Audit manager at Deloitte LLP, Tapiwa Dobo views South Africa as the financial hub of Africa. Dobo, whose qualifications include Hons BCompts CTA and CA(SA), says in his job, decision making poses the greatest challenge for him.
According to him the biggest investment risk in this country is that the currency is not stable. He feels that stability and investor confidence should be encouraged, especially by fighting corruption and limiting the powers of unions.
Dobo nevertheless thinks that growth prospects for companies investing in South Africa will be bright if there is as stable currency. But because the country has the biggest economy in Africa and a stable political environment, he would encourage international companies to invest in South African companies.
He says the role South African companies can play in the economic growth potential on the African continent is to invest in other stable African countries, especially within the SADC region which is more stable politically, and where there are no issues around terrorism.
“The biggest risks to South African companies is labour activism. Unions have too much power and can disrupt productivity.”
The biggest risks to South African companies are, in Dobo’s opinion, labour activism. “Unions have too much power and can disrupt productivity.”
The constraints of expanding into Africa are, according to him, stringent laws in countries such as Zimbabwe. “The SADC and AU should come up with laws protection investments coming from African countries.”
Dobo says the recent Brexit can be of benefit to Africa if Africa strengthens its trade ties with the UK.
“The UK is left with less trading partners, hence it may look towards Africa”.