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The Deputy President of South Africa Mr Paul Mashatile sang the right tune for investors, assuring them of what they want to hear, a stable economic and political environment under the Government of National Unity (GNU).
Mashatile was part of the Bloomberg round table discussions in Landon on Monday, 30 September 2024, as part of his working visit to woo investors into South Africa and strengthen bilateral trade relations with the United Kingdom (UK).
The Deputy President assured investors and the authorities of the country that, though South Africa is currently in a GNU involving 10 parties, the country is stable and has embarked on growing its economy and create jobs for locals; which makes it an ideal country to do business with and invest in.
“Today, we are here to assure those who have invested in our country and those who intend to invest in South Africa that the GNU is working together to create a conducive environment for businesses to strive.
The GNU will continue to strengthen our trade and bilateral relations as it has been for many decades. As the new Government, we will continue to hold the United Kingdom in a special place in our hearts, not only due to our historical ties but also because of the immense potential for collaboration and growth that exists between our two countries,” said Mashatile.
“By fostering stronger trade and investment relationships, we aim to create a win-win situation for both nations that will bring economic prosperity and stability,” he continued.
Sighting international factors that stagnated the economic growth of both countries, Mashatile said the GNU is working tirelessly to grow the economy of South Africa and has by far, made notable progress in terms of economic growth and development.
Operation Vulindlela has already unlocked R500 billion in investment. According to the Stellenbosch-based Bureau for Economic Research, if the reforms implemented under the programme take hold, economic growth may accelerate to 3.5 per cent by 2029.
“Through initiatives such as Economic Reconstruction and Recovery Plan (ERRP), we are prioritising spending across infrastructure, providing employment stimulus to sustain jobs and implementing measures to deepen local industrialisation. South Africa’s Economic Recovery Plan is underpinned by a social compact between Government, business and labour, and sector representatives.
We urge the UK businesses to deepen their investment ties with South Africa as we aim to accelerate our walk on the path to recovery. We assure the investors that investments in South Africa are secure. Our business environment is stable as is the political environment and this is supported policy certainty and regulatory safeguards,” said Paul Mashatile.
He told the round table that government has launched a programme called Operation Vulindela, which will help in reforming existing structures in the country, including freight-rail network, electricity generation investment amongst others.
Mashatile said Operation Vulindlela has already unlocked R500 billion in investment. According to the Stellenbosch-based Bureau for Economic Research, if the reforms implemented under the programme take hold, economic growth may accelerate to 3.5 per cent by 2029.
As the world and South Africa address climate change and the critical need to lower emissions and move towards a just transition, we have a successful Renewable Energy Independent Power Producer Procurement Programme. This has attracted over R209 billion in investment and added much-needed capacity to our electricity grid,” said the Deputy President.
“We have also implemented measures to deal with load shedding which have already showed results. As part of a comprehensive restructuring process we are unbundling utility into three distinct companies of transmission, distribution, and generation.
Paul Mashatile has since extended an invitation to the UK and business to come an invest in renewable energy sector in South Africa
He said since local mineral beneficiation can boost employment and development, South Africa also concentrates on local beneficiation strategies for the South African minerals sector. Therefore, a cooperation focused on key minerals would turn the extractive industry into a mutually beneficial strategic economic cooperation.
“Collaboration with the UK government is crucial in achieving our goals of building an inclusive economy. The UK has a long history of economic development and innovation, and we can learn a great deal from your experiences,” said Paul Mashatile.
