinks deeper into the economic mire while still trying to pick and choose which investments are acceptable is a day that populists grow stronger. No serious South African leader can accept that risk.