South Africa increases efforts to attract investment

2023-04-26

Recently, the 5th South African Investment Conference was held in Johannesburg, South Africa, with over 1300 representatives from both domestic and international sources attending. In his keynote speech, South African President Ramafusa stated that the government has set new investment attraction targets, aiming to attract 2 trillion rand (approximately 18 rand) of new investment between 2023 and 2028. In recent years, the South African government has made increasing efforts to attract investment as an important means of boosting the economy. The first South African Investment Conference held in 2018 set a goal of raising 1.2 trillion rand of investment within 5 years. The previous four investment conferences have attracted a total of R 1.14 trillion in investment, of which nearly 70% of projects have been or are about to be completed, including the construction of new factories, roads, mining, and broadband laying, which have promoted South Africa's economic development, employment growth, and improvement of people's livelihoods. In March this year, the International Monetary Fund issued a report pointing out that under the impact of the unprecedented energy crisis, increasingly serious infrastructure and logistics bottlenecks, adverse external environment and climate change challenges, South Africa's economic and social development is facing increasing challenges. In order to enhance investor confidence, the South African government promised at this investment conference that it would introduce a series of measures to improve the domestic investment environment, including coping with the energy crisis, improving logistics efficiency, strengthening talent construction and introduction, and cracking down on crime and corruption. Addressing energy issues is currently the top priority of the South African government. South Africa has experienced a serious power supply crisis since last year. On February 9th of this year, Ramaphosa announced that the country had entered a state of disaster to cope with power shortages. Despite the end of the disaster on April 5th, the power shortage situation in South Africa remains severe. To alleviate the electricity crisis, the South African government has promised to continue implementing the "Energy Action Plan" proposed in July last year, in order to fill the gaps in electricity supply and achieve energy security. Meanwhile, the South African government hopes to change its energy structure and attract more investment in the field of green and clean energy. In the field of logistics, the South African government has proposed to improve the transportation efficiency of ports and railways, and break through logistics transportation bottlenecks. The South African government will modify railway operation regulations to allow private railway operators to participate in the operation of the national railway network, and prioritize ensuring the availability of locomotives on key freight lines. The South African state-owned transportation group will also collaborate with major ports, docks, enterprises, trade unions and other institutions to overcome difficulties such as poor cargo connection and insufficient staff. As we strive to address challenges, please do not overlook the bright prospects of the South African economy, "Ramafosa said in his keynote speech. According to data released by the South African government after the meeting, through five consecutive investment conferences, South Africa has attracted a total investment of R1.51 trillion, which is 126% of the initial target. Ramafosa expressed his belief that these investments will serve as a springboard for South Africa to promote economic recovery and help South Africa achieve fair and sustainable development. Many international investors have also expressed confidence in the economic prospects of South Africa. A technology company headquartered in the UK has promised to invest 4.5 billion rand in South Africa in the next two years. The CEO of the company, Hadi Penshwa, said, "South Africa has a relatively complete infrastructure and a relatively stable macroeconomic environment, providing us with a favorable investment environment

Edit:He ChengXi    Responsible editor:Tang WanQi

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