433369666-The-Case-for-Investing-in-South-Africa

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108 | INFRASTRUCTURE DEVELOPMENT PLAN PRESENTS SUBSTANTIAL INVESTMENT OPPORTUNITIES • A very large infrastructure development programme is being rolled out in South Africa, providing opportunities for investors to participate in specific projects, as well as for partnering with local suppliers of goods and services in order to benefit from the enormous procurement requirements. • Public sector infrastructure expenditure is set to total ZAR864.9-billion over the three fiscal years from 2019/20 to 2021/22. Around 70% of the total public sector spending on infrastructure is directed towards transport, energy and water infrastructure, which should contribute to increased localised production capacity. • President Ramaphosa announced the establishment of the Infrastructure Fund in September 2018. This Fund is reserved for blended finance (i.e. part government and part non-government) in infrastructure projects. The Fund will leverage much higher levels of private sector investment for public infrastructure development. ZAR100-billion has been earmarked for infrastructure development through this Fund over the next decade. KEY ELEMENTS OF THE NATIONAL INFRASTRUCTURE PLAN INCLUDE: TRANSPORT AND LOGISTICS ZAR313.9-billion 36.3% of total spending HUMAN SETTLEMENTS ZAR57.5-billion 6.6% of total spending ENERGY ZAR158.1-billion 18.3% of total spending EDUCATION ZAR56.9-billion 6.6% of total spending WATER AND SANITATION ZAR132-billion 15.3% of total spending HEALTH ZAR34.3-billion 4.0% of total spending Source: National Treasury
| 109 INFRASTRUCTURE DEVELOPMENT PLAN PRESENTS SUBSTANTIAL INVESTMENT OPPORTUNITIES • There is significant potential for greater private sector involvement in the design, financing, construction, operation and maintenance of public infrastructure. • South Africa has well-established capital markets and technical capacity to conceive, plan, structure and implement large projects and programmes. If leveraged effectively, these financial resources and technical capacity could materially alter the momentum of infrastructure investment. A project pipeline that will complement the portfolio of the National Infrastructure Plan is being finalised. • The Presidential Infrastructure Coordination Commission (PICC) has approved 18 strategic infrastructure projects (SIPs) to support economic development and service delivery in all of South Africa’s nine provinces. • The SIPs are seen as having the ability to unlock opportunities, transform the economic landscape, create new employment, strengthen the delivery of basic services and support the integration of African economies. • The government is committed to the roll-out of the SIPs, as illustrated by the ZAR420.9-billion capital allocation in the 2019 National Budget over the three-year period to 2021/22. • The SIPs present opportunities for strategic investment partnerships and supplier/value chain development across the various project pipelines. SELECT OPPORTUNITIES IN INFRASTRUCTURE: Catalytic infrastructure projects • Unlocking northern mineral belt • Durban-Free State-Gauteng corridor development • South-eastern node and corridor development • Saldanha-Northern Cape corridor development Enabling socio-economic projects • Greening the South African economy • Electricity generation • Electricity transmission and distribution • Integrated municipal infrastructure • Integrated urban space and public transportation • Agro-logistics and rural infrastructure • Regional integration Cross-cutting projects • Access to communication technology • Square Kilometre Array (SKA) and MeerKAT • National school build • Higher education • Revitalisation of public hospitals • Unlocking economic opportunities in the North West province
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THE CASE FOR INVESTING IN SOUTH AFR
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CONTENTS 1. WHY INVEST IN SOUTH AFR
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10 REASONS WHY YOU SHOULD INVEST IN
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| 3 WORLD-RENOWNED FOR INDUSTRIAL I
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| 7 SOUTH AFRICA AT A GLANCE • So
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| 9 SOUTH AFRICA AT A GLANCE: INFRA
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| 11 SOUTH AFRICA AT A GLANCE: SOCI
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3. ECONOMIC OVERVIEW
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18 | - Manufacturing output increas
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20 | FISCAL POLICY GEARED TOWARDS F
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22 | GLOBAL ECONOMIC DEVELOPMENTS
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24 | RELATIVE PERFORMANCE OF SELECT
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4. POLICY FRAMEWORK
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30 | MICROECONOMIC POLICY INTERVENT
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32 | INDUSTRIAL POLICY SUPPORT Attr
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34 | TRADE POLICY: MAIN BENEFITS OF
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5. ENABLING ENVIRONMENT
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40 | EASE OF DOING BUSINESS: SOUTH
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42 | ATTRACTIVE INCENTIVES TO SUPPO
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6. OPPORTUNITIES FOR INVESTORS
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48 | SECTORAL STRENGTHS OF SOUTH AF
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50 | EXPORT-ORIENTED SECTORAL OPPOR
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52 | SOUTH AFRICA AS A KEY REGIONAL
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6.1 AGRICULTURE AND AGRO-PROCESSING
Page 62 and 63: 58 | SA GDP, 2018 WELL-ESTABLISHED,
Page 64 and 65: 60 | AGRICULTURE AND AGRO-PROCESSIN
Page 67: 6.2 MINING AND MINERALS BENEFICIATI
Page 70 and 71: 66 | A HIGHLY DEVELOPED AND DIVERSI
Page 72 and 73: 68 | BASE METALS AND METALS FABRICA
Page 74 and 75: 70 | INVESTMENT OPPORTUNITIES IN MI
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Page 80 and 81: 76 | MANUFACTURING SECTOR’S EXPOR
Page 82 and 83: 78 | AUTOMOTIVE INDUSTRY: EXPORT-OR
Page 84 and 85: 80 | AUTOMOTIVE VALUE CHAIN: INVEST
Page 86 and 87: 82 | ELECTRICAL MACHINERY AND EQUIP
Page 88 and 89: 84 | CHEMICALS AND CHEMICAL PRODUCT
Page 90 and 91: 86 | CLOTHING, TEXTILES, FOOTWEAR A
Page 92 and 93: 88 | ADVANCED MANUFACTURING • The
Page 94 and 95: 90 | ADVANCED MANUFACTURING: OPPORT
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Page 100 and 101: 96 | Contribution to the economy St
Page 102 and 103: 98 | BUSINESS PROCESS OUTSOURCING (
Page 104 and 105: 100 | FINANCE AND INSURANCE • The
Page 106: 102 | OCEANS ECONOMY • Several fa
Page 111: | 107 AN EXTENSIVE INFRASTRUCTURE D
Page 115: GREEN INFRASTRUCTURE INVESTMENT OPP
Page 119 and 120: SOUTH AFRICA: BUILDING PARTNERSHIPS
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