President Cyril Ramaphosa said his plans to get $100 billion worth of investments in South Africa over the next five years is on track.
The president added the interest in investing in the country has overwhelmed him. He made this statement when he hosted the investment summit on Friday, 26 October.
Ramaphosa is on a mission to deliver on his pledge to give the economy a much needed boost. He also wants to create jobs for the 27% unemployed work force in the country.
The UK, UAE, Saudi Arabia, China, and Daimler AG’s Mercedes-Benz unit have pledged $35.5 billion worth of investment in the country since Ramaphosa investment drive started in April.
On Friday, $20 billion was pledged. Anglo American also pledged $6 billion.
More than 1000 delegates were attrackted to the summit on Friday.
However, finance minister, Tito Mboweni, announced in his mid-term budget that economic-growth forecasts are expected to be slashed. Mboweni also revealed government debt peaked later and at higher levels than anticipated in the past.
The outlook triggered a sell-off in the rand and the nation’s bonds, BusinessTech reported. This again increased fears the country could lose its sole investment-grade credit rating from Moody’s investors service.
But, Ramaphosa seemed unfazed when he said things can only get better from here onwards. He believes another rating downgrade can by avoided.
Ramaphosa said the government is repositioning the economy: "I am confident that we will have done a pretty good job to put South Africa on a winning path once again.”
The president said government now knows what needs to be corrected.
When referring to Jacob Zuma's years as president, Ramaphosa said: "We now know the type of skills that we need and the type of people that we have to put in place to repair the damage that has been done in the past nine years, and it is huge damage, but we are repairing it.”
The 23 companies who pledged to invest in the country on Friday include:
1. Anglo American:
The mining company pledged to spend $6 billion (R87.55 Million) by 2022 on maintaining and growing its mines in SA;
Sappi is the world's largest producer of dissolving wood pulp. It plans to spend $528 million (R7.7 billion) to upgrade and grow its Saiccor Mill Packaging company;
Africa’s largest company hopes to invest about $314 million (R4.5 billion) in new and existing technology companies;
4. Vedanta Resources:
Vedanta Resources finalised a feasibility study for a $350 million (R5.1 billion) investment in a zinc-mine project and processing plant in the country. On top of this, the company also plans on spending $700 million to $800 million on a smelter and refinery complex;
In an effort to expand its capacity, Mondi pledged to invest $544 million (R8 billion);
6. Itochu Corp:
Ivanplats' platinum project, which is owned by Ivanhoe Mines, will receive a $306 million (R4.4 billion) investment from a Japanese consortium, which is led by Japan’s Itochu Corp;
7. Rain Telecom:
The telecommunications company hopes to spend $68 million (R1 billion) on a 5G high-speed network;
8. Bushveld Minerals:
The local community groups will allocate as much as $170 million (R2.4 billion) over the next three years to increase its capacity to produce and process vanadium;
9. Sumitomo Rubber:
The company pledged to spend $66 million (R963 million) to expand a tire-manufacturing plant;
In an effort to expand in the food industry, Nestle pledged $45 million (R656 million);
11. Mara Group:
The Dubai-based company set aside $100 million (R1.4 billion) for establishing a plant that will produce smartphones in South Africa;
In the next five years, McDonald’s will spend $206 million (R3 billion) on expansion;
13. Procter & Gamble:
The company will spend R300 million on a new plant;
In the next five years, Vodacom wants to invest $3.4 billion (R49 billlion) in telecommunications networks;
15. Aspen Pharmacare:
The pharmaceutical company pledged to invest $232 million (R3.3 billion) in a new pharmaceutical plant;
16. ACWA Power International:
The company will invest $775 million (R11.3 billion) in solar power;
A total of $69 million (R1 billion) will be spent on local content and technology;
South African vehicle manufacturers have collectively pledged to invest $2.6 billion (R39 million) in new capacity over the next 5 years:
18. BMW AG
19. Nissan Motor Co.;
20. Ford Motor Co.;
21. Toyota Corp.;
22. Volkswagen AG
23. Daimler AG's Mercedes-Benz UNIT
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