South Africa’s ruling African National Congress is increasingly embracing private investment after decades of skepticism.
The ANC, in power since the country became a full democracy in 1994, has largely discouraged private-sector involvement, especially in infrastructure. But years of energy sector mismanagement, which led to regular blackouts and brought industry to a standstill, has prompted the ANC to embrace the private sector; it has removed caps on private renewables and allowed firms to help repair power stations.
The move extends beyond the power sector, giving business “more influence on government than ever before,” an expert told the Financial Times. Similar changes have been seen in the freight sector, and the move has driven the country’s first credit upgrade in 20 years.
