Photo: GCIS
Photo: GCIS
When Cyril Ramaphosa swooped the presidency in 2018, one of his flagship policies was to source billions of rand from direct foreign investment. The head of state has been relatively successful in securing these pledges, but the greater impact of these projects has barely been felt in South Africa – that now looks likely to change going forward.
Where will foreign investment money be used in South Africa?
Speaking in his weekly letter to the nation, Ramaphosa explained that the upcoming Investment Conference – being hosted this week – will ‘turn commitments into implementation’. The president states that there will be a big push towards infrastructure development, as ‘brick and mortar projects’ finally break ground.
“This year’s conference is about implementation, and on turning commitments into brick and mortar projects in our cities and towns. It will highlight our progress in driving the economic reforms that are needed to unlock investment and growth.”
“Investor confidence has been boosted by, among other things, the establishment of the Infrastructure Fund. Confidence is also being improved by our continued implementation of the structural reforms and the finalisation of industry masterplans.”
Cyril Ramaphosa
How the foreign investment drive is going for Ramaphosa
Ramaphosa was happy to trumpet the apparent achievements scored by the government:
- Foreign investment into South Africa rose sharply from R26.8 billion in 2017 to R70.6 billion in 2018.
- Of the 102 projects that were announced at the last two investment conferences, 12 are in the early stages of implementation, 19 have been launched, and 44 are currently under construction or being rolled out.
- Over the last 10 months, the pandemic forced many investments pledged at previous conferences to be scaled back or put on hold. But these investments only amount to about one-tenth of the total investment commitment of R664 billion.
Ramaphosa backing SA to ‘thrive in 2021’
Despite the damning economic impact caused by coronavirus and our subsequent lockdowns, Cyril Ramaphosa is choosing to keep the rose-tinted spectacles on for the time being. He claims South Africa is ‘perfectly placed’ to benefit from the boom in remote worker centres, and he also put his faith in our country’s energy and digital service industries:
“South Africa has been voted the second most attractive location for business process outsourcing for the third year in a row. With business continuity having been disrupted by the pandemic, we are perfectly placed to capitalise on the growing need of businesses for remote contact centres.”
“We are already a preferred energy investment destination. Many of the projects implemented through the Renewable Energy Independent Power Producer Procurement Programme have been successful and set an example for many countries around the world. We are also positioning ourselves as a hub for digital services.”
Cyril Ramaphosa
From The Desk of the President – Monday, 16 November 2020 – https://t.co/bZS6IOiqpT This week, we will be hosting the third South Africa Investment Conference. Given the impact of the COVID-19 pandemic pic.twitter.com/TiPcbxmU7z
— Presidency | South Africa ?? (@PresidencyZA) November 16, 2020
