Ramaphosa Defends SA’s Investment Conferences as Billions Begin Flowing Into Economy

President Cyril Ramaphosa has strongly defended South Africa’s investment conferences and business summits against criticism that they are merely symbolic events with little real economic impact, insisting that the gatherings are producing tangible investments, infrastructure projects, and job opportunities across the country.

In his weekly newsletter, the President argued that investment conferences held since 2018 have become an important platform for attracting both domestic and foreign direct investment in an increasingly competitive global economy.

Ramaphosa said the government’s investment drive has already generated substantial economic activity, with hundreds of billions of rand now being invested into infrastructure, manufacturing, mining, technology, and energy projects nationwide.

Ramaphosa Rejects Claims Conferences Are “Just for Show”

The President pushed back against critics who have questioned the value of repeated investment conferences and international business engagements hosted by government.

South Africa has recently held several business and investment forums both domestically and internationally, including the South Africa Investment Conference, provincial investment summits, and the Infrastructure Investment Summit held with global asset management company BlackRock.

“These engagements are not ‘just for show’, as some people have suggested,” Ramaphosa wrote.

He explained that the conferences are designed to connect investors with local business opportunities while bringing together governments, banks, development finance institutions, and the private sector.

According to the President, the willingness of international and local investors to commit capital to South Africa demonstrates continued confidence in the country despite ongoing economic and structural challenges.

R1.5 Trillion in Investment Pledges Since 2018

Ramaphosa highlighted that the South Africa Investment Conferences launched in 2018 have attracted investment commitments across several sectors, including:

• Energy

• Telecommunications

• Infrastructure

• Automotive manufacturing

• Mining

• Advanced manufacturing

Since the launch of the initiative, the conferences have secured investment pledges amounting to approximately R1.5 trillion.

Of this amount, around R634 billion has already been invested into projects such as factories, mines, data centres, energy infrastructure, and logistics developments.

The President said these projects are contributing directly to economic growth and employment creation.

Major Investments Already Underway

Ramaphosa pointed to several large-scale projects that originated from investment conference commitments.

Among the highlighted investments are:

• BMW’s R4.2 billion investment to electrify its Rosslyn plant in Gauteng and support new energy vehicle production

• Tetra Pak’s R500 million upgrade of its KwaZulu-Natal facility

• Corobrik’s R500 million investment in the Kwastina plant in Gauteng

• The Newlyn PX terminal at the Port of Durban, which began operations in 2024

• The Ivanplats Platreef mining project in Mokopane, linked to a R2.8 billion investment pledge

These projects span manufacturing, logistics, mining, and green industrial development.

Ramaphosa said the investments are not only supporting industrial expansion but are also helping create jobs and modernise key sectors of the economy.

Skills Development and Artificial Intelligence Training

The President also highlighted the role of investment projects in supporting skills development and preparing young South Africans for the future economy.

He referenced Microsoft’s partnership with the Youth Employment Service (YES), which is providing internationally recognised certification in high-demand artificial intelligence (AI) skills.

The programme forms part of Microsoft’s broader investment of more than R5.4 billion aimed at expanding its cloud computing and AI infrastructure in South Africa by 2027.

Ramaphosa said such initiatives are critical in equipping young people with digital and technological skills required in a rapidly changing global labour market.

South Africa Still Far From Investment Targets

Despite highlighting progress, the President acknowledged that South Africa still faces major economic challenges and remains well below its long-term investment targets.

Ramaphosa pointed to Gross Fixed Capital Formation (GFCF) — a key measure of investment in an economy — which currently stands at approximately 14% of Gross Domestic Product (GDP).

This remains significantly below the National Development Plan’s target of 30% by 2030.

The President noted that South Africa’s GFCF peaked at around 21% in 2008 during a period driven by:

• The global commodity boom

• Eskom’s infrastructure expansion programme

• Preparations for the 2010 FIFA World Cup

However, investment levels later declined due to the global financial crisis, state capture, governance failures, and declining business confidence.

Government Pushing Structural Reforms

Ramaphosa said government has been working since 2018 to reverse the decline in investment and improve economic conditions.

He outlined several reforms and interventions aimed at restoring investor confidence, including:

• Stabilising public finances

• Addressing the electricity crisis

• Implementing structural economic reforms

• Improving infrastructure planning and execution

• Providing greater policy certainty

The President acknowledged that a gap still exists between improved investor sentiment and actual investment activity but insisted government is working to close that gap.

R1.8 Trillion in Corporate Cash Reserves

Ramaphosa also drew attention to the large amount of capital currently held by South African companies.

According to the South African Reserve Bank, non-financial companies held approximately R1.8 trillion in reserves by July 2025.

The President said government wants to encourage more of this capital to be directed toward productive domestic investment that supports growth, infrastructure development, and job creation.

He urged local businesses to play a leading role in rebuilding economic momentum.

Local Investors Seen as Key to Growth

Ramaphosa emphasised that domestic business confidence is critical to attracting further international investment.

He welcomed the fact that many of the commitments made during the sixth South Africa Investment Conference came from local investors who understand the country’s economic and social realities.

“As we forge ahead with efforts to attract new investment, we call on the local private sector to be at the forefront of rebuilding investment momentum in our economy,” the President said.

He argued that strong domestic investment signals confidence to international investors and helps strengthen South Africa’s position as an investment destination.

Government Sees Investment as Central to Economic Recovery

Ramaphosa concluded by stressing that building a prosperous and inclusive South Africa will require large-scale productive investment and collective action between government and the private sector.

He said the growing implementation of projects announced at investment conferences demonstrates that commitments made during these summits are increasingly translating into real economic activity, employment opportunities, and infrastructure development.

The government continues to position investment attraction as a key pillar of its broader economic recovery and growth strategy amid ongoing efforts to tackle unemployment, inequality, and infrastructure challenges.