Investment Conference bags R290 billion for SA
Delegates at the inaugural Investment Conference have put their weight and money behind the country’s vision to grow the economy and create jobs
The inaugural South Africa Investment Conference has secured nearly R290 billion worth of investment for the country.
“This R290 billion is what we have now in our hands and this is in addition to the R400 billion which was received during the investment drive by the special envoys and from various countries during state visits which we still need to button down,” explained President Cyril Ramaphosa.
The President was speaking at the recent Investment Conference where he thanked the 1 050 delegates in attendance for putting their weight and money behind the country's vision to grow the economy and create jobs.
The R290 billion investment brings South Africa one step closer to achieving its target of securing US$100 billion over the next five years.
Investment announcements were made by companies in mining, forestry, manufacturing, telecommunications, transport, energy, agro-processing, consumer goods, pharmaceuticals, infrastructure, financial services, energy, ICT and water.
Among the investments are R9.5 billion pledged by the South
African National Roads Agency Limited, R40 billion by the National Association of Automobile Manufacturers of South Africa, Aspen with R3.4 billion,Vodacom R50 billion, ACWA Power R9.6 billion and R29 billion from the New Development Bank.
But the proof is in the pudding, said President Ramaphosa, who told the conference that government will track the impact of the investments and their ability to maximise job creation.
Seeking solutions
He added that initiatives such as the Investment Conference have changed the tide in the country.
“Through these various conferences, the gulf and the distance that has been there between business and government, and business and labour is reducing. It is through these engagements that we have been able to talk frankly and discuss solutions openly.”
When he opened the conference, the President stressed that the country has worked hard to attain an environment favourable to investment.
“We have implemented policies to promote black economic empowerment to provide black people, women and people with disabilities with assets and opportunities they need to participate more meaningfully in economic activity. It is a good thing because by so doing, [we] are getting all South Africans to participate in ensuring that this vehicle that is SA Inc. operates on all eight cylinders.”
The conference took place under the theme “Accelerating Growth by Building Partnerships”.
In line with the theme, President Ramaphosa noted that the bold target of $100 billion can only be achieved if everyone puts their shoulder to the wheel.
“We have emphasised the need for more South African companies to lead the investment charge, demonstrating that they have confidence in this economy and in its ability to deliver decent and reliable returns.”
To ensure ease of investment, the President outlined government's work in addressing stumbling blocks that impede investment - among them is Invest SA, a onestop shop that provides information, facilitation and aftercare for businesses and investors. Through this initiative, government aims to fast–track investment projects and reduce red tape.
Creating stability
President Ramaphosa also highlighted that the restoration of State-owned enterprises is key to clearing the path and creating stability for investors.
“Given the crucial role of these state-owned enterprises in the economy, as providers of critical infrastructure and bulk services, it is essential that they be restored as engines of growth and development.
“We have replaced the leadership in several state-owned enterprises, ensuring that we have people with experience, integrity and the relevant skills who are now leading the development and implementation of sustainable business models,” said the President.
Cementing the efforts of government to boost the economy, President Ramaphosa reminded delegates of the recently–launched stimulus package.
The package, announced in September, includes initiatives around growth-enhancing economic reforms, the reprioritisation of public spending to stimulate and support job creation, the establishment of an infrastructure fund, key interventions in education and health, and investment in social infrastructure in municipalities.
“We are here to declare that we are determined to build a country that is driven by enterprise and innovation, to develop an economy that is diverse and resilient and prosperous, and to create companies that achieve sustained returns not only for their shareholders, but also for the workers that drive them and the communities that support them,” said President Ramaphosa.
Clearing the path for more investment
In a bid to further draw investment, delegates at the conference entered into breakaway sessions where a total of R10 billion was raised collectively.
During the breakaway session on energy, R1 billion worth of investment in LPG (liquid petroleum gas) was pledged by Bidvest.
Delegates not only pledged more money at the sessions but also looked for possible solutions to bureaucratic challenges that might stifle investors.
During the plenary session on agriculture, funding for emerging farmers was noted as critical to ensure growth in the sector.The session also engaged on the need for transformation in the agriculture and fisheries sectors.
With regards to land reform, Agriculture, Forestry and Fisheries Minister Senzeni Zokwana said that the plenary session had stressed that land reform must be undertaken in a manner that does not affect food production.
The need for collaboration between the departments of Agriculture, Forestry and Fisheries and Water and Sanitation, in an effort to assist farmers with access to water, was also raised. Delegates lamented the time it takes to secure water-use authorisation.
Giving feedback on the plenary session on tourism and film, Minister Derek Hanekom said while delegates agreed that tourism and the film industry have massive investment potential, the challenge of how to translate this potential into numbers remains.
The plenary session gave the thumbs up to the introduction of an online application system and announcement of visa waivers with countries like Egypt, Morocco, Tunisia, Ghana, Cuba and Iran, as they will boost tourism.
The revision of the unabridged birth certificate policy by Home Affairs – that now exempts foreign nationals from presenting documentation – was also welcomed as a step in the right direction.
President Ramaphosa said that government is in talks to make the conference an annual event.