SA to get more than R290bn in investment as business comes to the party
At the investment conference in Sandton, President Cyril Ramaphosa declares the ‘investment strike’ over
As the second day of the investment conference comes to an end, SA will receive a surge in investment of more than R290bn over the next five years.
This will have a significant impact on President Cyril Ramaphosa’s $100bn investment drive announced in April.
“There have been accusations that SA is on an investment strike. Today maybe I can say the strike is over,” said Ramaphosa in his closing remarks.
On top of the R134.1bn in investment announced on Friday morning, here are some of the additional investments announced at the conference:
- Vodacom will invest R50bn over the next five years as it delves into 5G.
- Automotive traders, including BMW, Mercedes Benz, Ford, Toyota, Isuzu, Nissan and Volkswagen (VW) will, together, invest more than R40bn in SA in the next five years. In addition, they will establish a long-range strategy for SA, to be called the SA Master Plan from 2021 to 2035 and will include doubling local manufacturing projects to support the re-industrialisation of the country.
- The Brics Development Bank will invest R29bn in SA next year with a focus on transport, renewable energy, water and sanitation, as well as social infrastructure.
- Sanral will invest R9.5bn in a project in the Eastern Cape, which will see the creation of the highest bridge in Africa. The project will create 8,000 permanent job opportunities and 16,000 to 20,000 indirect jobs.
- ACWA Power, a company that generates electricity from water, will invest R9bn in SA.
- The Industrial Development Corporation (IDC) will bolster the manufacturing sector with investment of R3.6bn.
- Aspen Pharmacare will invest R3.4bn capital investment in Port Elizabeth in anaesthetics, which is the single largest pharmaceutical investment in SA.
- McDonald’s will invest R3bn over the next three years and create 7,000 jobs as it expands its South African operations.
- Sumitomo Rubber SA, which has a head office based in Japan, announced an investment of R970m for truck and bus tyres in Ladysmith, which will see 350 more jobs created.
- Nestlé will invest R663m this year as it embarks on the use of green technologies and strengthens its brand recognition in SA.
- Proctor and Gamble will increase its 3,000 workforce in SA by 30% and invest R300m into SA as it increases its sanitary pad production facilities.
During the breakaway sessions at the summit, other investment commitments were made of R10bn.
On Friday morning investments were announced from Anglo American (R71.5bn); Vedanta Resources (R21.4bn); Mercedes Benz SA (R10bn); Mondi SA (R8bn); Sappi (R7.7bn); Naspers (R6bn); Ivanplats (R4.5bn); Bushveld Minerals (R2.5bn); Mara Corporation (R1.5bn); and Rain (R1bn).
“The investment announced is a combination of new and what is already in the pipeline. If, for example, a company invests to extend the life of a mine, it is a new investment. Many of those investments are new,” said mineral resources minister Gwede Mantashe, after mining companies made significant investment announcements.
“There have been 1,100 retrenchments in the mining sectors but when you open new mines, you are cancelling out the retrenched workers in terms of the workers in the industry.”
Correction: October 29 2018
This article was corrected to include Toyota in the group of automotive traders planning investments in SA.