South Africa receives $35 billion in investment pledges towards $100 billion objective

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Trudi Makhaya, economic adviser to South Africa’s President Cyril Ramaphosa told Reuters, South Africa has investment commitments of $35 billion as part of plans by the president to attract $100 billion over the next five years to revive the country’s economy.

Ramaphosa, who appointed a team of bankers, former ministers and business people, also hired Makhaya, an economist, as his economic adviser to search the world’s financial capitals for new investors. Makhaya said “there is about $35 billion that has been pledged. We’ve had $10 billion committed from Saudi Arabia. About $10 billion from the UAE, and around $15 billion committed from China when you’re looking at government to government deals”.

As part of efforts to fulfil Ramaphosa’s promise to create jobs, the South African government hopes to raise money from companies and governments at an investment summit in Johannesburg on October 26, 2018. Makhaya revealed that the summit would connect investors with projects and be an excellent opportunity to tell investors the country is stable as a result of the implementation of effective policies.

In an interview with Reuters, Makhaya said “we need to keep doing the work of raising investments leading up to next year’s elections to show investors policy isn’t going to change (even if the ruling party lost the vote)”.

According to Makhaya, the government had borrowed heavily over the past decade to fund spending on poorly executed infrastructure projects and pay public sector wages. She noted that spending as a strategy to boost the economy would not work in the long run.

Makhaya concluded by noting that “the president has articulated his vision very clearly. It’s investments, job creation and fixing up governance”.

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