Ramaphosa launches R2 trillion investment drive

PresidentCyril Ramaphosaannounced that theSouth African Investment Conferencehas secured R889 billion for 31 projects, expected to create 230 000 permanent jobs. “Today we are formally launching the second investment mobilisation drive with a target of R2 trillion in new investment over the next five years,” Ramaphosa said, adding that R450 billion in fixed investment has already been confirmed with an additional R479 billion from development finance institutions. The conference previously attracted R1.5 trillion in “credible, verifiable investment commitments in energy, telecommunications, infrastructure, property, mining, advanced manufacturing and across a range of other sectors,” Ramaphosa said, in his keynote address at the conference’s opening on Tuesday.

The next phase of the investment conference would target R2 trillion. “You can rely on South Africa. We are reliable, we are dependable and we are a good investment destination,” the president said.

He said R1 trillion would be invested in modernising and expanding public infrastructure over the next three years to boost investor confidence. Ramaphosa told the more than 1 200 delegates gathered at the sixth iteration of the conference that the country was implementing sweeping reforms to ease the cost of doing business. “Over the three years, the state has budgeted the investment of more than R1 trillion in modernising and expanding public infrastructure across our country.” This includes R950 billion in planned infrastructure investment; R375 billion to maintain and expand state-owned enterprises; R400 billion for the South African National Roads Agency to upgrade road infrastructure; and R200 billion for Transnet to maintain ports and logistics.

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“South Africa presents, what I could call, a favourable proposition as a resilient, credible and reform-orientated investment destination with strong fundamentals,” Ramaphosa said. That the delegates are from more than 50 countries signals that investors see “real and enduring potential, long-term value and untapped opportunity”. The conference brought together development finance institutions, government, business and the banking sector, with Ramaphosa noting that delegates “are able to move from contact to contract”. The government of national unity recorded four consecutive quarters of growth and jobs with inflation converging towards the 3% target.

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