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Friday, August 12, 2022

South Africa: SA Remains an Attractive Investment Destination

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South Africa stays a lovely and profitable funding vacation spot, the place the return on investments is excessive and alternatives abound for each overseas and home traders, says Worldwide Relations and Cooperation Deputy Minister, Alvin Botes.

The Deputy Minister made the remarks throughout a commerce and funding seminar in Porto, Portugal, on Monday.

Addressing delegates, Botes applauded the numerous investments that Portugal has made in South Africa through the years.

“We want to point out, specifically, the R200 million funding by Sonae Auraco within the forestry sector within the province of Mpumalanga, and the partnership between CR Moulds Portugal and MCR Plastics within the Jap Cape (Gqeberha) and Gauteng (Silverton), a black-owned firm in South Africa [that] companies the automotive sector.

“The latter undertaking is critical as a result of it aligns with our authorities’s precedence to remodel the automotive trade and to make it extra inclusive,” he stated.

At the moment, South Africa’s commerce with Portugal is ruled by means of the EU-SADC Financial Partnership Settlement (EPA). The EPA makes it simpler for folks and companies to put money into and commerce with one another, and to encourage growth throughout Southern Africa.

The Deputy Minister stated the move of products and companies between South Africa and Portugal has grown steadily over the previous few years, even amid the COVID-19 pandemic.

From 2012 to 2021, whole commerce between South Africa and Portugal elevated from roughly R2 billion in 2012 to roughly R7.5 billion in 2021. The commerce steadiness is presently skewed in favour of Portugal. The Deputy Minister is hopeful that such occasions will help in addressing this imbalance.

Confidence in SA

Botes stated the expansion within the Portuguese enterprise group in South Africa is a good demonstration of confidence within the South African economic system, and within the nation as a lovely vacation spot for vital funding.

“South Africa is a thriving democracy with a complicated and various economic system, a classy and well-regulated monetary sector, and intensive transport, telecommunications and power infrastructure. As authorities, we’re working laborious to create a dynamic and enabling enterprise setting that may promote better productive funding in our economic system,” he stated.

He welcomed score company Normal & Poor World’s latest determination to improve South Africa’s financial outlook to optimistic from steady, because of enchancment within the nation’s fiscal place (boosted by a rise within the costs of commodity exports, which, in flip, improved tax revenues).

This got here on the again of S&P World’s peer, Moody’s, making an identical transfer in April when it upgraded South Africa’s outlook from destructive to steady.

The Deputy Minister stated the upward revision is attributed to the decisive steps taken by authorities in direction of extra predictable and clear insurance policies.

“This alerts that South Africa’s macroeconomic and political fundamentals are in place, reinforcing our place as a reputable funding vacation spot.”

Botes stated it’s inside this context that SA had launched into the go to to Portugal to convey the message that South Africa is open for funding.

“We invite our Portuguese buddies to observe the lead of the numerous EU corporations which have already invested within the nation, understanding that the important thing to financial progress and job creation lies in a lot better ranges of funding.

“South Africa has launched into an formidable funding drive, which goals to lift $100 billion in new funding over 5 years.

“We’ve got already achieved 95% of this goal in funding commitments during the last 4 years. Subsequent 12 months would be the final instalment of the Presidential Funding Convention, and we hope to see extra bulletins from Portugal on the occasion,” he stated.