Recent investment commitment to South Africa shows that the country still has a significant amount to offer, says president Cyril Ramaphosa.
Writing in his weekly open letter to the public, Ramaphosa noted that the country was often plagued by a ‘sea of bad news’, but that the investment commitments will be good for employment, good for transformation and good for the country.
“Last week we held our fourth South Africa Investment Conference as part of our ambitious drive to raise R1.2 trillion in new investment over five years.
“The value of the investment commitments made at the conference was R332 billion, bringing the total value of commitments to date to R1.14 trillion. With just one year to go, we have now reached 95% of the target we set in 2018.”
Ramaphosa said the conference was significant for several reasons:
- There was an impressive number of investment commitments made – amid a pandemic that has dampened the global investment climate for more than two years.
- Firms that already have a footprint in South Africa are increasing their existing investment commitments, signifying a renewed vote of confidence in our economy even at this difficult time.
- The range of projects represented at the conference illustrate the diversity of the South African economy and that potential investors see far more opportunity across several sectors than they did in previous years.
- Finally, and perhaps most importantly, this year’s conference was marked by increased domestic investment, most notably from black industrialists.
Some of the notable investments that were announced in the last week include:
- The expansion plans of existing mining operations include an additional R10 billion investment by Anglo American, R11.8 billion by Impala Platinum, and R2.8 billion from Ivanhoe Mines to expand its Platreef mine in Limpopo.
- The Ford Motor Company has committed R16.4 billion to expand the manufacture of the next-generation Ford Ranger, and there are commitments of R800 million by BMW and R350 million by Volkswagen.
- Creative industries have been given a major boost by multimillion-rand investments in film and television production by the world’s largest media companies like Warner Media and Netflix.
- After nearly 15 years in the making, the eThekwini Film Studio in KwaZulu-Natal will soon become a reality following a R7.5 billion investment from Videovision Entertainment.
“As the commitments turn into projects, they will create jobs and improve livelihoods not only in the cities and metros but also in small towns and rural areas. This will spur the growth of local economies, leading to more opportunities and to the improvement of people’s quality of life,” Ramaphosa said.
“As one of the CEOs at last week’s conference said, the truest measure of the success of these investments lies in the extent to which they give an opportunity to every South African to realise their potential. ”