By Rowan de Klerk, CEO at The CFO Centre
South Africa is not short of potential. We have a strategic geographic position, a well-capitalised financial sector, a sophisticated legal framework, and untapped opportunities across energy, mining, manufacturing and agriculture. Despite this, the mood among investors is increasingly restless. The private sector is no longer quietly sceptical. It is openly frustrated.
This is not just a boardroom concern. Conversations across South Africa’s business community are increasingly focused on what it will take to restore confidence and mobilise investment. CFOs, in particular, are stepping forward with urgency. As custodians of capital, risk and long-term value, they are not asking for perfection – they are asking for an environment that rewards effort and enables growth.
To attract meaningful, long-term investment, South Africa must re-establish itself as a credible destination for capital. Below are seven urgent shifts required to do so.
1. Respect the taxpayer and broaden the base
Fewer than 8 million individuals are funding a country of over 60 million people. That includes more than 28 million recipients of social grants. This is not just a fiscal imbalance. It is a national trust deficit.
There is a growing sense among tax-compliant citizens that their contributions are taken for granted. The issue is not the rate of taxation. It is the lack of reciprocity. Too many businesses and workers remain outside the formal economy because they perceive registration, compliance and banking not as gateways to opportunity, but as obstacles to survival.
SARS has made commendable progress in digital modernisation. However, that momentum must be matched by a broader commitment to service delivery, reduced red tape and institutional trust-building. The social contract must be restored. Without that, the narrow tax base will continue to bear an unsustainable burden.
2. Restore confidence in basic infrastructure
No investor can operate on crumbling foundations. Over the past decade, South Africa has averaged less than 1 per cent GDP growth. One of the key reasons is structural failure in infrastructure.
In March 2025, Eskom’s energy availability factor stood at just 57.5 per cent. The Minerals Council has estimated that rail inefficiencies cost the mining sector R50 billion in lost revenue in 2022. Water security remains uncertain, especially in drought-prone regions. These are not isolated concerns. They are systemic risks.
Investors do not expect flawless delivery, but they do require reliability. Basic infrastructure is not a luxury. It is a precondition for investment.
3. Unlock public-private partnerships
South Africa’s infrastructure backlog will not be resolved without private capital. The Development Bank of Southern Africa estimates that infrastructure funding needs will exceed R1.6 trillion by 2030. However, our public-private partnership framework remains largely dysfunctional.
Too often, government entities prioritise control over outcomes. The result is stagnation. Successful partnerships are built on trust, transparency and bankability. There is significant private sector appetite to fund roads, ports, energy projects and broadband rollout. What is missing is a clear path to participation.
This is not only a technical fix. It is a philosophical one. The state must reposition itself as a collaborator, not a gatekeeper. Control without delivery does not serve the public interest.
4. Get real about our standing in the world
South Africa is the 41st largest economy globally. Yet national policy is often shaped by comparisons to far wealthier and more stable nations. We are not the Eurozone. We are not Japan. It is time to replace misplaced pride with honest pragmatism.
The South African Reserve Bank has performed well in managing inflation, which stood at 2.7 per cent in March 2025. However, rigid inflation targeting cannot be the sole priority in a country with 32.1 per cent unemployment and low levels of credit expansion.
Interest rates are a blunt instrument. They are unlikely to spark the kind of inclusive growth required to transform the economy. South Africa needs to enable investment, stimulate demand and incentivise reinvestment. Growth must be seen as a national imperative, not a risk to be contained.
5. Protect and enable mid-tier enterprises
Mid-sized businesses are often overlooked in economic policy. They are too large for microfinance, yet too small to access corporate-level incentives. Despite this, they are among the most consistent job creators and local reinvestors.
These businesses face disproportionate challenges in accessing capital, navigating compliance and competing with low-quality imports. South Africa needs a framework that supports their growth through simplified regulation, targeted credit guarantees and strategic trade protections.
Protecting local industry is not about isolationism. It is about fairness. If mid-tier businesses continue to be neglected, the consequences will be long-term erosion of the very enterprises that hold communities together.
6. Prioritise high-potential sectors
South Africa has global competitive advantages in several sectors. These include green hydrogen, mining beneficiation, agri-processing, upstream gas and nuclear energy. However, success in these areas has been undermined by fragmented policy and implementation delays.
The technical capacity exists. South Africa already has world-class engineers, natural resources and existing infrastructure in places like Koeberg. What is missing is alignment and execution. Government must focus on a select group of scalable, globally relevant industries and provide end-to-end incentives across the value chain.
Rather than spreading resources too thinly across every sector, it is time to bet big on where we can lead.
7. Change the narrative and grow the pie
Economic discourse in South Africa is still dominated by redistribution. This has its place, but it cannot substitute for growth. Wealth is not finite. It can be created.
A zero-sum mindset traps us in short-term trade-offs and defensive policymaking. What is needed is a shared national agenda focused on 5 per cent or higher GDP growth over the next decade. This requires coordination between government, business, and labour, which is built on mutual accountability and long-term vision.
South Africans are among the most resilient people in the world. Many of our entrepreneurs have succeeded not because of the system, but in spite of it. That cannot be the default any longer. We need an economy that rewards effort, respects investment and enables scale.
The work ahead is difficult, but it is not impossible. With the right leadership, the right partnerships and a clear growth mandate, South Africa can build an investable future. The opportunity is real. It is time to seize it.
About the author:
Rowan de Klerk is a seasoned CEO and CFO with a strong commercial and strategic background and over 35 years of experience working with both large corporations and mid-sized entrepreneurial businesses. He is a results-driven intuitive business leader with a passion for building and scaling businesses. He is the founder and CEO of The CFO Centre South Africa which is part of a Global Financial Leadership Practice. Since its establishment in 2010, the company has grown to become the market leader for outsourced CFO and Financial Manager Services in South Africa and globally, represented in 18 countries around the world.
