Deterred by continual talk of nationalisation, among other matters, including labour laws and racial prescriptions, investors prefer to look elsewhere.

But some lessons are never learned.

According to Business Day, the governing party will, during its policy conference beginning today, give serious consideration to proposals that would push private pension and life assurance money into state enterprises.

The idea is to use this money to help fund the state’s massive infrastructure development plans, estimated at R3.2 trillion.

Such a move would not only prolong the current  FDI strike. Existing international investors would look at ways to pull out of South Africa.

There is potential for catastrophic damage to this country’s economy if private
pension funds are plundered for state projects.

Apart from the obvious danger of corruption, which surfaces every day, there is also an acute shortage of the type of public-sector skills required to manage large projects and use funds efficiently.

There is not a single state-owned enterprise that has not been dogged by controversy stemming from poor management and leadership.

Pensioners and pension fund managers have every reason to fret that they would not get reasonable returns on their investments if they are compelled to invest in state infrastructure.

Right now too few save for their retirement. Even fewer will do so if the government meddles further in private pension funds.

The social and economic consequences of destroying SA’s already weak savings culture are incalculable.