South Africa's Investment Summit Secures $25bn of Fresh Funding

Proshare

Tuesday, January 07,  2020 /2:02 PM / By FDC / Header Image Credit: @PresidencyZA

 

A second investment summit convened by the president, Cyril Ramaphosa, on December 5th-7th, attended by 1,500 delegates, secured new investment pledges of about R370bn ($25bn). This is roughly 25% higher than what was committed at a first summit in October 2018.

 

Ramaphosa is, therefore, moving closer to achieving his objective of securing R1.5trn in new investment over five years-from both domestic and foreign sources-geared towards boosting growth and job creation. Specific commitments made at the new summit include R50bn over five years from MTN, one of South Africa's two largest telecoms firms, R23bn over 3-5 years from Transnet, the transport parastatal, and R14bn from Sappi, a paper-maker. In the mining sector, Exxaro and Rio Tinto committed to invest R20bn and R6.5bn respectively, while Anglo American reaffirmed last year's commitment to invest R72bn over five years, of which R19bn has already been spent on diamonds, iron ore, coal and platinum ventures.

 

A new platinum mine, worth R30bn, will follow. Government investment of R12.9bn in a new agricultural support vehicle, and R6bn to support transformation in the automobile industry add to the tally. The state is also investing R3.5bn to help establish a dedicated special economic zone for vehicles adjacent to Ford's Silverton plant in Gauteng. Amazon Web Services, while giving no specific figures, reiterated its intention to launch a dedicated local data centre in 2020.

 

Describing the summit as a "vote of confidence" in the economy, with the potential to create more than 400,000 jobs, Mr Ramaphosa and his newly appointed investment envoys-Derek Hanekom for tourism and Jeff Radebe for oil and gas-were also frank about the challenges facing investors, acknowledging the need for more policy certainty, less onerous regulations, greater macroeconomic stability, less corruption and more stable electricity supplies.

 

The newly made commitments will not necessarily translate into actual investment, although the signs are promising: Mr Ramaphosa says that of the R300bn committed on 31 projects in 2018, R238bn has already been spent, or is assured, with eight projects now complete and 17 under way. The possible loss of South Africa's last remaining investment-grade credit rating poses a threat to foreign portfolio investment, although foreign direct investment is far less vulnerable to credit-rating shifts.

 

Proshare Nigeria Pvt. Ltd. 


Related News - South Africa

  1. Can Team Ramaphosa Stabilize South Africa's Economy?
  2. Nigeria and South Africa: A Reason to Worry?
  3. South Africa's Rate Decision: Giving Priority To Foreign Investors
  4. Lower Sugar Production In South Africa To Increase Prices
  5. Moody's Rating: Life-Saver to South Africa's Economy?
  6. Mid-Term Budget Policy Statement: Should South Africa Be Worried?
  7. Nigeria-South Africa: Strengthening Relations Between Two Regional Powerhouses
  8. Nigeria - South Africa New Trade Deal: Anything to Cheer?
  9. South Africa's Economy in Q2-19: Fragile Still?
  10. As For South Africa, So For Jigawa: Understanding The Missing Point - Fasua
  11. Why Nigerians Will Never Leave South Africa - Fasua
  12. Nigeria-South Africa; Trade Not Xenophobia, A Handshake Across the Sub-Sahara
  13. South Africa and Nigeria: A Similar Narrative
  14. In the Footsteps of Nigeria, South Africa Reappoints Apex Bank Governor
  15. South Africa's Q1-19 GDP Result: On the Way to Another Recession?
  16. South Africa's Rand Continues To Tumble On Central Bank Worries
  17. South Africa's Economic Slump-A Huge Signal for Structural Reforms
  18. Cabinet reshuffling in South Africa: Any lesson for Nigeria?

 

Proshare Nigeria Pvt. Ltd.


Related News - Trade Investment

  1. NBCC Partners with FMITI Nigeria to Establish a Nigeria Trade Centre in London
  2. Visa Issuance At The Point of Entry Into Nigeria To All Africans Takes Effect From January 2020
  3. Regulators Discuss Nigeria As Compelling Destination for Capital
  4. Togo: Dangote Builds $60m Cement Plant, Partners Govt To Produce Fertiliser
  5. Nigeria-South Africa: Strengthening Relations Between Two Regional Powerhouses
  6. The Effects of Nigeria's Closed Borders on Informal Trade with Benin - Brookings
  7. UK Takes Steps To Boost Trade and Investment Partnership with Ghana
  8. AfCFTA: Opportunities for Nigeria's National Development - Desmond Guobadia
  9. Brexit: UK Reassures Nigeria On Strategic Bi-Lateral Trade Relations
  10. Making The Case For Trade
  11. NBCC To Establish Centre in London, To Facilitate UK-Nigeria Trade

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
READ MORE:
Related News
SCROLL TO TOP