Companies pledge R290 billion to South Africa's economy
This is part of a plan to raise $100 billion over the next five years.
Multinational companies have pledged nearly R290 billion worth of new and existing investments in South Africa’s economy over the next five years.
The value of investments that companies have penciled in was announced at the inaugural South Africa Investment Conference 2018 in Johannesburg on Friday.
The investments are part of the drive to raise $100 billion (R1.5 trillion) over the next five years by South Africa’s president Cyril Ramaphosa (pictured). The investment pledges come at a time when Ramaphosa attempts to revive South Africa’s economy that is in a recession, faces a 27 percent joblessness rate, waning investor confidence and political uncertainty ahead of a general election in 2019.
These are some of the investment commitments announced on Friday:
• Mining company Anglo American plans to invest R71.5 billion between 2018 and 2022 on maintaining and expanding its mining operations in South Africa.
• Africa’s largest technology company by market value, Naspers, has pledged to invest R6 billion over the next three years in South Africa’s technology sector.
• Sappi, the world’s biggest producer of dissolving wood pulp, is planning a R7.7 billion upgrade and expansion of its Saiccor Mill.
• Packaging company Mondi will invest R8 billion in expanding its capacity.
• Vedanta Resources has made a commitment of R21.4 billion to be invested in a zinc mine project and processing plant. The investment will also go towards a smelter and refinery complex.
• Mercedes Benz has committed R10 billion to expand its manufacturing plant in East London, Eastern Cape.
• Ivanplats platinum project plans to invest R4.5 billion in developing mines in South Africa.
• Bushveld Minerals plans to invest R2.5 billion in expanding its capacity to produce and process vanadium.
• Telecommunications company Rain Telecom plans to spend R1 billion on building a new 5G high-speed network.
• Mara Corp, a Rwanda-based company, plans to invest R1.5 billion for establishing a plant that will produce smartphones in South Africa.