Ramaphosa’s investment conference bags R109.6 billion – including investments from Google and Pepsico

A total of 50 companies have pledged R109.6 billion at the third annual South Africa Investment Conference.

Today’s collective pledge brings the total amount of investment pledges to R773.6 billion worth of investments in the last three years. With this total amount, South Africa has now reached 64% of its total target of R1.2 trillion.

“The world is still very much in the throes of a devastating pandemic that has thrown global markets into disarray. Tough decisions have had to be made on investments, on expansion and on entry into new markets.

“It is therefore significant that you have all come here – both in person and virtually – to show that this is a country you believe in and want to see succeed,” said President Cyril Ramaphosa.

With this year’s conference taking place in an extremely subdued economic climate, President Ramaphosa said securing investment commitments of over R100 billion is a remarkable achievement.

“Several of the investment commitments made at this conference are in sectors that have been hard-hit by Covid-19, especially the tourism and hospitality industries. These investments will go a long way towards their recovery,” he said.

The investments are spread across various sectors along the length and breadth of the country.

In Gauteng, Anglo African Metal committed to invest R280 million in the beneficiation of titanium. Bradley Aviation pledged R244 million in the aeronautical sector in Gauteng.

On company expansions, Fuchs committed R260 million to expand its lubricants operations, while Procter and Gamble pledged R260 million towards theexpansion of their diaper plant.

Unica also committed R250 million towards expanding its manufacturing capacity of steel blitz. Dangold Packaging is investing R830 million in a beverage canning plant.

Scaw will be investing a further R250 million to upgrade their hot rolling mill and steel-making capacity in Gauteng. SA Steel Mills pledged R1.5 billion to establish a steel manufacturing plant in the province.

Committing its support to the automotive components sector in the Tshwane Special Economic Zone is Supavut, with a pledge of R150 million. Sew Eurodrive pledged R200 million in the automation sector in Gauteng.

For the Gauteng property sector, Divercity Urban Property Fund put its pledge of R1.2 billion in a mixed use property development.

In the data sector, Teraco Data Environments committed R4.4 billion, while NTT and Dimension Data pledged R875 million to expand their respective data centre infrastructure in Gauteng.

In the Northern Cape, Afrimat committed R300 million worth of investment in the iron ore sector.

In Limpopo, Ivanhoe mines is investing a further R730 million in the Platreef project.

Turning to the Eastern Cape, Lactalis committed to invest R100 million in a milk powder production plant, while Sundale pledged R101 million towards cheese and dairy production in the Eastern Cape.

Sinayo and Homesek formed a partnership to invest R500 million in the dairy sector in the Eastern Cape. In a plan to invest in waste plastic to oil facility in the Eastern Cape, Clariter pledged R222 million.

Still in the Eastern Cape, Giant Flag Consortium pledged R184 million in an eco-tourism development.

In Mpumalanga, Mapochs Resources committed R100 million towards the re-establishment of a vanadium mine in the province. A total of R562 million was pledged by Sail for the beneficiation of ferrochrome in Mpumalanga.

Other commitments for Mpumalanga included Sasol’s pledge of R5.4 billion towards clean fuels in their Secunda plant, while Sonae Arauco pledged R200 million for expansion of their paper manufacturing line.

The Western Cape will see a R2 billion investment from Amdec group to its harbour development.

Capita set aside R530 million for the establishment of a global delivery centre in their business process outsourcing sector in the Western Cape.

In KwaZulu-Natal, United Heavy Industries committed R350 million to the establishment of a steel bar manufacturing plant.

A lifestyle resort investment is also in the pipeline, with a pledge from Thukela of R1.4 billion.

Provenance committed R100 million towards the development of a film studio and innovation hub in KwaZulu-Natal.

The KZN property sector will also see investments through the R8.4 billion pledged by Robert Jurgens Construction Management towards property, including a hospital for the province, while the Blythedale Coastal Estate pledged R800 million towards a lifestyle property development.

Really Epic Dog is investing R200 million in the Home Stead luxury game lodge in KwaZulu-Natal.

Port Shepstone committed to R550 million in an intermodal transport facility and a shopping mall in KwaZulu-Natal.

Mnambithi Group pledged R1.3 billion in a multipurpose bulk liquid storage terminal in the port of Durban.

Investments that are set to take place across various parts of the country include those by:

  • Equites and Sandvik – R287 million for expanding its facilities.
  • Metair – R1.1 billion in the automotive components manufacturing industry in KwaZulu-natal, the Eastern Cape and Gauteng.
  • Dr Oetker – R200 million to expand the production of pizza and ready meals.
  • Frimax – R380 million for the expansion of snacks and potato chips.
  • Pepsico – R5.5billion to further expand manufacturing capacity across its Pioneer Food operations in the country.
  • PG Bison – R1.98 billion to expand their board manufacturing plant in Piet Retief and investing in a medium density fibreboard plant in Boksburg.
  • Akani Properties – R1.2 billion for a number of property developments in the North West, Gauteng and Mpumalanga.
  • Telkom – R8 billion to expand Telkom infrastructure across the country.
  • Google – R2.2 billion in a fibre optics submarine cable in the Western Cape that will provide high-speed internet connectivity across South Africa.
  • Sola – R400 million in the renewable sector across the country.
  • Sola Africa – R170 million in solar energy for large industrial consumers
  • New Development Bank – R32 billion towards the financing of projects in South Africa.
  • Old Mutual – R3.6 billion in funds towards infrastructure projects across South Africa.
  • Sanlam R7.25 billion towards funding for small and medium enterprises and infrastructure projects across South Africa.
  • Industrial Development Corporation – R8 billion towards funding projects in South Africa.
  • Belgian Chamber of Commerce with an investment of R1.5 billion.

Read: South African debt crisis can be avoided, Ramaphosa says

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