Outspoken German software billionaire Hasso Plattner has told SA to sort out the electricity crisis, address crime and clean itself up as he "hates trash".
Plattner, who is chairman of giant software company SAP's supervisory board, made these and other comments at a function marking the launch of Hasso Plattner Ventures Africa, at the German ambassador's Cape Town residence, on Friday.
This is the first expansion of Plattner's global venture capital company outside of Europe since its founding in 2005. He says it indicates his fondness for SA, which he has been visiting since 1970. Plattner already has a number of private investments in the country, including a stake in the prestigious Fancourt golf resort near Knysna.
Good ideas, clumsy products
"We were looking at where to expand our venture capital company. We were considering going back to the US, or maybe Israel, but SA made it first," Plattner said.
Hasso Plattner Ventures Africa will be headed by Andrea Bohmert, who is also chairman of public/private ICT incubator, the Cape IT Initiative.
Plattner said the aim of the fund is to help companies develop their products and market them to a global marketplace.
"Ideas are plenty. However, often companies bring out good products, but they are clumsy in design and so go nowhere. We want to encourage young companies, but in the end we want to make money; it is not a charity," he said.
Eran Davidson, president and CEO of Hasso Plattner Ventures, said the new fund will have an initial capitalisation of about R330 million (30 million euros) and will be aimed at early stage companies, not those within the seed stage.
"The companies must already have some substance to them," he said.
Trashy mindset
During his address, Plattner's points about what SA should be doing to improve itself and so make it a better place for foreign investors, were aimed directly at deputy president Phumzile Mlambo-Ngcuka, although he insisted they were not meant to be an insult.
He said the energy crisis had to be solved soon as it was hampering foreign investment sentiment and research. He noted SA would become a "very lonely place if it did not sort out the crime problem".
Plattner's pet hate, however, was seeing the piles of trash in Cape Town's streets during his stay.
"I hate trash as it indicates a particular mindset. Cape Town used to be one of the cleanest cities in the world," he said.
In her reply, the deputy president said government had several initiatives to address the electricity and crime issues.
"I shall also tell [Democratic Alliance leader and Cape Town mayor] Helen Zille what you think of our city," Mlambo-Ngcuka said.
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