South Africa seeks foreign investments from BRICS members
The Dollar Business Bureau
Pitching South Africa as an attractive investment destination, the BRICS business delegates from the country said South Africa has always regarded manufacturing as the heartbeat of its industrial policy and action plan, while serving as the gateway to Africa.
“South Africa is moving towards a knowledge based economy with focus on high infrastructure and accessibility, ICT and connectivity through road, railways and airways. With emphasis on trade, South Africa is strategically located as an export platform and that the export partners have diversified over the years,” said Invest South Africa Head Yunus Hoosen, while addressing the session on ‘Investment Opportunities in South Africa’ at the BRICS Trade Fair in New Delhi.
Hoosen highlighted his country’s priority sectors for foreign direct investments (FDI) included bio fuels, metals, manufacturing, mining and nanotechnology. He referred to the government procurement programme which is aimed at promoting joint ventures to facilitate foreign investor localisation in various sectors.
He underscored that Invest South Africa is a one stop shop for investor facilitation and South Africa offers a very strong case for investment.
South Africa’s manufacturing sector contributes 13% to the country’s GDP along with other key sectors including agriculture, infrastructure and services.
MEC Chaiperson Sihle Zikalala highlighted the investment potential of the state of Kwazulu Natala, which grew at an average of 3.6 during 2014-14. “It (South Africa) is an attractive destination for business and trade as it ranks third highest in terms of export and import and ranks second in terms of industrialisation. It has major seaports of the country and handles nearly 80% of South Africa’s cargo. Some of the significant factors for investment include attractive investment climate, strong public support, skilled and experienced manpower, mature domestic market, global connectivity and vibrant tourism.
Dube Trade Port (DTP) CEO Hamish Erkshine said investment in South Africa is strongly supported by public sector and added that DTP has a status of a special economic zone with integrated transport and logistics platform. The value proposition that it provides includes proximity to major ports, integrated supply chain, world class infrastructure and special incentives such as reduced corporate tax, building allowance among others.
“The focus is on hard value sectors with a target on electronics, aerospace, agriculture and agro processing, medical and pharmaceuticals, textiles and automotive manufacturing and assembly,” Erkshine said.
DTP has secured an investment of $103 million, including from leading international companies of India and China.