The ANC manifesto pledge to introduce prescribed assets to compel retirement and other funds to invest in state-owned enterprises and government-led infrastructure projects is ‘not synonymous with an open economy’ and would ‘deter investment’.
So says the Association for Savings and Investment South Africa (ASISA), according to Business Times.
While Zuko Godlimpi, deputy chair of the ANC’s economic policy formulation subcommittee, dismissed concerns as alarmist, ASISA said in response to questions from Business Times: ‘Prescribing a minimum level of investment in certain assets is not the best global practice. Prescription is not synonymous with an open economy that should be encouraging attractive investment opportunities, and would in fact deter investment.’
Godlimpi is quoted as saying: ‘The manifesto is not predicated on a lunatic misunderstanding of how markets function and how the economy functions.’
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