SA calls in big shots to woo in­vestors

Public Sector Manager - - Contents -

Gov­ern­ment has launched an in­vest­ment drive to net US$100 bil­lion in in­vest­ments

Gov­ern­ment has launched an am­bi­tious new in­vest­ment drive that aims to bring US$ 100 bil­lion in new in­vest­ments into the coun­try over the next five years.

Pres­i­dent Cyril Ramaphosa an­nounced the ini­tia­tive, which will cul­mi­nate in an In­vest­ment Con­fer­ence, on 16 April 2018.

“The In­vest­ment Con­fer­ence, which will in­volve do­mes­tic and in­ter­na­tional in­vestors in equal mea­sure, is not in­tended merely as a fo­rum to dis­cuss the in­vest­ment cli­mate,” said the Pres­i­dent.

“Rather, we ex­pect the Con­fer­ence to re­port on ac­tual in­vest­ment deals that have been con­cluded and to pro­vide a plat­form for would-be in­vestors to seek out op­por­tu­ni­ties in the South African mar­ket. We are de­ter­mined that the con­fer­ence pro­duces re­sults that can be quan­ti­fied and quickly re­alised,” he said.

The In­vest­ment Con­fer­ence is ex­pected to take place in Au­gust or Septem­ber 2018.

“We are aim­ing, through the In­vest­ment Con­fer­ence, to gen­er­ate at least US$ 100 bil­lion in new in­vest­ments over the next five years. Given the cur­rent rates of in­vest­ment, this is an am­bi­tious but re­al­is­able tar­get that will pro­vide a sig­nif­i­cant boost to our econ­omy,” added the Pres­i­dent.

In prepa­ra­tion for the In­vest­ment Con­fer­ence, Pres­i­dent Ramaphosa ap­pointed four spe­cial en­voys on in­vest­ment, who are ex­pected to spend the com­ing months en­gag­ing both do­mes­tic and for­eign ex­perts on the op­por­tu­ni­ties that ex­ist in this coun­try.

“These are peo­ple with valu­able ex­pe­ri­ence in the world of busi­ness and fi­nance and ex­ten­sive net­works across ma­jor mar­kets,” noted the Pres­i­dent.

They are for­mer Min­is­ter of Fi­nance Trevor Manuel, for­mer Deputy Min­is­ter of Fi­nance Mce­bisi Jonas, Ex­ec­u­tive Chair­per­son of Afropulse Group Phumzile Lan­geni, and Chair­man of Lib­erty Group and for­mer CEO of Stan­dard Bank Jacko Ma­ree.

The Pres­i­dent ex­plained that the spe­cial en­voys will travel to ma­jor fi­nan­cial cen­tres in Asia, Mid­dle East, Eu­rope and the Amer­i­cas to meet with po­ten­tial in­vestors.

A ma­jor part of their re­spon­si­bil­ity will be to seek out in­vestors in other parts of Africa, from Nairobi to La­gos and from Dakar to Cairo.

“This is part of a broader push by gov­ern­ment to ad­vance eco­nomic in­te­gra­tion in the South­ern African re­gion and across the con­ti­nent,” he said.

The Pres­i­dent also an­nounced Trudi Makhaya as his eco­nomic ad­viser.

He added part of Makhaya’s im-

me­di­ate re­spon­si­bil­i­ties would be the co­or­di­na­tion of the work of the spe­cial en­voys and a se­ries of in­vest­ment road­shows in prepa­ra­tion for the In­vest­ment Con­fer­ence.

“The en­gage­ments that we ex­pect to take place will also be part of a process to­wards the es­tab­lish­ment of a Pres­i­den­tial Coun­cil on In­vest­ment,” he ex­plained.

The Pres­i­dent added that gov­ern­ment is mak­ing progress in sta­bil­is­ing strate­gic state-owned en­ter­prises, im­prov­ing the func­tion­ing of key in­sti­tu­tions like the South African Rev­enue Ser­vice, fi­nal­is­ing a new Min­ing Char­ter through con­sul­ta­tion with all stake­hold­ers, pro­cess­ing leg­is­la­tion for the im­ple­men­ta­tion of the na­tional min­i­mum wage and the pro­mo­tion of labour sta­bil­ity, and launch­ing the Youth Em­ploy­ment Ser­vice to in­crease the em­ploy­a­bil­ity of first­time job seek­ers.

“In ad­di­tion, work is un­der­way to ra­tio­nalise and stream­line in­vest­ment reg­u­la­tions and re­duce the cost of es­tab­lish­ing and run­ning busi­nesses. Through the more ef­fec­tive use of in­dus­trial in­cen­tives, spe­cial eco­nomic zones and lo­cal pro­cure­ment re­quire­ments, we aim to in­crease in­vest­ment in man­u­fac­tur­ing and related sec­tors,” he said.

Gov­ern­ment is also cre­at­ing more op­por­tu­ni­ties for new mar­ket en­trants through its com­pe­ti­tion pol­icy, pref­er­en­tial pro­cure­ment mea­sures and ex­panded sup­port to small and medium-sized busi­nesses.

“Af­ter sev­eral dif­fi­cult years, South Africa is emerg­ing as an in­creas­ingly at­trac­tive des­ti­na­tion for in­vest­ment. We are en­cour­aged by the growth in busi­ness con­fi­dence over the past few months, the strength­ened rand and im­proved growth es­ti­mates,” said the Pres­i­dent.

He wel­comed the re­cent as­sess­ment by Gold­man Sachs that South Africa is at the top of the list of po­ten­tial can­di­dates to be the “next big emerg­ing mar­ket story” of 2018. It notes that the growth cy­cle is pick­ing up af­ter an ear­lier down­turn in in­vest­ment growth. It says that im­proved con­fi­dence is likely to lead to a bet­ter out­look for growth and in­vest­ment.

“This was con­firmed by the South Africa Eco­nomic Up­date re­leased this month by the World Bank. While the econ­omy’s per­for­mance is im­prov­ing, it notes that higher growth will re­quire am­bi­tious struc­tural poli­cies. It es­ti­mates that a suc­cess­ful con­clu­sion of the Min­ing Char­ter de­lib­er­a­tions, for ex­am­ple, could in­crease in­vest­ment in the sec­tor by 25 per­cent,” added Pres­i­dent Ramaphosa.

He ex­plained that it was for these rea­sons that gov­ern­ment was em­bark­ing on an am­bi­tious in­vest­ment drive along­side the im­ple­men­ta­tion of nec­es­sary eco­nomic re­forms.

“South Africa has en­tered a new era of hope and con­fi­dence.The task we have now is to en­sure that this be­comes an era of in­vest­ment, growth, job cre­ation and mean­ing­ful eco­nomic trans­for­ma­tion,” said Pres­i­dent Ramaphosa.

Trevor Manuel.

Mce­bisi Jonas.

Jacko Ma­ree.

Phumzile Lan­geni.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.