South Africa aims for R2 trillion investment target over next five years

South Africa aims for R2 trillion investment target over next 5 years

President Cyril Ramaphosa has set an ambitious target for South Africa to achieve R2 trillion in investments over the next five years.

South Africa aims for R2 trillion investment target over next five years

Propelled by the success of the South Africa Investment Conference (SAIC), President Cyril Ramaphosa has set a R2 trillion target for South Africa to achieve over the next five years.

The conference was attended by delegates from varying industries in South Africa and across the world at the Sandton Convention Centre in Johannesburg recently.

It saw investments announced in the digital economy, manufacturing sector and the Special Economic Zones (SEZs) which are expectedInvestment to pave the way for job creation and economic growth.

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The pledges cover 21 district municipalities across the country.

“A number of these investments aren’t only bringing much-needed economic activity to these localities; they are also supporting our overall national development goals,” President Ramaphosa says.

South Africa had reached R1.51 trillion in pledges, overshooting the initial R1.2 trillion target by 26%.


Pledges in the digital economy

  • Equinix pledged R3.8 billion to developing new data centres in South Africa.
  • Teraco made their fourth announcement this year, investing a further R2 billion to expand their data centre capacity and developing renewable energy projects to supply their data centres in Gauteng, the Western Cape and KwaZulu-Natal.
  • Cassava Technologies will be investing R4.5 billion towards adding 20 Megawatts to their data centre in Gauteng and the Western Cape.
  • Scensos pledged R80 million in a call centre in the Western Cape.
  • Moov, a fintech start up, will be investing R284 million in connecting mobility entrepreneurs to the right hailing e-logistics and e-delivery market place.
  • SA Taxi will be investing R500 million to providing financing to underserved and developing small, micro and medium enterprises (SMMEs).
  • Rain will be investing R4 billion in the further rollout of 5G infrastructure across South Africa.
  • Telkom made their fourth announcement by investing R5.97 billion in Information and Communication Technologies (ICT) infrastructure development across South Africa.
  • Topping their R50 billion pledge at the inaugural 2018 investment conference, Vodacom committed to invest R60 billion in ICT infrastructure.

ALSO READ: SA investment conference boosts digital economy

Investments in the manufacturing sector

  • Alpha Manufacturing will be investing R2 billion in recycling, packaging and manufacturing facilities in Gauteng and KwaZulu-Natal.
  • At a Glass packaging committed to investing R1.9 billion in a glass production facility in Gauteng.
  • Impact pledged to invest R2.5 billion across their paper and plastic production facilities in a number of provinces.
  • Pavati Plastics will be investing R125 million in expanding their facility to produce specialised recyclable packaging material in Gauteng.
  • Defy pledged for the third time by investing R288 million in their white goods manufacturing facilities in KwaZulu-Natal.
  • Madinda Utilities will be investing R600 million in hardware manufacturing for the electronics industry in Gauteng.
  • INTECH from South Korea will be investing R70 million in electric cable manufacturing in Gauteng.
  • Triple Five Trucking Solutions will be investing R118 million in the production of cabling for the renewable energy industry.
  • Actom will be investing R100 million in expanding capacity for products for the renewable energy sector.
  • SGB-Smit Power Matla will be investing R500 million in rebuilding their transformer factory in Gauteng.
  • Mohlalefi will be investing R120 million to produce safety equipment for the mining industry at their facility in Gauteng.
  • Prism Group will be investing R93 million in auto motive components in manufacturing.
  • BMW will be investing R4.2 billion in plant expansion for the manufacturing of new BMW models.

 Special Economic Zones (SEZ)

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Three companies have committed to investing in the Richards Bay Industrial Development Zone in KwaZulu-Natal:

  • Alusouth will be investing R373 million in an aluminum rod plant.
  • Bote Industries will be investing R220 million in the production of rubber hoses.
  • South East Bulk operations will be investing R452 million in a logistics hub.

Four companies are investing in the Coega Development Zone:

  • Coega steels will be investing R160 million in an automated rowing mill.
  • Newlyn Group will be investing R4 billion in a manganese storing facility.
  • Kict Energy will be investing R500 million in the production of smart LPG cylinders.
  • MEC Commercial Trailers will be investing R340 million in the assembly of heavy duty trailers.

Western Cape, Atlantis SEZ investments:

  • Iconic Gases will be investing R20 million in an acetylene production facility.
  • Moduler Electric Assemblies will be investing R7.5 million in the assembly of electrical components.

Dube Trade Port Investments:

  • Futurelife Food Manufacturing will be investing R75 million.
  • Siyakha Flexibles and Labels will be investing R100 million in the production of flexible packaging for the FMCG sector.
  • YOA Holdings will be investing R155 million in the expansion of their fibre optic manufacturing facility.

Tshwane Automotive SEZ:

  • Schenellecke Logistics will be investing R89 million in the production of exhaust systems for Ford.
  • Shosholoza Cements will be investing R493 million in a compact cement grinding plant.

Fetakgomo Tubatse SEZ:

  • Shodawn will be investing R40 million in foundry for steel casting.

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Vaal River SEZ:

  • Mitochondria Energy will be investing R4.3 billion.
  • The Industrial Development Corporation will be investing R11 billion.

Written by for GCIS VuK’ZENZELE