About Fani Titi
Fani Titi, Group Chief Executive of Investec, has spoken about the need for stability and economic growth in South Africa as the country prepared for a new administration. In a June 2024 interview, he argued that the first 15 years of democracy were successful in growing the economy, but that the subsequent 15 years were not, and that the country needs a policy framework that engenders confidence and investment. He stated that if the economy grew at 1% more than the current trend, the fiscus could collect approximately 100 billion rand more per annum, and that a government choosing an anti-business policy framework could lead to higher inflation and make life harder for the most vulnerable.
In earlier interviews, Titi discussed the structural challenges facing the South African economy, including electricity supply, logistics, and crime and corruption. He said that business is trying to help government address these issues. Titi has also spoken about his personal background, describing his life as "highly improbable" after growing up on a farm in the Free State. He has emphasized the importance of education, stating that if the education system continues to be irrelevant to the economy, the country will still be dealing with inequality and unemployment in 25 years. He has also described Investec's culture as having an "attitude and a sense of belief," and said he prefers people to make decisions and take responsibility rather than waiting for authorization.
Source: AI-verified profile updated from Fani Titi's recent appearances.
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Transcript (9 segments)
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Interviewer0:10
The South African government says the third COVID wave has passed. Cases have dropped sharply and the health minister says vaccinations are now picking up. The strongest wave yet has left a path of destruction behind it. The COVID surge came as tensions spilled over as Jacob Zuma was arrested when people died in riots. The government estimated the losses at $3.5 billion. With me now, the CEO of the financial services firm. Joins me from Johannesburg. It is good to see you. Thank you for joining us on a Friday night. The message that South Africa has sent to the world is one of awfulness in terms of vaccines and COVID and horror in terms of riots. How do you square that? How do you mix that into what you tell investors?
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Fani Titi1:15
Thank you for having me. Obviously the last week was a very difficult week in the last 27 years of democracy in South Africa. Because the level of instability and insecurity that was evidenced everywhere, in parts, was very disconcerting. And as you say, on the other hand, we are making significant progress in terms of our vaccination program. The government initiative had a target of 250,000 vaccinations per day. We are now looking at about 400,000 by mid-August. So yes, a tale of two cities, as it were.
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Interviewer1:58
What would you say, though, how do you convince somebody to invest in a country where the perception remains one of basically economic incompetence and arguably, corruption?
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Fani Titi2:16
Yes. The government has been doing a lot of work to fight corruption. You referenced that the former President, Jacob Zuma, is now incarcerated. That alone shows the country is making progress in terms of the rule of law. There have been a number of arrests related to what we've seen over the last number of years so there is some progress. It is not unfettered. We have to start with local investors showing confidence in the economy, in terms of rebuilding after what happened last week. I believe they will look at the end of the country. You put your finger on it. The opportunities in South Africa have never been greater, larger, more exciting. An emerging market with a rule of law, a stable democracy. It should be roaring ahead.
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Interviewer3:21
Are you optimistic that the necessary reforms can be put in place? Even under what is de facto a single party?
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Fani Titi3:33
I think we were at the cusp of significant progress. You might know the government had liberalized the energy sector to allow corporates to generate their own energy. And they were being implemented. We are a commodity economy and they've done particularly well and government finances were beginning to improve as a consequence. So at a point when they were looking particularly strong, we've had this setback. We will try to build back better in an economy that is more inclusive. Because there will be actors, bad actors, that will try to destabilize the country in the future again. The response of government was shockingly inept, slow, not the right scale, and I hope the government will be more prepared if some of these instigators try to destabilize the country again.
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Interviewer4:38
Viewers to our program know about my Snap investment which managed to lose a fortune but has come back strong. Is that the case with South Africa? If I had a dollar to spare, would you suggest South Africa?
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Fani Titi4:57
South Africa is an emerging market that has a strong private sector, strong in terms of the Reserve Bank, and we were beginning to reform a number of programs. I think it was courage from the President and the ruling party to implement reforms. We can see the economy come back again. There has been a setback and it may take time to rebuild.
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Interviewer5:26
One of the reasons I love having you on the program, the forthright way in which you tell it to us.
