The ongoing South African Investment Conference (SAIC) is meant to highlight the country’s resilience, as well as showcase the many investment opportunities available as the country recovers from the COVID-19 pandemic.

Outlining the programme for the fourth SAIC on Thursday, Minister of Trade, Industry and Competition, Ebrahim Patel, said delegates will also receive a report back on the progress of previous investment commitments.

The SAIC will profile the strengths and comparative advantages South Africa offers investors and trade partners in a period of growing African integration through the African Continental Free Trade Area (AfCFTA).

Patel said a number of pledges will be made by investors for new investments in the South African economy.

“Pledges will focus on sectors that have driven innovation, such as the production of vaccines and a shift in digital services. Pledges will see [us] plug the gap in South Africa’s energy supply through building and supplying new sources of energy.

“Commitments [will come] from film producers and fashion producers that drive the creative sector. Announcements [will come] from traditional, heavy manufacturing industries, ranging from steel and metal fabrications to those who build cars and those who grow and make food,” the Minister said.

In addition, the country is expecting investment pledges from firms operating in Special Economic Zones, the small business sector and pledges for significant sums of money from development funding institutions, and funding agencies globally and in South Africa.

Patel made these remarks at the Sandton Convention Centre during the opening of SAIC, which is part of government’s investment drive to attract R1.2 trillion over five years.

The SAIC attracts delegates from South Africa and across the world to discuss investment opportunities in the country. Since the first investment conference in 2018, South Africa has attracted R770 billion in commitments across a wide range of economic sectors.

A host of panel discussions on a range of areas, relevant to investors and policy makers, will take place at the conference, as well as plenary sessions on the great opportunities of integrating the African market, which can be unlocked through the African Continental Free Trade Area – a pivot to Africa-led growth.

The conference follows the 2022 State of the Nation Address, which sent a strong message that the country is open for business and that working in partnership with business, labour and civil society, the environment can be conducive for business to flourish and create jobs.

The conference complements the Economic Reconstruction and Recovery Plan that supports economic recovery towards growth and a rebound in employment through structural reforms and investment in infrastructure.

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South Africa’s strategic position within the African Continental Free Trade Area (AfCTA), adds immense value to investors who want to benefit from improved access to large markets.

This will be highlighted at the 4th South African Investment Conference (SAIC), which is currently underway at the Sandton Convention Centre, in Johannesburg.

The conference brings together private and public sector decision-makers as they seek to showcase trade and investment opportunities in the continent.

One of President Cyril Ramaphosa’s investment envoys, Jeff Radebe, highlighted that Africa offers investors access to a market of more than one billion people with a gross domestic product that exceeds $2.6 trillion.

“Historic trade barriers are coming down and economic activities are increasingly conducted seamlessly across the continent. Africa is growing fast into an integrated investment destination,” Radebe said.

Radebe added that at the root of the envisaged growth is the African Continental Free Trade Area, which became a reality in January 2021.

The AfCFTA, which brings together 55 member states of the African Union (AU), aims to accelerate intra-continental trade and boost Africa’s standing in the global market.

“AfCFTA adds a new dimension to the 2022 Investment Conference. Now we can demonstrate the significant advantages of investing in the South African economy and how returns can be multiplied through access to a much larger market.”

President Ramaphosa, who was the chairperson of the African Union during the AfCFTA launch, has described AfCFTA as a “new beginning with increased opportunities” that it will attract more foreign direct investment to a continent with significant potential for growth.

Radebe added that AfCFTA has created a free trade area, which will eventually develop into a continent-wide customs union and facilitate the movement of capital and people between countries.

“AfCFTA symbolises the emergence of a more assertive continent, which no longer merely exports raw material and imports finished goods. The bolstering of trade ties between countries also strengthens Africa’s industrial base and opens opportunities for the continent to become more self-sufficient,” he said.

Growing the continent

He also noted that the UN Economic Commission for Africa has estimated that it will increase intra-African trade by more than 50%.

“The recent global turmoil in the northern hemisphere has also meant that South African assets are finding favour among foreign buyers.  South Africa’s stock market is outperforming, returning 3.1% in dollar terms this year compared with a 10% drop for the MSCI Emerging Markets Index.

“The market has been buoyed by its exposure to the mining sector, which has benefited from soaring metals prices as importers steer clear of Russian products, and to precious metals stocks – a haven in times of volatility. Foreign inflows since the beginning of the year have now reached R20.76 billion,” Radebe said.

According to Radebe, Africa’s wealth of natural and mineral resources can now be utilised to build industrial capacity, strengthen the growth of industries and create a large market, which can attract outside investors to locate their production facilities on the Continent.

He said increased growth will inevitably lead to new prospects for emerging entrepreneurs and small and medium enterprises.

This will especially empower women and boost the potential of the youth – the fastest growing segment of the African population – to find work opportunities, he said.

Radebe further highlighted that South Africa is an attractive destination for investors located outside of the continent, and many companies prefer to locate their regional headquarters in the country because of the “access to quality infrastructure and connections to global supply networks.”

“Our positioning within AfCFTA enhances our attractiveness to investors. Through our participation, we have preferential access to African markets and a deep understanding of business conditions on the continent.

“Investments in South Africa immediately offer a strategic entry point into a much wider region with immense potential for future growth,” Radebe said.

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