PRESIDENT Cyril Ramaphosa says the government is making progress along the difficult, but necessary path of reform it embarked on three years ago, and that it was starting to see the results. | Supplied
Siphelele Dludla
THE GOVERNMENT yesterday significantly narrowed the gap in its ambition to raise at least R1.2 trillion in new investments over a period of five years ending in 2023.
This comes as the 4th annual South Africa Investment Conference (SAIC) yesterday netted R332 billion in pledges from investors who vowed to support the economic recovery project.
The new pledges add to a total of R774bn in investment commitments pledged by the time of the 3rd SAIC in 2020, which took place just before the onset of the Covid-19 pandemic.
Of the R774bn committed, around R316bn has so far been invested with 45 projects having been completed while a further 57 are under construction, and 15 have been put on hold.
President Cyril Ramaphosa said the conference could not have taken place at a better time as the country was casting off the long shadow of the Covid-19 pandemic and embarking on a determined recovery.
“With the pledges we have received today – and with cancellations and additions we have heard about from investors in previous conferences – we have now taken the total level of investment pledged at the four Investment Conferences to R1.14 trillion,” Ramaphosa said.
In his opening address, Ramaphosa was frank about South Africa’s current challenges that hamstrung investment and stifled economic growth, including the energy crisis, logistics inefficiencies, a skills shortage, and Covid-19 among others.
He said the government was making progress along the difficult, but necessary path of reform it embarked on three years ago, and that it was starting to see the results.
“As we continue along the path of reconstruction and recovery, I call on all investors, entrepreneurs and business people to be part of this journey,” Ramaphosa said.
“As investors, you need to know that your investments are secure, that the operating environment is stable, and that you are supported by policy certainty and regulatory safeguards.”
The African Development Bank (AfDB) pledged to invest $2.8 billion (R42.5bn) over the next five years to support private sector investment in agriculture, renewable energy, transport, youth empowerment, health and vaccine manufacture.
AfDB President Dr Akinwumi A Adesina praised Ramaphosa for being a visionary and bold leader who understands the need to expand private sector investments for the economy to grow.
“Not only is South Africa the leading industrialised country in Africa, it is also a pacesetter. Thanks to South Africa’s scientists, and leadership, omicron was identified, even before the world woke up,” Adesina said.
Investors pledged five investments in creative industries and fashion, with companies such as AT&T and WarnerMedia; Netflix; Video Vision Entertainment; CMT (Mauritius) and PF Nonwovens.
Netflix pledged to spend more than R929 million in three local productions and one international production that will be filmed in South Africa in 2022 and 2023.
The US-based streaming service has invested more than R2bn in South African productions over the last five years, resulting in 1 900 jobs being created in the process.
In healthcare and pharmaceuticals, nine investments were pledged by Afrigen, Aspen Pharmacare, Biovac, BT Industrial, Cipla, Kenako, NantWorks, Pfizer and Siemens.
The mining and mineral beneficiation sector saw eight pledges from African Rainbow Minerals, Anglo American, Impala Platinum, Isondo Precious Metals, Ivanhoe Mines, Sedibelo Platinum Mines, Renergen & Kropz.
There were seven investments in the automotive sector coming from the Ford Motor Company, the Africa Auto Group, BMW, Daimler Trucks & Buses South Africa, Formex Industries, Volkswagen & Wheel Assemblers.
African Rainbow Energy, Bio2Watt, Seraphim, Polarium and Scatec made five investment pledges in the energy sector.
In infrastructure, property development and logistics, there were six investments from Cato Ridge Developments; DSV, Imperial & DP World, Collins Residential, Waterfall Management Company and Telkom.