Ahead of the sixth South Africa Investment Conference (SAIC) being hosted in Sandton on March 31, President Cyril Ramaphosa says South Africa presents a favourable proposition as investors look to destinations that are resilient in the face of increasingly volatile global financial conditions.

He explains in his latest weekly newsletter that the green shoots of economic recovery that South Africa is experiencing are bolstering its position.

The President will be addressing delegates at the SAIC with the conference serving as the formal launch platform of South Africa’s second investment drive – government has set the goal of mobilising R2-trillion of new investments by 2028.

The event will see delegates from more than 50 countries gathering to discuss investment opportunities, with the conference having cemented its position as a premier global forum for showcasing investment prospects to domestic and international investors since 2018.

The five prior SAICs of the first investment drive managed to attract a combined R1.57-trillion of investment commitments in mining, healthcare, automotive, food and beverage and others, which Ramaphosa says reflects the sophistication of the South African economy.

Of the 300 projects initiated as a result of the SAIC to date, 161 have been finalised or are under construction.

Ramaphosa believes investment conferences play a key role in attracting foreign direct investment 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,” the President says in his newsletter.

The theme for this year’s conference, ‘Digitisation, decarbonisation and diversification’ seeks to position South Africa as a competitive, reforming and future-focused economy.

Ramaphosa points out that South Africa is Africa’s largest economy with a diversified industrial base with particularly promising prospects in renewable energy.

Moreover, the President affirms the country has a sound policy and regulatory environment that offers certainty to investors at a time when many emerging markets are vying for capital globally.

Additionally, South Africa is a gateway for businesses looking to set up or expand their operations in Africa.

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

The sixth instance of SAIC seeks to embed even greater confidence in South Africa as an investment destination and to demonstrate government’s commitment to structural reform, policy certainty and policy execution.

GREEN SHOOTS

Ramaphosa says South Africa has an improved macroeconomic outlook after four consecutive quarters of growth by the end of 2025 and national debt is stabilising.

Last year South Africa’s sovereign rating was upgraded for the first time in 17 years while the country was also removed from the Financial Action Task Force grey list.

The President attributes much of the progress in the economy to successful structural reforms, primarily through Operation Vulindlela, including improvements in electricity, freight logistics, water, telecommunications and the visa system.

Ramaphosa boasts that loadshedding has been brought to an end while a new, competitive electricity market will ensure energy security and attract investment.

He also affirms that the logistics sector is being rapidly modernised, which is enabling private sector investment in port and rail operations.

For example, a private sector participation process is under way for the Ngqura Manganese Export Corridor, in the Eastern Cape, and the Richards Bay dry bulk terminal, in KwaZulu-Natal. Government last year signed a 25-year concession agreement for the Durban Container Terminal Pier 2, which represents R11-billion in private sector investment.

Ramaphosa says government remains committed to staying the course on financial discipline, accelerating the momentum of the reform agenda and leveraging investment to build an economy that is inclusive, transformed and beneficial to all.