There are a growing number of investors from around the world who see South Africa as a great place to do business. The recent flood of new investments across various sectors is proof that our country is a top investment destination.
These investments are a strong vote of confidence in the way we run the country and manage our economy.
At the recent US-Africa leadership summit President Zuma said: “The increase in new projects proves that South Africa is a profitable place to invest in. Our country is also a great location for growing your business in other parts of the African continent.”
South Africa boasts a stable democracy, sound financial system and highly regulated banking sector. In fact, last week’s credit rating downgrade of our four major banks by Moody’s Investors Service was unwarranted.
Our banking sector remains robust, liquid and managed by the South African Reserve Bank and National Treasury and there are no indications that any other financial institution has been affected by the problems at African Bank Investments.
Our investment opportunities, like our banking sector, are supported by world-class infrastructure, exciting innovation, research and development capabilities. We offer stability of a developed country along with the lucrative opportunities of a vibrant emerging market.
Last month South Korean electronics company Samsung said it would invest nearly R220 million in an appliance factory at Dube TradePort in KwaZulu-Natal. The factory will serve as Samsung’s base to supply the African market which has seen an increase in demand for consumer goods.
The Dube TradePort is poised to become a Special Economic Zone which will boost our investment status. Government is intent on creating a stable and vibrant environment for investments like this to flourish.
Our country’s attractiveness is no accident and can be traced to interventions such as the New Growth Pathand the Industrial Policy Action Plan.
Seven companies with investments worth more than R3 billion have projects under construction at Coega Industrial Development Zone, Eastern Cape, providing construction jobs to more than 1 800 residents of Nelson Mandela Bay.
Among them is French firm GDF Suez which has invested R2.2 billion in building a 335-megawatt power plant. The open-cycle turbine power plant is one of the first large-scale non-renewable energy projects involving an independent power producer.
Canadian Natural Resources International and French multinational Total have also recently launched a multibillion-rand drilling operation for our first deep-water well close to Mossel Bay.
The world’s fourth-largest solar photovoltaic manufacturer Jinko Solar has invested in an R80 million manufacturing plant in Cape Town which will create 250 jobs. This is the company’s first plant outside of China and will produce up to 1 300 solar panels a day.
Over a month ago we welcomed Chinese company First Automotive Works which invested R600 million in a truck assembly plant in the Eastern Cape.
The diversity of these investments reveals the abundance of opportunities awaiting investors. They significantly contribute to our goals of socio-economic development by creating sustainable jobs and skills development and training opportunities. These investments reaffirm our top standing in the UN Conference on Trade and Development's World Investment Report as Africa's best foreign direct investment performer last year.
The report showed that FDI inflows increased from $4.5-billion in 2012 to a record-high $8.1-billion last year, with investments in infrastructure the main attraction.
Furthermore, our FDI's outflows into Africa almost doubled from $2.9 billion in 2012 to $5.6 billion last year, powered by investments in telecommunications, mining and retail.
Our sterling performance is a result of focused policies that support the country’s global and regional growth aspirations. The government has also taken it upon itself to drive investment and job creation.
We have invested R30-million in a Transnet Wagons Refurbishing Facility in De Aar, Northern Cape, which is part of the Presidential Infrastructure Co-ordinating Commission.
The facility will boost the local economy in De Aar and improve the living conditions for communities. More than 100 direct jobs have been created and 300 jobs are expected.
The facility is part of Transnet’s R300 billion infrastructure plan to revamp and modernise the country’s rail, pipeline and ports network which will create 588 000 new jobs.
Faith Muthambi is Minister of Communications
