President Cyril Ramaphosa
Photo by: Creamer Media's Donna Slater
President Cyril Ramaphosa used the fourth South Africa Investment Conference to reassure investors that steady progress was being made on implementing the economic reforms that are regarded as crucial for raising levels of growth and employment.
In his opening address he highlighted the reform progress that had been made in the areas of electricity, digital communications, freight logistics and in opening up the country to skilled professionals to work and do business.
These ranged from the ongoing restructuring of Eskom and the legislative efforts under way to facilitate a competitive market for electricity generation, through to the recent spectrum auctions and Transnet’s preparations for providing third-party access to its freight rail network.
“These reforms are not insignificant. Nor are they superficial.
“These reforms are contributing to an economy that, despite the setbacks of the last two years, is developing and transforming,” the President averred.
He acknowledged, however, that the country’s challenges were many and complex and stressed that he was “not here to pretend that these challenges are not real”.
“But we are neither defined by these challenges, nor are we daunted by them.
“Rather, we are dedicated to surely, steadily and decisively overcoming them.”
Discovery CEO Adrian Gore, who spoke on a panel that followed the address, argued that there was little disagreement between stakeholders on the reform agenda, which continues to be canvassed in line with Ramaphosa’s appeal that a new consensus be reached within 100 days of his State of the Nation Address, which took place on February 10.
“I don’t think there is debate about the six workstreams that have been set up, but we need to expedite, move quickly and execute . . . [and] I think business can and must be a critical part in helping government in that regard,” he said, adding that recent experiences in securing Covid vaccines should serve as powerful reminder of what could be achieved when the social partners worked together.
Gore also called for a change in the narrative about South Africa's future prospects, reminding delegates that Discovery, which is now present in 30 markets, was warned of the "exact same chapter headings" of political uncertainty, the potential civil unrest and economic risk when it was founded in 1992.
Meanwhile, the conference itself included its usual pageantry of investment pledges in response to Ramaphosa’s 2018 target of securing R1.2-trillion in new investment over five years.
Ahead of the 2022 gathering, which was delayed from 2021, partly owing to Covid concerns, a total of R774-billion in investment commitments had been made, across 152 projects.
The President said that 45 projects had been completed, while 57 were under construction and 15 on hold.
With the 80 new pledges made at the 2022 edition of the conference, the value of the investment commitments made since the first gathering had climbed to R1.14-trillion, after project cancellations.
Ramaphosa said he expected the R1.2-trillion target to be exceeded by the time the fifth South Africa Investment Conference was convened.
The investment commitments made in 2022 included projects in various sub-sectors of the economy, including mining and metals beneficiation, agriculture, automotive, energy, manufacturing, health and pharmaceuticals, infrastructure, food and beverage, digital communications and the creative arts and fashion sectors.
"The investment commitments that have been made here today are most impressive.
"They are impressive not only by virtue of the cumulative value of the investments themselves, but also by the sheer number and diversity of projects that they represent," Ramaphosa enthused, adding that they would also bolster confidence and help in "changing the narrative" about the country's future prospects.