South Africa attracted 1.51 trillion ($84 billion) of new investment pledges over the past five years, 26% more than a target set in 2018, President Cyril Ramaphosa said.
(Bloomberg) — South Africa attracted 1.51 trillion ($84 billion) of new investment pledges over the past five years, 26% more than a target set in 2018, President Cyril Ramaphosa said.
New commitments made at an investment conference in Johannesburg on Thursday include those from companies including mobile-phone company Vodacom Group Ltd., miner Anglo American Plc and brewer Heineken SA, Ramaphosa said at a closing ceremony. The government is targeting 2 trillion rand of investment over the next five years, the president said earlier.
Key investment pledges on Thursday:
Energy Crisis Has Created Catalyst for Change: JSE CEO (4:36 p.m.)
South Africa’s energy crisis has created a catalyst for “powerful transformational change” that is resulting in “promising” policy reforms,” JSE Ltd. Chief Executive Officer Leila Fourie said.
“We’ve seen for example a sweeping change in the approach to the Eskom consolidation in the form of the breaking up of Eskom into three groups,” Fourie said in an interview with Bloomberg TV. “This is something that was highly unlikely two or three years ago.”
Eskom to Spin Off Transmission Business in Third Quarter (1:03 p.m.)
Eskom Holdings SOC Ltd., South Africa’s state-owned electricity company, expects to complete the spin-off of its transmission company in the third quarter, according to Chairman Mpho Makwana.
Fast-tracking the process to add a separate board of directors and other measures needed to hive off the unit will create a competitive electricity trading platform that’s part of a turnaround plan to “restore healthy energy availability” and end record power outages by March 2025, Makwana said.
The utility is also examining different methods of providing power to poor households. Microgrids have emerged as a solution that’s been piloted by Eskom in the Free State province using solar-powered containers to provide energy for up to 50 homes, Makwana said at an investment conference in Johannesburg on Thursday. Partners are sought to expand the project.
Pace of Investments Accelerating, Finance Minister Godongwana Says (April 13, 12:13 p.m.)
The pace of investment in Africa’s most industrialized economy is accelerating, Finance Minister Enoch Godongwana said citing pledges made at the conference.
Government plans to lift economic growth through increasing investments in infrastructure, making decisive changes to regulations and taking steps to create an efficient state, Godongwana said in column published by Johannesburg-based Business Day.
Vodacom Plans to Get Power From IPPs (April 13, 11:20 a.m.)
Vodacom Group Ltd. plans to buy 16 billion rand ($879 million) of energy from independent power producers, Chief Executive Officer Shameel Joosub said. The deal will be signed in the coming days and done through Eskom, he said.
Ramaphosa Seeks $109 Billion in Five Years (April 13, 11:15 a.m.)
South Africa will target 2 trillion rand of new investment over the next five years, President Cyril Ramaphosa said, as he sought to address investor concerns about the nation’s energy and logistics crises, and rampant crime.
The government is implementing its Energy Action Plan to help reduce daily electricity outages of as long as 12 hours a day, and is planning new bid windows for wind, solar and other renewable energy projects, Ramaphosa said. The state has also agreed to establish a National Logistics Crisis Committee to drive the enactment of a plan to repair the nation’s railways, ports and other transport infrastructure, he said.
Specialized multidisciplinary task teams have been set up by the police to tackle crimes of economic sabotage such as violence and extortion at construction sites, illegal mining, infrastructure vandalism and cable theft, Ramaphosa said.
South Africa Addressing Challenges to Attract Investment, Ntshavheni Says (April 13, 11:05 a.m.)
South Africa’s government is taking steps to address power cuts, energy security, crime and challenges in the logistics sector to attract investment, Minister in the Presidency Khumbudzo Ntshavheni said in an interview with Bloomberg.
Government Weighing Measures to Lure Investment (April 13, 10:45 a.m.)
South Africa’s government is struggling to compete with tax incentives offered by other countries and is looking at alternatives to lure back investors, Human Settlements Minister Mmamoloko Kubayi said.
“Other countries are offering better conditions in terms of tax, either a six-month tax holiday or something like that, which sometimes makes it difficult for South Africa to do, but we are paying attention to it and looking at alternatives,” Kubayi, who is also the chairwoman of the cabinet’s economic cluster, said at the conference.
The minister was responding to concerns raised by Rand Merchant Bank CEO Emrie Brown, who said that South Africa must find a way to stem capital outflows.
–With assistance from Loni Prinsloo, S’thembile Cele, Tom Mackenzie, Jennifer Zabasajja, Mpho Hlakudi and Adelaide Changole.
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