South African President, Cyril Ramaphosa has revealed that over the four-year period of investment drive, Goverment have realised approximately R263 billion in investment for infrastructure development.
Ramaphosa who made the revelation at the 5th South Africa Investment Conference in Johannesburg on Thursday said infrastructure development is one of the key areas of focus to drive economic growth and is the flywheel that drives economic growth.
He disclosed further that not counted in this figure is the hundreds of billions of rands being spent on local and other public infrastructure by the three spheres of government. “When we talk about investment in the cause of development, infrastructure is at the center”, Ramaphosa said.
According to him, “Infrastructure development meets pressing community needs, and leaves behind a legacy that future generations will use. By way of example, a few years back SANRAL announced at the Investment Conference their plans to build Msikaba Bridge, the longest and highest cable-stayed suspension bridge in Africa.
“On a superficial level, this bridge connects the peoples and economies of the Eastern Cape and KwaZulu Natal, But it is a deeper story about integrated development.
Iron ore for its construction is being mined in the Northern Cape; transported to KwaZulu/Natal and Gauteng to be converted into steel blooms and plates; fabricated in Mpumalanga; and finally, assembled in the Eastern Cape.
“For each step in an infrastructure development value chain, jobs are created, small businesses and suppliers supported, and skills are imparted”, he said.
Adding that, “Through InfrastructureSA we are hard at work driving the implementation of other key strategic infrastructure projects in water and sanitation.
“This includes bulk water projects such as Phase II of the Lesotho Highlands Water Project, the Mzimvubu water project, the uMkhomazi Water Project, the Mokolo Crocodile River Water Augmentation Project, and others.
“A number of other strategic infrastructure projects are either in preparation or under construction in energy, transport, digital infrastructure, agriculture, and human settlements.
Today there have been pledges from several companies and entities to invest in property development and logistics. This includes in luxury resorts, mixed-use developments, but also in social infrastructure projects like student accommodation.
“The South African National Roads Agency is also investing R 19,7 billion in the construction of various roads, bridges, and other critical transport infrastructure”, South African leader explained.
Ramaphosa stated that having now officially concluded the first phase of national investment mobilisations drive, South Africa has now reached R1,51 trillion in pledges, overshooting its initial R1,2 trillion target by 26 per cent which he said it has been a watershed conference.
“We have honoured the undertaking we gave the South African people in 2018 that we would attract new investment to our shores, support the growth of local businesses and create more jobs. When we set out on this ambitious path five years ago, none of us could have foreseen that the world would be struck by a deadly pandemic.
“Nor could any of us have imagined the lingering impact on investment, businesses, jobs, and livelihoods, even years after the existential health threat has passed. For us to have been able to meet our five-year target despite major challenges and disruptions, including the pandemic, is no mean feat.
“It is a stellar achievement. We should all be proud. I want us to give ourselves a hand. Today’s pledges cover 21 district municipalities across the country. Number of these investments aren’t only bringing much-needed economic activity to these localities, they are also supporting our overall national development goals”.
He noted that South Africa’s unique value proposition is the diversity and sophistication of its economy. “Unlike many other countries whose national economies were founded in and remain reliant on the extractive sectors, we have a diverse economy, and the breadth of investments are indicative of these opportunities that exist.
“Today we have seen investment pledges across a range of sectors. They include: The R1 billion investment by Turkey’s Menar Group in thermal coal mining in Mpumalanga, Seriti Group’s R4,5 billion investment in a wind energy project in Mpumalanga
“US-based Moove’s R284 million investment in e-logistics, Hive Hydrogen’s massive R 105 billion investment in a green hydrogen production facility in Coega in the Eastern Cape.
“Hive’s investment in the Eastern Cape will see not only construction of a green ammonia production plant, but the company also has plans to construct a seawater desalination plant capable of meeting approximately 50 per cent of the water needs of the Nelson Mandela Bay metro.
Ramaphosa emphasized that the success of this first phase must be a springboard towards a recovered, reconstructed, inclusive new economy. “As government and the private sector, we have proven ourselves capable of moving forward together, of working in unison in pursuit of the common good.
“We did so exceptionally during the pandemic, we have done so with this investment drive, and now aim to replicate this collaboration as we address challenges with energy and logistics. I call on every one of us in this room to recommit ourselves to the common good that is South Africa’s development”.