South Africa reaches R1.2 TRILLION investment target, and sets new higher goal

South Africa’s target of reaching R1.2 trillion worth of investments has been successfully reached at the fifth SA Investment Conference (SAIC), currently underway in Johannesburg, President Cyril Ramaphosa announced today… before setting a new target for the country for the next five years.

“We are now setting a new target to mobilise approximately R2 trillion in new investments over another five-year period, between now and 2028,” the President told delegates and investors gathered at the Sandton Convention Centre. Ramaphosa said:

“let us not lose sight of the incredible promise of our country, South Africa”

“With the achievement of our R1.2 trillion target today, we now cast our collective eyes to the horizon. With your support, with your investment, we can realise more growth, offer more opportunities and create even more jobs. As we work with dedication and focus to overcome our immediate challenges, let us not lose sight of the incredible promise of our country, South Africa.

“We remain convinced that South Africa is an investment destination with significant untapped potential. We do believe that by leveraging our unique value proposition, we have the ability to attract higher levels of investment. In the midst of all the challenges we face, our ambition has not been misplaced.

“We do believe that the target we set in 2018 was not misplaced either. The four South African Investment Conferences that have taken place to date have attracted R1.14 trillion in investment pledges.”

The morning session of the SAIC saw a number of companies making significant investment commitments, affirming South Africa as an attractive investment destination, by committing to invest in the country’s economy.

President Cyril Ramaphosa initiated the SAIC annual event in 2018 an effort to secure domestic and inbound investment of R1.2 trillion in investments over five years. This conference marks the final leg of the current investment drive.

The President announced that the 80 investment pledges received at the 2022 SA Investment Conference amounted to R332 billion.

The SAIC attracts delegates spread throughout South Africa and the rest of the globe. Last year, the 4th SAIC raised R367 billion in investment commitments, bringing the five-year investment target firmly into sight.

The first set of commitments to South Africa from this year’s conference are:

Investments in mining and mineral beneficiation

• For the fifth year in a row Ivanhoe Mines announced the next phase of the development of their Platreef Mine in Limpopo. This year they announced a further R6 billion in investments.
• The Menar Group from Turkey: R1 billion in Thermal Coal mining activities in Mpumalanga.
• Nkwe Platinum: R13 billion in a new platinum mine in Limpopo.
• Gold One: R520 million in gold mining in Gauteng.
• PMG Mining: R1.25 billion in Manganese mining in the Northern Cape.
• Anglo American: R29 billion across their mining operations in South Africa.

The energy sector

• ART Solar (a black industrialist): R108 million for the production of solar PV panels at their factory in eThekwini.
• Energ-G-Africa: R135 million in the production of small solar PV panels and solar cooking appliances at their women-led production facility in Cape Town.
• The Sola Group: R3.8 billion in solar projects for Tronox Minerals Sands as part of the mining sector’s drive to become more resilient in the face of energy supply challenges.
  Mahlako is investing R580 million in three solar PV projects for Harmony Gold.
• Chariot and Total Eren from France is investing R800 million in solar PV projects for the Tharisa mine in the North West.
• Unigreen from the Russian Federation is investing R1.35 billion in solar PV projects in the Northern Cape.
• Seriti Green, the newly established green energy company of the Seriti Group, is investing R4.5 billion in the largest wind project in South Africa, producing 155MW of energy.

Companies in the industrial sector investing in renewable energy solutions to increase their sustainability

• Toyota is investing R1 billion in renewable energy for their automotive production plants in Gauteng and KwaZulu-Natal.
• Arcelor Mittal is investing R3 billion in solar PV for their steel production facilities in Gauteng.

Investments in the green hydrogen sector:

• Rheinmettal Denel Munition from Germany is investing R251 million in a solar farm and a mobile green hydrogen production unit at their facility in the Western Cape.
• The Hive group from the UK, is investing R105 billion in a green hydrogen and green ammonia production facility in Coega in the Eastern Cape – the first of its kind in South Africa.

Advanced materials, chemicals, healthcare and pharmaceuticals sector:

• Afro-Zonke Group: R1.5 billion in the establishment of a chloralkaline plant in Gauteng.
  FUCHS: R218 million in further phases of their lubricant manufacturing plant in Gauteng.
• OilspillXcellence: R61 million in a biotechnology manufacturing facility in Limpopo.
• Abanqobi packaging: R80 million in the production of medical grade packaging at their factory in Gauteng.
• Evergreen Latex: R200 million in the production of medical gloves.
• BT Industrial: R523 million in sustainable plastics manufacturing and syringe production in Gauteng.
• Cipla (India): R55 million in the further expansion of their pharmaceutical facilities in South Africa.
• Proctor & Gamble: R130 million in the further expansion of feminine care and other facilities in Gauteng.
• Tri-Medi Canna: R121 million in a medical cannabis facility in KwaZulu-Natal.

Food and beverage sector

• Heineken Beverages (Netherlands): R15.5 billion in the expansion of their breweries and beverage manufacturing lines.
• South African Breweries: R5.8 billion in the expansion of their green plants across the country.
• The RCL Group: R620 million in their Rainbow chicken facility in KwaZulu-Natal.

Infrastructure, property development and logistics

• SANRAL is investing R19.7 billion in the construction of various roads, bridges and other critical transport infrastructure across the country.
• HR Matters Properties: R16 million in a commercial property project development for warehouse and logistics purposes in KwaZulu-Natal.
• Serenity Hills: R800 million in KwaZulu-Natal in the development of an eco estate with over 600 units and a range of amenities including a driving range, clubhouse, frail care centre, wedding venue, conference centre and restaurants.
• Renishaw: R500 million in a mixed-use coastal precinct in KwaZulu-Natal.
• Elan Group is investing a further R50 million in the Blythedale Coastal Resort.
• Global Business Innovation Solutions: R150 million in the Royal Shakaland Resort and Eco-Village in KwaZulu-Natal.
• Waterfall Management: R350 million in the Waterfall Development.

Social housing and infrastructure sector

• Buhlebezwe Property: R386 million in the Hospital Street Social Housing compact in KwaZulu-Natal.
• DCI Community Housing: R458 million in the Goodwood Social Housing Development.
• The Housing Hub: R450 million in the Mohlakeng Social Housing Development in Gauteng.
• Midrand Heights: R164 million in a social housing complex in Gauteng.
• Sefako Makgatho Health Sciences University: R245 million in student housing in Gauteng.
• North West University: R235 million in student accommodation for their campuses in the North West.
• The University of the Western Cape: R375 million in student accommodation in their campus.

Development Finance Institutes investment pledges

• New Development Bank: R25.9 billion towards projects in South Africa.
  Industrial Development Corporation: R11 billion spend on the new capital goods in the country.
• Access Bank (Nigeria): R1.42 billion towards funding projects in South Africa.
  Old Mutual Infrastructure Investment Managers: R3.2 billion in projects in the renewable energy and infrastructure sectors.

Source: SANews.gov.za