South Africa: President Sets R2 Trillion Investment Target

GovernmentZA / Flickr (CC BY-ND 2.0)
President Cyril Ramaphosa gives the opening address at the 5th South Africa Investment Conference in Johannesburg, April 13, 2023.
13 April 2023
SAnews.gov.za (Tshwane)

On the back of the success of the South Africa Investment Conferences (SAIC) held in the country over the past five years, President Cyril Ramaphosa has set a R2 trillion target for South Africa to achieve over the next five years.

Attended by delegates from varying industries in South Africa and across the world at the Sandton Convention Centre in Johannesburg, the afternoon session of the conference saw investments announced in the digital economy, manufacturing sector and the Special Economic Zones (SEZs).

These are expected to pave the way for job creation and economic growth.

"Today's 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 said.

During the afternoon session of SAIC, the President said South Africa had reached R1.51 trillion in pledges, overshooting the initial R1.2 trillion target by 26 percent.

The following pledges were made in the digital economy during the afternoon session of the conference:

  • 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 is 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, is investing R284 million in connecting mobility entrepreneurs to the right hailing e-logistics and e-delivery market place.
  • SA Taxi is investing R500 million to providing financing to underserved and developing small, micro and medium enterprises (SMMEs).
  • Rain is 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.

Investments in the manufacturing sector are as follows:

  • Alpha Manufacturing is 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.
  • A company from Denmark invested R133 million in the manufacturing environmentally sustainable building insulation from recycled waste in Gauteng.
  • Pavati Plastics is 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 is investing R600 million in hardware manufacturing for the electronics industry in Gauteng.
  • INTECH from South Korea is investing R70 million in electric cable manufacturing in Gauteng.
  • Triple Five Trucking Solutions is investing R118 million in the production of cabling for the renewable energy industry.
  • Actom is investing R100 million in expanding capacity for products for the renewable energy sector.
  • SGB-Smit Power Matla is investing R500 million in rebuilding their transformer factory in Gauteng.
  • Mohlalefi is investing R120 million to produce safety equipment for the mining industry at their facility in Gauteng.
  • Prism Group is investing R93 million in auto motive component in manufacturing.
  • BMW is investing R4.2 billion in plant expansion for the manufacturing of new BMW models.

Special Economic Zones

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

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

Four companies are investing in the Coega Development Zone:

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

Western Cape, Atlantis SEZ investments:

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

Dube Trade Port Investments:

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

Tshwane Automotive SEZ:

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

Fetakgomo Tubatse SEZ:

  • Shodawn is investing R40 million in foundry for steel casting.

Vaal River SEZ:

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

Read the original article on SAnews.gov.za.

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