By Amy Musgrave
South Africa wants to improve its partnership with the London Stock Exchange (LSE) to attract more investment and create an environment in which companies prosper and generate employment, according to Deputy President Paul Mashatile.
“Working together, we can create new possibilities for trade and investment that will 6benefit both economies,” Mashatile told the LSE Investors Day in London.
“We must also collaborate to overcome the difficulties that exist in our different nations. We face obstacles like climate change, stagnant economic growth, poverty, inequality, and unemployment in South Africa.”
He said the challenges necessitated greater political cooperation and the implementation of policies and measures aimed at improving the economies of both South Africa and the United Kingdom.
“We assure you that South Africa is committed to reviving its economy, achieving noteworthy advancements in economic growth and development,” Mashatile said.
He said the Government of National Unity would continue to boost the economic and bilateral ties between the two countries, not just for historical reasons, but also for he enormous potential for partnership and progress.
Mashatile mentioned a number of initiatives that were being implement in the country to build the economy and create jobs.
They included the Economic Reconstruction and Recovery Plan, which was prioritising spending across infrastructure, providing employment stimulus to sustain jobs and implementing measures to deepen local industrialisation.
Under Operation Vulindlela, which was addressing the ongoing implementation of the existing structural reform, had seen an increase in investment in electricity generation. It was also implementing plans to increase private sector participation in the country’s freight-rail network.
Operation Vulindlela has already unlocked R500 billion in investment.
He said that according to Stellenbosch-based Bureau for Economic Research, if the programme’s reforms took hold, economic growth may accelerate to 3.5% by 2029.
Mashatile told the meeting that the progress made in solving South Africa’s power crisis demonstrated its commitment to creating an enabling environment for investment.
The country’s Just Energy Transition would require large-scale investment of approximately $100 billion from a range of both public and private sector sources, using a range of financing instruments, he said.
The deputy president also highlighted that South Africa was among the top five African countries with the best infrastructure.
“Our objective is to be the leading nation with the greatest infrastructure to meet the demands of regular citizens and enterprises.
“Infrastructure South Africa (ISA), the main force behind the National Infrastructure Plan (NIP) 2050, has done a tremendous deal of work, including resolving legislative and regulatory issues that obstruct investment and boosting investor confidence,” Mashatile said.
He listed the 12 major projects that the Department of Public Works and ISA were prioritising to attract investments.
They included the R2.1 billion liquid natural gas import terminal in KwaZulu-Natal, the R38-billion Durban Container Terminal (DCT Pier 1) project in KwaZulu-Natal and the R2.2-billion Berth A100 liquid bulk project in the Eastern Cape.
He said South African government faced a significant financing gap for its infrastructure portfolio, which could potentially require additional funding.
Total infrastructure investment planned by the government over the next three years amounts to R943 billion.
“The National Treasury is attempting to raise funding for public-sector infrastructure projects funded by the Budget Facility for Infrastructure (BFI) through the Budget Facility for Infrastructure Window, which includes concessional financing from the Multilateral Development Bank and development partner countries,” Mashatile said.
“The National Treasury is currently screening potential funding projects. We urge financing institutions to participate in funding some of the projects once they receive BFI approval.”
He said the country appreciated the ongoing support, and invited those at the meeting to take advantage of the African Continental Free Trade Area agreement.
“I extend an invitation to the companies and investors in attendance today to investigate the prospects that South Africa presents. South Africa is prepared to work with you every step of the way, whether your goals are developing renewable energy, extending your market reach, or developing infrastructure.
“In other words, we are open for business.”
INSIDE POLITICS
