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The Minister of Trade and Industry, Dr Rob Davies has welcomed the 2017 Annual Foreign Investment Confidence Index release by AT Kearney, a global management company.

The index, entitled the Glass Half Full, ranks South Africa in position 25 which is a ray of sunshine and a more realistic representation of the state and outlook of South Africa’s economic prospects and investment landscape. According to the report SA’s return to the index may be attributed to the short term improvement of economic prospects and also the long-term investment potential in the country’s manufacturing sector. SA returned to the index after a two-year absence. Minister Davies says that in spite of the recent downgrade, South Africa is proactively meeting investors, foreign governments and foreign ambassadors to promote South Africa as an attractive investment destination which is confirmed by the AT Kearney index.

"Investors are convinced about the long term investment prospects in South Africa. With sustained and continued improvements, SA is poised to lead one of the world’s next manufacturing hubs,” states Davies.

According to Minister Davies SA has performed extremely well compared to other African countries, after having the third highest drop in investment levels in 2015, according to UNCTAD’s World Investment Report, which estimated a 38% increase  in investment levels for 2016.

Minister Davies indicates that South Africa’s return to the index is remarkable and FDI inflows are estimated at $2.4 billion according to the AT Kearney index.
"InvestSA on the other hand recorded an investment pipeline of investment projects at R58 billion over the 2016/2017 financial year. Multinationals are expanding their presence in SA. For example, original equipment manufacturers (OEM’s) in the automotives sector continue to invest in new five year platforms and are embracing localisation and empowerment. Siemens has achieved a BEE level 2 status and has invested in a black industrialist company through a joint venture to manufacture transformers," highlights Davies.

Minister Davies expressed his appreciation for these kinds of investments, saying they are welcome and provide greater impetus to industrialising approach adding to productive capacity and creating employment.

Minister Davies adds that the quality and level of FDI inflow into the country is testament to the reforms and initiatives put in place by government to make South Africa an attractive investment destination.

"The One Stop Shop (OSS) which was launched on 17 March, 2017 by the President of the Republic of South Africa, Mr Jacob Zuma, is a focal point in government to shorten and simplify administrative procedures and guidelines for companies foreign companies wishing to invest in South Africa. It brings together key government role players dealing with issues from policy and regulation, permit and licensing, infrastructure and finance and incentives with a view to reducing lengthy bureaucratic procedures, reduce bottlenecks and to provide an enhanced aftercare service,” says Minister Davies.

The OSS approach is supported by an Inter-Ministerial Committee (IMC) on Investment, chaired by President Jacob Zuma. We have enhanced our investor facilitation service with a key focus on investor retention, expansion and aftercare. South Africa is and will always be open for investment.

The index is a product of survey results based on global CEOs’ views regarding investment potential of various economies.

Issued by Department of Trade and Industry