SA provides fertile ground for investment

Source: Thursday, 01/09/2018

President Cyril Ramaphosa has assured potential investors that South
Africa is working hard to provide a conducive environment for investors.
“Government is working with urgency to guide the economy towards a
more sustainable growth trajectory and to restore South Africa to
investment grade status at all credit rating agencies,” said the
President.
He was speaking at a business seminar on opportunities in South
Africa, on the margins of the United Nations General Assembly taking
place in New York.
The President also engaged in a roundtable discussion hosted by
American businessman, Michael Bloomberg, on investment opportunities
in South Africa.
Addressing investors, the President told delegates that South Africa,
in a bid to revive its economy, made new investments into the economy
a central priority for government. To achieve this, President
Ramaphosa outlined government’s ambitious investment drive to raise
$100 billion in new investment over five years.
“An important milestone in this initiative is an Investment Conference
to be held in Johannesburg on 26 October.
“The Investment Conference, which will involve domestic and
international investors, provides a platform for would-be investors to
seek out opportunities in the South African market,” said the President.
Reflecting on investment relations with the United States, he
highlighted that South Africa is the second largest destination of US
investments in Sub-Saharan Africa after Mauritius.
Total bilateral investment, comprising Foreign Direct Investment,
portfolio and other investments, stood at approximately R2.2 trillion
in 2016.
Investments by US companies into South Africa accounted for about 22%
of total inward investments from the world.
There are over 800 US companies doing business in South Africa,
accounting for 10% of Gross Domestic Product and employing over 220
000 people.
“It is our intention, through this investment drive, to substantially
expand the presence of US companies in South Africa.
“Among other things, this requires that we improve the investment
environment in the country and that we take decisive measures to
address the key structural challenges in our economy,” said President
Ramaphosa.
Invest SA
As part of improving South Africa’s investment service to investors,
the President highlighted that government established Invest SA to
focus on investment promotion and facilitation.
Invest SA brings together key government departments in a single
location to provide specialist advisory services, fast track
investment projects and reduce regulatory burdens for investors.
Stimulus package
President Ramaphosa also reiterated measures announced as part of
government’s stimulus package to reignite the economy.
These include; reprioritisation of public spending to support job
creation, the establishment of an Infrastructure Fund, addressing
urgent and pressing matters in education and health and investing in
municipal social infrastructure improvement.
Mining Charter
On mining, President Ramaphosa told investors that government has
finalised a new Mining Charter in consultation with the mining
industry, labour, affected communities and other stakeholders.
“This provides clarity on how we will balance the imperatives of
growth, sustainability and transformation,” he said.
Land reform
Speaking on land, President Ramaphosa assured delegates that land
reform will be undertaken in a manner that is consistent with the
Constitution, enhances agricultural production and food security and
promotes economic development.
“For generations, black South Africans were denied opportunities to
own assets, establish businesses, acquire skills and enter professions.
“Nowhere was this more apparent than in the patterns of ownership and
usage of land. The extreme concentration of ownership of land is one
of the great impediments to the full realisation of our country’s
potential,” said the President.
The official programme for the UN General Assembly, which has seen
world issues come under the spotlight, will wrap up today. �`
SAnews.gov.za