While the target of reaching R1.2 trillion worth of investments has been successfully reached at the fifth South African Investment Conference (SAIC), currently underway, President Cyril Ramaphosa this morning set a new target for the country for the next five years.
"We are now setting a new target to mobilise approximately R2 trillion in new investments over another five-year period, between now and 2028," the President told delegates and investors gathered at the Sandton Convention Centre.
"With the achievement of our R1.2 trillion target today, we now cast our collective eyes to the horizon. With your support, with your investment, we can realise more growth, offer more opportunities and create even more jobs. As we work with dedication and focus to overcome our immediate challenges, let us not lose sight of the incredible promise of our country, South Africa," the President said.
"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. In the midst of all the challenges we face, our ambition has not been misplaced. We do believe that the target we set in 2018 was not misplaced either. The four South African Investment Conferences that have taken place to date have attracted R1.14 trillion in investment pledges."
And today the 2018 target of R1.2 trillion has been reached.
Progress made
Ahead of the 2018 target being reached today, President Ramaphosa said: "We expect that the investment announcements made here today will take this total beyond the target that we set five years ago. While investment decisions often take several years to reach fruition, the investment commitments made to date have already resulted in substantial investment in the productive economy."
Almost 70% of the total number of projects announced since 2018 are either completed or on their way to completion.
The President told delegates that their presence and participation at the conference is a clear demonstration that South Africa continues to be an attractive investment destination despite a strained domestic and global economic climate.
To date, approximately R460 billion of capital has been invested in building new factories, purchasing equipment, constructing roads, sinking mine shafts and rolling out broadband infrastructure.
"What really stands out is the impact of these investments on the lives of South Africans who are now able to earn a decent living and care for their families. As we create sustainable jobs we are working to tackle poverty and inequality.
"Beyond the pledges made inside this conference hall, I have been encouraged by the investments that are happening in our economy and those that are being facilitated via InvestSA, our investment envoys, our diplomatic missions in various countries and our government departments, especially the Department of Trade, Industry and Competition."
In addition, international companies are expanding their footprint in the country.
The President emphasised that it has been a core conviction of the sixth administration that in order to create jobs, it must drive growth, and that fundamental economic reforms must be implemented.
The fifth SAIC affirms local and international investor confidence in the structural reforms to improve the business environment.
The energy sector remains a priority
Turning his attention to the country's energy challenges, the President said that a lack of reliability in electricity supply weakens business and consumer confidence. This as it taints international perceptions about the country and affects investment sentiment and decisions.
Last July President Ramaphosa announced an Energy Action Plan with the view to address the energy challenge. The plan presents a clear path to reduce the severity and frequency of load shedding in the short term and achieve energy security in the long term.
The Minister in the Presidency responsible for Electricity, with the support of the Departments of Mineral Resources and Energy, Public Enterprises and the National Energy Crisis Committee, is overseeing the implementation of this plan.
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"Our immediate focus is on improving the performance of our existing coal fired power stations as they continue to provide the baseload of our energy. Demand-side management initiatives will receive elevated attention, including through consumer behaviour, rooftop solar and facilitating embedded generation.
"We have been implementing wide-ranging reforms in the electricity sector to enable private investment in electricity generation and accelerate the procurement of new generation capacity from solar, wind, gas and battery storage," explained the President.
Meanwhile, government will implement the Just Energy Transition Investment Plan, which outlines the investment needs to support a just and inclusive transition towards cleaner forms of energy. In addition, the review of the Integrated Resource Plan to lay the foundation for a fundamentally transformed energy landscape that transitions us along a low-carbon, climate resilient developmental path will soon be completed.
