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SOUTH AFRICA INVESTMENT CONFERENCE
n the early nineties, when South effective legal environment, cost
Africans from across the political competitiveness and reliable infrastructure.
spectrum met to negotiate an end to Global automotive manufacturers like
apartheid, many people across the world Mercedes, BMW, Toyota, Ford, Nissan, VW, and
were sceptical about the chances of Beijing Automobile International Corporation
Isuccess. SA have broadened their presence in the country,
Yet, South Africans did the unthinkable. while tech giants like Microsoft, Oracle, Google,
Through a negotiation process driven by a Facebook, IBM, Cisco and Amazon and global
compact between government, business, labour brands such as Starbucks, Pizza Hut, Dunkin
and civil society, we took the country from the Donuts and Krispy Kreme have cemented their
brink of civil war through a peaceful transition. investment alongside retail brands such as
The transformation of South Africa from a brutal Cotton On, H&M, Top Shop, Zara and Walmart.
racist system to an effective constitutional Our well-functioning domestic capital markets
democracy was achieved through a partnership play a pivotal role in allocating both domestic
that put the transformation of the country and IS OPEN FOR and foreign savings towards South African
its people at its centre. investment requirements and our banking
Today, as we confront several different system ranks among the best and most
challenges, we are invoking this spirit of sophisticated in the world. Our regulatory
cooperation and partnership across public and environment continues to promote investor
private sectors. South Africa is emerging from a BUSINESS protection, financial stability, liquidity and price
difficult 10-year period. Notwithstanding the transparency and efficiency.
challenges we have been through, our In the resources sector, lucrative investment
democracy has proven to be resilient, our opportunities exist in oil and gas exploration,
public institutions, judiciary and media are firm the ocean economy and renewable energy. We
and independent, the rule of law prevails and are working to provide policy certainty and
our citizens are active. We are determined to revitalise the mining and mining beneficiation
draw on our experience in overcoming sector with the finalisation of a new Mining
seemingly intractable situations to take our Charter.
country forward. South Africa’s renewable energy sector,
Our biggest task is to improve life for the through our independent power producer
majority of South Africans. Although apartheid programme, has attracted $6bn in investment
ended more than two decades ago, its effects between 2010 and 2016, with great potential for
remain evident in the social and economic further expansion. Our country enjoys on
structure of our country. average 300 days of sunshine a year and offers
Through a critical refocus on inclusive abundant opportunities for wind farm projects,
economic growth and attracting private capital making renewable energy projects an obvious
and investment, we seek to generate growth in and cost-effective addition to the energy mix.
our economy, address infrastructural gaps, We are grateful that UK Prime Minister Theresa
stabilise public finances, accelerate employment May recently pledged to provide more than £56
and ensure our economy benefits all South million for battery storage technologies in South
Africans. Africa.
As part of this effort, we are convening an We are modernising our agricultural sector,
Investment Conference in Johannesburg on 26 which not only has huge job creation potential,
October, which will showcase the many but offers the potential to enable more South
investment opportunities in South Africa to Africans to participate in the productive
several hundred local and international economy. As part of this work, an advisory
investors. This is part of an investment drive panel has been established to guide the
through which we aim to mobilise $100bn in implementation of a fair and equitable land
new investment over the next five years. reform process that redresses injustices of the
Our government recently announced an past, increases agricultural output and protects
Economic Stimulus and Recovery Plan, which food security.
includes rapidly accelerating key reforms in Leveraging private capital to accelerate the
economically important, competitive sectors that building of productive and profitable
have the potential to drive long term growth, infrastructure to further facilitate inclusive
such as mining and mineral beneficiation, economic growth also provides opportunities for
telecommunications, agriculture and tourism. international investors. An infrastructure
As part of the Economic Stimulus and implementation team in the Presidency, which
Recovery Plan, we are establishing an will include skilled individuals from the private
Infrastructure Fund to consolidate government’s sector, is being set up to oversee the
R400bn infrastructure budget, which will implementation of projects.
prioritise roads, water infrastructure, schools, In recognition that private sector investment
human settlements and public transport. in competitive industries provides long-term
Additional resources from development finance capital and contributes to the transformation of
institutions, multilateral development banks and the economy, we have implemented several
private lenders and investors will be leveraged administrative reforms to reduce obstacles to
through this Fund. investment and make it easier to do business.
In adopting an investment-friendly approach, Across the country, the Department of Trade
we have chosen to focus on addressing and Industry has rolled out One Stop Shops
structural weaknesses in the economy, that bring together all government services for
rebuilding investor confidence, restoring good prospective investors who want to set up a
governance in public institutions and creating a business. These offer streamlined registration,
supportive environment for investment. administrative and authorisation processes to
Over the past few months, we have achieved quickly get businesses off the ground. We have
several important milestones. For example, we also begun a review of various administered
have implemented a review of the visa regime prices, starting with electricity, port and rail
to attract more tourists and skilled workers. tariffs to reduce the cost of doing business and
Processes to restore confidence in public make our products competitive.
institutions and thoroughly investigate instances This year as we celebrate the centenary of
of corruption are making progress. Governance the birth of our first democratic President,
and management of key state-owned Nelson Mandela, it is worth remembering the
enterprises has been overhauled to ensure they obstacles South Africa overcame through active
are held accountable and able to fulfil their leadership and genuine partnership. As we
economic and developmental mandates. seek to translate our political freedoms into
It is an important signal of confidence in our economic wellbeing – improving the living
strategy that international investors continue to conditions of all who live in South Africa – we
commit long-term capital to South Africa. With have every reason to believe that it can happen
favourable demographics, high productivity again.
potential and ideal positioning as a springboard
into the rest of Africa, our country is an – Cyril Ramaphosa is President of the
attractive destination for growth-seeking Republic of South Africa
investors. South Africa offers investors the
stability of a well-regulated economy, an . As published in the Financial Times
