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More than R360 billion worth of investment pledges were secured at the latest South Africa Investment Conference (Saic) – President Cyril Ramaphosa’s flagship forum to secure commitments and interact with local and international investors.
This is according to Brand South Africa, following the pledges made at the 5th Saic event being tallied up.
The latest commitments take the total investment pledges made at the event, since it first took place in 2018, to the R1,5 trillion mark.
Most of the investments relate to the energy and global business services sectors.
The final cycle of the five-year investment drive saw the president surpassing a target he set for SA back in 2018 – to raise R1.2 trillion worth of investment for the country by 2022.
However, due to the impact of the Covid-19 pandemic, Ramaphosa was forced to delay his goal by a year, as the fourth conference was postponed from 2021 to 2022.
Ramaphosa hosted more than 1 200 delegates, from more than 40 countries across the world, to present the country’s investment case at the Sandton Convention Centre on 13 April, where he also announced a new investment target to attract R2 trillion in the next five years.
This year, the energy sector attracted the highest value in investment pledges, with R120 billion worth of investments committed.
Investing in green hydrogen
Global green energy company Hive Energy made the largest single investment pledge of R105 billion towards building a green hydrogen and green ammonia production facility at the Coega Special Economic Zone in the Eastern Cape.
This investment comes as the country battles a crippling energy crisis. The Coega facility will see the establishment of a 900 000 tonne per year green ammonia plant, with a dedicated power supply.
Addressing the impact of erratic power outages on the economy, the president assured investors that implementing reforms in the energy sector is government’s top priority, to ensure greater ease of doing business in the country.
President Cyril Ramaphosa delivers the opening address at the 5th South Africa Investment Conference in Johannesburg. Image: Jairus Mmutle/GCIS
“Though load shedding will remain a challenge in the immediate future, its severity will begin to ease as some of the more targeted initiatives recently announced begin to take effect,” Ramaphosa said.
“What we are witnessing in the energy sector is an undeniable surge of investment that will not only address the electricity supply shortfall in years to come but will propel growth and create jobs,” he added.
“Even as we work to improve the performance of our existing coal-fired power stations to address load shedding, we remain committed to a just energy transition and our target of achieving net zero emissions by 2050.”
Improved connectivity
Vodacom came in second with the next largest investment pledge from a single investor, promising to plough R60 billion over the next five years towards enhancing network connectivity and accelerating coverage in the country’s rural areas.
The Vodacom investment contributed to the global business services, ICT and digital services sector attracting more than R80 billion, the second largest amount attracted by a sector at the 2023 Saic.
According to a post-conference assessment by Brand South Africa – South Africa’s official marketing agency – a total of 317 investment pledges have been made towards the investment drive since its inception in 2018.
As it stands, 161 of the projects announced in previous years have either been finalised or are currently under construction.
Ramaphosa further reassured investors that South Africa – despite the many challenges it faces – remains a lucrative investment destination.
“We are on a long journey to rebuild our country and recover the ground we have lost. Our recovery is a mission that will take time to accomplish.
“We remain convinced that South Africa is an investment destination with significant untapped potential. We do believe that by leveraging our unique value proposition, we have the ability to attract higher levels of investment,” Ramaphosa said.- Moneyweb
Online Reporter