Ramaphosa pegs sustainable economic recovery on attraction of higher levels of investment

President Cyril Ramaphosa on Monday assured that government is working to get rid of red tape that impedes and slows down investment.

Ramaphosa wrote in his weekly letter to the nation that it was only through attracting higher levels of foreign and domestic investment that a swift, sustainable economic recovery could be assured.

He said government had significantly reduced waiting times for water use licences and other important authorisations for getting major investment projects off the ground.

Ramaphosa said since this administration took office, government had held five Investment Conferences that had attracted R1.5-trillion in investment commitments across a broad range of economic sectors.

“Over one-third of these pledges have translated into job-creating businesses and business expansions in renewable energy, mining, packaging, automotive, retail, manufacturing, transportation and other sectors,” he said.

He highlighted that while there was a broadly positive attitude towards South Africa among investors, the country’s net foreign direct investment as a percentage of gross domestic production was slightly lower than the global average.

“That is why we continue to work to implement our policies and align regulatory and other obstacles, so that we can attract higher levels of investment. Through the auction of broadband spectrum and progress in digital migration, for example, we have greatly expanded opportunities in telecommunications,” Ramaphosa said.

He acknowledged that electricity supply had been a major challenge to citizens and the economy, but assured that through government’s Energy Action Plan, much progress in dealing with the country’s electricity crisis had been made.

“We have seen an improvement in the performance of Eskom’s power stations and substantial investment in new generation capacity. This has contributed to a sustained decrease in the severity of loadshedding,” he said.

He highlighted that the work government was doing with business, labour and other social partners in improving the efficiency of the country’s ports and rail infrastructure was also starting to bear fruit.

Further progress in these areas would increase the country’s competitiveness and attractiveness as an investment destination, he said.

He announced that much effort had been invested in improving capacity to plan, package and finance major infrastructure projects, creating new investment opportunities in energy, housing, logistics, manufacturing and other areas.

“We will continue to build on the gains that we have made towards creating an enabling business and investment climate that promotes economic growth and creates jobs,” he said.