President Cyril Ramaphosa has used his weekly newsletter to push back at suggestions that investment conferences held across the country are “just for show”.
Government has, since the turn of the year, held business forums in several countries, hosted the SA Investment Conference, held provincial investment conferences with an Infrastructure Investment Summit convened by BlackRock, the asset manager company, held last week.
“These engagements are not ‘just for show’, as some people have suggested. They are an opportunity to connect investors with local opportunities, and bring together governments, business, banks and development finance institutions.
“Around the world, investment conferences and summits are platforms to attract foreign direct investment in a global investor landscape that has become increasingly competitive. The fact that international and domestic investors are willing to commit capital to South Africa demonstrates confidence in our country as an attractive investment destination,” President Ramaphosa said.
The SA Investment Conferences kicked off in 2018, attracting investment in various sectors including energy, telecoms, infrastructure, automotive, mining and advanced manufacturing.
The President noted that of the R1.5 trillion in pledges drawn from the conferences, some R634 billion has “already been invested into factories, mines, data centres, power plants and other infrastructure, and have been creating jobs”.
“These include the R4.2 billion investment by BMW to electrify its Rosslyn plant in Gauteng and to support new energy vehicle production; the R500 million investment by Tetra Pak to upgrade its plant in KwaZulu-Natal; Corobrik’s R500 million investment to build its Kwastina plant in Gauteng; and the Newlyn PX terminal in the Port of Durban that began operating in 2024.
“Last year, I opened the Ivanplats Platreef mine in Mokopane that originated from a R2.8 billion investment conference pledge,” the president highlighted.
Furthermore, these investments are not only creating jobs but are “supporting skills development to better equip young South Africans for the rapidly evolving world of work”.
“For example, Microsoft has partnered with the Youth Employment Service to offer globally recognised certification in high-demand Artificial Intelligence (AI) skills. This forms part of a more than R5.4 billion investment by Microsoft to expand its cloud and AI infrastructure in South Africa by 2027.
“We welcome all forms of investment, whether it is planned or new,” President Ramaphosa said.
Tackling the challenges
The President acknowledged that although much progress is being made, the “reality is that we are a long way from where we need to be”.
He highlighted that a primary economic indicator, Gross Fixed Capital Formation (GFCF), currently stands at around 14% of South Africa’s Gross Domestic Product (GDP) – significantly lower than the 30% target by 2030 set out in the National Development Plan (NDP).
“Our GFCF reached around 21% in 2008, driven by a sustained commodity boom, the start of Eskom’s build programme and infrastructure expansion ahead of the 2010 FIFA World Cup. There has been a steady decline since then, as the global financial crisis and the period of state capture progressively undermined private investment and business confidence.
“Since 2018, we have sought to arrest this decline. We have matched intent with action, moving to stabilise public finances, resolve the energy crisis and advance structural reforms,” he said.
However, there remains a “disconnect between improved investor sentiment and greater investment”.
“The message we have been taking to our meetings with investors is that we are creating the conditions for growth and providing the necessary policy certainty. As we reiterated at last week’s Infrastructure Investment Summit, we are improving project planning, funding and execution.
“Through this, we aim to narrow the gap between investment pledges, implementation and eventually job creation.
“We aim to encourage the substantial private capital that is in reserve to be used for productive domestic investment. According to the South African Reserve Bank, by July 2025, South Africa’s non-financial companies held R1.8 trillion in reserves,” he explained.
The President emphasised that building a prosperous and inclusive South Africa requires collective action and productive investment at scale.
“That is why we are encouraged that the greatest number of pledges made at the sixth South Africa Investment Conference were from domestic investors. Local businesses – those who know our economic and social conditions best – are making substantial investments in our economy.
“As we forge ahead with efforts to attract new investment, we call on the local private sector to be at the forefront of rebuilding investment momentum in our economy. Their confidence will encourage more international capital to follow.
“It is now abundantly clear that the engagements and commitments made in conference halls are steadily and increasingly translating into the economic activity that creates jobs and opportunities for South Africans,” President Ramaphosa concluded. – SAnews.gov.za
