INVESTMENT PROMOTION:
The establishment of the National Investment Promotion Agency

Given the need to increase both local and foreign investment in the economy to support the goals of the RDP, the Trade and Industry Working Group of the NEF initiated research into various aspects affecting investment. Through the NEF's Japanese Grant Fund (now under the auspices of Nedlac), the United States-based SRI International was commissioned to prepare a report on best practice in the field of investment promotion. The report covered international experience, the attractiveness of South Africa as an investment destination, as well as proposals for appropriate institutional frameworks for investment promotion. The report was compiled after wide consultation with roleplayers in South Africa, and in consultation with a tripartite South African counterpart group.

The report was considered by the social partners in Nedlac and it was agreed, on 1 August 1995, that Nipa be established. Broad terms of reference as well as the principal functions of Nipa were specified. These are:

• Point of contact and provision of assistance to local and foreign investors pre, during and post-investment.
• Database for economic and investment-related information (sectoral, geographical, financial, investment enquiries, and offers to facilitate joint-venture matchmaking).
• Collection and distribution point for incoming and outgoing investment enquiries and offers.
• Production and distribution of investment-promotion material.
• Organisation of investment-promotion initiatives, mainly in foreign countries.
• Coordination of investment-promotion activities and related matters at national level in conjunction with roleplayers in this field.
• Provision of technical assistance to provincial administrations and/or their investment-promotion agencies.
• Monitoring of inward investment and investment trends nationally and internationally.
• Provision of inputs to government, business and labour on aspects relating to the investment climate.
• Informing, where appropriate, on the goals of the RDP, including the importance of an improved and constructive relationship between business, labour and government.

Nipa was registered as a section 21 company in April 1996, and a 19-person board was approved by the Minister of Trade and Industry. The board comprises representatives from business, labour, government and the provinces.