Manuel Ngaringombe: The Impact of Crime and Infrastructure on Investments

By Leonard Witbeen- 23rd January 2024

In a recent audio statement, Manuel Ngaringombe discussed the crucial relationship between crime rates, corruption, social cohesion, and infrastructure in attracting investments to a country. Ngaringombe emphasized that a conducive social and political environment plays a pivotal role in luring investors, and factors such as a high crime rate and corruption can create obstacles in this regard.

Ngaringombe highlighted that investors are more likely to consider a country for investment when they perceive the social environment to be stable, free from conflict, and with low crime rates. Additionally, a corruption-free environment is a significant attraction for investors, as it ensures that their investments will contribute positively to the country’s development.

He expressed concern that a corrupt system and a lack of attention to crime rates and social cohesion can deter potential investors. Ngaringombe emphasized two essential commodities that contribute to a country’s attractiveness for investments: electricity and water. A country with sufficient and reliable access to electricity and water has a competitive advantage, as these resources are critical for industrial operations.

Ngaringombe pointed out that South Africa’s challenges with electricity supply serve as a cautionary example, and a similar problem in another country could pose difficulties in attracting investors. He also underscored the importance of ample water supply, as it is indispensable for various industries.

In conclusion, Ngaringombe outlined the key elements that contribute to creating an environment conducive to investments. By addressing crime rates, corruption, ensuring social cohesion, and guaranteeing reliable infrastructure, countries can enhance their appeal to potential investors. His insights provide valuable considerations for policymakers and stakeholders aiming to foster a favorable investment climate.

As we reflect on Ngaringombe’s remarks, it becomes evident that the intersection of social, political, and infrastructural factors plays a crucial role in shaping a nation’s investment landscape. These considerations are essential for nations aspiring to attract investments and foster sustainable economic growth.