South Africa is close to reaching its target of $100bn worth of investment over five years. The confirmation comes from this year’s South Africa Investment Conference in Johannesburg: the country has managed to secure more than $20bn in pledges.
The economic reform and recovery strategy of President Cyril Ramaphosa is, in fact, to position South Africa as a global investment center.
The focus on energy
Despite the impact of the pandemic, by the time of the third SA Investment Conference in 2020, the country had raised a total of R774 billion in investment commitments.
One of the main sectors getting attention from investors is energy. G7 nations have announced they will commit $8.5bn to help the country break its dependency on coal.
The boost from the Mining sector
Mining plays a pivotal part in South Africa’s economy. Mining is a major source of foreign exchange and the new commodity boom appears to be fueling investor confidence. Platinum, in particular, is guiding the largest component of that investment drive.
Recovery and strategic areas
But it’s not just the mining sector that is regaining an important space after the pandemic. According to government budget forecasts, almost all the economy’s major sectors are projected to bounce back from the pandemic and return to growth.
Meanwhile, French companies announced over €1.8 billion in new investments in the health, tourism, retail, manufacturing and agro-processing sectors.
The economic position of South Africa
South Africa is banking on its road and port infrastructure to help reduce disruptions to global supply chains and allows exporters to reach international markets with ease.
In addition, it should not be ignored that South Africa boasts a burgeoning middle class. The country is a member of the Continental Free Trade Area, the world’s largest free-trade bloc and a constituent of the BRICS bloc which also includes the major markets of China and India.
Goals in the pharmaceutical sector
And last but not least, South Africa has ambitions to become a pharmaceutical giant and a continental hub for vaccine research by taking advantage of the conducive business environment.
Source: euronews.com
