Closer to the R1.2 trillion target

Smarting from a slew of bad news, the first of which was the increase in the unemployment rate to 29.1 % – the highest in 11 years – followed by a tetchy pronouncement by ratings agency Moody’s downgrading South Africa’s outlook from stable to negative, the odds were stacked against the second investment conference repeating a seemingly insurmountable feat.

Riding on the back of the Ramaphoria sentiment, the inaugural SA Investment Conference bagged just less than R300 billion in investment pledges, setting the bar a tad high for the second conference.

Pledges - By the numbers

Minister of Trade, Industry and Competition Ebrahim Patel – one of President Cyril Ramaphosa’s key people tasked to help him raise the R1.2 trillion that the government requires to galvanise growth and boost job creation – was all too aware of the task at hand.

“The objective is not about beating last year’s record but to provide that platform for the government and businesses to have a dialogue on the investment climate, to enable the government to engage with the global investment community, to review progress made thus far on last year’s pledges and to enable new investors looking to partner with the government to make their pledges,” said Patel at a media briefing in the build-up to the second investment conference.

By lunch time on the second day of the conference investors had pledged more than R100 billion. A day before the official launch of the 2019 SAIC, Patel had accompanied the president to the launch of a new automotive plant hub in Tshwane.

The City of Tshwane allocated 162 hectares of land for the new Tshwane Automotive Special Economic Zone, which will be built close to Ford’s assembly plant in Pretoria. It’s the job prospects that excite Patel the most.

“We are looking at nearly 7 000 jobs that will be created in the first phase of the project and that is good news for some people in that region who are desperate for jobs.”

Early in October, Patel launched Toyota’s ambitious project to expand its plant production facility in Durban, which will create more employment opportunities for local people.

“Every investment of this nature allows us to reindustrialise our economy. Other than creating job opportunities, such investments are a reflection of the confidence that the global investment community has in the country. It is precisely why the government as a collective is working hard to showcase South Africa’s investment opportunities.”

As day two of the conference wore on, he was back in the main hall, this time to attend the closing session for the day. By close of business, the conference had raised about R363 billion worth of investment pledges, perhaps even surpassing his expectation.

“Our next task is to ensure that all the investment pledges made at this conference are not only monitored but are implemented to ensure that our economy creates the necessary jobs.”

While the euphoria around the SAIC 2019 and the Boks victory wanes, SA will start readying for the third investment conference. Aware of the task at hand and the enormity of the challenges, government has roped in former ministers Jeff Radebe and Derek Hanekom to ramp up its investment drive.

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