S. Africa's investment pledges set new record

South Africa has received investment pledges to the tune of $83.9 billion in the past five years, which is 26 percent more than its target of $66.7 billion, said President Cyril Ramaphosa.

Last week, South Africa held the fifth South Africa Investment Conference in Johannesburg, where many companies across the world pledged to invest in the country. In 2018, Ramaphosa announced that an investment target of $66.7 billion has been set for the next five years.

"We have now reached $83.9 billion in pledges, overshooting our initial $66.7 billion target by 26 percent. For us to have been able to meet our five-year target despite major challenges and disruptions, including the pandemic, is no mean feat. A number of these investments are not only bringing much-needed economic activity to different localities, but also supporting our overall national development goals," said Ramaphosa on Thursday.

More than 70 percent of the projects announced since 2018 have been completed or on their way to completion, Ramaphosa said, and measures have been put in place to address energy shortages to make the environment conducive to investment.

Citing examples of tax incentives for households and businesses to invest in rooftop solar units, he said the government has signed contracts with independent power producers. The government is addressing logistical bottlenecks affecting the country's ports, while tackling crime and corruption, he said.

Vuslat Bayoglu, managing director of the investment company Menar Holding, said the country has received investment pledges because it offers a positive business environment. He said the company will employ a total of 600 workers in its coal mine.

Nolitha Fakude, president of the Minerals Council South Africa, said the mining sector will invest $8.89 billion in more than 100 renewable energy projects in the next 10 to 15 years. She stated that South Africa is a good place for investment but the government has to address energy shortages and logistical challenges.

Emrie Brown, CEO of Rand Merchant Bank, called on the government to tackle the challenges affecting the investment climate.

"The government has to collaborate with the private sector to address challenges related to energy security, logistics and water supply. This country has great potential."

Mmamoloko Kubayi, Minister of Human Settlements and co-chairperson of economic sector, employment and infrastructure development, said the government has made it easier to do business, citing the examples of strengthening law enforcement agencies and improving infrastructure.

The writer is a freelance journalist for China Daily.