DO SA GOVERNMENT OFFICIALS NEED ANOTHER JUNKET?

A delegation from South Africa will be attending the annual World Economic Forum at the Swiss mountain resort of Davos from January 20-23, 2016.

Almost half of the African delegation is from South Africa - 51 South Africans including eight government officials led by President Zuma. According to Business Tech, the cost to the South African taxpayer for public representative attendees is between US$20,000 and $50,000 per delegate.  The total bill at current exchange rates could be as high as R6.6 million.

According to Zuma the delegation's "duty was to put across South Africa as a destination for investment".  Not so, and not for the foreseeable future, because of the global economic slowdown, and ongoing domestic social and economic challenges facing the country.  By all accounts, South Africa is edging towards recession in the next quarter. Not the ideal climate for attracting foreign investment.

Even in "business as usual" times, South Africa has struggled to attract significant direct foreign investment.  "Pressing the flesh" at the upcoming event will not mitigate concerns about South Africa's systemic economic and fiscal problems, further exacerbated by Nenegate.

Team South Africa faces a Herculean task.  It remains to be seen if the staggering cost of attendance at Davos was worth the money.

Besides efforts to attract foreign investment, prudence also dictates that government officials, while  in Davos, seize the opportunity to gather information on securing an IMF loan. It may be needed sooner rather than later.