Thursday, 3 October 2024
Programme Director;
South African Chamber of Commerce UK;
CEO’s, Managing Directors and All the Leaders of Business and Investors present;
Distinguished delegates;

Ladies and gentlemen.

I am honoured to address the South African Chamber of Commerce today following what we consider to be a successful working visit to the United Kingdom and Ireland. The team went all out to promote South Africa as an investment destination.

The team that I call 'Sale Persons' consists of Ministers and Deputy Ministers, as well as senior officials who are responsible for critical areas of our government's work. We aimed to improve the outcomes of President Ramaphosa's recent state visit by working together to promote inclusive economic growth.

We are optimistic that our visit will lead to an improvement in the trade and investment relations between South Africa, the United Kingdom, and Ireland, which have been stagnant for the past several years due to a variety of factors, including the global pandemic.

The majority of our interactions were characterised by a shared interest in the following topics: the Government of National Unity (GNU), energy, infrastructure, and the measures we are taking to foster a favourable environment for trade and investment.

I wish to reiterate that the political environment in South Africa is stable for investment as a result of the newly established Government of National Unity (GNU). GNU has been operational for less than 100 days, and its activities have already begun to yield results.

Our numerous meetings with potential investors have revealed a shift in their attitudes and perceptions towards South Africa, indicating an optimistic outlook. Our alliance, based not on personal sentiments but on the aspiration to enhance South Africa and, consequently, the lives of our citizens, will undoubtedly sustain the GNU administration for five years. A statement of intent based on our constitution's principles serves as the foundation for the GNU. The GNU's strategic priorities encompass the following areas:

• advancing inclusive and sustainable economic growth,
• addressing poverty and the high cost of living, and
• strengthening our bilateral partnership in various sectors such as trade, investment, skills development, science, and innovation

We will measure GNU's success based on the amount of employment we generate.

The number of business professionals and entrepreneurs we have assisted in establishing sustainable enterprises will serve as the basis for measurement.

The number of business owners and entrepreneurs we have assisted in starting sustainable businesses will serve as the benchmark.

Businesses hope to continue working with the government in the public-private partnership that has reduced load shedding, improved transport and logistics infrastructure, and strengthened national capacity to combat crime and corruption.

Regarding the energy situation, the investors we met demonstrated that ending the load shedding that began in 2007 was the most positive news, and they confirmed that it allows them to conduct business without uncertainty. The elimination of power outages was largely due to a series of measures implemented by the state-owned power utility Eskom and the government over the past two years.

In July 2022, President Cyril Ramaphosa unveiled the Energy Action Plan. Soon after, he became the power minister and appointed Kgosientsho Ramokgopa. Then Eskom initiated the two-year Generation Operational Recovery Plan, with the primary goal of boosting the quantity of power—known as the "Energy Availability Factor" (EAF)—to 70% of the network's capacity. At the same time, Eskom restructured its leadership, which many regard as a critical element.

Ladies and gentlemen,

As we previously stated, one of the country's significant reforms in this regard is allowing private developers to produce electricity. It is anticipated that the total capacity will increase by more than 9,000 MW over time, and there are presently more than 100 projects in progress with several EU companies actively participating.

Successful implementation of these projects necessitates grid strengthening and transmission line expansion.

Other reform areas include the implementation of several initiatives to boost the economy, such as rail reform, Liquefied Natural Gas (LNG) import facilities, rolling stock leasing companies, a high-capacity automotive corridor, and the DCT Pier 2 container terminal. These policies aim to liberalise the public rail sector, boost the car manufacturing industry, and boost port operational efficiency. Furthermore, Transnet has teamed up with a well-known international terminal operator to run its prime terminal at DCT Pier 2.

Furthermore, we are addressing the obstacles in our freight logistics system that continue to impede our competitiveness and undermine economic growth. We are on a mission to create and sustain a bankable investment pipeline of priority, credible, quality, and high-impact projects that span the country through Infrastructure South Africa, the primary driver of the National Infrastructure Plan (NIP) 2050.

During the week, we had an infrastructure-focused engagement and had the opportunity to open the market. This year, we produced the South African Construction Report, which offers a comprehensive overview of investment potential in the country's infrastructure sector.

The book tells the story of our nation's future, primarily aimed at informing investors and stakeholders about infrastructure projects expected to be available on the market in the fiscal year 2024/2025.

As the Chamber of Commerce for South Africa, we strongly recommend that you get hold of this book on hand so that you can present these projects to firms interested in investing in South Africa. You can find it at www.sidssa.org.za and www.infrastructuresa.org.za

Ladies and gentlemen,

We trust you to continue our work in this country to attract more investment and commercial partnerships. You, too, as the South African Chamber of Commerce, play an essential role in engaging with businesses to promote bilateral trade and investment links between the UK and South Africa, with an emphasis on growth prospects. It is our responsibility as leaders in our respective regions to foster an atmosphere that encourages entrepreneurship, fosters innovation, and drives inclusive growth.

South Africa is committed to establishing an enabling business environment that attracts investment, promotes economic development, and generates much-needed job opportunities. We recognise the importance of collaborating with countries such as the United Kingdom, which share our values and goals for a better future.

As a country, we wish to increase our exports of valuable goods and services to the UK. It is excellent that the two countries already exchange food and beverages. It is critical that we collaborate to create strategies to accelerate international trade and investment.

We're also simplifying regulatory procedures through the Red Tape Task Team, making it easier for businesses to operate and invest in our country. The task team's goal is to minimise unduly complicated rules, regulations, procedures, and processes that hamper economic growth and job creation in major economic sectors, while also collaborating with relevant government departments, the business sector, and community organisations.

The team also supports measures to streamline property registration, cross-border trade, and building permits. The task team is also accelerating decision-making processes, such as obtaining permits and approvals for company operations. We believe that reducing administrative processes is another way to create a positive climate and attract more investors to our country.

Ladies and gentlemen, Many people have discussed South Africa's stance on the war in Africa and globally. I would like to reiterate our anti-war stance. We are anti-war and pro-peace. We reaffirm our commitment to the inviolability of sovereignty and the importance of national security.

More immediately, we support gun silence. We want to see peaceful and mutual coexistence between Russia, Ukraine, Israel, Sudan, and the rest of the globe, because war is terrible for business.

I thank you.