SA’s Investment Prospects Buoyed by Economic Recovery

Dear Fellow South African,

This week we will be welcoming delegates from more than 50 countries to the sixth South Africa Investment Conference (SAIC) in Sandton, Gauteng.

Since its inception in 2018, the SAIC has grown to become a premier global forum for showcasing the attractiveness of investment opportunities in our country to domestic and international investors.

Investment conferences play a key role in attracting foreign direct investment (FDI) as high profile platforms that connect international investors with local opportunities. They also facilitate strong partnerships by bringing together governments, business, banks and development finance institutions.

As investors look to destinations that have demonstrated resilience in the face of increasingly volatile global financial conditions, South Africa presents a favourable proposition.

We are Africa’s largest economy with a diversified industrial base. Since we began our first R1,2 trillion investment mobilization drive in 2018, we have secured investment pledges in mining, healthcare, automotive, food and beverage and others, reflecting the sophistication of our economy.

South Africa is also the leading destination for renewable energy investment on the continent, with these investments making up a considerable share of the total pledges made at previous conferences.

We have a sound policy and regulatory environment, offering certainty to investors at a time when we are just one of many emerging markets across the globe vying for capital.

We are also a gateway for businesses looking to set up or expand their operations in Africa.

Through this conference, as well as the five preceding ones, we will be seeking to build even greater confidence in our country as an investment destination, and to demonstrate our commitment to structural reform, policy certainty and policy execution.

The green shoots of economic recovery we are experiencing further bolster our position.

The macroeconomic outlook has improved. We experienced four consecutive quarters of growth by the end of 2025, national debt has stabilized and more jobs are being created. Last year, our sovereign rating was upgraded for the first time in 17 years, and we were removed from the Financial Action Task Force grey list.

The structural reform agenda being driven through Operation Vulindlela has unlocked progress in electricity, freight logistics, water, telecommunications, and the visa system.

We have brought load-shedding to an end and are creating a new, competitive electricity market that will ensure energy security and attract investment.

The country’s logistics sector is being rapidly modernised, and we are enabling private investment in port and rail operations.

Among the projects for which we have initiated a Private Sector Participation (PSP) process are the Ngqura Manganese Export Corridor in the Eastern Cape and the Richards Bay Dry Bulk Terminal in KwaZulu-Natal.

Last year we also signed a 25–year concession for the Durban Container Terminal Pier 2, representing R11 billion in private investment.

A system for third-party access to the freight rail network is in place and 41 freight rail slots have been allocated to private companies.

We have implemented reforms to the visa regime to attract new skills and promote tourism. These include operationalising the Remote Work Visa, introducing a Trusted Employer Scheme to support major investors, and piloting an Electronic Travel Authorisation system.

By showcasing the progress and durability of the reform agenda, our goal is to grow the pool of inward investment from businesses and countries that will ultimately be a bridge to new markets, technologies and networks for South Africa. This year’s conference has to date attracted more than 1 000 delegates from more than 50 countries.

At the end of our first five-year investment mobilisation drive in 2024 we exceeded our target by 26 per cent, securing pledges valued at R1,57 trillion. Over 300 projects were initiated and to date, 161 of these have been finalized or are under construction.

The pledges have not been merely vague commitments and promises, but have materialised as tangible, brick-and-mortar projects that are creating jobs for our people.

Last year I opened the Platreef Mine in Mokopane in Limpopo that is positioned to play a leading role in the production of sought-after critical minerals for the energy transition.

This facility that employs more than 2 000 workers from the local community and is partly owned by a community trust, emanated from a R2,8 billion investment pledge by Ivanhoe Mines at the South Africa Investment Conference in 2022.

Last year I also visited the BMW plant in Rosslyn in Tshwane where the automotive giant has invested R4,2 billion for electrification of its only plant on the continent that will be producing the BMW X3 Plug-in Hybrid electric vehicle. This was also an investment pledged at the SAIC.

By showcasing our unique and favourable proposition as an investment destination of choice, we have set ourselves the goal of mobilising R2 trillion in new investments by 2028.

As we strive to achieve growth that creates jobs for our people, this next phase will move from pledges towards implementation.

This year’s investment conference stands at the crossroads of opportunity and ambition.

The clear message we will be delivering is that we remain committed to staying the course on fiscal discipline, to accelerating the momentum of the reform agenda – and to leveraging investment to build an economy that is inclusive, transformed and that benefits all.

Regards

President Cyril Ramaphosa