President Cyril Ramaphosa: US–SA business and investment roundtable

Ambassador Nomaindia Mfeketo, 
Ambassador Lana Marks, 
Leadership of the Business Council for International Understanding, the Corporate Council on Africa and the US Chamber of Commerce, 
Business leaders, 
Ladies and Gentlemen, 

It is an honour and a great pleasure to participate in this roundtable discussion with representatives of US business. 

I want to begin by congratulating the American people for the successful elections held last week. 

The United States is a longstanding and valued partner of South Africa, and we look forward to further strengthening our ties of friendship and cooperation with the incoming administration. 

This business and investment roundtable is taking place at an important time. 

Together with countries around the world, both the United States and South Africa have begun the arduous task of rebuilding our economies while working to overcome the coronavirus pandemic.

Just as cooperation and solidarity have enabled us to respond to the pandemic, so too is partnership and collaboration vital to our collective recovery. 

It is now more important than ever for South Africa and the US to deepen our strategic partnership conducted through a number of political and economic forums. 
The United States is South Africa’s third largest trading partner. 

On a continental level, last year we were the largest source of African imports to the US followed by Nigeria, Egypt and Algeria. 

South Africa is a leading recipient of US foreign direct investment in Africa, and is the largest African investor in the US. 

There are over 600 US companies in South Africa, many of which have had a presence in our market for decades. 

These investments remain key to our economic growth and continue to support thousands of jobs both in South Africa and the US. 

It is this firm foundation that we want to build upon as we prepare to host the third South Africa Investment Conference in a week’s time. 
I have no doubt that, as in previous years, there will be a strong showing by US companies and investors. 
Since our first Investment Conference in 2018, we have been working steadily to create an enabling environment for both foreign and local companies to thrive in South Africa. 
We are focusing on key reforms in the energy, telecommunications and logistics industries to improve the competitiveness of our economy. 

We are working with industry stakeholders to fast-track measures to reduce the cost of doing business and lowering barriers to entry. 
Last month, we launched an Economic Reconstruction and Recovery Plan to restart our economy after the devastating impact of the pandemic on growth and employment. 

The plan identifies four priority intervention areas: a massive infrastructure build programme, significantly expanding energy generation capacity, an employment stimulus through social and public projects, and accelerating industrialisation through local production. 

Even though it has been just a few weeks since the Plan was announced, we have long begun work to deliver these commitments. 
As we say in the Plan, there is “a ruthless focus on implementation”. 

Infrastructure has immense potential to stimulate investment and growth, to develop other economic sectors and create sustainable employment both directly and indirectly. 

To this end we have developed a robust pipeline of projects with an investment value of R2.3 trillion – or around $150 billion – that will transform the landscape of our cities, towns and rural areas. 
The prospects for sustained growth depend to a large extent on our ability to give all South Africans a meaningful stake in the economy. 

Measures such as broad-based black economic empowerment are vital not only to correct the injustices of our past and overcome the inequalities of the present, but also to ensure that our economy is able to realise its full potential. 

We welcome the support that we have received from the many US firms that operate in South Africa in advancing empowerment, including through their use of innovative and transformative equity equivalent schemes. 

There are many new opportunities for US companies to participate in our economy as we seek to increase investment in our productive capacity.

I want to mention here the recently concluded deal between one of our own pharmaceutical companies, Aspen Pharmacare, and two subsidiaries of Johnson & Johnson to manufacture a COVID-19 candidate vaccine here in South Africa. 

This is yet another demonstration of partnership between South African and American business, making use of our world-class manufacturing capacity to answer a pressing global need. 
Growing domestic manufacturing is a key component of our recovery plan. 

Much work is underway. 

We have, for example, already finalised master plans in the automotive, clothing and textile, poultry and sugar industries.


These plans, in which the respective industry participants agree on practical measures to develop the sector, are fast becoming platforms to attract investment and generate growth. 

Off the back of the auto masterplan, for example, we have received R60 billion – or around $4 billion – in investment pledges from vehicle and component manufacturers. 

We are working with the respective industries to finalise master plans for the digital economy, forestry, aerospace and defence, renewable energy and a host of other important industries. 

These all present opportunities for enhancing trade and investment. 

As we drive the implementation of our respective economic recovery plans, such interactions between government and business are vital. 

The African Continental Free Trade Area, which will come into operation in January, will have a massive impact on African economies, on trade and investment. 

A World Bank report from June this year estimates that the African Continental Free Trade Area could contribute to an increase in real income gains for the continent of 7 percent, or nearly $450 billion, by 2035. 

With its relatively developed industrial base and the measures underway to expand manufacturing capacity, South Africa is well-positioned to benefit from the opportunities that the Continental Free Trade Area will provide. 

At the same time, Africa’s export sectors will need more international trade agreements to access market opportunities and global value chains. 

We must strengthen collaboration on skills transfer, training and information sharing. 

We must reduce impediments to trade, both tariff and non-tariff related. 

Greater investment and trade between our two countries is key to our collective growth and prosperity. 

Let us continue to work together to strengthen the trade environment and investment climate in our respective countries. 

In the wake of COVID-19, this assumes an added urgency. 

In the words of Abraham Lincoln, 

“The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew and act anew.” 

Thank you again for this opportunity and I look forward to our discussion. 

I thank you.