South Africa receives more than 20% of the foreign direct investment (FDI) placed in Africa each year. Don't celebrate too quickly.
Of the US$ 334 billion in total FDI in 2005 only 9.3%, or US$ 31 billion, went to Africa. The continent with 14% of the world's population and 23% of its land is worth only 2% of its economy. The entire value of African companies as US$ 800 billion of which US$ 600 billion are South African.
Why is this? After all Africa has 8% of the world's oil supply and more metals and minerals than you can shake a pointed stick at.
After decades of instability, warfare, or plain disregard for economic rights the most capable Africans have fled leaving shattered infrastructure behind.
A mining company investing in Cameroon also has to build railroads and deepwater ports, electricity generators, fresh water pipelines, and import engineering skill before their goods can leave the country. That's a huge investment for any private company.
In addition property law in Africa is not a very definite thing. Whole industries, such as telecommunications or electricity production, may be protected. Land ownership by foreigners may be illegal. Redistribution policies, such as local ownership laws, can dramatically increase costs.
Over the past two months a tragedy has been playing out in Europe and the US. Mattel, the world's largest toymaker, has recalled more than 20 million of their products, including Fisher Price and Barbie.
The cause? Toys with paint containing too high a lead content and poorly attached magnets that could present a choking hazard to tiny tots.
Mattel was quick to cast the blame at their largest manufacturers in China. EU and US politicians promptly suggested unilateral bans on Chinese-made goods and trade restrictions at all levels. Zhang Shuhong, the head of Lida and one of the biggest Mattel suppliers, committed suicide.
Off the back of the melamine-pet-food scandal a few months ago China is taking severe punishment for their behaviour. Is it justified?
There is a spectre stalking South Africa. It is the spectre that rewards loyalty over ability; craven sycophancy over talent and innovation. The result is lost opportunities and a diminished economy.
The most important thing that every person has by birth is their capacity for work and the expression of their talent. Not every person has the capacity to lead, but every person enjoys the opportunities created by talented leaders.
Leadership is a knotty task. It is not merely about seeing further and implementing brave, often contrarian, ideas. It is also about inviting and supporting the best minds to complement that leadership. A good leader knows how to delegate and listen to views that may be entirely at odds with her own.
Talent follows the opportunity to express itself. Where talent cannot be expressed then the most able individuals move to places where they feel that their abilities will be rewarded.
