A number of days in the past, I met with US President Joe Biden in Washington to debate a number of problems with concern to each our nations, together with peace and safety, local weather change and meals safety.
Most importantly, we mentioned methods to deepen trade and funding between our two nations.
Behind China and the European Union, the United States is South Africa’s third largest buying and selling accomplice and is the second largest vacation spot of our nation’s exports.
There are round 600 US firms in South Africa. And over time an rising variety of South African firms in sectors as various as mining, vitality, chemical compounds, banking, well being and wellness, and luxurious items have expanded their footprint into the US.
We agreed with President Biden that we should do extra to extend enterprise between our two nations and have set up a joint task force on trade and funding to supply focus and path to our efforts.
While in Washington, we additionally spoke to a number of US enterprise leaders who expressed a eager curiosity in investing in South Africa.
The visits we undertake to varied nations, be they working visits, state visits or trade missions, are essential for selling funding and trade. They usher in funding and they create jobs. They additionally enhance our relationships with the nations we go to thus creating nice alternatives for our nation.
Building sturdy partnership with different nations is necessary, however it’s not sufficient.
That is why we’re working to make our economic system extra aggressive, extra environment friendly and extra engaging to each worldwide and native firms.
Energy disaster
First and foremost, we have now to beat the electrical energy disaster.
Since late final week, Eskom has been compelled to implement load shedding attributable to breakdowns at a variety of energy stations. The scenario has been made worse by the depletion of emergency technology reserves reminiscent of pumped storage and diesel generators and the necessity for these to be replenished.
The extreme load shedding of the previous couple of days has reminded us how unstable our ageing energy stations are. It has given higher urgency to the measures we introduced two months in the past to stabilise our electrical energy provide.
Read: At final: CR throws the kitchen sink at load shedding
On Sunday, I held an pressing digital assembly with ministers and officers on the explanations for the present load shedding and the steps being taken to cut back the severity and frequency of load shedding within the coming days and weeks.
Eskom has already introduced a few of the measures it’s taking and we’ll stay seized with this subject till the scenario is resolved.
Read: Eskom to acquire emergency extra vitality to ease load shedding
Listen/learn: Eskom disaster continues
Solving the electrical energy disaster is critical if we’re to understand the potential of our economic system.
Investment in SA
In 2018, we launched an formidable funding drive to lift R1.2 trillion in new investments over 5 years. To date, and with nonetheless a yr to go, we have now raised greater than 90% of that quantity in commitments from each home and international buyers. Of these commitments round R330 billion has already flowed into the economic system, opening new factories, increasing manufacturing traces and creating new jobs.
Last week, I used to be on the launch of the Hesto Harnesses automotive element manufacturing web site in KwaDukuza in KwaZulu-Natal. The facility will create greater than 4,000 jobs, practically doubling the prevailing workforce.
The firm will provide elements to the Ford Motor Company, which made a dedication on the South Africa Investment Conference in March to take a position round R16 billion to broaden the native manufacturing of the Next-Gen Ford Ranger.
Ford is likely one of the largest buyers within the native automotive business and is the anchor tenant on the Tshwane Automotive Special Economic Zone that I opened in 2019.
Also final week, I attended the launch of the Sappi Saiccor growth undertaking in Ethekwini valued at R7.7 billion. The undertaking will help the creation of jobs and enterprise alternatives for smallholder farmers.
Since this yr’s South Africa Investment Conference, a complete of 10 tasks have been accomplished or launched to the worth of R15.3 billion.
The latest launches of latest investments and growth tasks by Ford, Anglo American, Metair Investments, Corobrik, Consol Glass, Isuzu, Sappi, Google, Netflix, Sandvik and others present that each home and international buyers see South Africa as a beneficial place to take a position and to do enterprise.
These firms recognise the progress we’re making in a number of areas of reform, reminiscent of telecommunications, vitality, water provision, freight rail and ports. The Presidency is working with a number of departments and different companions on reducing pink tape in crucial regulatory processes. Through the grasp plans which were concluded in a number of industries and via mechanisms just like the Employment Tax Incentive and the bounce-back mortgage scheme, we’re encouraging small companies to develop and make use of extra folks.
Despite the numerous challenges our nation faces, the latest influx of international direct funding from the US, Sweden, Japan, United Kingdom, Ireland, Germany, China and others is a vote of confidence in our economic system.
Together, these investments make a transparent assertion that there’s a nice future for firms that do enterprise in South Africa and that the case for funding is rising ever extra compelling.