On 24 March 2022, the fourth South Africa Investment Conference (SAIC) was held at the Sandton Convention Centre in Johannesburg. It is part of South Africa’s investment plan to attract ZAR 1.2 trillion of new investment into the country over the next five years to boost the economy and drive socio-economic development. The sessions were also livestreamed for an online audience.
Since its launch in 2018, the South African Investment Conference (SAIC) has attracted delegates from South Africa and the rest of the world with the aim of showcasing investment opportunities available in the country.
The South Africa Investment Conference 2022
The South Africa Investment Conferences of recent years have been very successful – a fact that this year’s event built on. It provided an opportunity for the South African government to engage with national and international businesses. The aim of the conference was to highlight to international investors South Africa’s strengths and competitive advantages that make the country a promising investment destination.
The President of the African Development Bank Group, Akinwumi A. Adesina, spoke at the opening of the conference. He pledged that the African Development Bank would support the country with $400 million over the next three years, especially the national electricity utility Eskom in its transition to renewable energy. He said the bank was working with international partners, particularly the G7 countries, to establish an Equitable Energy Transition Facility that would help South Africa raise at least $27 billion. In addition, Adesina commended the G7 countries for pledging $8.5 billion to support the energy transition in South Africa.
In pledging $2.8 billion for South Africa over the next five years, Adesina confirmed that these funds will be used to support public and private sector investments in agriculture, renewable energy, transport, youth employment, health and vaccine production, among others.
South Africa’s President Ramaphosa said, “We meet at a time when our country faces great challenges, but also great opportunities and promise. Our economy has been severely damaged by the loss of two million jobs. I am here to share with you what has been done and what we are doing.”
He outlined the measures taken by his government, including social and economic aid packages, which he described as “difficult but necessary reforms” in the areas of energy, state-owned enterprises and taxes and duties to boost economic growth.
Results of this year’s conference
The conference is significant for the following reasons:
- An impressive number of investment commitments were made – at a time when the global investment climate has been affected for more than two years.
- Companies already present in South Africa increased their existing investment commitments, representing a renewed vote of confidence in South Africa’s economy even at this difficult time.
- The range of projects presented at the conference illustrates the diversity of the South African economy and shows that potential investors are seeing many more opportunities in different sectors than in previous years.
- This year’s conference was marked by a promising increase in domestic investment, particularly from black entrepreneurs.
The total value of investment commitments made at this year’s conference amounted to ZAR 332 billion, according to President Ramaphosa, bringing the total value of commitments to R1.14 trillion. This means that a year before the deadline, 95% of the target set in 2018 has already been achieved.
Some of the notable investments announced during this year’s SAIC include:
- Expansion plans of existing mining operations include additional investments of R10 billion by Anglo American, R11.8 billion by Impala Platinum and R2.8 billion by Ivanhoe Mines for the expansion of the Platreef mine in Limpopo.
- Ford Motor Company has committed R16.4 billion to expand production of the next generation Ford Ranger, and there are commitments of R800 million from BMW and R50 million from Volkswagen.
- The creative industries have received a major boost from multi-million dollar investments in film and television production by the world’s largest media companies such as Warner Media and Netflix.
- After almost 15 years of construction, the eThekwini Film Studio in KwaZulu-Natal will soon be realised following a R7.5 billion investment by Videovision Entertainment.
The commitments, when translated into projects, are expected to create jobs, improve living conditions in urban and rural areas, thereby boosting the growth of the local economy, leading to greater equality of opportunity and an improvement in the quality of life.
South Africa as an investment destination
South Africa continues to be a popular destination for visitors from around the world due to its diversity, world-class infrastructure and reputation.
As one of the most sophisticated and promising emerging markets, the country offers a unique combination of highly developed economic infrastructure and a dynamic emerging economy.
If you would like to learn more about South Africa as an investment destination, please feel free to email us under contact@intergest.co.za. Our team will be happy to support you with your business projects on the African continent.
