By Akani Nkuna
President Cyril Ramaphosa said on Monday that South Africa’s investment conferences have helped attract more than R2.4 trillion in pledges since 2018, but acknowledged that the country still needs to convert investor confidence into stronger economic growth and jobs.
In his weekly From the Desk of the President letter, Ramaphosa said investment summits were being used to connect investors with local opportunities.
“These engagements are not ‘just for show’, as some people have suggested,” Ramaphosa said. “They are an opportunity to connect investors with local opportunities, and bring together governments, business, banks and development finance institutions.”
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“Around the world, investment conferences and summits are platforms to attract foreign direct investment in a global investor landscape that has become increasingly competitive,” he said.
“The fact that international and domestic investors are willing to commit capital to South Africa demonstrates confidence in our country as an attractive investment destination.”
The sixth South Africa Investment Conference, held in Johannesburg on 31 March, secured R889.8 billion in pledges, according to InvestSA. The conference launched the second phase of Ramaphosa’s investment drive, after the first phase drew about R1.5 trillion in commitments. Cumulative pledges since 2018 now stand at more than R2.4 trillion, while R634 billion has flowed into the economy.
Ramaphosa said the investments had gone into factories, mines, data centres, power plants and other infrastructure, and had supported job creation across sectors including energy, telecoms, infrastructure, automotive, mining and advanced manufacturing.
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He cited BMW’s R4.2 billion investment to electrify its Rosslyn plant in Gauteng, Tetra Pak’s R500 million upgrade of its KwaZulu-Natal plant, Corobrik’s R500 million investment in its Kwastina plant in Gauteng, and the Newlyn PX terminal at the Port of Durban, which began operating in 2024.
“Last year, I opened the Ivanplats Platreef mine in Mokopane that originated from a R2.8 billion investment conference pledge. In addition to creating jobs, these investments are supporting skills development to better equip young South Africans for the rapidly evolving world of work,” Ramaphosa said.
But the president acknowledged that pledges do not immediately translate into large-scale economic growth or employment. He said investment is a long-term commitment and that some projects take years to reach implementation.
“The reality is that we are a long way from where we need to be,” he said.
Ramaphosa said one of the most-used measures of investment in the economy, gross fixed capital formation, or GFCF, was currently around 14% of gross domestic product. The National Development Plan targets 30% by 2030.
He said GFCF had reached around 21% in 2008, supported by the commodity boom, Eskom’s build programme and infrastructure spending ahead of the 2010 FIFA World Cup. But it had declined since then as the global financial crisis and state capture undermined private investment and business confidence, he said.
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He said government had since 2018 sought to arrest the decline by stabilising public finances, addressing the energy crisis and advancing structural reforms, but said there was still a gap between improved investor sentiment and actual investment and job creation.
“We aim to encourage the substantial private capital that is in reserve to be used for productive domestic investment,” said Ramaphosa.
He said the number of domestic pledges at the sixth conference was encouraging because local companies had a direct understanding of South Africa’s economic and social conditions.
“As we forge ahead with efforts to attract new investment, we call on the local private sector to be at the forefront of rebuilding investment momentum in our economy,” Ramaphosa said.
“Their confidence will encourage more international capital to follow.”
