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

South Africa's investment proposal

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| 53<br />

Sector<br />

Hydrocarbons,<br />

particularly natural gas<br />

Opportunity<br />

Large offshore and onshore gas reserve discoveries <strong>in</strong>,<br />

<strong>for</strong> example, Mozambique and Tanzania present huge<br />

development opportunities <strong>for</strong> energy generation, among<br />

others.<br />

Manufactur<strong>in</strong>g<br />

Infrastructure<br />

<strong>The</strong>re is a wide range of opportunities, <strong>in</strong>clud<strong>in</strong>g<br />

development of value cha<strong>in</strong>s such as petro-chemicals,<br />

food process<strong>in</strong>g and beverages production, m<strong>in</strong>erals<br />

beneficiation and metal products fabrication, <strong>for</strong>estry and<br />

wood process<strong>in</strong>g, textiles and cloth<strong>in</strong>g, footwear, etc.<br />

<strong>The</strong>re are many development opportunities across the<br />

<strong>in</strong>frastructure spectrum, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>put requirements<br />

associated with <strong>Africa</strong>’s ongo<strong>in</strong>g <strong>in</strong>frastructure and <strong>in</strong>dustrial<br />

development drive.<br />

Forestry and wood<br />

process<strong>in</strong>g opportunities<br />

<strong>The</strong>re is substantial potential <strong>in</strong> commercial <strong>for</strong>estry and<br />

downstream development <strong>in</strong> the respective value cha<strong>in</strong>s.<br />

Consumer goods<br />

<strong>Africa</strong> has approximately 1.3-billion consumers, a young<br />

population, ris<strong>in</strong>g disposable <strong>in</strong>come, a grow<strong>in</strong>g middle<br />

class and <strong>in</strong>creas<strong>in</strong>gly sophisticated consumer segments.<br />

<strong>The</strong>se factors are <strong>in</strong>dicative of numerous opportunities <strong>for</strong><br />

consumer-oriented <strong>in</strong>dustries.<br />

Bank<strong>in</strong>g sector/f<strong>in</strong>ancial<br />

services<br />

<strong>The</strong>re has been rapid growth <strong>in</strong> the past decade, with<br />

f<strong>in</strong>ancial sector re<strong>for</strong>ms underp<strong>in</strong>n<strong>in</strong>g this momentum.<br />

In<strong>for</strong>mation and<br />

communications<br />

technology<br />

This has been an important driver beh<strong>in</strong>d <strong>Africa</strong>’s economic<br />

growth <strong>in</strong> recent years, underp<strong>in</strong>ned by an already<br />

substantial and rapidly expand<strong>in</strong>g subscriber base.<br />

Regional <strong>in</strong>tegration<br />

Regional economic communities (<strong>for</strong> example, SADC,<br />

SACU, Common Market <strong>for</strong> Eastern and <strong>South</strong>ern <strong>Africa</strong><br />

(COMESA) and East <strong>Africa</strong>n Community (EAC)) are<br />

key drivers of economic growth, <strong>in</strong>vestment activity <strong>in</strong><br />

<strong>in</strong>frastructure and productive activities, as well as <strong>in</strong>tra-<br />

<strong>Africa</strong>n trade. <strong>The</strong> <strong>Africa</strong>n Cont<strong>in</strong>ental Free Trade Area<br />

(AfCFTA) will br<strong>in</strong>g together 54 <strong>Africa</strong>n countries with a<br />

comb<strong>in</strong>ed population of around 1.3-billion people.

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