Have there been any recent government policies or incentives designed to benefit foreign companies?
Venables: Arguably, the most important policy thrust of the South African government is its emphasis on fiscal and monetary discipline, which has manifested itself in structurally lower inflation, a relatively low budget deficit and a stable and strong currency. More specifically, the second phase of the Industrial Policy Action Plan was announced earlier in 2010, in terms of which the Department of Trade and Industries will provide incentives to a selected number of industries that are believed to possess sustainable comparative advantages. Industries that have been targeted for government support include metals, motor vehicles, food processing, pharmaceuticals, clothing and textiles, and aviation. South Africa is also a gateway for funds in Africa. A number of jurisdictions have safe harbour rules or tax exemptions to attract investment funds and managers to their shores, for example, the UK, US, Singapore, Ireland and Luxembourg. South Africa is expected to follow suit, ensuring tha
