Ramaphosa desk: More than R600bn raised for transformation in two years

President Cyril Ramaphosa has seen off a busy week, one that was full of successes. In his weekly newsletter, the president revealed that South Africa has received pledges valued at R600-billion, half of the Thuma Mina goal.

Ramaphosa: South Africa reaps rewards of Investment Conference

The second Investment Conference was held at the Sandton Convention Centre on Wednesday, 6 November. The two-day affair saw more than 1 500 foreign investors taking picks, through the investment booklet they were handed, of South Africa’s vast economic opportunities.
This year’s occasion left little doubt on the global market’s perception of Ramaphosa. Virgin Atlantic founder, Richard Branson, said it himself. He has vested interest in South Africa because of how he views the president as “an honest man”. He even went as far as claiming that Ramaphosa was former president Nelson Mandela’s ‘chosen one’.
The numbers speak for themselves and in the second Investment Conference, South Africa garnered R363-billion in pledges, R63-billion more than 2018’s outcome.
This year’s total excludes an additional R8-billion that is still subject to regulatory or board approvals.

“In the end, however, we do not only measure the success of the Investment Conference by the amounts pledged, but also by the difference these investments make in the lives of South Africans, particularly the poor and unemployed. It is expected that over the next five years, the investments announced last week will conservatively result in the creation of around 412,000 direct jobs and a significant number of indirect jobs,” Ramaphosa noted.

How much has been raised in two years?

When Ramaphosa first took up office, he pledged to raise a total of $100-billion, equivalent to R1.2-trillion, in five years. Two years into his tenure, the president has maintained the pace needed to achieve such a feat.
As things stand, South Africa has secured a total of R663-billion in pledges between 2017 and 2019, through Ramaphosa’s investment drive.
More importantly, for the president, is how local business has stepped up to the challenge. Ramaphosa sees this as an encouraging sign that “our home-grown businesses want to be part of not only economic growth but of advancing an inclusive economy.”

“By far the most exciting development at the Investment Conference was the increase in the commitments from South African businesses. At last year’s conference, the total amount committed by local companies was just over R157 billion. This amount has climbed to R 262 billion in 2019. It includes projects in areas like auto manufacturing, mineral beneficiation, renewable energy, agro-processing and oil and gas,” he added.

What is being done with what has been invested?

While in principle, Ramaphosa is halfway towards his investment goal, the billions secured are, at this time, only pledges. This is basically an affirmation from the business that, in a said period, it will invest x into South Africa.
There has not been any indication that any of the pledges made have not transformed into actual economic opportunities. In fact, of the R663-billion pledged, “around R238-billion worth of projects have either been completed or are being implemented.”

“The aim of our investment drive is to create jobs, but also to create other economic opportunities as businesses are established to produce and supply products and services,” the president said.