by AKANI CHAUKE
JOHANNESBURG, (CAJ News) – SOUTH Africa’s investment drive is beginning to deliver tangible economic benefits, with billions of rand in commitments translating into new factories, infrastructure projects and jobs, President Cyril Ramaphosa has said.
In his weekly newsletter, Ramaphosa defended the government’s recent series of investment conferences and international business engagements, saying they were producing measurable results despite criticism that they amounted to little more than public relations exercises.
“These engagements are not ‘just for show’,” Ramaphosa said.
“They are an opportunity to connect investors with local opportunities, and bring together governments, business, banks and development finance institutions.”
The President said South Africa had hosted and participated in several major investment-focused events this year, including business forums during visits to Brazil and Spain, the sixth South Africa Investment Conference in March, and an Infrastructure Investment Summit hosted last week by global investment giant BlackRock.
According to Ramaphosa, the willingness of both domestic and international investors to commit capital to South Africa reflected growing confidence in the country’s economic prospects amid intense global competition for foreign direct investment.
Since the launch of the government’s investment drive in 2018, South Africa has secured investment commitments across sectors including energy, telecommunications, infrastructure, automotive manufacturing, mining and advanced manufacturing.
Ramaphosa said investment pledges worth R1.5 trillion had been secured to date, with approximately R634 billion already invested in projects such as factories, mines, data centres, power plants and logistics infrastructure.
Among the projects highlighted by the President were BMW’s R4.2 billion investment to electrify its Rosslyn plant in Gauteng and expand new-energy vehicle production, Tetra Pak’s R500 million upgrade of its KwaZulu-Natal facility, and Corobrik’s R500 million investment in its Kwastina plant in Gauteng.
He also pointed to the operational launch of the Newlyn PX terminal at the Port of Durban in 2024 and the opening of the Ivanplats Platreef mine in Mokopane, which originated from a R2.8 billion investment conference pledge.
Ramaphosa said the investments were contributing not only to employment creation but also to skills development, particularly for young South Africans entering a rapidly changing labour market.
He cited Microsoft’s partnership with the Youth Employment Service (YES), which offers globally recognised certification in high-demand artificial intelligence skills as part of the technology company’s R5.4 billion investment to expand its cloud and AI infrastructure in South Africa by 2027.
While welcoming the progress made, Ramaphosa acknowledged that South Africa remained far from its long-term investment targets.
Gross fixed capital formation — a key measure of investment in the economy — currently stands at around 14% of gross domestic product, well below the National Development Plan target of 30% by 2030.
The President noted that investment levels peaked at around 21% in 2008 during the commodity boom and infrastructure expansion ahead of the 2010 FIFA World Cup, before declining amid the global financial crisis and the era of state capture.
“Since 2018 we have sought to arrest this decline,” Ramaphosa said. “We have matched intent with action, moving to stabilise public finances, resolve the energy crisis and advance structural reforms.”
Despite improvements in investor sentiment, he said a gap remained between investment commitments and actual implementation.
Ramaphosa said government efforts were now focused on improving project planning, funding and execution in order to accelerate the conversion of investment pledges into economic growth and job creation.
He also called on domestic businesses to play a leading role in rebuilding investment momentum, noting that local investors accounted for the largest share of commitments made at the sixth South Africa Investment Conference.
According to the South African Reserve Bank, non-financial companies held approximately R1.8 trillion in reserves by July 2025, capital which Ramaphosa said could be channelled into productive domestic investment.
“It is now abundantly clear that the engagements and commitments made in conference halls are steadily and increasingly translating into the economic activity that creates jobs and opportunities for South Africans,” he said.
– CAJ News