May 15, 2016
A Look at the Top Facts on South Africa’s Targets for Foreign Investment
South Africa is doing well – very well, in fact. Minister Siyabonga Cwele, chair of the International Cooperation, Trade and Security cluster, was pleased to announce that between April 1 and December 31, 2015 (the three first quarters of the financial year), South Africa surpassed its target for foreign investment. And it didn’t just slightly surpass it. Its target was R 45 billion; the actual investments were almost R 20 billion more. Here’s a look at the top facts on South Africa’s targets for foreign investment.
In Cwele’s words
There’s no doubt foreign investment is important to support the nation’s growth. “For citizens,” Minister Cwele confirmed, “the investment means an opportunity to work, to develop their skills, earn a sustainable income and feed a family.” Naturally, a man or woman who can work will spend and contribute to the local economy.
A large part of these investments come from the EU. “Over 2,000 EU companies are operating within South Africa,” Cwele reported, “which means about 350,000 jobs. The EU also contributes about R 1.5 billion to infrastructure development for domestic and regional programmes through the Infrastructure Investment Programme.”
Tourism a vital sector
Trade and investments are not the only factors that benefit South Africa. Tourism is a vital sector, contributing about 9% of the GDP – about one in ten families depend on it. In fact, according to Cwele, the country hasn’t unlocked its full potential yet. For this reason, the Department of Tourism has launched skill development programmes. “These include training 577 young people as chefs this year, instructing 300 youths in the art of serving wine expertly as professional sommeliers, and teaching unemployed graduates to become food safety assurers, who ensure that the food served at our establishments is stored, prepared and served safely.”
Innovation on the rise
South Africa is doing a lot more than working on its tourism sector, however. In fact, in a recent paper, three authors – Stephen J. Ezell, Adams B. Nager and Robert D. Atkinson – ranked South Africa 30th out of 56 researched countries that have policies in place conducive for innovation. Innovation is a key to progress, and the fact that South Africa ranks way above its BRICS partners should come as no surprise. South Africa, therefore, has a healthy mentality when it comes to education, investments in scientific research, and R&D – all in line with the international community and a global outlook.
And the country doesn’t stop there. Its international film productions boost the economy, the country is planning a platinum economic zone, and SweepSouth has received a multimillion Rand investment. The country is on the rise; it has transformed itself and its transformation is far from complete. But whether you are looking at South Africa or other countries in the continent for Africa business opportunities, make sure these Africa business opportunities are more than worth your time, effort, and resources.
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