Minister Jeff Radebe
[[{"type":"media","view_mode":"media_large","fid":"407879","attributes":{"class":"media-image","id":"1","style":"margin: 3px; float: left;","typeof":"foaf:Image"}}]]Since 1994 South Africa has advocated for a vibrant and sustainable Africa, characterised by greater unity and solidarity between all nations.
This has translated into strong working relationships with a number of African countries which support our economy and help grow mutual business, trade and investment across the continent.
Our long-standing relations with neighbouring countries have allowed us to procure electricity and water to meet our nation’s needs. The Lesotho Highlands Water Project is a major supplier of water and much of our electricity is sourced from the Cahora Bassa Dam in Mozambique.
We access gas from our African neighbours that is used in local industries and households, and sustains thousands of jobs. South Africa is also a major importer of crude oil from African nations.
In future the Great Inga Hydropower Scheme in the Democratic Republic of the Congo will produce electricity for a number of countries within the SADC region, including South Africa.
The importance of a thriving continent and region is highlighted in our National Development Plan, which recognises the global shift of economic power from developed to developing countries.
Projects such as the north-south rail and road links are being fast tracked to improve Pan-African rail and road infrastructure, with a strong focus on the North-South Corridor linking Durban and Mombasa, Kenya.
Our footprint on the continent has risen substantially. South Africa has encouraged local businesses to expand into Africa to support continental growth through the relaxation of cross-border financial regulations and tax requirements on companies.
Similar support measures will also apply to foreign firms wanting to invest in Africa using South Africa as their regional headquarters.
Through our initiatives we are nurturing intra-African trade and investment. This phenomenon is starting to reduce the continent's traditional dependence on external trade and investment.
The economic interplay between African nations must be strengthened if we are to become a force in the global economy. When we stand together and develop each other the possibilities are endless.
The establishment of a continental “Tripartite Free Trade Area’’ will create Africa's biggest free trade bloc with a single continent-wide market estimated to be US$1 trillion (R11.85 trillion). The proposed free trade area comprises 26 African countries that have an aggregate GDP of over US$860 billion and a combined population of 600 million.
This month we join the rest of the continent in forging greater unity in celebration of Africa Month. It is an opportunity to take hands with our fellow Africans to accelerate develop on our continent.
Government encourages South Africans to support Africa Month celebrations because when Africa prospers we all stand to benefit. We need to show a common front as international investors seldom give Africa the benefit of the doubt as they focus more on factors that create risk.
The Ernst & Young 2014 Africa Attractiveness Survey says, there are still some investors with an outdated view of the continent and are far less enthusiastic to invest.
However, those investors who are already active in Africa rank it as one of the most attractive investment destinations in the world today. The survey showed that in less than five years Africa has become the second most attractive investment destination, tied with Asia.
South Africa has maintained its position as the top direct foreign investment destination with emerging hotspots for investment being Kenya, Ghana, Mozambique, Uganda, Tanzania and Zambia.
Closer to home there are many Africans from around the continent who contribute meaningfully to our economy and the advancement of our country. In the spirit of Africa month, let us partner with fellow Africans living and working in the country.
South Africa is a diverse destination for investment. We are broadening our industrial development, focusing on manufacturing and investing in agro-processing.
In the energy sector there are lucrative investment opportunities on offer, which range from renewable, conventional, shale gas, nuclear and unconventional energy sources.
Our economic development is strongly driven by real physical investment in road and rail construction, new power stations, housing, water and sanitation. South Africa is going through an economic renewal; we are open for business, tourism partnerships.
Jeff Radebe is the Minister in The Presidency
