Sygnia CEO Magda Wierzycka has stated that South Africa has become irrelevant in global investment discussions. Wierzycka, known for her candid views, is the founder and CEO of the Cape Town-based financial services group Sygnia and also leads Braavos Investment Advisers, a London-based venture capital firm. Her dual roles provide her with a broad perspective on global investment trends.
Wierzycka frequently attends and speaks at international investment and economic forums, granting her access to leading figures in business and politics. This experience reinforces her belief that South Africa is losing its place on the global investment map.
In an interview with Biznews, she reiterated her stance from the previous year, highlighting that South Africa’s relevance in global investment has diminished due to challenges such as load-shedding, poor economic growth, and a lack of innovation and entrepreneurial investment. Even with recent improvements in electricity supply, global investors remain indifferent.
She recounted a recent investment summit in Miami where a discussion on BRICS nations—Brazil, Russia, India, China, and South Africa—omitted South Africa. “One participant referred to BRICS without mentioning South Africa, implying he thought the ‘S’ was a plural rather than a specific country,” she said, underscoring South Africa’s negligible presence in global investment talks.
Wierzycka also pointed out that South Africa’s political stance alienates global investors. She argued that the country’s perceived alignment with BRICS nations and lack of criticism towards Russia, coupled with support for Gaza against Israel, negatively impact its appeal to international investors. She noted that two major U.S. investment institutions decided against investing in South Africa due to its political affiliations.
To boost economic growth, Wierzycka stressed the importance of attracting foreign investment, which is currently hindered by South Africa’s political alliances. This sentiment is echoed by various experts, including Oscar van Heerden, Professor of African Diplomacy and Leadership at the University of Johannesburg, who warned of economic backlash from the U.S. and Germany over South Africa’s stance at the International Court of Justice regarding Israel.
Economist Jannie Rossouw added that the potential loss of trade with the U.S. and Germany could further deter investors. University of Pretoria Professor Koos M agreed, emphasizing that South Africa’s growing alignment with socialist countries like Russia could frighten off Western investors.
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