Wednesday, February 6, 2019
Since President Cyril Ramaphosa announced his massive
investment drive for the country, at least US$20 billion has been amassed.
Last year, the President announced an ambitious plan to
attract investment to the country of $100 billion in the next five years. And,
in the past few months, this drive has already seen investments pour in to the
amount of $20 billion. The President said this when he addressed day two of the
Investing in African Mining Indaba at the Cape Town International Convention
Centre on Tuesday. The conference is being attended by Heads of State,
investors and deal makers from around the world.
“We have recently returned from the World Economic Forum in
Davos and a State visit to India, where we engaged with the investment
community on, among other things, South Africa’s ambitious programme to
mobilise far greater levels of investment.
“Our message to international investors is that we are
taking practical measures to build an economy that is underpinned by inclusive
growth, competitiveness and transformation.
“This message found practical expression in the inaugural
South Africa Investment Conference, which we hosted in October last year.
“Several companies at the conference made announcements of
investments, which amounted to around $20 billion in total,” the President
said.
The investments, President Ramaphosa said, are a clear
indication that the South African economy has a lot to offer, and that
opportunities for growth are abundant if the country harnesses its areas of
comparative advantage and creates an environment conducive to investment.
“The fact that three of these major investment announcements
came from the mining sector gives credence to our view that mining in South
Africa is a sunrise industry.
“We expect that they will make a valuable contribution to
accelerated economic growth and greater job creation,” he said.
With South Africa’s mining industry having a long history
that spans over 150 years, the President said the country’s mineral wealth has
attracted large capital investments over the decades, resulting in the
development of integrated industrial value chains that generate significant value
for the economy.
“South Africa hosts the world’s largest reserves of platinum
group metals and manganese, and some of the largest reserves of gold, diamonds,
chromite ore and vanadium.
“As government, we regard the mining industry as a key
player in the future growth and development of our economy, with huge potential
for exploration, production and beneficiation. “It is for this reason that we
have prioritised the restoration of a policy and regulatory environment that is
stable and predictable.
“Significant work has been done to remove the uncertainty
that held back the development of the industry,” he said.
Steps being taken to address investor concerns.The President
said, meanwhile, that the country has emerged from a period of strained
relations where the courts became the main platform of engagement between the
industry and government.
He said government undertook to hold engagements with the
industry because it recognised the critically important role that mining can
and must still play in shaping the future of the country.
“To this end, we moved to speed up the finalisation of the
Mining Charter and to provide greater clarity on the Mineral and Petroleum
Resources Development Amendment Bill.
“Because of their importance, these actions formed a
critical component of the Economic Stimulus and Recovery Plan we announced in
September 2018 after our economy went into a technical recession.
“As part of the package, government is reprioritising
spending -- within the existing fiscal framework -- towards initiatives that
are aimed at driving economic activity, including financial and non-financial
measures to turn around the economy.”
The President said government further recognised the
challenges raised by investors, including administered prices for ports, rail
and electricity, as well as infrastructure bottlenecks.
“We welcome the interactions we have had with the private
sector, representing both local and international, on a number of issues that
are of concern to them and some matters of concern to us.
“We are working in earnest to address the constraints that
were raised with us, as we implement the Stimulus and Economic Recovery Plan.
We are addressing issues that are of concern to companies such as Visa
Regulations, reducing the cost of doing business, eliminating many bureaucratic
constrains and making it a lot easier to conduct business,” he said.
Government to unveil Eskom recovery plan
The President assured that work is being done to address
energy concerns in relation to Eskom.
He said investors had raised a concern over an important
infrastructure challenge - the security and affordability of energy supply.
“We have been giving detailed attention to the crisis at
Eskom. Eskom is currently facing significant operational, financial and
structural challenges.
“Eskom’s contribution to the health of our economy is too
great for it to be allowed to fail. It is too important and is too big to fail,
and we will not allow it to fail. Restoring and securing energy security for
the country is an absolute imperative.
“In the coming days, we will be announcing a package of
measures to stabilise and improve Eskom’s financial, operational and structural
position and to ensure security of energy supply for the country,” he said.
Land expropriation to promote economic activity President Ramaphosa said
government has used its engagements with investors to outline South Africa’s
approach to land reform.
He said investors raised a concern about the proposal for
the expropriation without compensation to be among the mechanisms used to
promote land reform.
“We must emphasise that our approach will enhance, rather
than undermine, property rights as we seek to address what we have termed the
original sin that was committed against black South Africans during colonial
and apartheid days.
“The measure we are proposing will apply to land for the
purposes of land reform only, and within a clearly defined set of circumstances.
“This measure will be undertaken in a way that promotes
economic development and agricultural output, and that does not undermine the
principles of our Constitution or the rule of law.
“Investors need not fear that their investments and assets
will be taken away from them,” President Ramaphosa said. – SAnews.gov.za
